Filing Claims — Publication 510

This section tells you how to make a claim for a credit or refund of excise taxes on fuels. This section also covers recordkeeping requirements and when to include the credit or refund in your income.

Generally, you will provide all the information needed to claim a credit or refund when you properly complete Form 8849; Form 4136; or Form 720, Schedule C. In some cases, you will have to attach additional information. You need to keep records that support your claim for a credit or refund.

Records: Keep at your principal place of business all records needed to enable the IRS to verify that you're the person entitled to claim a credit or refund and the amount you claimed

Ultimate purchaser. Ultimate purchasers may make claims for the nontaxable use of fuels on Form 4136; Schedule 1 (Form 8849); or Form 720, Schedule C, if reporting excise tax liability on that return. If you're an ultimate purchaser, you must keep the following records.

The number of gallons purchased and used during the period covered by your claim.
The dates of the purchases.
The names and addresses of suppliers and amounts purchased from each in the period covered by your claim.
The nontaxable use for which you used the fuel.
The number of gallons used for each nontaxable use.

It's important that your records show separately the number of gallons used for each nontaxable use that qualifies as a claim. If the fuel is exported, you must have proof of exportation.

For more information about keeping records, see Pub. 583, Starting a Business and Keeping Records, or chapter 1 of Pub. 17, Your Federal Income Tax for Individuals.

Exceptions.

Generally, the ultimate purchaser may not claim a credit or refund for undyed diesel fuel, undyed kerosene, or kerosene for use in aviation sold for the exclusive use of a state or local government. However, see Claims by credit card issuers, later, for an

exception.

The ultimate purchaser may not claim a credit or refund as follows.

a. The ultimate purchaser of gasoline or

aviation gasoline used by a state or local government for its exclusive use or by a nonprofit educational organization for its exclusive use may waive its right to make a claim by providing a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate M. A new certificate is required each year or when any information in the current certificate expires.

b. The ultimate purchaser of kerosene

for use in commercial aviation or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate

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purchaser and is in the same format as the Model Waiver L. A new waiver is required each year or when any information in the current waiver expires.

c. The ultimate purchaser of undyed die sel fuel or undyed kerosene used in certain intercity and local buses may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver N. A new waiver is required each year or when any information in the current waiver expires.

d. The ultimate purchaser of kerosene

for use in nonexempt, noncommercial aviation must provide a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate Q. A new certificate is required each year or when any information in the current certificate expires.

Registered ultimate vendor. Registered ultimate vendors may make claims for certain sales of fuels on Form 720, Schedule C; Form 4136; or Schedule 2 (Form 8849) if reporting excise tax liability on that return. If you're a registered ultimate vendor, you must keep certain information pertaining to the sale of the fuel.

To make a claim, you must have sold the fuel at a tax-excluded price, repaid the tax to the buyer, or obtained the buyer's written consent to the allowance of the claim. You're required to have a valid certificate or waiver in your possession in order to make the claim.

In addition, you must have a registration number that hasn’t been revoked or suspended. See Form 637.

State use. To make a claim as an ultimate vendor (state), you must have a UV registration number and the fuel can't be purchased with a credit card, as explained below. If you sell undyed diesel fuel, undyed kerosene, or kerosene for use in aviation for use by a state or local government, you must keep the following information.

The name and TIN of each person (government unit) that bought the fuel.
The number of gallons sold to each person.
An unexpired certificate from the buyer. See Model Certificate P in the Appendix. The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor.

Nonprofit educational organization and state use. To make a claim as an ultimate vendor (nonprofit educational organization or state), you must have a UV registration number and the fuel can't be purchased with a credit card, as explained later. If you sell gasoline or aviation gasoline to a nonprofit educational organization for its exclusive use or to a state or

local government for its exclusive use, you must keep the following information.

The name and TIN of each person (nonprofit educational organization or government unit) that bought the fuel.
The number of gallons sold to each person.
An unexpired certificate from the buyer. See Model Certificate M in the Appendix. The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor.

