Section 7. GASOLINE; CLAIMS BY

REGISTERED ULTIMATE VENDORS

(a) Overview —(1) Claims by the person that paid the tax —(i) In general . Section 6416(b)(2) generally provides that the tax paid on gasoline is deemed to be an overpayment if the gasoline was sold to a state for its exclusive use or to a nonprofit educational organization for its exclusive use. Section 6402(a) generally allows credits or refunds of overpayments to the person that made the overpayment (that is, the person that paid the tax to the government). Section 6416(a)(4) provides that the ultimate vendor of the gasoline is treated as the person (and the only person) that paid the tax, but only if such ultimate vendor is registered under § 4101. Thus, if the ultimate vendor is not registered as described in this section, then the person that actually paid the tax to the government may make the claim allowed by § 6416(b)(2). Guidance for claims by the person that actually paid the tax is set forth in §§ 48.6416(a)–3(b) and 48.6416(b)(2)–3. Guidance for claims by the person that is treated as having paid the tax (that is, the registered ultimate ven

January 10, 2005 299 2005–2 I.R.B.

(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 gasoline 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 statement that the claimant has in its possession an unexpired certificate described in paragraph (f) of this section and has no reason to believe any information in the certificate is false.

(f) Certificate —(1) In general . The certificate to be provided to the ultimate vendor consists of a statement that is signed under penalties of perjury by a person with authority to bind the buyer, is in substantially the same form as the model certificate in paragraph (f)(2) of this section, and contains all of the information necessary to complete such model certificate. A new certificate must be given if any information in the current certificate changes. The certificate may be included as part of any business records normally used to document a sale. The certificate expires on the earlier of the following dates:

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

(ii) The date a new certificate is provided.

(2) Model certificate .

sult in multiple refund claims with respect to the same transaction. Congress may wish to address this issue prior to March 1, 2005, and Treasury and the Service will assist Congress in designing an administrable alternative.

(2) Claims by the ultimate purchaser . A claim for a credit or refund under § 6416 by the person that paid the tax (or that is treated as having paid the tax) is an alternative to a claim for an income tax credit or payment under § 6421(c) by the ultimate purchaser (that is, the state or nonprofit educational organization). For any particular transaction, a claim may not be made under § 6421(c) if the tax is credited or refunded under § 6416 to either the ultimate vendor or the person that actually paid the tax.

(b) Definitions . Nonprofit educational organization has the meaning given to the term in § 4221(d)(5).

Registered ultimate vendor is a person that sells gasoline to a state for its exclusive use or to a nonprofit educational organization for its exclusive use and is registered as an ultimate vendor under § 4101.

State has the meaning given to the term by § 48.4081–1(b).

(c) Conditions to allowance of a credit or refund . A claim for credit or refund of an overpayment of tax is allowable under § 6416(b)(2)(C) or (D) and § 6416(a)(4) (relating to refunds of gasoline tax to registered ultimate vendors) if—

(1) The claimant sold the gasoline to a state for its exclusive use or to a nonprofit educational organization for its exclusive use;

(2) The claimant is a registered ultimate vendor; and

(3) The claim contains all of the information required in paragraph (e).

(d) Form of claim —(1) In general . A claim under § 6416(b)(2)(C) or (D) and § 6416(a)(4) is made—

(i) In the case of a claim for a refund, on Form 8849, Claim for Refund of Excise Taxes ; and

(ii) In the case of a claimant reporting liability on Form 720, as a claim on Form 720 for an excise tax credit. (2) Electronic claim certification to the Secretary . Section 6416(a)(4)(B) provides that electronic claims for refund under § 6416(a)(4) will be paid with interest if the claim is not paid within 20 days of the date it is filed and the claimant certifies that all ultimate purchasers are certified and entitled to a refund. This notice does not provide guidance on these certification procedures. These procedures and the procedures for filing an electronic claim will be prescribed in subsequent guidance.

(e) Content of claim . Each claim under § 6416(b)(2)(C) or (D) or § 6416(a)(4) for a credit or payment must contain the following information with respect to the gasoline covered by the claim:

(1) The total number of gallons.

CERTIFICATE FOR STATE USE OR NONPROFIT EDUCATIONAL

ORGANIZATION USE

(To support ultimate vendor’s claim for a credit or refund under § 6416(a)(4) 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:

Buyer will use the gasoline to which this certificate relates (check one):

For the exclusive use of a state; or

For the exclusive use of a nonprofit educational organization.

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

2005–2 I.R.B. 300 January 10, 2005

This is a single purchase certificate:

1. Invoice or delivery ticket number

2. Number of gallons

This is a certificate 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 certificate to the vendor if any information in this certificate changes.

Buyer understands that by signing this certificate, Buyer gives up its right to claim a credit or payment for the gasoline to which this certificate relates.

Buyer acknowledges that it has not and will not claim any credit or payment for the gasoline to which this certificate relates.

Buyer understands that the fraudulent use of this certificate may subject Buyer and all parties making such fraudulent use of this certificate 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

the time of the exchange, the delivering person has an unexpired notification certificate (described in § 48.4081–5) from the receiving person and has no reason to believe any information in the certificate is false.

Section 9. GASOLINE BLENDS, TRANSMIX, DIESEL FUEL BLENDSTOCKS

(a) Gasoline blends . Section 4083(a) (2) defines gasoline as including gasoline blends other than qualified methanol or ethanol fuel (as defined in § 4041(b)(2)(B)), partially exempt methanol or ethanol fuel (as defined in § 4041(m)(2)) or a denatured alcohol. Thus, for example, gasoline includes any gasoline/ethanol blend unless at least 85 percent of the blend consists of alcohol made from coal, at least 85 percent of the blend consists of alcohol made from nat

(g) Registration —(1) In general . Application for registration as a registered ultimate vendor of gasoline is made on Form 637, Application for Registration (For Cer- tain Excise Tax Activities), in accordance with the instructions for that form. A person that is registered under § 4101 under Activity Letter “UV” or “UP” (Ultimate vendor that sells kerosene from a blocked pump) is treated as registered for purposes of claims under this section and will not have to be reregistered unless notified to do so by the Service.

(2) Requirements . The Service will register an applicant as an ultimate vendor of gasoline only if the Service—

(i) Determines that the applicant is, in the course of its trade or business, regularly engaged as a seller of gasoline to states or nonprofit educational organizations, 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)).