Part II of the table lists electronic items that

aren’t included within any other list in the table. An imported product is included in this list only if the product meets one of the following tests.

1. It's an electronic component whose operation involves the use of nonmechanical amplification or switching devices such as tubes, transistors, and integrated circuits.

2. It contains components described in (1), which account for more than 15% of the cost of the product.

These components don’t include passive electrical devices, such as resistors and capacitors. Items such as screws, nuts, bolts, plastic parts, and similar specially fabricated parts that may be used to construct an electronic item aren’t themselves included in the listing for electronic items.

Rules for listing products. Products are listed in the table according to the following rules.

1. A product is listed in Part I of the table if it's a mixture containing ODCs.

2. A product is listed in Part II of the table if the Commissioner has determined that the ODCs used as materials in the manufacture of the product under the predominant method are used for purposes of refrigeration or air conditioning, creating an aerosol or foam, or manufacturing electronic components.

3. A product is listed in Part III of the table if the Commissioner has determined that the product meets both the following tests.

a. It isn't an imported taxable product.

b. It would otherwise be included within

a list in Part II of the table.

For example, floppy disk drive units are listed in Part III because they aren’t imported taxable products and would have been included in the Part II list for electronic items not specifically identified, but for their listing in Part III.

ODC weight. The Table ODC weight of a product is the weight, determined by the Commissioner, of the ODCs used as materials in the manufacture of the product under the predominant method of manufacturing. The ODC weight is listed in Part II in pounds per single unit of product unless otherwise specified.

Publication 510 (12-2025) Chapter 3 Environmental Taxes 25

Modifying the table. A manufacturer or importer of a product may request that the IRS add a product and its ODC weight to the table. They also may request the IRS remove a product from the table, or change or specify the ODC weight of a product. To request a modification, see Regulations section 52.4682-3(g) for the mailing address and information that must be included in the request.

Floor Stocks Tax

Tax is imposed on any ODC held (other than by the manufacturer or importer of the ODC) on January 1 for sale or use in further manufacturing. The person holding title (as determined under local law) to the ODC is liable for the tax, whether or not delivery has been made.

These chemicals are taxable without regard to the type or size of storage container in which the ODCs are held. The tax may apply to an ODC whether it's in a 14-ounce can or a 30-pound tank.

You’re liable for the floor stocks tax if you hold any of the following on January 1.

1. At least 400 pounds of ODCs other than halons or methyl chloroform.

2. At least 50 pounds of halons.

3. At least 1,000 pounds of methyl chloroform.

If you're liable for the tax, prepare an inventory on January 1 of the taxable ODCs held on that date for sale or for use in further manufacturing. You must pay this floor stocks tax by June 30 of each year. Report the tax on Form 6627 and Form 720, Part II, for the second calendar quarter.

For the tax rates, see the Instructions for Form 6627.

ODCs not subject to floor stocks tax. The floor stocks tax isn't imposed on any of the following ODCs.

1. ODCs mixed with other ingredients that contribute to achieving the purpose for which the mixture will be used, unless the mixture contains only ODCs and one or more stabilizers.

2. ODCs contained in a manufactured article in which the ODCs will be used for their intended purpose without being released from the article.

3. ODCs that have been reclaimed or recycled.

4. ODCs sold in a qualifying sale for:

a. Use as a feedstock,

b. Export, or

c. Use as a propellant in a metered-dose

inhaler.

Excise taxes are imposed on amounts paid for certain facilities and services. If you receive any payment on which tax is imposed, you're required to collect the tax, file returns, and pay the tax over to the government.

If you fail to collect and pay over the taxes, you may be liable for the trust fund recovery penalty. See chapter 15, later.

A separate report is required to be filed by collecting agents of communications services and air transportation taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses to pay the tax, or it's impossible for the collecting agent to collect the tax. The report must contain the name and address of the taxpayer, the type of facility provided or service rendered, the amount paid for the facility or service (the amount on which the tax is based), and the date paid.

Regular method taxpayers. For regular method taxpayers, the report must be filed by the due date of the Form 720 on which the tax would have been reported.

Alternative method taxpayers. For alternative method taxpayers, the report must be filed by the due date of the Form 720 that includes an adjustment to the separate account for the uncollected tax. See Alternative method (IRS Nos. 22, 26, 27, and 28) in chapter 14.

Where to file. Don't file the uncollected tax report with Form 720. Instead, mail the report to:

Department of the Treasury Internal Revenue Service Cincinnati, OH 45999

A 3% tax is imposed on amounts paid for local telephone service and teletypewriter exchange service.

Local telephone service. This includes access to a local telephone system and the privilege of telephonic quality communication with most people who are part of the system. Local

telephone service also includes any facility or services provided in connection with this service. The tax applies to lease payments for certain customer premises equipment (CPE) even though the lessor doesn't also provide access to a local telecommunications system.

Local-only service. Local-only service is local telephone service as described above, provided under a plan that doesn't include long distance telephone service or that separately states the charge for local service on the bill to customers. Local-only service also includes any facility or services provided in connection with this service, even though these services and facilities may also be used with long-distance service.

Private communication service. Private communication service isn't local telephone service. Private communication service includes accessory-type services provided in connection with a Centrex, PBX, or other similar system for dual use accessory equipment. However, the charge for the service must be stated separately from the charge for the basic system, and the accessory must function, in whole or in part, in connection with intercommunication among the subscriber's stations.

Teletypewriter exchange service. This includes access from a teletypewriter or other data station to a teletypewriter exchange system and the privilege of intercommunication by that station with most persons having teletypewriter or other data stations in the same exchange system.

Figuring the tax. The tax is based on the sum of all charges for local telephone service included in the bill. However, if the bill groups individual items for billing and tax purposes, the tax is based on the sum of the individual items within that group. The tax on the remaining items not included in any group is based on the charge for each item separately. Don't include in the tax base state or local sales or use taxes that are separately stated on the taxpayer's bill.

Exemptions

Payments for certain services or payments from certain users are exempt from the communications tax.

Nontaxable service. Nontaxable service means bundled service and long distance service. Nontaxable service also includes pre-paid telephone cards and pre-paid cellular service.

Bundled service. Bundled service is local and long distance service provided under a plan that doesn't separately state the charge for the local telephone service. Bundled service includes plans that provide both local and long distance service for either a flat monthly fee or a charge that varies with the elapsed transmission time for which the service is used. Telecommunications companies provide bundled service for both landlines and wireless (cellular) service. If Voice over Internet Protocol service provides both local and long distance service and the charges aren’t separately stated, such service is bundled service.

26 Chapter 4 Communications and Air Transportation Taxes Publication 510 (12-2025)

The method for sending or receiving a call, such as on a landline telephone, wireless (cellular), or some other method, doesn't affect whether a service is local-only or bundled.

Long distance service. Long distance service is telephonic quality communication with persons whose telephones are outside the local telephone system of the caller.

Pre-paid telephone cards (PTC). A PTC will be treated as bundled service unless a PTC expressly states it's for local-only service. Generally, the person responsible for collecting the tax is the carrier who transfers the PTC to the transferee. The transferee is the first person that isn't a carrier to whom a PTC is transferred by the carrier. The transferee is the person liable for the tax and is eligible to request a credit or refund. For more information, see Regulations section 49.4251-4 .

The holder is the person that purchases a PTC to use and not to resell. Holders aren’t liable for the tax and can't request a credit or refund.

Pre-paid cellular telephones. Rules similar to the PTC rules described above apply to pre-paid cellular telephones. The transferee is the person eligible to request the credit or refund.

Installation charges. The tax doesn't apply to payments received for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment. However, the tax does apply to payments for the repair or replacement of those items incidental to ordinary maintenance.

Answering services. The tax doesn't apply to amounts paid for a private line, an answering service, and a one-way paging or message service if they don’t provide access to a local telephone system and the privilege of telephonic communication as part of the local telephone system.

Mobile radio telephone service. The tax doesn't apply to payments for a two-way radio service that doesn't provide access to a local telephone system.

Coin-operated telephones. The tax for local telephone service doesn't apply to payments made for services by inserting coins in public coin-operated telephones. But the tax applies if the coin-operated telephone service is furnished for a guaranteed amount. Figure the tax on the amount paid under the guarantee plus any fixed monthly or other periodic charge.

Telephone-operated security systems. The tax doesn't apply to amounts paid for telephones used only to originate calls to a limited number of telephone stations for security entry into a building. In addition, the tax doesn't apply to any amounts paid for rented communication equipment used in the security system.

News services. The tax on teletypewriter exchange service doesn't apply to charges for the following news services.

• Services dealing exclusively with the collection or dissemination of news for or

through the public press or radio or television broadcasting.

• Services used exclusively in the collection or dissemination of news by a news ticker service furnishing a general news service similar to that of the public press.

This exemption applies to payments received for messages from one member of the news media to another member (or to or from their bona fide correspondents). For the exemption to apply, the charge for these services must be billed in writing to the person paying for the service and that person must certify in writing that the services are used for an exempt purpose.

Services not exempted. The tax applies to amounts paid by members of the news media for local telephone service.

International organizations and the Ameri- can Red Cross. The tax doesn't apply to communication services furnished to an international organization or to the American National Red Cross.

Nonprofit hospitals. The tax doesn't apply to telephone services furnished to income tax-exempt nonprofit hospitals for their use. Also, the tax doesn't apply to amounts paid by these hospitals to provide local telephone service in the homes of their personnel who must be reached during their off-duty hours.

Nonprofit educational organizations. The tax doesn't apply to payments received for services and facilities furnished to a nonprofit educational organization for its use. A nonprofit educational organization is one that satisfies all the following requirements.

• It normally maintains a regular faculty and curriculum.

• It normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on.

• It's exempt from income tax under section 501(a).

This includes a school operated by an organization exempt under section 501(c)(3) if the school meets the above qualifications.

Qualified blood collector organizations. The tax doesn't apply to telephone services furnished to qualified blood collector organizations for their use. A qualified blood collector organization is one that is:

• Described in section 501(c)(3) and exempt from tax under section 501(a),

• Primarily engaged in the activity of collecting human blood,

• Registered with the IRS, and

• Registered by the Food and Drug Administration to collect blood.

Federal, state, and local government. The tax doesn't apply to communication services provided to the government of the United States, the government of any state or its political subdivisions, the District of Columbia, or the United Nations. Treat an Indian tribal government as a state for the exemption from the communications tax only if the services involve the

exercise of an essential tribal government function.

Exemption certificate. Any form of exemption certificate will be acceptable if it includes all the information required by the Internal Revenue Code and Regulations. See Regulations section 49.4253-11 . File the certificate with the provider of the communication services. An exemption certificate isn't required for nontaxable services.

The following users that are exempt from the communications tax don’t have to file an annual exemption certificate after they have filed the initial certificate to claim an exemption from the communications tax.

• The American National Red Cross and other international organizations.

• Nonprofit hospitals.

• Nonprofit educational organizations.

• Qualified blood collector organizations.

• State and local governments.

The federal government doesn't have to file any exemption certificate.

All other organizations must furnish exemption certificates when required.

Credits or Refunds

If tax is collected and paid over for nontaxable services, or for certain services or users exempt from the communications tax, the collector or taxpayer may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. Alternatively, the person who paid the tax may claim a refund. For more information on how to file for credits or refunds, see the Instructions for Form 720, or Form 8849.

Collectors. The collector may request a credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. These requirements also apply to nontaxable service refunds.

Collectors using the regular method for deposits. Collectors using the regular method for deposits must use Form 720-X to request a credit or refund if the collector has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund.

Collectors using the alternative method for deposits. Collectors using the alternative method for deposits must adjust their separate accounts for the credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. For more information, see the Instructions for Form 720.

Taxes are imposed on amounts paid for:

• Transportation of persons by air,

• Use of international air travel facilities, and

• Transportation of property by air.

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Transportation of Persons by Air

Transportation within Alaska or Hawaii. The tax on transportation of persons by air applies to the entire fare paid in the case of flights between any of the Hawaiian Islands, and between any ports or stations in the Aleutian Islands or other ports or stations elsewhere in Alaska. The tax applies even though parts of the flights may be over international waters or over Canada, if no point on the direct line of transportation between the ports or stations is more than 225 miles from the United States (Hawaii or Alaska).

Package tours. The air transportation taxes apply to “complimentary” air transportation furnished solely to participants in package holiday tours. The amount paid for these package tours includes a charge for air transportation even though it may be advertised as “free.” This rule also applies to the tax on the use of international air travel facilities.

Liability for tax. The person paying for taxable transportation is liable for the tax and, ordinarily, the person receiving the payment collects the tax, files the returns, and pays the tax over to the government. However, if payment is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation provided for under that order must collect the tax.

A travel agency that is an independent broker and sells tours on aircraft that it charters must collect the transportation tax, file the returns, and pay the tax over to the government. However, a travel agency that sells tours as the agent of an airline must collect the tax and remit it to the airline for the filing of returns and for the payment of the tax over to the government. An independent third party that isn't under the airline's supervision or control, but is acting on behalf of, and receiving compensation from, a passenger, isn't required to collect the tax and pay it to the government. For more information on resellers of air transportation, see Revenue Ruling 2006-52 at IRS.gov/irb/ 2006-43_IRB#RR-2006-52 . The fact that the aircraft doesn't use public or commercial airports in taking off and landing has no effect on the tax. But see Certain heli- copter uses, later.