Kerosene for use in nonexempt, non- commercial aviation. To make a claim as an ultimate vendor of kerosene for use in nonexempt, noncommercial aviation, you must have a UA registration number. You must keep the following information.

The date of each sale.
The name and address of the buyer.
The number of gallons sold to the buyer.
A copy of the certificate signed by the buyer at the time the credit or payment is claimed. See Model Certificate Q in the Appendix.

Claims by credit card issuers. For sales of gasoline, aviation gasoline, diesel fuel, kerosene, or kerosene for use in aviation that are

purchased by an exempt user with the use of a credit card, the registered credit card issuer is the only person who can make the claim. An exempt user for this purpose is:

For gasoline or aviation gasoline, a state or local government (including essential government use by an Indian tribal government) or a nonprofit educational organization; or
For diesel fuel, kerosene, or kerosene for use in aviation, a state or local government (including essential government use by an Indian tribal government).

Blocked pump. To make a claim as an ultimate vendor (blocked pump), you must have a "UP" registration number. If you sell undyed kerosene (other than kerosene for use in aviation) from a pump that qualifies as a blocked pump because it's locked by you after each sale and is unlocked by you at the request of the buyer, you must keep the following information for each sale of more than 5 gallons.

The date of each sale.
The name and address of the buyer.
The number of gallons sold to that buyer.

Certain intercity and local bus use. To make a claim as an ultimate vendor of undyed diesel fuel or undyed kerosene used in certain intercity and local buses, you must have a UB registration number. You must keep the following information.

The date of each sale.
The name and address of the buyer.
The number of gallons sold to the buyer.
A copy of the waiver signed by the buyer at the time the credit or payment is claimed. See Model Waiver N in the Appendix.

Kerosene for use in commercial aviation or noncommercial aviation. To make a claim as an ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia), you must have a UA registration number. See Kerosene for Use in Aviation , earlier, for a list of nontaxable uses. You must keep the following information.

The date of each sale.
The name and address of the buyer.
The number of gallons sold to the buyer.
A copy of the waiver signed by the buyer at the time the credit or payment is claimed. See Model Waiver L in the Appendix.

If gasoline is purchased without the use of a credit card, then the registered ultimate vendor of the gasoline may make the claim for refund or credit. However, if the gasoline is purchased with a credit card issued to a state, but the credit card issuer isn't registered by the IRS or doesn't meet the conditions described, the credit card issuer must collect the tax and the state may make the claim.

If diesel fuel, kerosene, or kerosene for use in aviation is purchased without the use of a credit card, the registered ultimate vendor may make the claim for refund or credit. A state isn't allowed to make a claim for these fuels. However, if the diesel fuel or kerosene is purchased with a credit card issued to a state, but the credit card issuer isn't registered by the IRS or doesn't meet the conditions described, the credit card issuer must collect the tax and the state may make the claim.

The claim from the credit card issuer must contain the following information as it applies to the fuel covered in the claim.

The total number of gallons.
Its registration number.
A statement that it hasn’t collected the amount of tax from the ultimate purchaser or has obtained the written consent of the ultimate purchaser to make the claim.
A statement that it has repaid or agreed to repay the amount of tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to make the claim, or has otherwise made arrangements that directly or indirectly provide the ultimate vendor with reimbursement of the tax.
Has in its possession an unexpired certificate similar to Model Certificate R in the Appendix and has no reason to believe any of the information in the certificate is false.

Taxpayer identification number (TIN). To file a claim, you must have a TIN. Your TIN can be:

An employer identification number (EIN);
A social security number (SSN); or
An individual taxpayer identification number (ITIN), if you're an alien individual and don't have and aren’t eligible to get an SSN.

If you normally file only a U.S. individual income tax return (such as Form 1040 or 1040-NR), use your SSN or ITIN. You get an SSN by filing Form SS-5, Application for a Social Security Card, with the Social Security Administration. To get an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS.

