Section 5. DIESEL FUEL USED IN

CERTAIN INTERCITY BUSES

(a) Overview . Before January 1, 2005, the penalty imposed by § 6715 on the misuse of dyed diesel fuel and dyed kerosene did not apply to dyed fuel used in buses while engaged in intercity bus transportation, as defined in paragraph (b) of this sec

January 10, 2005 297 2005–2 I.R.B.

(f) Waiver —(1) In general . The ultimate purchaser waives its right to credit or payment for purposes of § 6427(b)(4) by providing a statement that is signed under penalties of perjury by a person with authority to bind the ultimate purchaser, is in substantially the same form as the model waiver in paragraph (f)(2) of this section, and contains all of the information necessary to complete such model waiver. A new waiver must be given if any information in the current waiver changes. The claimant must have the waiver at the time the credit or payment is claimed under § 6427(b)(4). The waiver may be included as part of any business records normally used to document a sale. The waiver expires on the earlier of the following dates:

(i) The date one year after the effective date of the waiver.

(ii) The date a new waiver is provided. (2) Model waiver .

(1) Tax was imposed on the diesel fuel or kerosene under § 4081;

(2) The claimant sold the diesel fuel or kerosene to the ultimate purchaser for use in intercity bus transportation;

(3) The claimant is a registered ultimate vendor;

(4) The ultimate purchaser has waived the right to payment as provided in paragraph (f) of this section; and

(5) The claimant has filed a timely claim for a credit or payment and the claim contains all of the information required in paragraph (e) of this section.

(d) Form of claim . A claim under § 6427(b)(4) for a payment is made on Form 8849, Claim for Refund of Excise Taxes, and a claim under § 6427(b)(4) for an income tax credit is made on Form 4136, Credit for Federal Tax Paid on Fu- els .

(e) Content of claim . Each claim for a credit or payment under § 6427(b)(4) must contain the following information with respect to the diesel fuel or kerosene covered by the claim:

(1) The total number of gallons. (2) The claimant’s registration number. (3) A statement that the claimant— (i) Has not included the amount of the tax in its sales price of the diesel fuel or kerosene and has not collected the amount of tax from its buyer;

(ii) Has repaid the amount of the tax to the ultimate purchaser of the fuel; or

(iii) Has obtained the written consent of its buyer to allowance of the claim.

(4) A certification that the claimant has in its possession an unexpired waiver described in paragraph (f) of this section and has no reason to believe any information in the waiver is false.

WAIVER FOR USE BY ULTIMATE PURCHASERS OF DIESEL FUEL OR

KEROSENE USED IN INTERCITY BUS TRANSPORTATION

(To support vendor’s claim for a credit or payment under § 6427 of the Internal Revenue Code.)

Name, address, and employer identification number of ultimate vendor

The undersigned ultimate purchaser (“Buyer”) hereby certifies the following under the penalties of perjury:

The diesel fuel or kerosene to which this waiver relates is purchased for use in intercity bus transportation.

This waiver applies to the following (complete as applicable):

This is a single purchase waiver:

1. Invoice or delivery ticket number

2. Number of gallons

This is a waiver covering all purchases under a specified account or order number:

1. Effective date

2. Expiration date (period not to exceed 1 year after the effective date)

3. Buyer account number

Buyer will provide a new waiver to the vendor if any information in this waiver changes.

If Buyer uses the diesel fuel or kerosene to which this waiver relates for a use other than in intercity bus transportation, Buyer will be liable for tax.

Buyer understands that by signing this waiver, Buyer gives up its right to claim any credit or payment for diesel fuel or kerosene used in intercity bus transportation during the period indicated.

Buyer acknowledges that it has not and will not claim any credit or payment for the diesel fuel or kerosene to which this waiver relates.

2005–2 I.R.B. 298 January 10, 2005

Buyer understands that the fraudulent use of this waiver may subject Buyer and all parties making such fraudulent use of this waiver to a fine or imprisonment, or both, together with the costs of prosecution.

Printed or typed name of person signing

Title of person signing

Name of Buyer

Employer identification number

Address of Buyer

Signature and date signed

dor) is set forth in this section. As noted in section 11 of this notice, Notice 89–29, 1989–1 C.B. 669, which provided guidance under former § 6416(a)(4), is obsolete.

(ii) Sales on oil company credit cards . Under the rules in effect prior to 2005, a sale charged on an oil company credit card issued to an exempt person is not considered a direct sale by the person actually selling the gasoline to the ultimate purchaser ( i.e., the person selling the gasoline is not the ultimate vendor) if the person actually selling the gasoline receives a reimbursement from the oil company based on a price that excludes the tax. Treasury and the Service are considering whether this rule has continuing applicability under new § 6416(a)(4) but, while considering the issue, will continue generally to apply the rule with respect to sales before March 1, 2005. Therefore, in the case of a sale of gasoline before March 1, 2005, on an oil company credit card issued to a state or nonprofit educational organization, the person that actually paid the tax is treated as the only person eligible to make the claim under §§ 6402 and 6416. As noted in paragraph (a)(1)(i) of this section, these claims must be in accordance with §§ 48.6416(a)–3(b) and 48.6416(b)(2)–3. If Treasury and the Service determine that the oil company credit card rule does not have continued application after February 28, 2005, commentators have suggested that persons paying the tax on gasoline (position holders) will find it difficult to determine whether they or the ultimate vendors of the gasoline are eligible for refunds. This, in turn, could re

(g) Registration —(1) In general . Application for registration as a registered ultimate vendor of diesel fuel or kerosene used in intercity bus transportation is made on Form 637, Application for Registration (For Certain Excise Tax Activities), in accordance with the instructions for that form. A person that is registered under § 4101 under Activity Letter “UV” is treated as registered for purposes of claims with respect to diesel fuel or kerosene used in intercity bus transportation for claims filed before July 1, 2005.

(2) Requirements . The Service will register an applicant as an ultimate vendor of diesel fuel or kerosene used in intercity bus transportation only if the Service—

(i) Determines that the applicant is, in the course of its trade or business, regularly engaged as a seller of diesel fuel or kerosene for use in intercity bus transportation or is likely to become so engaged within a reasonable time after being registered under § 4101; and

(ii) Is satisfied with the filing, deposit, payment, reporting, and claim history for all federal taxes of the applicant and any related person (as defined in § 48.4101–1(b)(5)).