For taxable transportation that begins and ends in the United States, the tax applies regardless of whether the payment is made in or outside the United States.

If the tax isn't paid when payment for the transportation is made, the air carrier providing the initial segment of the transportation that begins or ends in the United States becomes liable for the tax.

Exemptions. The tax on transportation of persons by air doesn't apply in the following situations. See Special Rules on Transportation Taxes, later.

Military personnel on international trips. When traveling in uniform at their own expense, U.S. military personnel on authorized leave are deemed to be traveling in uninterrupted international air transportation even if the scheduled interval between arrival and departure at any station in the United States is actually more than 12 hours. However, such personnel must buy

The tax on transportation of persons by air is made up of the:

• Percentage tax, and

• Domestic-segment tax.

Percentage tax. A tax of 7.5% applies to amounts paid for taxable transportation of persons by air. Amounts paid for transportation include charges for seat selection, premium economy seating, online booking fee, layover or waiting time, and movement of aircraft in deadhead service.

Mileage awards. The percentage tax may apply to an amount paid (in cash or in kind) to an air carrier (or any related person) for the right to provide mileage awards for, or other reductions in the cost of, any transportation of persons by air. For example, this applies to mileage awards purchased by credit card companies, telephone companies, restaurants, hotels, and other businesses.

Generally, the percentage tax doesn't apply to amounts paid for mileage awards where the mileage awards can't, under any circumstances, be redeemed for air transportation that is subject to the tax. Until regulations are issued, the following rules apply to mileage awards.

• Amounts paid for mileage awards that can't be redeemed for taxable transportation beginning and ending in the United States aren’t subject to the tax. For this rule, mileage awards issued by a foreign air carrier are considered to be usable only on that foreign air carrier and not redeemable for taxable transportation beginning and ending in the United States. Therefore, amounts paid to a foreign air carrier for mileage awards aren’t subject to the tax.

• Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation aren’t subject to the tax to the extent those miles will be awarded in connection with the purchase of taxable transportation.

• Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are subject to the tax to the extent those miles won’t be awarded in connection with the purchase of taxable transportation.

Domestic-segment tax. The domestic-segment tax is a flat dollar amount for each segment of taxable transportation for which an amount is paid. However, see Rural airports, later. A segment is a single takeoff and a single landing.

Note. Generally, the tax on each domestic-segment of taxable air transportation increases annually based on adjustments for inflation. See the Instructions for Form 720 for the tax rate.

Charter flights. If an aircraft is chartered, the domestic-segment tax for each segment of taxable transportation is figured by multiplying the tax by the number of passengers transported on the aircraft.

Rural airports. The domestic-segment tax doesn't apply to a segment to or from a rural airport. An airport is a rural airport for a calendar year if fewer than 100,000 commercial passengers departed from the airport by air during the second preceding calendar year (the 100,000 passenger rule), and one of the following is true:

1. The airport isn't located within 75 miles of another airport from which 100,000 or more commercial passengers departed during the second preceding calendar year,

2. The airport was receiving essential air service subsidies as of August 5, 1997, or

3. The airport isn't connected by paved roads to another airport.

To apply the 100,000 passenger rule to any airport described in (3) above, only count commercial passengers departing from the airport by air on flight segments of at least 100 miles.

An updated list of rural airports can be found on the Bureau of Transportation Statistics website at BTS.gov/Topics/Airlines-and-Airports/ Rural-Airports .

Taxable transportation. Taxable transportation is transportation by air that meets either of the following tests.

• It begins and ends either in the United States or at any place in Canada or Mexico not more than 225 miles from the nearest point on the continental U.S. boundary (this is the 225-mile zone).

• It's directly or indirectly from one port or station in the United States to another port or station in the United States, but only if it isn't a part of uninterrupted international air transportation.

Round trip. A round trip is considered two separate trips. The first trip is from the point of departure to the destination. The second trip is the return trip from that destination.

Uninterrupted international air transpor- tation. This means transportation entirely by air that doesn't begin and end in the United States or in the 225-mile zone if there isn't more than a 12-hour scheduled interval between arrival and departure at any station in the United States. For a special rule that applies to military personnel, see Exemptions, later.

Transportation between the continental United States and Alaska or Hawaii. This transportation is partially exempt from the tax on transportation of persons by air. The tax doesn't apply to the part of the trip between the point at which the route of transportation leaves or enters the continental United States (or a port or station in the 225-mile zone) and the point at which it enters or leaves Hawaii or Alaska. Leaving or entering occurs when the route of the transportation passes over either the U.S. border or a point 3 nautical miles (3.45 statute miles) from low tide on the coastline, or when it leaves a port or station in the 225-mile zone. Therefore, this transportation is subject to the percentage tax on the part of the trip in U.S. airspace, the domestic-segment tax for each domestic segment, and the tax on the use of international air travel facilities.

28 Chapter 4 Communications and Air Transportation Taxes Publication 510 (12-2025)

their tickets within 12 hours after landing at the first domestic airport and accept the first available accommodation of the type called for by their tickets. The trip must begin or end outside the United States and the 225-mile zone.

Certain helicopter uses. The tax doesn't apply to air transportation by helicopter if the helicopter is used for any of the following purposes.

1. Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas.

2. Planting, cultivating, cutting, transporting, or caring for trees (including logging operations).

3. Providing emergency medical transportation.

However, during a use described in items (1) or (2), the tax applies if the helicopter takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. For item (1), treat each flight segment as a separate flight.

Fixed-wing aircraft uses. The tax doesn't apply to air transportation by fixed-wing aircraft if the fixed-wing aircraft is used for any of the following purposes.

1. Planting, cultivating, cutting, transporting, or caring for trees (including logging operations).

2. Providing emergency medical transportation. The aircraft must be equipped for, and exclusively dedicated on that flight to, acute care emergency medical services.

3. Providing emergency medical transportation if the fixed-wing aircraft is equipped for, and exclusively dedicated on that flight to, acute care emergency medical services.

However, during a use described in item (1), the tax applies if the fixed-wing aircraft takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code.

Skydiving. The tax doesn't apply to any air transportation exclusively for the purpose of skydiving.

Seaplanes. The tax doesn't apply to any air transportation by seaplane for any segment consisting of a takeoff from, and a landing on, water if the places where the takeoff and landing occur aren’t receiving financial assistance from the Airport and Airways Trust Fund.

Bonus tickets. The tax doesn't apply to free bonus tickets issued by an airline company to its customers who have satisfied all requirements to qualify for the bonus tickets. However, the tax applies to amounts paid by customers for advance bonus tickets when customers have traveled insufficient mileage to fully qualify for the free advance bonus tickets.

International Air Travel Facilities

A tax per person is imposed (whether in or outside the United States) for international flights that begin or end in the United States. However, for a domestic segment that begins or ends in Alaska or Hawaii, a reduced tax per person applies only to departures. This tax doesn't apply if all the transportation is subject to the percentage tax. It also doesn't apply if the surtax on fuel used in a fractional ownership program aircraft is imposed. See the Instructions for Form 720 for the tax rates.

Note. Generally, both the tax on the use of international air travel facilities for any international air transportation, if the transportation begins or ends in the United States, and the tax per person for domestic segments that begins or ends in Alaska or Hawaii (applies to departures only), are increased annually based on inflation adjustments. See the Instructions for Form 720 for the tax rate.

Transportation of Property by Air

A tax of 6.25% is imposed on amounts paid (whether in or outside the United States) for transportation of property by air. The fact that the aircraft may not use public or commercial airports in taking off and landing has no effect on the tax. The tax applies only to amounts paid to a person engaged in the business of transporting property by air for hire.

The tax applies only to transportation (including layover time and movement of aircraft in deadhead service) that begins and ends in the United States. Thus, the tax doesn't apply to transportation of property by air that begins or ends outside the United States.

Exemptions. The tax on transportation of property by air doesn't apply in the following situations. See Special Rules on Transportation Taxes , later.

Cropdusting and firefighting service. The tax doesn't apply to amounts paid for cropdusting or aerial firefighting service.

Exportation. The tax doesn't apply to payments for transportation of property by air in the course of exportation (including to U.S. territories) by continuous movement, as evidenced by the execution of Form 1363, Export Exemption Certificate. See Form 1363 for more information.

Certain helicopter and fixed-wing air am- bulance uses. The tax doesn't apply to amounts paid for the use of helicopters in construction to set heating and air conditioning units on roofs of buildings, to dismantle tower cranes, and to aid in construction of power lines and ski lifts.

The tax also doesn't apply to air transportation by helicopter or fixed-wing aircraft for the purpose of providing emergency medical services. The fixed-wing aircraft must be equipped for, and exclusively dedicated on that flight to, acute care emergency medical services.

Skydiving. The tax doesn't apply to any air transportation exclusively for the purpose of skydiving.

Excess baggage. The tax doesn't apply to excess baggage accompanying a passenger on an aircraft operated on an established line.

Surtax on fuel used in a fractional own- ership program aircraft. The tax doesn't apply if the surtax on fuel used in a fractional ownership program aircraft is imposed.

Alaska and Hawaii. For transportation of property to and from Alaska and Hawaii, the tax in general doesn't apply to the portion of the transportation that is entirely outside the continental United States (or the 225-mile zone if the aircraft departs from or arrives at an airport in the 225-mile zone). But the tax applies to flights between ports or stations in Alaska and the Aleutian Islands, as well as between ports or stations in Hawaii. The tax applies even though parts of the flights may be over international waters or over Canada, if no point on a line drawn from where the route of transportation leaves the United States (Alaska) to where it reenters the United States (Alaska) is more than 225 miles from the United States.

Seaplanes. The tax doesn't apply to any air transportation by seaplane for any segment consisting of a take off from, and a landing on, water if the places where the take off and landing occur aren’t receiving financial assistance from the Airport and Airways Trust Fund.

Liability for tax. The person paying for taxable transportation is liable for the tax and, ordinarily, the person engaged in the business of transporting property by air for hire receives the payment, collects the tax, files the returns, and pays the tax over to the government.

If tax isn't paid when a payment is made outside the United States, the person furnishing the last segment of taxable transportation collects the tax from the person to whom the property is delivered in the United States.

Special Rules on Transportation Taxes

Aircraft used by affiliated corporations. The taxes don’t apply to payments received by one member of an affiliated group of corporations from another member for services furnished in connection with the use of an aircraft. However, the aircraft must be owned or leased by a member of the affiliated group and can't be available for hire by a nonmember of the affiliated group. Determine whether an aircraft is available for hire by a nonmember of an affiliated group on a flight-by-flight basis.

For this rule, an affiliated group of corporations is any group of corporations connected with a common parent corporation through 80% or more of stock ownership.

Small aircraft. The taxes don’t apply to transportation furnished by an aircraft having a maximum certificated takeoff weight of 6,000 pounds or less. However, the taxes do apply if the aircraft is operated on an established line. Operated on an established line means the aircraft operates with some degree of regularity

Publication 510 (12-2025) Chapter 4 Communications and Air Transportation Taxes 29

between definite points. However, it doesn't include any time an aircraft is being operated on a flight that is solely for sightseeing.

Consider an aircraft to be operated on an established line if it's operated on a charter basis between two cities also served by that carrier on a regularly scheduled basis.

Also, the taxes apply if the aircraft is jet-powered, regardless of its maximum certificated takeoff weight or whether or not it's operated on an established line.

Mixed load of persons and property. If a single amount is paid for air transportation of persons and property, the payment must be allocated between the amount subject to the tax on transportation of persons and the amount subject to the tax on transportation of property. The allocation must be reasonable and supported by adequate records.

Credits or refunds. If tax is collected and paid over for air transportation that isn't taxable air transportation, the collector may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. Alternatively, the person who paid the tax may claim a refund. For information on how to file for credits or refunds, see the Instructions for Forms 720 or 8849.

Aircraft Management Services

Amounts paid by an aircraft owner for certain aircraft management services are exempt from the section 4261 and 4271 excise taxes imposed on transportation by air. An aircraft owner includes a person that owns an aircraft and a person that leases an aircraft for 31 days or more. A person owns an aircraft if the person holds legal title to the aircraft, or if the person holds substantial incidents of ownership in the aircraft for a period of more than 31 days. A lessee of an aircraft includes the beneficiary of an owner trust that holds legal title to the aircraft.

If an aircraft owner pays an amount to an aircraft management services provider for flights on the aircraft owner's aircraft, the amount paid isn't subject to the section 4261 or 4271 excise tax, even if the aircraft owner isn’t on the flight. However, tax may apply if an aircraft owner pays an amount to an aircraft management services provider for flights on a substitute aircraft. An allocation is required if an aircraft owner pays an amount to an aircraft management services provider that includes an amount attributable to flights on the aircraft owner's aircraft and an amount attributable to flights on a substitute aircraft.

