In the United States, some fuel types usage does not require paying taxes. People and entities can ask for credits if they have already paid by submitting IRS Form 4136. This document is normally filed by the last fuel users (farmers, entities that deal with equipment demanding fuel, and so on).
You should meet certain demands to file the document. The full list is available on the Service’s website. Generally, you can claim by sending IRS Form 4136 if you use the fuel for:
And many other activities and purposes. You can contact the Service personnel before completing the form to determine whether you can or cannot file.
Among entities, there is an exception: partnerships cannot submit this form. They should use other templates (check the US Internal Revenue Service guidance on that).
You must be careful with this document because, according to the Service, it is on the list of top forms used to commit fraudulent actions in tax matters. If you try to lie and cheat, you can get a huge fine (several thousands of US dollars) or even go to prison. Every form delivered to the Service is carefully reviewed, so fraudsters can be easily caught and judged.
Keep reading our review if you have read the rules provided by the Service and found out that you are allowed to claim.
The document is tricky, with a lot of sections that describe various fuel types usage. Because we have already mentioned the frauds many people commit using the form, we advise you to complete all the fields honestly and gather all the receipts or documents proving all the inserted numbers.
Moreover, it would be a smart move to ask either your accountant or an external specialist to make the form for you. They definitely will deal with the content quicker and get all the required data from the entity’s books (or your personal books). The form presumes you have to do a bunch of calculations, and the whole process might be too harsh.
We hope you decide to delegate the form creation. However, if you want to get the idea of how the template looks like and what info people enter there, see our short guide below. Also, always remember to use the Service’s guidelines for more details (presumably, you will not be able to complete the template without them).
Find the Template
At first, you need to get the newest template so the Service accepts your document. You can visit the authority’s official site and look for it there, but it might take some time you do not want to waste.
So, we recommend using our well-made form-building software. It allows you to generate IRS Form 4136 along with many other legal forms that exist in the United States.
Enter Your Name and TIN
You should begin completing the template by entering your name (the same as you have provided in your tax return) and TIN (or taxpayer identification number).
Read the Caution Attentively
There is a caution you need to read before you start. It has a few instructions about the template’s specific lines.
Choose the Sections to Fill Out
You have to look through the template and define what credit you will claim. There are various sections that let you claim credits for gasoline, kerosene, biodiesel, aviation gasoline, and other fuel types usage. Complete only those relevant for you.
Inform about the Gasoline Usage
You must write about gasoline usage throughout the year in the first section. Insert type of use (where applicable), number of gallons, and requested credit sum (take the rates from this chart and multiply them to your gallons).
Do the Same for Gasoline Used for Aviation Purposes
Fill out the chart describing the credit for such fuel usage.
Determine Credits for Undyed Diesel and Kerosene
The principle is the same: complete the following three charts as the template prescribes. If there are any traces of dyed fuel, you need to check the relevant box and add a statement explaining the matter.
Claim for Fuel Sales by Registered Ultimate Vendors
If you are a vendor and this is your case, complete the charts as required (the same way as previously) and remember to add your registration number in the designated line.
Ask for the Credit for Biodiesel, Alternative Fuel, or Renewable Diesel Mixture
Complete three charts below if you want credit for these fuel types’ usage.
Complete the Credit Card Issuers Section
If you issued credit cards others used to buy fuel from you, fill this section out in accordance with the Service’s instructions.
Determine the Diesel-Water Fuel Emulsion and Its Blending
If applicable, describe these items in the two following charts.
Add Info about Export
If you exported dyed fuels during the considered year, add the data in the last chart.
Sum Everything Up
You have to write a total credit you ask for in the last section. Sum all the numbers you have inserted previously and enter the result here.
Every year, the terms vary. However, the Service usually accepts such forms for a period of six months, so you do not have to worry because there is enough time.