Refunds or Payments — Publication 510

Caution: The tax on dyed diesel fuel for inland waterways fuel use applies at the rate listed on Form 720. This is in addition to all other taxes imposed on the sale or use of the fuel. The section 4081(e) refund can't be claimed.

If the tax is paid and reported to the government on more than one taxable event for a taxable fuel under section 4081, the person paying the “second tax” may claim a refund or payment (without interest) of that tax if certain conditions and reporting requirements are met. No credit against any tax is allowed for this tax. For information about taxable events, see the discussions under Gasoline , Diesel Fuel and Kero- sene, and Kerosene for Use in Aviation in chapter 1.

Conditions to allowance of refund or pay- ment. A claim for refund or payment of the tax is allowed only if all the following conditions are met.

A tax on the fuel was paid to the government and not credited or refunded (the “first tax”).
After the first tax was imposed, another tax was imposed on the same fuel and was paid to the government (the “second tax”).
The person that paid the second tax filed a timely claim for refund or payments containing the information required. See Re- funds or Payments of Second Tax, later.
The person that paid the first tax has met the reporting requirements.

Reporting requirements. Generally, the person that paid the first tax must file a “First Taxpayer's Report” with its Form 720 for the quarter to which the report relates. A model first taxpayer's report is shown in the Appendix as Model Certificate B. The report must contain all information needed to complete the model certificate.

By the due date for filing the Form 720, you must also send a separate copy of the report to the following address.

Department of the Treasury Internal Revenue Service Cincinnati, OH 45999-0555

Write “EXCISE – FIRST TAXPAYER'S REPORT” across the top of that copy.

Optional reporting. A first taxpayer's report isn't required for the tax imposed on:

Removal at a terminal rack,
Nonbulk entries into the United States, and
Removals or sales by blenders.

However, if the person liable for the tax expects that another tax will be imposed on that fuel, that person should (but isn't required to) file a first taxpayer's report.

Providing information. The first taxpayer must give a copy of the report to the buyer of the fuel within the bulk transfer/terminal system or to the owner of the fuel immediately before the first tax was imposed, if the first taxpayer isn't the owner at that time. If an optional report is filed, a copy should (but isn't required to) be given to the buyer or owner.

A person that receives a copy of the first taxpayer's report and later sells the fuel within the bulk transfer/terminal system must give the copy and a “Statement of Subsequent Seller” to the buyer. If the later sale is outside the bulk transfer/terminal system and that person

No.	Type of Use
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16	On a farm for farming purposes Off-highway business use (for business use other than in a highway vehicle registered or required to be registered for highway use) (other than use in mobile machinery) Export In a boat engaged in commercial fishing In certain intercity and local buses In a qualified local bus In a bus transporting students and employees of schools (school buses) For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway business use) In foreign trade Certain helicopter and fixed-wing aircraft uses Exclusive use by a qualified blood collector organization In a highway vehicle owned by the United States that isn't used on a highway Exclusive use by a nonprofit educational organization Exclusive use by a state, political subdivision of a state, or the District of Columbia In an aircraft or vehicle owned by an aircraft museum In military aircraft

No.

Type of Use

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

On a farm for farming purposes
Off-highway business use (for business use other than in a highway vehicle
registered or required to be registered for highway use) (other than use in mobile
machinery)
Export
In a boat engaged in commercial fishing
In certain intercity and local buses
In a qualified local bus
In a bus transporting students and employees of schools (school buses)
For diesel fuel and kerosene (other than kerosene used in aviation) used other
than as a fuel in the propulsion engine of a train or diesel-powered highway
vehicle (but not off-highway business use)
In foreign trade
Certain helicopter and fixed-wing aircraft uses
Exclusive use by a qualified blood collector organization
In a highway vehicle owned by the United States that isn't used on a highway
Exclusive use by a nonprofit educational organization
Exclusive use by a state, political subdivision of a state, or the District of
Columbia
In an aircraft or vehicle owned by an aircraft museum
In military aircraft

Publication 510 (12-2025) Chapter 2 Fuel Tax Credits and Refunds 17

expects that another tax will be imposed, that person should (but isn't required to) give the copy and the statement to the buyer. A model statement of subsequent seller is shown in the Appendix as Model Certificate A. The statement must contain all information necessary to complete the model.

If the first taxpayer's report relates to fuel sold to more than one buyer, copies of that report must be made when the fuel is divided. Each buyer must be given a copy of the report.

Refund or payment claim. You must have filed Form 720 and paid the second tax before you file for a refund or payment of that tax. You must make your claim for refund on Form 8849. Complete Schedule 5 (Form 8849) and attach it to your Form 8849. Don't include this claim with a claim under another tax provision. You must not have included the second tax in the price of the fuel and must not have collected it from the purchaser. You must submit the following information with your claim.

A copy of the first taxpayer's report.
A copy of the statement of the subsequent seller if the fuel was bought from someone other than the first taxpayer.