The aircraft management services exemption doesn’t apply to amounts paid by an aircraft owner for aircraft management services related to (i) an aircraft that the aircraft owner has leased for a period of less than 31 days, (ii) a fractionally owned aircraft, or (iii) an aircraft used for scheduled passenger service for which tickets are sold on a seat-by-seat basis to the general public.

The following discussion of manufacturers taxes applies to the tax on:

• Sport fishing equipment;

• Fishing rods and fishing poles;

• Electric outboard motors;

• Fishing tackle boxes;

• Bows, quivers, broadheads, and points;

• Arrow shafts;

• Coal;

• Taxable tires;

• Gas guzzler automobiles; and

• Vaccines.

Manufacturer. The term “manufacturer” includes a producer or importer. A manufacturer is any person who produces a taxable article from new or raw material, or from scrap, salvage, or junk material, by processing or changing the form of an article or by combining or assembling two or more articles. If you furnish the materials and keep title to those materials and to the finished article, you're considered the manufacturer even though another person actually manufactures the taxable article.

A manufacturer who sells a taxable article in knockdown (unassembled) condition is liable for the tax. The person who buys these component parts and assembles a taxable article may also be liable for tax as a further manufacturer depending on the labor, material, and overhead required to assemble the completed article if the article is assembled for business use.

Importer. An importer is a person who brings a taxable article into the United States, or withdraws a taxable article from a customs bonded warehouse for sale or use in the United States.

Sale. A sale is the transfer of the title to, or the substantial incidents of ownership in, an article to a buyer for consideration that may consist of money, services, or other things.

Use considered sale. A manufacturer who uses a taxable article is liable for the tax in the same manner as if it were sold.

Lease considered sale. The lease of an article (including any renewal or extension of the lease) by the manufacturer is generally considered a taxable sale. However, for the gas guzzler tax, only the first lease (excluding any renewal or extension) of the automobile by the manufacturer is considered a sale.

Manufacturers taxes based on sale price. The manufacturers taxes imposed on the sale of sport fishing equipment, electric outboard motors, and bows are based on the sale price of the article. The taxes imposed on coal are based either on the sale price or the weight.

The price for which an article is sold includes the total consideration paid for the article, whether that consideration is in the form of money, services, or other things. However, you include certain charges made when a taxable article is sold and you exclude others. To figure the price on which you base the tax, use the following rules.

1. Include both the following charges in the price.

a. Any charge for coverings or contain ers (regardless of their nature).

b. Any charge incident to placing the ar ticle in a condition packed ready for shipment.

2. Exclude all the following amounts from the price.

a. The manufacturers excise tax,

whether or not it's stated as a separate charge.

b. The transportation charges pursuant

to the sale. The cost of transportation of goods to a warehouse before their bona fide sale isn't excludable.

c. Delivery, insurance, installation, retail

dealer preparation charges, and other charges you incur in placing the article in the hands of the purchaser under a bona fide sale.

d. Discounts, rebates, and similar allow ances actually granted to the purchaser.

e. Local advertising charges. A charge

made separately when the article is sold and that qualifies as a charge for “local advertising” may, within certain limits, be excluded from the sale price.

f. Charges for warranty paid at the pur chaser's option. However, a charge for a warranty of an article that the manufacturer requires the purchaser to pay to obtain the article is included in the sale price on which the tax is figured.

Bonus goods. Allocate the sale price if you give free nontaxable goods with the purchase of taxable merchandise. Figure the tax only on the sale price attributable to the taxable articles.

Example. A manufacturer sells a quantity of taxable articles and gives the purchaser certain nontaxable articles as a bonus. The sale price of the shipment is $1,500. The normal sale price is $2,000: $1,500 for the taxable articles and $500 for the nontaxable articles. Since the taxable items represent 75% of the normal sale price, the tax is based on 75% of the actual sale price, or $1,125 (75% of $1,500). The remaining $375 is allocated to the nontaxable articles.

Tax attaches when the title to the article sold passes from the manufacturer to the buyer. When the title passes depends on the intention of the parties as gathered from the contract of sale. In the absence of expressed intention, the

30 Chapter 5 Manufacturers Taxes Publication 510 (12-2025)

legal rules of presumption followed in the jurisdiction where the sale occurs determine when title passes.

If the taxable article is used by the manufacturer, the tax attaches at the time use begins.

The manufacturer is liable for the tax.

Partial payments. The tax applies to each partial payment received when taxable articles are:

• Leased,

• Sold conditionally,

• Sold on installment with chattel mortgage, or

• Sold on installment with title to pass in the future.

To figure the tax, multiply the partial payment by the tax rate in effect at the time of the payment.

The following sales by the manufacturer are exempt from the manufacturers tax.

• Sale of an article to a state or local government for the exclusive use of the state or local government. This exemption doesn't apply to the taxes on coal, gas guzzlers, and vaccines. “State” is defined in Defini- tions in chapter 1.

• Sale of an article to a nonprofit educational organization for its exclusive use. This exemption doesn't apply to the taxes on coal, gas guzzlers, and vaccines. “Nonprofit educational organization” is defined under Communications Tax in chapter 4.

• Sale of an article to a qualified blood col- lector organization. This exemption doesn't apply to gas guzzlers, recreational equipment, and vaccines. “Qualified blood collector organizations” are defined under Communications Tax in chapter 4.

• Sale of an article for use by the purchaser as supplies for vessels. This exemption doesn't apply to the taxes on coal and vaccines. Supplies for vessels means ships' stores, sea stores, or legitimate equipment on vessels of war of the United States or any foreign nation, vessels employed in the fisheries or whaling business, or vessels actually engaged in foreign trade.

• Sale of an article for use by the purchaser for further manufacture, or for resale by the purchaser to a second purchaser for use by the second purchaser for further manufacture. This exemption doesn't apply to the tax on coal and tires. Use for further manufacture means use in the manufacture or production of an article subject to the manufacturers excise taxes. If you buy articles tax free and resell or use them other than in the manufacture of another article, you're liable for the tax on their resale or use just as if you had manufactured and sold them.

• Sale of an article for export or for resale by the purchaser to a second purchaser for export. The article may be exported to a foreign country or to a territory of the United States. A vaccine shipped to a territory of the United States isn't considered to be exported. If an article is sold tax free for export and the manufacturer doesn't receive

proof of export, the manufacturer is liable for the tax.

• Sales of articles of native Indian handicraft, such as bows and arrow shafts, manufactured by Indians on reservations, in Indian schools, or under U.S. jurisdiction in Alaska.

• For tire exemptions, see section 4221(e) (2).

Requirements for Exempt Sales

The following requirements must be met for a sale to be exempt from the manufacturers tax.

Registration requirements. The manufacturer, first purchaser, and second purchaser in the case of resales must be registered. See the Form 637 instructions for more information.

Exceptions to registration requirements. Registration isn't required for:

• State or local governments,

• Foreign purchasers of articles sold or resold for export,

• The U.S. Government, or

• Parties to a sale of supplies for vessels and aircraft.

Certification requirement. If the purchaser is required to be registered, the purchaser must give the manufacturer its registration number and certify the exempt purpose for which the article will be used. The information must be in writing and may be noted on the purchase order or other document furnished by the purchaser to the seller in connection with the sale.

For a sale to a state or local government, an exemption certificate must be signed by an officer or employee authorized by the state or local government. See Regulations section 48.4221-5(c) for the certificate requirements. For sales for use as supplies for vessels and aircraft, if the manufacturer and purchaser aren’t registered, the owner or agent of the vessel must provide an exemption certificate to the manufacturer before or at the time of sale. See Regulations section 48.4221-4(d) for the certificate requirements.

Proof of export requirement. Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof of exportation. See Regulations section 48.4221-3(d) for evidence that qualifies as proof of exportation.

Proof of resale for further manufacture re- quirement. Within 6 months of the date of sale or shipment by the manufacturer, whichever is earlier, the manufacturer must receive proof that the article has been resold for use in further manufacture. See Regulations section 48.4221-2(c) for evidence that qualifies as proof of resale.

Information to be furnished to purchaser. The manufacturer must indicate to the purchaser that the articles normally would be subject to tax and are being sold tax free for an exempt purpose because the purchaser has provided the required certificate.

Credits or Refunds

The manufacturer may be eligible to obtain a credit or refund of the manufacturers tax for certain uses, sales, exports, and price readjustments. The claim must set forth in detail the facts upon which the claim is based.

Uses, sales, and exports. A credit or refund (without interest) of the manufacturers taxes may be allowable if a tax-paid article is, by any person:

• Exported;

• Used or sold for use as supplies for vessels (except for coal and vaccines);

• Sold to a state or local government for its exclusive use (except for coal, gas guzzlers, and vaccines);

• Sold to a nonprofit educational organization for its exclusive use (except for coal, gas guzzlers, and vaccines);

• Sold to a qualified blood collector organization for its exclusive use (except for gas guzzlers, recreational equipment, and vaccines); or

• Used for further manufacture of another article subject to the manufacturers taxes (except for coal).

Export. If a tax-paid article is exported, the exporter or shipper may claim a credit or refund if the manufacturer waives its right to claim the credit or refund. In the case of a tax-paid article used to make another taxable article, the subsequent manufacturer may claim the credit or refund.

Price readjustments. In addition, a credit or refund (without interest) may be allowable for a tax-paid article for which the price is readjusted by reason of return or repossession of the article or a bona fide discount, rebate, or allowance for taxes based on price.

Conditions to allowance. To claim a credit or refund in the case of export; supplies for vessels; or sales to a state or local government, nonprofit educational organization, or qualified blood collector organization, the person who paid the tax must certify on the claim that one of the following applies and that the claimant has the required supporting information.

• The claimant sold the article at a tax-excluded price.

• The person has repaid, or agreed to repay, the tax to the ultimate vendor of the article.

• The person has obtained the written consent of the ultimate vendor to make the claim.

The ultimate vendor is generally the seller making the sale that gives rise to the overpayment of tax.

Claim for further manufacture. To claim a credit or refund for further manufacture, the claimant must include a statement that contains the following.

• The name and address of the manufacturer and the date of payment.

• An identification of the article for which the credit or refund is claimed.

• The amount of tax paid on the article and the date on which it was paid.

Publication 510 (12-2025) Chapter 5 Manufacturers Taxes 31

• Information indicating that the article was used as material in the manufacture or production of, or as a component part of, a second article manufactured or produced by the manufacturer, or was sold on or in connection with, or with the sale of, a second article manufactured or produced by the manufacturer.

• An identification of the second article.

For claims by the exporter or shipper, the claim must contain the proof of export and a statement signed by the person that paid the tax waiving the right to claim a credit or refund. The statement must include the amount of tax paid, the date of payment, and the office to which it was paid.

Claim for price readjustment. To claim a credit or refund for a price readjustment, the person who paid the tax must include with the claim a statement that contains the following.

• A description of the circumstances that gave rise to the price readjustment.

• An identification of the article whose price was readjusted.

• The price at which the article was sold.

• The amount of tax paid on the article and the date on which it was paid.

• The name and address of the purchaser.

• The amount repaid to the purchaser or credited to the purchaser's account.

A tax of 10% of the sale price is imposed on many articles of sport fishing equipment sold by the manufacturer. This includes any parts or accessories sold on or in connection with the sale of those articles.

Pay this tax with Form 720. No tax deposits are required.

Sport fishing equipment includes all the following items.

1. Fishing rods and poles (and component parts), fishing reels, fly fishing lines, other fishing lines not over the 130 pounds test, fishing spears, spear guns, and spear tips.

2. Items of terminal tackle, including leaders, artificial lures, artificial baits, artificial flies, fishing hooks, bobbers, sinkers, snaps, drayles, and swivels (but not including natural bait or any item of terminal tackle designed for use and ordinarily used on fishing lines not described in (1)).

3. The following items of fishing supplies and accessories: fish stringers, creels, bags, baskets, and other containers designed to hold fish, portable bait containers, fishing vests, landing nets, gaff hooks, fishing hook disgorgers, and dressing for fishing lines and artificial flies.

4. Fishing tip-ups and tilts.

5. Fishing rod belts, fishing rodholders, fishing harnesses, fish fighting chairs, fishing outriggers, and fishing downriggers.

See Revenue Ruling 88-52 in Cumulative Bulletin 1988-1 for a more complete description of the items of taxable equipment.

Fishing rods and fishing poles. The tax on fishing rods and fishing poles (and component parts) is 10% of the sales price not to exceed $10 per article. The tax is paid by the manufacturer, producer, or importer.

Fishing tackle boxes. The tax on fishing tackle boxes is 3% of the sales price. The tax is paid by the manufacturer, producer, or importer.

Electric outboard boat motors. A tax of 3% of the sale price is imposed on the sale by the manufacturer of electric outboard motors. This includes any parts or accessories sold on or in connection with the sale of those articles.

Certain equipment resale. The tax on the sale of sport fishing equipment is imposed a second time under the following circumstances. If the manufacturer sells a taxable article to any person, the manufacturer is liable for the tax. If the purchaser or any other person then sells it to a person who is related (discussed next) to the manufacturer, that related person is liable for a second tax on any subsequent sale of the article. The second tax, however, isn't imposed if the constructive sale price rules under section 4216(b) apply to the sale by the manufacturer. If the second tax is imposed, a credit for tax previously paid by the manufacturer is available provided the related person can document the tax paid. The documentation requirement is generally satisfied only through submission of copies of actual records of the person that previously paid the tax.