If you operate a business, use your EIN. If you don't have an EIN, you may apply for one online by going to IRS.gov/EIN . You may also

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apply for an EIN by faxing or mailing Form SS-4, Application for Employer Identification Number, to the IRS.

Claiming a Refund

Generally, you may claim a refund of excise taxes on Form 8849. Complete and attach to Form 8849 the appropriate Form 8849 schedules. The Instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. If you file Form 720, you can use the Form 720, Schedule C, for your refund claims for the quarter. See the Instructions for Form 720. Don't claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Form 720, Schedule C; Form 8864; or Form 4136.

Only one credit may be taken for each amount of any fuel type.

Claiming a Credit on Form 4136

A credit may be claimed for certain uses and sales of fuels on Form 4136 when you file your income tax return at the end of the year. If you meet certain requirements (discussed earlier), you may be able to make a claim during the year.

Credit only. You can claim the following taxes only as a credit on Form 4136.

Tax on fuels used for nontaxable uses if the total for your tax year is less than $750.
Tax on fuel you didn’t include in any claim for refund previously filed for any quarter of your tax year.
Tax on fuel you used in mobile machinery (off-highway business use) that traveled less than 7,500 miles on public highways.

Only one credit may be taken for each amount of any fuel type. Don't claim a credit for any amount for which you have filed a refund or credit claim on Form 8849; 8864; or credit on Form 720, Schedule C.

When to file. You can claim a fuel tax credit on your income tax return for the year you used the fuel (or sold the fuel in the case of a registered ultimate vendor claim).

Tip: You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. Generally, you must file an amended return by the later of 3 years from the date you filed your original return or within 2 years from the date you paid the income tax.

How to claim a credit. How you claim a credit depends on whether you're an individual, partnership, corporation, S corporation, or farmers' cooperative association.

Individuals. You claim the credit on Schedule 3 (Form 1040), line 12. If you wouldn’t otherwise have to file an income tax return, you must do so to get a fuel tax credit.

Partnerships. Partnerships claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc., showing each partner's

share of the number of gallons of each fuel sold or used for a nontaxable use, the type of use, and the applicable credit per gallon. Each partner claims the credit on their income tax return for the partner's share of the fuel used by the partnership.

Other entities. Corporations, S corporations, farmers' cooperative associations, and trusts must make the claim on the appropriate line of their applicable income tax return.

Federal, state, and local governments, and certain tax-exempt organizations (as discussed earlier, under Claiming A Refund ) must use Form 8849, not Form 4136, to make an annual claim.

Including the Credit or Refund in Income

Caution: In most situations, the amount claimed as a credit or refund will be less than the amount deducted as fuel tax expense because the LUST tax is generally not refunded.

Include any credit or refund of excise taxes on fuels in your gross income if you claimed the total cost of the fuel (including the excise taxes) as an expense deduction that reduced your income tax liability.

The year you include a credit or refund in gross income depends on whether you use the cash or an accrual method of accounting.

Cash method. If you use the cash method and file a claim for refund, include the refund amount in your gross income for the tax year in which you receive the refund. If you claim a credit on your income tax return, include the credit amount in gross income for the tax year in which you file Form 4136. If you file an amended return and claim a credit, include the credit amount in gross income for the tax year in which you receive the credit.

Example 1. Sharon Brown, a cash basis farmer, filed a 2025 Form 1040 on March 3, 2026. On the Schedule F (Form 1040), Sharon deducted the total cost of gasoline (including $110 of excise taxes) used on the farm. Then, on Form 4136, Sharon claimed $108 as a credit. Sharon reports the $108 as additional income on the 2026 Schedule F (Form 1040).

Example 2. March Corporation uses the calendar year as its tax year. For 2025, the following amounts of excise tax were included in the cost of gasoline the corporation used each quarter in a nontaxable use.