Related person. For the tax on sport fishing equipment, a person is a related person of the manufacturer if that person and the manufacturer have a relationship described in section 465(b)(3)(C).

The tax on bows is 11% of the sales price. The tax is paid by the manufacturer, producer, or importer. It applies to bows having a peak draw weight of 30 pounds or more. The tax is also imposed on the sale of any part or accessory suitable for inclusion in or attachment to a taxable bow and any quiver, broadhead, or point suitable for use with arrows described below.

Pay this tax with Form 720. No tax deposits are required.

Generally, the section 4161 tax on arrow shafts increases annually based on inflation adjustments. See Form 720 for the tax rate. The tax is paid by the manufacturer, producer, or importer of any arrow shaft (whether sold separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow that after its assembly meets either of the following conditions.

• It measures 18 inches or more in overall length.

• It measures less than 18 inches in overall length but is suitable for use with a taxable bow.

Exemption for certain wooden arrows. The tax doesn't apply to any shaft made of all natural wood with no laminations or artificial means of enhancing the spine of such shaft (whether sold separately or incorporated as part of a finished or unfinished product) and used in the manufacture of any arrow that after its assembly meets both of the following conditions.

• It measures ⁵ /16 of an inch or less in diameter.

• It isn't suitable for use with a taxable bow.

Pay this tax with Form 720. No tax deposits are required.

Section 4121 imposes a tax on the first sale of coal mined in the United States. The producer of the coal is liable for the tax. The producer is the person who has vested ownership of the coal under state law immediately after the coal is severed from the ground. Determine vested ownership without regard to any contractual arrangement for the sale or other disposition of the coal or the payment of any royalties between the producer and third parties. A producer includes any person who extracts coal from coal waste refuse piles (or from the silt waste product that results from the wet washing of coal).

The tax isn't imposed on coal extracted from a riverbed by dredging if it can be shown that the coal has been taxed previously.

Tax rates. The tax on underground-mined coal is the lower of:

• $1.10 a ton, or

• 4.4% of the sale price.

The tax on surface-mined coal is the lower of:

• $0.55 a ton, or

• 4.4% of the sale price.

Coal will be taxed at the 4.4% rate if the selling price is less than $25 a ton for underground-mined coal and less than $12.50 a ton for surface-mined coal. Apply the tax proportionately if a sale or use includes a portion of a ton.

Example. If you sell 21,000 pounds (10.5 tons) of coal from an underground mine for $525, the price per ton is $50. The tax is $1.10 × 10.5 tons ($11.55).

Coal production. Coal is produced from surface mines if all geological matter (trees, earth, rock) above the coal is removed before the coal is mined. Treat coal removed by auger and coal reclaimed from coal waste refuse piles as produced from a surface mine.

Treat coal as produced from an underground mine when the coal isn't produced from a surface mine. In some cases, a single mine may yield coal from both surface mining and underground mining. Determine if the coal is from a surface mine or an underground mine for each ton of coal produced and not on a mine-by-mine basis.

32 Chapter 5 Manufacturers Taxes Publication 510 (12-2025)

Determining tonnage or selling price. The producer pays the tax on coal at the time of sale or use. In figuring the selling price for applying the tax, the point of sale is f.o.b. (free on board) mine or f.o.b. cleaning plant if you clean the coal before selling it. This applies even if you sell the coal for a delivered price. The f.o.b. mine or f.o.b. cleaning plant is the point at which you figure the number of tons sold for applying the applicable tonnage rate, and the point at which you figure the sale price for applying the 4.4% rate.

The tax applies to the full amount of coal sold. However, the IRS allows a calculated reduction of the taxable weight of the coal for the weight of the moisture in excess of the coal's inherent moisture content. Include in the sale price any additional charge for a freeze-conditioning additive in figuring the tax.

Don't include in the sales price the excise tax imposed on coal.

Coal used by the producer. The tax on coal applies if the coal is used by the producer in other than a mining process. A mining process means the same for this purpose as for percentage depletion. For example, the tax doesn't apply if, before selling the coal, you break it, clean it, size it, or apply any other process considered mining under the rules for depletion. In this case, the tax applies only when you sell the coal. The tax doesn't apply to coal used as fuel in the coal drying process since it's considered to be used in a mining process. However, the tax does apply when you use the coal as fuel or as an ingredient in making coke since the coal isn't used in a mining process.

You must use a constructive sale price to figure the tax under the 4.4% rate if you use the coal in other than a mining process. Base your constructive sale price on sales of a like kind and grade of coal by you or other producers made f.o.b. mine or cleaning plant. Normally, you use the same constructive price used to figure your percentage depletion deduction.

Blending. If you blend surface-mined coal with underground-mined coal during the cleaning process, you must figure the excise tax on the sale of the blended, cleaned coal. Figure the tax separately for each type of coal in the blend. Base the tax on the amount of each type in the blend if you can determine the proportion of each type of coal contained in the final blend. Base the tax on the ratio of each type originally put into the cleaning process if you can't determine the proportion of each type of coal in the blend. However, the tax is limited to 4.4% of the sale price per ton of the blended coal.

Exemption from tax. The tax doesn't apply to sales of lignite and imported coal. The only other exemption from the tax on the sale of coal is for coal exported as discussed next.

Exported. The tax doesn't apply to the sale of coal if the coal is in the stream of export when sold by the producer and the coal is actually exported.

Coal is in the stream of export when sold by the producer if the sale is a step in the exportation of the coal to its ultimate destination in a foreign country. For example, coal is in the stream of export when:

1. The coal is loaded on an export vessel and title is transferred from the producer to a foreign purchaser, or

2. The producer sells the coal to an export broker in the United States under terms of a contract showing that the coal is to be shipped to a foreign country.

Proof of export includes any of the following items.

• A copy of the export bill of lading issued by the delivering carrier.

• A certificate signed by the export carrier's agent or representative showing actual exportation of the coal.

• A certificate of landing signed by a customs officer of the foreign country to which the coal is exported.

• If the foreign country doesn't have a customs administrator, a statement of the foreign consignee showing receipt of the coal.

Caution: axable tires are divided into three categories for reporting and figuring the tax as described below.

A tax is imposed on taxable tires sold by the manufacturer, producer, or importer at the rate of $0.0945 ($0.04725 in the case of a biasply tire or super single tire) for each 10 pounds of the maximum rated load capacity over 3,500 pounds. The three categories for reporting the tax and the tax rate are listed below.

• Taxable tires other than biasply or super single tires at $0.0945.

• Taxable tires, biasply or super single tires (other than super single tires designed for steering) at $0.04725.

• Taxable tires, super single tires designed for steering at $0.0945.

A taxable tire is any tire of the type used on highway vehicles if wholly or partially made of rubber and if marked according to federal regulations for highway use. A biasply tire is a pneumatic tire on which the ply cords that extend to the beads are laid at alternate angles substantially less than 90 degrees to the centerline of the tread. A super single tire is a tire greater than 13 inches in cross section width designed to replace 2 tires in a dual fitment.

Special rule, manufacturer's retail stores. The excise tax on taxable tires is imposed at the time the taxable tires are delivered to the manufacturer-owned retail stores, not at the time of sale.

Tires on imported articles. The importer of an article equipped with taxable tires is treated as the manufacturer of the tires and is liable for the taxable tire excise tax when the article is sold (except in the case of an automobile bus chassis or body with tires).

Tires exempt from tax. The tax on taxable tires doesn't apply to the following items.

• Domestically recapped or retreaded tires if the tires have been sold previously in the

United States and were taxable tires at the time of sale.

• Tire carcasses not suitable for commercial use.

• Tires for use on qualifying intercity, local, and school buses. For tax-free treatment, the registration requirements discussed earlier under Requirements for Exempt Sales, apply.

• Tires sold for the exclusive use of the De- partment of Defense or the Coast Guard.

• Tires of a type used exclusively on mobile machinery. A taxable tire used on mobile machinery isn't exempt from tax.

Qualifying intercity or local bus. This is any bus used mainly (more than 50%) to transport the general public for a fee and that either operates on a schedule along regular routes or seats at least 20 adults (excluding the driver).

Qualifying school bus. This is any bus substantially all the use (85% or more) of which is to transport students and employees of schools.

Credit or refund. A credit or refund (without interest) is allowable on tax-paid tires if the tires have been:

• Exported;

• Sold to a state or local government for its exclusive use;

• Sold to a nonprofit educational organization for its exclusive use;

• Sold to a qualified blood collector organization for its exclusive use in connection with a vehicle the organization certifies will be primarily used in the collection, storage, or transportation of blood;

• Used or sold for use as supplies for vessels; or

• Sold in connection with qualified intercity, local, or school buses.

Also, a credit or refund (without interest) is allowable on tax-paid tires sold by any person on, or in connection with, any other article that is sold or used in an activity listed above.

The person who paid the tax is eligible to make the claim.

Tax is imposed on the sale by the manufacturer of automobiles of a model type that has a fuel economy standard as measured by the EPA of less than 22.5 miles per gallon. If you import an automobile for personal use, you may be liable for this tax. Figure the tax on Form 6197, as discussed later. The tax rate is based on fuel economy rating. The tax rates for the gas guzzler tax are shown on Form 6197.

A person that lengthens an existing automobile is the manufacturer of an automobile.

Automobiles. An automobile (including limousines) means any four-wheeled vehicle that is:

• Rated at an unloaded gross vehicle weight of 6,000 pounds or less,

• Propelled by an engine powered by gasoline or diesel fuel, and

• Intended for use mainly on public streets, roads, and highways.

Publication 510 (12-2025) Chapter 5 Manufacturers Taxes 33

Vehicles not subject to tax. For the gas guzzler tax, the following vehicles aren’t considered automobiles.

1. Limousines with a gross unloaded vehicle weight of more than 6,000 pounds.

2. Vehicles operated exclusively on a rail or rails.

3. Vehicles sold for use and used primarily:

a. As ambulances or combination ambu lance-hearses;

b. For police or other law enforcement

purposes by federal, state, or local governments; or

c. For firefighting purposes.

4. Vehicles treated under 49 U.S.C. 32901 (1978) as non-passenger automobiles. This includes limousines manufactured primarily to transport more than 10 persons.

The manufacturer can sell a vehicle described in item (3) tax free only when the sale is made directly to a purchaser for the described emergency use and the manufacturer and purchaser (other than a state or local government) are registered.

Treat an Indian tribal government as a state only if the police or other law enforcement purposes are an essential tribal government function.

Model type. Model type is a particular class of automobile as determined by EPA regulations.

Fuel economy. Fuel economy is the average number of miles an automobile travels on a gallon of gasoline (or diesel fuel) rounded to the nearest 0.1 mile as figured by the EPA.

Imported automobiles. The tax also applies to automobiles that don’t have a prototype-based fuel economy rating assigned by the EPA. An automobile imported into the United States without a certificate of conformity to U.S. emission standards and that has no assigned fuel economy rating must be either:

• Converted by installation of emission controls to conform in all material respects to an automobile already certified for sale in the United States, or

• Modified by installation of emission control components and individually tested to demonstrate emission compliance.

An imported automobile that has been converted to conform to an automobile already certified for sale in the United States may use the fuel economy rating assigned to that certified automobile.

A fuel economy rating isn't generally available for modified imported automobiles because the EPA doesn't require a highway fuel economy test on them. A separate highway fuel economy test would be required to devise a fuel economy rating (otherwise the automobile is presumed to fall within the lowest fuel economy rating category).

For more information about fuel economy ratings for imported automobiles, see Revenue Ruling 86-20 and Revenue Procedure 86-9 in Cumulative Bulletin 1986-1, and Revenue Procedure 87-10 in Cumulative Bulletin 1987-1.

Exemptions. No one is exempt from the gas guzzler tax, including the federal government, state and local governments, qualified blood collector organizations, and nonprofit educational organizations. However, see Vehicles not subject to tax, earlier.

Form 6197. Use Form 6197 to figure your tax liability for each quarter. Attach Form 6197 to your Form 720 for the quarter. See the Form 6197 instructions for more information and the one-time filing rules.

Credit or refund. If the manufacturer paid the tax on a vehicle that is used or resold for an emergency use, the manufacturer can claim a credit or refund. For information about how to file for credits or refunds, see the Instructions for Form 720 or Form 8849.

Tax is imposed on certain vaccines sold by the manufacturer in the United States. A taxable vaccine means any of the following vaccines.

• Any vaccine containing diphtheria toxoid.

• Any vaccine containing tetanus toxoid.

• Any vaccine containing pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens.

• Any vaccine containing polio virus.

• Any vaccine against measles.

• Any vaccine against mumps.

• Any vaccine against rubella.

• Any vaccine against hepatitis A.

• Any vaccine against hepatitis B.

• Any vaccine against chicken pox.

• Any vaccine against rotavirus gastroenteritis.

• Any HIB vaccine.

• Any conjugate vaccine against streptococcus pneumoniae.

• Any trivalent vaccine against influenza or any other vaccine against influenza.

• Any meningococcal vaccine.

• Any vaccine against the human papillomavirus.

The effective date for the tax on any vaccine against influenza, other than trivalent influenza vaccines, is the later of August 1, 2013, or the date the Secretary of Health and Human Services lists a vaccine against seasonal influenza for purposes of compensation for any vaccine-related injury or death through the Vaccine Injury Compensation Trust Fund.

The tax is $0.75 per dose of each taxable vaccine. The tax per dose on a vaccine that contains more than one taxable vaccine is $0.75 times the number of taxable vaccines.

Taxable use. Any manufacturer (including a governmental entity) that uses a taxable vaccine before it's sold will be liable for the tax in the same manner as if the vaccine was sold by the manufacturer.

Credit or refund. A credit or refund (without interest) is available if the vaccine is:

• Returned to the person who paid the tax (other than for resale), or

• Destroyed.

The claim for a credit or refund must be filed within 6 months after the vaccine is returned or destroyed.

Conditions to allowance. To claim a credit or refund, the person who paid the tax must have repaid or agreed to repay the tax to the ultimate purchaser of the vaccine or obtained the written consent of such purchaser to allowance of the credit or refund.

A tax of 12% of the sales price is imposed on the first retail sale of the following articles, including related parts and accessories sold on or in connection with, or with the sale of, the articles.

• Truck chassis and bodies.

• Truck trailer and semitrailer chassis and bodies.

• Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer.

A truck is a highway vehicle primarily designed to transport its load on the same chassis as the engine, even if it's equipped to tow a vehicle, such as a trailer or semitrailer.

A tractor is a highway vehicle designed to tow a vehicle, such as a trailer or semitrailer. A tractor may carry incidental items of cargo when towing or limited amounts of cargo when not towing.

A sale of a truck, truck trailer, or semitrailer is considered a sale of a chassis and a body.

The seller is liable for the tax.

Chassis or body. A chassis or body is taxable only if you sell it for use as a component part of a highway vehicle that is a truck, truck trailer or semitrailer, or a tractor of the kind chiefly used for highway transportation in combination with a trailer or semitrailer.

Highway vehicle. A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it's also designed to perform other functions. Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. A vehicle is a highway vehicle even though the vehicle's design allows it to perform

34 Chapter 6 Retail Tax on Heavy Trucks, Trailers, and Tractors Publication 510 (12-2025)

a highway transportation function for only one of the following.

• A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer).

• A special kind of cargo, goods, supplies, or materials.

• Some off-highway task unrelated to highway transportation, except as discussed next.

Vehicles not considered highway vehi- cles. Generally, the following kinds of vehicles aren’t considered highway vehicles for purposes of the retail tax.

1. Specially designed mobile machinery for nontransportation functions. A self-propelled vehicle isn't a highway vehicle if all the following apply.

a. The chassis has permanently moun ted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways.

b. The chassis has been specially de signed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation.

c. The chassis couldn’t, because of its

special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load.

2. Vehicles specially designed for off-highway transportation. A vehicle isn't treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicles's capability to transport a load over a public highway is substantially limited or impaired.

To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. It doesn't matter that the vehicle can carry heavier loads off highway than it's allowed to carry over the highway.

3. Nontransportation trailers and semitrailers. A trailer or semitrailer isn't treated as a highway vehicle if it's specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. For example, a trailer that is capable only of functioning as an office for an off-highway construction operation isn't a highway vehicle.

Gross vehicle weight. The tax doesn't apply to truck chassis and bodies suitable for use with a vehicle that has a gross vehicle weight of

33,000 pounds or less. It also doesn't apply to truck trailer and semitrailer chassis and bodies suitable for use with a trailer or semitrailer that has a gross vehicle weight of 26,000 pounds or less. Tractors that have a gross vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less are excluded from the 12% retail tax.

The following four classifications of truck body types meet the suitable for use stand- ard and will be excluded from the retail excise tax.

• Platform truck bodies 21 feet or less in length.

• Dry freight and refrigerated truck van bodies 24 feet or less in length.

• Dump truck bodies with load capacities of 8 cubic yards or less.

• Refuse packer truck bodies with load capacities of 20 cubic yards or less.

For more information on these classifications, see Revenue Procedure 2005-19, I.R.B. 2005-14, at IRS.gov/irb/ 2005-14_IRB#RP-2005-19 . The gross vehicle weight means the maximum total weight of a loaded vehicle. Generally, this maximum total weight is the gross vehicle weight rating provided by the manufacturer or determined by the seller of the completed article. The seller's gross vehicle weight rating is determined solely on the basis of the strength of the chassis frame and the axle capacity and placement. The seller may not take into account any readily attachable components (such as tires or rim assemblies) in determining the gross vehicle weight.

Parts or accessories. The tax applies to parts or accessories sold on or in connection with, or with the sale of, a taxable article. For example, if at the time of the sale by the retailer, the part or accessory has been ordered from the retailer, the part or accessory will be considered as sold in connection with the sale of the vehicle. The tax applies in this case whether or not the retailer bills the parts or accessories separately.

If the retailer sells a taxable chassis, body, or tractor without parts or accessories considered essential for the operation or appearance of the taxable article, the sale of the parts or accessories by the retailer to the purchaser is considered made in connection with the sale of the taxable article even though they're shipped separately, at the same time, or on a different date. The tax applies unless there is evidence to the contrary. For example, if a retailer sells to any person a chassis and the bumpers for the chassis, or sells a taxable tractor and the fifth wheel and attachments, the tax applies to the parts or accessories regardless of the method of billing or the time at which the shipments were made. The tax doesn't apply to parts and accessories that are spares or replacements.

The tax imposed on parts and accessories sold on or in connection with the taxable articles listed earlier and the tax imposed on the separate purchase of parts and accessories for the taxable articles listed earlier don’t apply to an idling reduction device or insulation that has an R value of at least R35 per inch.

Idling reduction device. An idling reduction device is any device or system of devices that provide the tractor with services, such as

heat, air conditioning, and electricity, without the use of the main drive engine while the tractor is temporarily parked or stationary. The device must be affixed to the tractor and determined by the Administrator of the EPA, in consultation with the Secretary of Energy and Secretary of Transportation, to reduce idling while parked or stationary. The EPA discusses idling reduction technologies on its website at EPA.gov/Verified- Diesel-Tech/Idling-Reduction-Technologies- IRTs-Trucks-and-School-Buses .

Separate purchase. The tax generally applies to the price of a part or accessory and its installation if the following conditions are met.

• The owner, lessee, or operator of any vehicle that contains a taxable article installs any part or accessory on the vehicle.

• The installation occurs within 6 months after the vehicle is first placed in service.

The owners of the trade or business installing the parts or accessories are secondarily liable for the tax.

A vehicle is placed in service on the date the owner takes actual possession of the vehicle. This date is established by a signed delivery ticket or other comparable document indicating delivery to and acceptance by the owner.

The tax doesn't apply if the installed part or accessory is a replacement part or accessory. The tax also doesn't apply if the total price of the parts and accessories, including installation charges, during the 6-month period is $1,000 or less. However, if the total price is more than $1,000, the tax applies to the cost of all parts and accessories (and installation charges) during that period.

Example. You bought a taxable vehicle and placed it in service on April 8. On May 3, you bought and installed parts and accessories at a cost of $850. On July 15, you bought and installed parts and accessories for $300. Tax of $138 (12% of $1,150) applies on July 15. Also, tax will apply to any costs of additional parts and accessories installed on the vehicle before October 8.

First retail sale defined. The sale of an article is treated as the first retail sale, and the seller will be liable for the tax imposed on the sale unless one of the following exceptions applies.

• There has been a prior taxable sale, lease, or use of the article (however, see Tax on resale of tax-paid trailers and semitrailers,

later).

• The sale qualifies as a tax-free sale under section 4221 (see Sales exempt from tax , later).

• The seller in good faith accepts from the purchaser a statement signed under penalties of perjury and executed in good faith that the purchaser intends to resell the article or lease it on a long-term basis (a model certificate is shown in the Appendix as Model Certificate T). There is no registration requirement.

Leases. A long-term lease (a lease with a term of 1 year or more, taking into account options to renew) before a first retail sale is treated as a taxable sale. The tax is imposed on the lessor at the time of the lease.

Publication 510 (12-2025) Chapter 6 Retail Tax on Heavy Trucks, Trailers, and Tractors 35

A short-term lease (a lease with a term of less than 1 year, taking into account options to renew) before a first retail sale is treated as a taxable use. The tax is imposed on the lessor at the time of the lease.

Exported vehicle. A vehicle exported before its first retail sale, used in a foreign country, and then returned to the United States is subject to the retail tax on its first domestic use or retail sale after importation.

Tax on resale of tax-paid trailers and semitrailers. The tax applies to a trailer or semitrailer resold within 6 months after having been sold in a taxable sale. The seller liable for the tax on the resale can claim a credit equal to the tax paid on the prior taxable sale. The credit can't exceed the tax on the resale. See Regulations section 145.4052-1(a)(4) for information on the conditions to allowance for the credit.

Use treated as sale. If any person uses a taxable article before the first retail sale of the article, that person is liable for the tax as if the article had been sold at retail by that person. Figure the tax on the price at which similar articles are sold in the ordinary course of trade by retailers. The tax attaches when the use begins.

If the seller of an article regularly sells the articles at retail in arm's-length transactions, figure the tax on its use on the lowest established retail price for the articles in effect at the time of the taxable use.

If the seller of an article doesn't regularly sell the articles at retail in arm's-length transactions, a constructive price on which the tax is figured will be determined by the IRS after considering the selling practices and price structures of sellers of similar articles.

If a seller of an article incurs liability for tax on the use of the article and later sells or leases the article in a transaction that otherwise would be taxable, liability for tax isn't incurred on the later sale or lease.

Presumptive retail sales price. There are rules to ensure that the tax base of transactions considered to be taxable sales includes either an actual or presumed markup percentage. If the person liable for tax is the vehicle's manufacturer, producer, or importer, the following dis

cussions show how you figure the presumptive retail sales price depending on the type of transaction and the persons involved in the transaction. Table 6-1 outlines the appropriate tax base calculation for various transactions.

The presumed markup percentage to be used for trucks and truck-tractors is 4%. But for truck trailers and semitrailers and remanufactured trucks and tractors, the presumed markup percentage is zero.

Sale. For a taxable sale by a manufacturer, producer, importer, or related person, you generally figure the tax on a tax base of the sales price plus an amount equal to the presumed markup percentage multiplied by that sales price.

Long-term lease. In the case of a long-term lease by a manufacturer, producer, importer, or related person, figure the tax on a tax base of the constructive sales price plus an amount equal to the presumed markup percentage multiplied by the constructive sales price.

Short-term lease. When a manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a constructive sales price at which those or similar articles are generally sold in the ordinary course of trade by retailers.

But if the lessor in this situation regularly sells articles at retail in arm's-length transactions, figure the tax on the lowest established retail price in effect at the time of the taxable use.

If a person other than the manufacturer, producer, importer, or related person leases an article in a short-term lease considered a taxable use, figure the tax on a tax base of the price for which the article was sold to the lessor plus the cost of parts and accessories installed by the lessor and a presumed markup percentage.

Related person. A related person is any member of the same controlled group as the manufacturer, producer, or importer. Don't treat as a related person a person that sells the articles through a permanent retail establishment in the normal course of being a retailer if that person has records to prove the article was sold for

a price that included a markup equal to or greater than the presumed markup percentage.

General rule for sales by dealers to the con- sumer. For a taxable sale, other than a long-term lease, by a person other than a manufacturer, producer, importer, or related person, your tax base is the retail sales price as discussed next under Determination of tax base .

When you sell an article to the consumer, generally you don’t add a presumed markup to the tax base. However, you do add a markup if all the following apply.

• You don’t perform any significant activities relating to the processing of the sale of a taxable article.

• The main reason for processing the sale through you is to avoid or evade the presumed markup.

• You don’t have records proving that the article was sold for a price that included a markup equal to or greater than the presumed markup percentage.

In these situations, your tax base is the sales price plus an amount equal to the presumed markup percentage multiplied by that selling price.

Determination of tax base. These rules apply to both normal retail sales price and presumptive retail sales price computations. To arrive at the tax base, the price is the total consideration paid (including trade-in allowance) for the item and includes any charge incident to placing the article in a condition ready for use. However, see Presumptive retail sales price, earlier.

Exclusions from tax base. Exclude from the tax base the retail excise tax imposed on the sale. Exclude any state or local retail sales tax if stated as a separate charge from the price whether the sales tax is imposed on the seller or purchaser. Also exclude the value of any used component of the article furnished by the first user of the article.

Exclude charges for transportation, delivery, insurance, and installation (other than installation charges for parts and accessories, discussed earlier) and other expenses incurred in connection with the delivery of an article to a purchaser. These expenses are those incurred in delivery from the retail dealer to the customer. In the case of delivery directly from the manufacturer to the dealer's customer, include the transportation and delivery charges to the extent the charges don't exceed what it would have cost to ship the article to the dealer.