Calendar Quarters . . . . Fuel Tax Expense

Fuel Tax

Claim

Jan. 1 – March 31 . . . . . . $1,300 $1,293

April 1 – June 30 . . . . . . . 1,100 1,094

July 1 – Sept. 30 . . . . . . . 400 397

Oct. 1 – Dec. 31 . . . . . . . 300 298

Total $3,100 $3,082

The corporation deducts the entire cost of the gasoline (including the $3,100 in excise

taxes) it used during the year as a business expense on its corporation income tax return, thereby reducing its corporate income tax liability for that year.

Form 8849. March Corporation files quarterly refund claims for the first 2 quarters (ending March 31 and June 30). It can't file a quarterly refund claim for the third or fourth quarter because it didn’t meet the $750 minimum requirement.

Since March Corporation uses the cash method of accounting, the corporation includes $2,387 ($1,293 + $1,094) in its gross income for the tax year in which it receives the refunds (2025, for the purposes of this example).

Form 4136. The corporation claims the remaining amounts ($397 + $298) as a credit on its 2025 income tax return by attaching Form 4136. It files its tax return in 2026. It includes this credit ($695) in its 2026 gross income.

Example 3. Tyler S. Sands used undyed diesel fuel in vehicles used in the construction business. The vehicles weren’t registered (or required to be registered) for highway use. In the fourth quarter of 2024 income tax year, which ends in December, Tyler used 3,000 gallons of undyed diesel fuel. The excise tax on the 3,000 gallons of undyed diesel fuel used was $732 (tax of $0.244 per gallon).

Because the tax is less than $750, Tyler must claim a credit for the tax on the 2024 income tax return. Tyler fills out Form 4136 and attaches it to the 2024 income tax return, which Tyler files in 2025. Tyler enters $729 (credit of $0.243 per gallon) on Schedule 3 (Form 1040), line 12.

Tyler uses the cash method of accounting. On the 2024 Schedule C (Form 1040) Tyler deducts the total cost of the fuel, including the tax. When Tyler files a 2025 Form 1040, it will include the $729 credit shown on the 2024 Form 4136 as additional income on the Schedule C (Form 1040) for 2025.

For the first 2 quarters of 2025, Tyler's records show the following.

Claim Claim Quarter Gallons Used Tax Rate Amount

First 2,750 0.243 $668.25 Second 2,500 0.243 607.50

Tyler couldn’t file a claim for a refund for the first quarter because the amount of the claim was less than $750. Tyler adds the first quarter amount ($668.25) to the second quarter amount ($607.50) and claims a refund of $1,275.75 by filing Form 8849 and Schedule 1 (Form 8849). The claim must be filed by September 30, 2025, which is the last day of the first quarter (July – September) following the last quarter (April – June) included in the claim. Tyler will have to include the $1,275.75 excise tax refund as additional income on a Schedule C (Form 1040) for 2025 if he deducts the total cost of the fuel, including the tax.

Accrual method. If you use an accrual method, include the amount of credit or refund in gross income for the tax year in which you used the fuels (or sold the fuels if you're a registered ultimate vendor). It doesn't matter whether you filed for a quarterly refund or claimed the entire amount as a credit.

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Example 1. Patty Green uses an accrual method. Patty files a 2025 return in April 2026. On Schedule C (Form 1040) Patty deducts the total cost of gasoline (including $155 of excise taxes) used for an off-highway business use during 2025. On Form 4136, Patty claims $153

as a credit. The $153 is reported as additional income on the 2025 Schedule C (Form 1040).

Example 2. Use the same facts as in the earlier Example 2, except that March Corporation uses an accrual method of accounting.

Since the nontaxable use occurred in 2025, the corporation reports the $3,082 of excise tax refunds and credits as income on its 2025 income tax return. This consists of the $2,387 it claimed on Form 8849 and the $695 it claimed on Form 4136.

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