Exclude amounts charged for machinery or equipment that doesn't contribute to the highway transportation function of the vehicle, provided those charges are supported by adequate records. For example, for an industrial vacuum loader vehicle, exclude amounts charged for the vacuum pump and hose, filter system, material separator, silencer or muffler, control cabinet, and ladder. Similarly, for a sewer cleaning vehicle, exclude amounts charged for the high pressure water pump, hose components, and the vacuum pipe.

Sales not at arm's length. For any taxable article sold (not at arm's length) at less than the fair market price, figure the excise tax on the

Table 6-1. Tax Base

36 Chapter 6 Retail Tax on Heavy Trucks, Trailers, and Tractors Publication 510 (12-2025)

price for which similar articles are sold at retail in the ordinary course of trade.

A sale isn't at arm's length if either of the following apply.

• One of the parties is controlled (in law or in fact) by the other or there is common control, whether or not the control is actually exercised to influence the sales price.

• The sale is made under special arrangements between a seller and a purchaser.

Installment sales. If the first retail sale is an installment sale, or other form of sale in which the sales price is paid in installments, tax liability arises at the time of the sale. The tax is figured on the entire sales price. No part of the tax is deferred because the sales price is paid in installments.

Repairs and modifications. The tax doesn't apply to the sale or use of an article that has been repaired or modified unless the cost of the repairs and modifications is more than 75% of the retail price of a comparable new article. This includes modifications that change the transportation function of an article or restore a wrecked article to a functional condition. However, this exception generally doesn't apply to an article that wasn't subject to the tax when it was new.

Further manufacture. The tax doesn't apply to the use by a person of a taxable article as material in the manufacture or production of, or as a component part of, another article to be manufactured or produced by that person. Don't treat a person as engaged in the manufacture of any article merely because that person combines the article with a:

• Coupling device (including any fifth wheel);

• Wrecker crane;

• Loading and unloading equipment (including any crane, hoist, winch, or power liftgate);

• Aerial ladder or tower;

• Ice and snow control equipment;

• Earth moving, excavation, and construction equipment;

• Spreader;

• Sleeper cab;

• Cab shield; or

• Wood or metal floor.

Combining an article with an item in this list doesn't give rise to taxability. However, see Parts or accessories, earlier.

Articles exempt from tax. The tax on heavy trucks, trailers, and tractors doesn't apply to the sales of the articles described in the following discussions.

Rail trailers and rail vans. This is any chassis or body of a trailer or semitrailer designed for use both as a highway vehicle and a railroad car (including any parts and accessories designed primarily for use on and in connection with it). Don't treat a piggyback trailer or semitrailer as designed for use as a railroad car.

Parts and accessories. This is any part or accessory sold separately from the truck or trailer, except as described earlier under Parts or accessories and Separate purchase .

Trash containers. This is any box, container, receptacle, bin, or similar article that meets all the following conditions.

• It's designed to be used as a trash container.

• It isn't designed to carry freight other than trash.

• It isn't designed to be permanently mounted on or affixed to a truck chassis or body.

House trailers. This is any house trailer (regardless of size) suitable for use in connection with either passenger automobiles or trucks.

Camper coaches or bodies for self-pro- pelled mobile homes. This is any article designed to be mounted or placed on trucks, truck chassis, or automobile chassis and to be used primarily as living quarters or camping accommodations. Further, the tax doesn't apply to chassis specifically designed and constructed to accommodate and transport self-propelled mobile home bodies.

Farm feed, seed, and fertilizer equip- ment. This is any body primarily designed to process or prepare, haul, spread, load, or unload feed, seed, or fertilizer to or on farms. This exemption applies only to the farm equipment body (and parts and accessories) and not to the chassis upon which the farm equipment is mounted.

Ambulances and hearses. This is any ambulance, hearse, or combination ambulance-hearse.

Truck-tractors. This is any truck-tractor specifically designed for use in shifting semitrailers in and around freight yards and freight terminals.

Concrete mixers. This is any article designed to be placed or mounted on a truck, truck trailer, or semitrailer chassis to be used to process or prepare concrete. This exemption doesn't apply to the chassis on which the article is mounted.

Sales exempt from tax. The following sales are ordinarily exempt from tax.

• Sales to a state or local government for its exclusive use.

• Sales to Indian tribal governments, but only if the transaction involves the exercise of an essential tribal government function.

• Sales to a nonprofit educational organization for its exclusive use.

• Sales to a qualified blood collector organization (as defined under Communications Tax in chapter 4) for its exclusive use in the

collection, storage, or transportation of blood.

• Sales for use by the purchaser for further manufacture of other taxable articles.

• Sales for export or for resale by the purchaser to a second purchaser for export.

• Sales to the United Nations for official use.

Registration requirement. In general, the seller and buyer must be registered for a sale to be tax free. See the Form 637 instructions for more information. Certain registration exceptions apply in the case of sales to state and local governments, sales to foreign purchasers for

export, and sales for resale or long-term leasing.

Further manufacture. If you buy articles tax free and resell or use them other than in the manufacture of another article, you're liable for the tax on their resale or use just as if you had manufactured and made the first retail sale of them.

Credits or refunds. A credit or refund (without interest) of the retail tax on the taxable articles described earlier may be allowable if the tax has been paid with respect to an article and, before any other use, such article is used by any person as a component part of another taxable article manufactured or produced. The person using the article as a component part is eligible for the credit or refund.

A credit or refund is allowable if, before any other use, an article is, by any person:

• Exported,

• Used or sold for use as supplies for vessels,

• Sold to a state or local government for its exclusive use,

• Sold to a nonprofit educational organization for its exclusive use, or

• Sold to a qualified blood collector organization for its exclusive use in the collection, storage, or transportation of blood.

A credit or refund is also allowable if there is a price readjustment by reason of the return or repossession of an article or by reason of a bona fide discount, rebate, or allowance.

See Conditions to allowance in chapter 5.

Tire credit. A credit is allowed against the retail tax on the taxable articles described earlier if taxable tires are sold on or in connection with the sale of the article. The credit is equal to the manufacturers excise tax imposed on the taxable tires. This is the section 4051(d) taxable tire credit and is claimed on Form 720, Schedule C for the same quarter for which the tax on the heavy vehicle is reported.

A tax of $3 per passenger is imposed on certain ship voyages, as explained later under Taxable situations . The tax is imposed only once for each passenger, either at the time of first em- barkation or disembarkation in the United States.

The person providing the voyage (the operator of the vessel) is liable for the tax.

Voyage. A voyage is the vessel's journey that includes the outward and homeward trips or passages. The voyage starts when the vessel begins to load passengers and continues until

Publication 510 (12-2025) Chapter 7 Ship Passenger Tax 37

the vessel has completed at least one outward and one homeward passage. The tax may be imposed even if a passenger doesn't make both an outward and a homeward passage as long as the voyage begins or ends in the United States.

Passenger. A passenger is an individual carried on the vessel other than the master or a crew member or other individual engaged in the business of the vessel or its owners.

Example 1. John Smith works as a guest lecturer. The cruise line hired John for the benefit of the passengers. Therefore, John is engaged in the business of the vessel and isn't a passenger.

Example 2. Marian Green is a travel agent. Marian is taking the cruise as a promotional trip to determine if it should be offered to the clients of the travel agency. Marian is a passenger.

Taxable situations. There are two taxable situations. The first situation involves voyages on commercial passenger vessels extending over one or more nights. A voyage extends over one or more nights if it extends for more than 24 hours. A passenger vessel is any vessel with stateroom or berth accommodations for more than 16 passengers.

The second situation involves voyages on a commercial vessel transporting passengers engaged in gambling on the vessel beyond the territorial waters of the United States. Territorial waters of the United States are those waters within the international boundary line between the United States and any contiguous foreign country or within 3 nautical miles (3.45 statute miles) from low tide on the coastline. If passengers participate as players in any policy game or other lottery, or any other game of chance for money or other thing of value that the owner or operator of the vessel (or their employee, agent, or franchisee) conducts, sponsors, or operates, the voyage is subject to the ship passenger tax. The tax applies regardless of the duration of the voyage. A casual, friendly game of chance with other passengers that isn't conducted, sponsored, or operated by the owner or operator isn't gambling for determining if the voyage is subject to the ship passenger tax.

Exemptions. The tax doesn't apply when a vessel is on a voyage of less than 12 hours between two points in the United States or if a vessel is owned or operated by a state or local government.

Tax is imposed on insurance policies issued by foreign insurers. Any person who makes, signs, issues, or sells any of the documents and instruments subject to the tax, or for whose use or benefit they're made, signed, issued, or sold, is liable for the tax.

The following tax rates apply to each dollar (or fraction thereof) of the premium paid.

1. Casualty insurance and indemnity, fidelity, and surety bonds: $0.04. For example, on a premium payment of $10.10, the tax is $0.44.

2. Life, sickness, and accident insurance, and annuity contracts: $0.01. For example, on a premium payment of $10.10, the tax is $0.11.

3. Reinsurance policies covering any of the taxable contracts described in items (1) and (2): $0.01.

However, the tax doesn't apply to casualty insurance premiums paid to foreign insurers for coverage of export goods in transit to foreign destinations.

Premium. Premium means the agreed price or consideration for assuming and carrying the risk or obligation. It includes any additional charge or assessment payable under the contract, whether in one sum or installments. If premiums are refunded, claim the tax paid on those premiums as an overpayment against tax due on other premiums paid or file a claim for refund.

When liability attaches. The liability for this tax attaches when the premium payment is transferred to the foreign insurer or reinsurer (including transfers to any bank, trust fund, or similar recipient designated by the foreign insurer or reinsurer) or to any nonresident agent, solicitor, or broker. A person can pay the tax before the liability attaches if the person keeps records consistent with that practice.

Who must file. The person who pays the premium to the foreign insurer (or to any nonresident person such as a foreign broker) must pay the tax and file the return. Otherwise, any person who issued or sold the policy, or who is insured under the policy, is required to pay the tax and file the return.

Records: The person liable for this tax must keep accurate records that identify each policy or instrument subject to tax. These records must clearly establish the type of policy or instrument, the gross premium paid, the identity of the insured and insurer, and the total premium charged. If the premium is to be paid in installments, the records must also establish the

amount and anniversary date of each installment.

The records must be kept at the place of business or other convenient location for at least 3 years after the later of the date any part of the tax became due, or the date any part of the tax was paid. During this period, the records must be readily accessible to the IRS.

The person having control or possession of a policy or instrument subject to this tax must keep the policy for at least 3 years after the date any part of the tax on it was paid.

Tip: For information on reinsurance premiums paid from one foreign insurer to another foreign insurer, see Revenue Ruling 2008-15, I.R.B. 2008-12, at IRS.gov/irb/ 2008-12_IRB#RR-2008-15

Treaty-based positions under I.R.C 6114. You may have to file an annual report disclosing the amount of premiums exempt from U.S. excise tax as a result of the application of a treaty with the United States that overrides (or otherwise modifies) any provision of the Internal Revenue Code.

Attach any disclosure statement to the first quarter Form 720. You may be able to use Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), as a disclosure statement. See the Instructions for Form 720 for information on how and where to file.

See Revenue Procedure 92-14 in Cumulative Bulletin 1992-1 for procedures you can use to claim a refund of this tax under certain U.S. treaties.

Tax is imposed on any person who issues a registration-required obligation not in registered form. The tax is:

• 1% of the principal of the obligation, multiplied by
• The number of calendar years (or portions of calendar years) during the period starting on the date the obligation was issued and ending on the date it matures.

A registration-required obligation is any obligation other than one that meets any of the following conditions.

1. It's issued by a natural person.

2. It isn't of a type offered to the public.

3. It has a maturity (at issue) of not more than 1 year.

4. It's a tax-exempt bond.

38 Chapter 9 Obligations Not in Registered Form Publication 510 (12-2025)

5. It's issued under an arrangement reasonably designed to ensure that the obligation will be sold only to foreign persons.

For item (5), if the obligation isn't in registered form, the interest on the obligation must be payable only outside the United States and its territories. Also, the obligation must state on its face that any U.S. person who holds it shall be subject to limits under the U.S. income tax laws.

The tax on indoor tanning service is 10% of the amount paid for that service. The tax is paid by the person paying for the services and is collected by the person receiving payment for the indoor tanning services.

Definition of indoor tanning services. Indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps and intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning. The term doesn't include phototherapy service performed by, and on the premises of, a licensed medical professional (such as a dermatologist, psychologist, or registered nurse). See Regulations section 49.5000B-1 (indoor tanning services) for more information, and special rules for qualified physical fitness facilities, undesignated payment cards, and bundled payments.

File Form 720. The person receiving the payment for indoor tanning services (collector) must collect and remit the tax and file the return. If the tax isn't collected for any reason, the collector is liable for the tax. The collector isn't required to make semimonthly deposits of the tax.

The patient-centered outcomes research fee is imposed on issuers of specified health insurance policies (section 4375) and plan sponsors of applicable self-insured health plans (section 4376) for policy and plan years ending on or after October 1, 2012. Generally, references to taxes on Form 720 include this fee.

Specified health insurance policies. See the Instructions for Form 720 revised for the second quarter of each year for information on the fee amount. Generally, issuers of specified health insurance polices must use one of the following four alternative methods to determine the average number of lives covered under a policy for the policy year.

1. The actual count method .

2. The snapshot method .

3. The member months method .

4. The state form method .

Applicable self-insured health plans. See the Instructions for Form 720 revised for the second quarter of each year for information on the fee amount. Generally, plan sponsors of applicable self-insured health plans must use one of the following three alternative methods to determine the average number of lives covered under a plan for the plan year.

1. Actual count method .

2. Snapshot method .

3. Form 5500 method .

Reporting and paying the fee. File Form 720 annually to report and pay the fee on the second quarter Form 720 no later than July 31 of

the calendar year immediately following the last day of the policy year or plan year to which the fee applies. If you file Form 720 only to report the fee, don’t file Form 720 for the first, third, or fourth quarters of the year. If you file Form 720 to report quarterly excise tax liability for the first, third, or fourth quarter of the year (for example, filers reporting the foreign insurance tax (IRS No. 30)), don’t make an entry on the line for IRS No. 133 on those filings.

Deposits aren’t required for this fee, so issuers and plan sponsors aren’t required to pay the fee using the Electronic Federal Tax Payment System (EFTPS).

However, if the fee is paid using EFTPS, the payment should be applied to the second quarter. See Electronic deposit requirement under How To Make Deposits in chapter 14, later.

More information. For more information, including methods for calculating the average number of lives covered, see the Instructions for Form 720; sections 4375, 4376, 4377; and Regulations section 46.4375-1. See also T.D. 9602, I.R.B. 2012-52, at IRS.gov/irb/ 2012-52_IRB#TD-9602 .

The tax is imposed on certain corporations whose stock is traded on an established securities market. The tax is 1% of the fair market value (FMV) of any stock repurchased by such corporations or their specified affiliates during the tax year. Use Form 7208 to figure the excise tax on stock repurchases. For more details about this tax, see Form 7208 and its separate instructions.

Publication 510 (12-2025) Chapter 12 Repurchase of Corporate Stock 39

Generally, semimonthly deposits of excise taxes are required. A semimonthly period is the first 15 days of a month (the first semimonthly period) or the 16th through the last day of a month (the second semimonthly period).

However, no deposit is required for the situations listed below; the taxes are payable with Form 720.

• The net liability for taxes listed in Form 720, Part I doesn’t exceed $2,500 for the quarter.

• The gas guzzler tax is being paid on a one-time filing.

• The liability is for taxes listed in Form 720, Part II, except for the floor stocks tax, which generally requires a single deposit.

• The repurchase of corporate stock tax is a single, annual payment.

Electronic deposit requirement. Generally, you must use electronic funds transfer to make excise tax deposits. Generally, electronic funds transfers are made using EFTPS. Additionally, as of October 2024, taxpayers can use IRS Direct Pay to make payments directly from their checking or savings accounts, without registering or enrolling with EFTPS. IRS Direct Pay for

40 Chapter 14 Payment of Taxes Publication 510 (12-2025)

businesses is a free and secure payment application available at IRS.gov/DirectPay . If you don’t want to use EFTPS, or IRS Direct Pay, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. Also, you may arrange for your financial institution to submit a same-day wire payment on your behalf.

EFTPS and IRS Direct Pay are free services provided by the Department of Treasury. Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. To get more information about EFTPS or to enroll in EFTPS, visit EFTPS.gov or call 800-555-4477. Additional information about EFTPS is also available in Pub. 966, Electronic Federal Tax Payment System: A Guide to Getting Started.

Depositing on time. For EFTPS deposits to be on time, you must submit the transaction at least 1 day before the date the deposit is due (by 8:00 p.m. Eastern time).

Same-day wire payment option. If you fail to submit a deposit transaction on EFTPS by 8:00 p.m. Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Collection Service (FTCS). To use the same-day wire payment method, you will need to make arrangements with your financial institution ahead of time. Please check with your financial institution regarding availability, deadlines, and costs. Your financial institution may charge you a fee for payments made this way. To learn more about the information you will need to provide your financial institution to make a same-day wire payment, visit IRS.gov/Payments and click on “Same-day wire.”

Tip: You will automatically be enrolled in EFTPS when you apply for an EIN. You will receive a separate mailing containing instructions for activating your EFTPS enrollment after you receive your EIN.

There are two methods for determining deposits: the regular method and the alternative method.

The regular method applies to all taxes in Part I of Form 720 except for communications and air transportation taxes if deposits are based on amounts billed or tickets sold, rather than on amounts actually collected. See Alter- native method (IRS Nos. 22, 26, 27, and 28) , later.

If you're depositing more than one tax under a method, combine all the taxes under the method and make one deposit for the semimonthly period.

Regular method. The deposit of tax for a semimonthly period is due by the 14th day following that period. Generally, this is the 29th day of a month for the first semimonthly period and the 14th day of the following month for the second semimonthly period. If the 14th or the 29th day falls on a Saturday, Sunday, or legal holiday, you must make the deposit by the immediately pre

ceding day that isn't a Saturday, Sunday, or legal holiday.

Alternative method (IRS Nos. 22, 26, 27, and 28). Deposits of communications and air transportation taxes may be based on taxes included in amounts billed or tickets sold during a semimonthly period instead of on taxes actually collected during the period. Under the alternative method, the tax included in amounts billed or tickets sold during a semimonthly period is considered collected during the first 7 days of the second following semimonthly period. The deposit of tax is due by the third banking day after the seventh day of that period.

For an example of the alternative method, see the Instructions for Form 720.

To use the alternative method, you must keep a separate account of the tax included in amounts billed or tickets sold during the month and report on Form 720 the tax included in amounts billed or tickets sold and not the amount of tax that is actually collected. For example, amounts billed in December, January, and February are considered collected during January, February, and March and are reported on Form 720 as the tax for the first quarter of the calendar year.

The separate account for each month must reflect:

1. All items of tax included in amounts billed or tickets sold during the month, and

2. Other items of adjustment relating to tax for prior months (within the statute of limitations on credits or refunds).

The separate account for any month can't include an adjustment resulting from a refusal to pay or inability to collect unless the refusal has been reported to the IRS. See Uncollected Tax Report in chapter 4.

The net amount of tax that is considered collected during the semimonthly period must be either:

• The net amount of tax reflected in the separate account for the corresponding semimonthly period of the preceding month, or

• One-half of the net amount of tax reflected in the separate account for the preceding month.

Special rule for deposits of taxes in Sep- tember. See the Instructions for Form 720 for a special rule on deposits made in September.

Deposits for a semimonthly period must generally be at least 95% of the net tax liability for that period unless the safe harbor rule applies. Generally, you don't have to make a deposit for a period in which you incurred no tax liability.

Net tax liability. Your net tax liability is your tax liability for the period minus any claims on Form 720, Schedule C for the period. You may figure your net tax liability for a semimonthly period by dividing your net liability incurred during the calendar month by two. If you use this method, you must use it for all semimonthly periods in the calendar quarter.

Caution: Don't reduce your liability by any amounts from Form 720-X.

Safe Harbor Rule

The safe harbor rule applies separately to deposits under the regular method and the alternative method. Persons who filed Form 720 for the look-back quarter (the second calendar quarter preceding the current quarter) are considered to meet the semimonthly deposit requirement if the deposit for each semimonthly period in the current quarter is at least 1/6 (16.67%) of the net tax liability reported for the look-back quarter.

For the semimonthly period for which the additional deposit is required, the additional deposit must be at least 11/90 (12.23%), 10/90 (11.12%) for non-EFTPS, of the net tax liability reported for the look-back quarter. Also, the total deposit for that semimonthly period must be at least 1/6 (16.67%) of the net tax liability reported for the look-back quarter.

Exceptions. The safe harbor rule doesn't apply to:

• The first and second quarters beginning on or after the effective date of an increase in the rate of tax unless the deposit of taxes for each semimonthly period in the calendar quarter is at least 1/6 (16.67%) of the tax liability you would have had for the look-back quarter if the increased rate of tax had been in effect for that look-back quarter;

• Any quarter if liability includes any tax not in effect throughout the look-back quarter; or

• For deposits under the alternative method, any quarter if liability includes any tax not in effect throughout the look-back quarter and the month preceding the look-back quarter.

Requirements to be met. For the safe harbor rule to apply, you must:

• Make each deposit timely at an authorized financial institution, and

• Pay any underpayment for the current quarter by the due date of the return.

Caution: The IRS may withdraw the right to make deposits of tax using the safe harbor rule from any person not complying with these rules.

Tax rate increases. You must modify the safe harbor rule if there has been an increase in the rate of tax. You must figure your tax liability in the look-back quarter as if the increased rate had been in effect. To qualify for the safe harbor rule, your deposits can't be less than 1/6 of the refigured tax liability.

Publication 510 (12-2025) Chapter 14 Payment of Taxes 41

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, forms, or instructions, go to IRS.gov to find resources that can help you right away.

Tax reform. Tax reform legislation impacting federal taxes, credits, and deductions was enacted in P.L. 119-21, commonly known as the One Big Beautiful Bill Act, on July 4, 2025. Go to IRS.gov/OBBB for more information and updates on how this legislation affects your taxes.

Preparing and filing your tax return. After receiving all your wage and earnings statements (Forms W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return.

Free options for tax preparation. Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

• Free File. This program lets you prepare and file your federal individual income tax return for free using software or Free File Fillable Forms. However, state tax preparation may not be available through Free File. Go to IRS.gov/FreeFile to see if you qualify for free online federal tax preparation, e-filing, and direct deposit or payment options.

• VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, and limited-English-speaking taxpayers who need help preparing their own tax returns. Go to IRS.gov/VITA , download the free IRS2Go

app, or call 800-906-9887 for information on free tax return preparation.

• TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. Go to IRS.gov/TCE or download the free IRS2Go app for information on free tax return preparation.

• MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military OneSource. For more information, go to

Penalties and interest may result from any of the following acts.

• Failing to collect and pay over tax as the collecting agent (see Trust fund recovery penalty, later).

• Failing to keep adequate records.

• Failing to file returns.

• Failing to pay taxes.

• Filing returns late.

• Filing false or fraudulent returns.

• Paying taxes late.

• Failing to make deposits.

• Depositing taxes late.

• Making false statements relating to tax.

• Failing to register or reregister.

• Misrepresenting that tax is excluded from the price of an article.

Failure to register or reregister. The civil penalty for failure to register or reregister if you're required to register or reregister, unless due to reasonable cause, is $10,000 for the initial failure, and then $1,000 each day thereafter you fail to register or reregister.

Claims. There are criminal penalties for false or fraudulent claims. In addition, any person who files a refund claim with respect to the use of certain fuels for an excessive amount (without reasonable cause) may have to pay a civil penalty. An excessive amount is the amount claimed that is more than the allowable amount. The penalty is the greater of two times the excessive amount or $10.

Trust fund recovery penalty. If you provide taxable communications, air transportation services, or indoor tanning services, you have to collect excise taxes from those persons who pay you for those services. You must pay over these taxes to the U.S. Government.

If you willfully fail to collect or pay over these taxes, or if you evade or defeat them in any way, the trust fund recovery penalty may apply. Willfully means voluntarily, consciously, and intentionally. The trust fund recovery penalty equals 100% of the taxes not collected or not paid over to the U.S. Government.

The trust fund recovery penalty may be imposed on any person responsible for collecting, accounting for, and paying over these taxes. If this person knows that these required actions aren’t taking place for whatever reason, the person is acting willfully. Paying other expenses of the business instead of paying the taxes is willful behavior.

A responsible person can be an officer or employee of a corporation, a partner or employee of a partnership, or any other person who had responsibility for certain aspects of the business and financial affairs of the employer (or business). This may include accountants,

trustees in bankruptcy, members of a board, banks, insurance companies, or sureties. The responsible person could even be another corporation—in other words, anyone who has the duty and the ability to direct, account for, or pay over the money. Having signature power on the business checking account could be a significant factor in determining responsibility.

If your excise tax return is examined and you disagree with the findings, you can get information about audit and appeal procedures from Pub. 556, Examination of Returns, Appeal Rights, and Claims for Refund. An unagreed case involving an excise tax covered in this publication differs from other tax cases in that you can only contest it in court after payment of the tax by filing suit for a refund in the United States District Court or the United States Court of Federal Claims.

The IRS has a program for assisting taxpayers who have technical problems with tax laws and regulations. The IRS will answer inquiries from individuals and organizations about the tax effect of their acts or transactions. The National Office of the IRS issues rulings on those matters.

A ruling is a written statement to a taxpayer that interprets and applies tax laws to the taxpayer's specific set of facts. There are also determination letters issued by IRS directors and information letters issued by IRS directors or the National Office.

There is a fee for most types of determination letters and rulings. For complete information on the rulings program, see the first Internal Revenue Bulletin published each year.

42 Chapter 18 How To Get Tax Help Publication 510 (12-2025)

MilitaryOneSource ( MilitaryOneSource.mil/ MilTax ).

Also, the IRS offers Free Fillable Forms, which can be completed online and then e-filed regardless of income.

Using online tools to help prepare your re- turn. Go to IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant ( IRS.gov/EITCAssistant ) determines if

you’re eligible for the earned income credit (EIC).

• The Online EIN Application ( IRS.gov/EIN ) helps you get an employer identification number (EIN) at no cost.

• The Tax Withholding Estimator ( IRS.gov/ W4App ) makes it easier for you to estimate

the federal income tax you want your em- ployer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

• The Sales Tax Deduction Calculator ( IRS.gov/SalesTax ) figures the amount you

can claim if you itemize deductions on Schedule A (Form 1040).

Getting answers to your tax ques- tions. On IRS.gov, you can get up-to-date information on current

• IRS.gov/Help : A variety of tools to help you

get answers to some of the most common tax questions.

• IRS.gov/ITA : The Interactive Tax Assistant,

a tool that will ask you questions and, based on your input, provide answers on a number of tax topics.

• IRS.gov/Forms : Find forms, instructions,

and publications. You will find details on the most recent tax changes and interactive links to help you find answers to your questions.

• You may also be able to access tax information in your e-filing software.

Need someone to prepare your tax return? There are various types of tax return preparers, including enrolled agents, certified public accountants (CPAs), accountants, and many others who don’t have professional credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification number (PTIN).

Although the tax preparer always signs

CAUTION for providing all the information re-

quired for the preparer to accurately prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For more informa- tion on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business Services Online. The Social Security Adminis

tration (SSA) offers online service at SSA.gov/ employer for fast, free, and secure W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement; and Form W-2c, Corrected Wage and Tax Statement.

Business tax account. If you are a sole proprietor, a partnership, an S corporation, a C corporation, or a single-member limited liability company (LLC), you can view your tax information on record with the IRS and do more with a business tax account. Go to IRS.gov/ BusinessAccount for more information.

IRS social media. Go to IRS.gov/SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our highest priority. We use these tools to share public information with you. Don’t post your social security number (SSN) or other confidential information on social media sites. Always protect your identity when using any social networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English and ASL.

• Youtube.com/irsvideos .

• Youtube.com/irsvideosASL .

Free Over-the-Phone Interpreter (OPI) Serv- ice. The IRS offers the OPI Service to taxpayers needing language interpretation. The OPI Service is available at Taxpayer Assistance Centers (TACs), most IRS offices, and every VITA/TCE tax return site. This service is available in Spanish, Mandarin, Cantonese, Korean, Vietnamese, Russian, and Haitian Creole.

Accessibility Helpline available for taxpay- ers with disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and future accessibility products and services available in alternative media formats (for example, braille, large print, audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or account-related issues, go to IRS.gov/LetUsHelp .

Alternative media preference. Form 9000, Alternative Media Preference, or Form 9000(SP) allows you to elect to receive certain types of written correspondence in the following formats.

• Standard Print.

• Large Print.

• Braille.

• Audio (MP3).

• Plain Text File (TXT).

• Braille-Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the available disaster tax relief.

Getting tax forms and publications. Go to IRS.gov/Forms to view, download, or print all the forms, instructions, and publications you

may need. Or you can go to IRS.gov/ OrderForms to place an order.

Mobile-friendly forms. You'll need an IRS Online Account (OLA) to complete mobile-friendly forms that require signatures. You'll have the option to submit your form(s) online or download a copy for mailing. You'll need scans of your documents to support your submission. Go to IRS.gov/MobileFriendlyForms for more information.

Getting tax publications and instructions in eBook format. Download and view most tax publications and instructions (including the Instructions for Form 1040) on mobile devices as eBooks at IRS.gov/eBooks .

IRS eBooks have been tested using Apple's iBooks for iPad. Our eBooks haven’t been tested on other dedicated eBook readers, and eBook functionality may not operate as intended.

Access your online account (Individual tax- payers only). Go to IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe and a breakdown by tax year.

• See payment plan details or apply for a new payment plan.

• Make a payment or view 5 years of payment history and any pending or scheduled payments.

• Access your tax records, including key data from your most recent tax return, and transcripts.

• View digital copies of select notices from the IRS.

• Approve or reject authorization requests from tax professionals.

Get a transcript of your return. With an online account, you can access a variety of information to help you during the filing season. You can get a transcript, review your most recently filed tax return, and get your adjusted gross income. Create or access your online account at IRS.gov/Account .

Tax Pro Account. This tool lets your tax professional submit an authorization request to access your individual taxpayer IRS OLA. For more information, go to IRS.gov/ TaxProAccount .

Using direct deposit. The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, which securely and electronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, destroyed, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their refunds. If you don’t have a bank account, go to IRS.gov/DirectDeposit for more information on where to find a bank or credit union that can open an account online.

Reporting and resolving your tax-related identity theft issues.

• Tax-related identity theft happens when someone steals your personal information to commit tax fraud. Your taxes can be

Publication 510 (12-2025) Chapter 18 How To Get Tax Help 43

affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by email, text messages (including shortened links), telephone calls, or social media channels to request or verify personal or financial information. This includes requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft , the IRS Iden- tity Theft Central webpage, for information on identity theft and data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take.

• Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN. To learn more, go to IRS.gov/IPPIN .

Ways to check on the status of your refund.

• Go to IRS.gov/Refunds .

• Download the official IRS2Go app to your mobile device to check your refund status.

• Call the automated refund hotline at 800-829-1954.

The IRS can’t issue refunds before

CAUTION the EIC or the additional child tax credit

(ACTC). This applies to the entire refund, not just the portion associated with these credits.

Making a tax payment. The IRS recommends paying electronically whenever possible. Options to pay electronically are included in the list below. Payments of U.S. tax must be remitted to the IRS in U.S. dollars. Digital assets are not accepted. Go to IRS.gov/Payments for informa- tion on how to make a payment using any of the following options.

• IRS Direct Pay : Pay taxes from your bank

account. It’s free and secure, and no sign-in is required. You can change or cancel within 2 days of scheduled payment.

• Debit Card, Credit Card, or Digital Wallet :

Choose an approved payment processor to pay online or by phone.

• Electronic Funds Withdrawal : Schedule a

payment when filing your federal taxes us- ing tax return preparation software or through a tax professional.

• Electronic Federal Tax Payment System :

This is the best option for businesses. En- rollment is required.

• Check or Money Order : Mail your payment

to the address listed on the notice or in- structions.

• Cash : You may be able to pay your taxes

with cash at a participating retail store.

• Same-Day Wire : You may be able to do

same-day wire from your financial institu- tion. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to ensure that the electronic payments you make online, by phone, or from a mobile device using the IRS2Go app are safe and secure. Paying electronically is quick and easy.

What if I can’t pay now? Go to IRS.gov/ Payments for more information about your op- tions.

• Apply for an online payment agreement ( IRS.gov/OPA ) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

• Use the Offer in Compromise Pre-Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more information on the Offer in Compromise program, go to IRS.gov/OIC .

Filing an amended return. Go to IRS.gov/ Form1040X for information and updates.

Checking the status of an amended return. Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns.

It can take up to 3 weeks from the date

CAUTION show up in our system, and processing

it can take up to 16 weeks.

Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

IRS Document Upload Tool. You may be able use the Document Upload Tool to respond digitally to eligible IRS notices and letters by securely uploading required documents online through IRS.gov. For more information, go to IRS.gov/DUT .

Schedule LEP. You can use Schedule LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may not immediately receive written communications in the requested language. The IRS’s commitment to LEP taxpayers is part of a multi-year timeline that began providing translations in 2023. You will continue to receive communications, including notices and letters, in English until they are translated to your preferred language.

Contacting your local TAC. Keep in mind, many questions can be answered on IRS.gov without visiting a TAC. Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TAC to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab,

choose the Contact Us option and click on “Local Offices.”

————————————————————

Below is a message to you from the Taxpayer Advocate Service, an independent organization established by Congress.

The Taxpayer Advocate Service (TAS) Is Here To Help You What Is the Taxpayer Advocate Service?

The Taxpayer Advocate Service (TAS) is an in- dependent organization within the Internal Revenue Service (IRS). TAS helps taxpayers resolve problems with the IRS, makes administrative and legislative recommendations to prevent or correct the problems, and protects taxpayer rights. We work to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights. We are Your Voice at the IRS.

How Can TAS Help Me?

TAS can help you resolve problems that you haven’t been able to resolve with the IRS on your own. Always try to resolve your problem with the IRS first, but if you can’t, then come to TAS. Our services are free .

• TAS helps all taxpayers (and their representatives), including individuals, businesses, and exempt organizations. You may be eligible for TAS help if your IRS problem is causing financial difficulty, if you’ve tried and been unable to resolve your issue with the IRS, or if you believe an IRS system, process, or procedure just isn't working as it should.

• To get help any time with general tax topics, visit www.TaxpayerAdvocate.IRS.gov . The site can help you with common tax issues and situations, such as what to do if you make a mistake on your return or if you get a notice from the IRS.

• TAS works to resolve large-scale (systemic) problems that affect many taxpayers. You can report systemic issues at www.IRS.gov/SAMS . (Be sure not to include any personal identifiable informa- tion.)

How Do I Contact TAS?

TAS has offices in every state, the District of Columbia, and Puerto Rico. To find your local advocate’s number:

• Go to www.TaxpayerAdvocate.IRS.gov/ Contact-Us ,

• Check your local directory, or

• Call TAS toll free at 877-777-4778.

What Are My Rights as a Taxpayer?

The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with

44 Chapter 18 How To Get Tax Help Publication 510 (12-2025)

the IRS. Go to www.TaxpayerAdvocate.IRS.gov/ Taxpayer-Rights for more information about the rights, what they mean to you, and how they ap- ply to specific situations you may encounter with the IRS. TAS strives to protect taxpayer rights and ensure the IRS is administering the tax law in a fair and equitable way.

Model Certificate A

This appendix contains models of the certificates, waivers, reports, and statements discussed in Part One.

STATEMENT OF SUBSEQUENT SELLER

(To support a claim for refund or payment under section 4081.)

Name, address, and employer identification number of seller in subsequent sale

Name, address, and employer identification number of the buyer in subsequent sale

Date and location of subsequent sale

Volume and type of taxable fuel sold

The undersigned seller (“Seller”) has received the copy of the first taxpayer's report provided with this statement in connection with Seller's purchase of the taxable fuel described in this statement.

Under penalties of perjury, Seller declares that Seller has examined this statement, including any accompanying schedules and statements, and, to the best of Seller's knowledge and belief, they're true, correct, and complete.

Signature and date signed

Printed or typed name of person signing this report

Title

Publication 510 (12-2025) Chapter 19 Appendix 45

Model Certificate B

FIRST TAXPAYER'S REPORT

(To support a claim for refund or payment under section 4081.)

First Taxpayer's name, address, and employer identification number

Name, address, and employer identification number of the buyer of the taxable fuel subject to tax

Date and location of removal, entry, or sale

Volume and type of taxable fuel removed, entered, or sold

5. Check type of taxable event:

Removal from refinery

Entry into United States

Bulk transfer from terminal by unregistered position holder

Bulk transfer not received at an approved terminal

Sale within the bulk transfer/terminal system

Removal at the terminal rack

Removal or sale by the blender

Amount of federal excise tax paid on account of the removal, entry, or sale

The undersigned taxpayer (“Taxpayer”) hasn’t received, and won’t claim, a credit with respect to, or a refund of, the tax on the taxable fuel to which this form relates.

Under penalties of perjury, Taxpayer declares that Taxpayer has examined this statement, including any accompanying schedules and statements, and to the best of Taxpayer's knowledge and belief, they're true, correct, and complete.

Signature and date signed

Printed or typed name of person signing this report

Title

46 Chapter 19 Appendix Publication 510 (12-2025)

Model Certificate C

NOTIFICATION CERTIFICATE OF TAXABLE FUEL REGISTRANT

Name, address, and employer identification number of person receiving certificate

The undersigned taxable registrant (“Registrant”) hereby certifies under penalties of perjury that Registrant is registered by the Internal Revenue Service with registration number and that Registrant's registration hasn’t been revoked or suspended by the Internal Revenue Service.

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

Signature and date signed

Printed or typed name of person signing

Title of person signing

Name of Registrant

Employer identification number

Address of Registrant

Publication 510 (12-2025) Chapter 19 Appendix 47

Model Certificate D

CERTIFICATE OF PERSON BUYING GASOLINE BLENDSTOCKS FOR USE OTHER THAN IN THE PRODUCTION OF FINISHED GASOLINE

(To support tax-free sales (other than LUST) under section 4081 of the Internal Revenue Code.)

Name, address, and employer identification number of seller

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

The gasoline blendstocks to which this certificate relates won’t be used to produce finished gasoline.

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

If this is a single purchase certificate, check here and enter:

1. Invoice or delivery ticket number

2. (number of gallons) of (type of gasoline blendstocks)

If this is a certificate covering all purchases under a specified account or order number, check here and enter:

1. Effective date

2. Expiration date

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

3. Type (or types) of gasoline blendstocks

4. Buyer's account or order number

Buyer won’t claim a credit or refund under section 6427(h) of the Internal Revenue Code for any gasoline blendstocks covered by this certificate.

Buyer will provide a new certificate to the seller if any information in this certificate changes.

If Buyer resells the gasoline blendstocks to which this certificate relates, Buyer will be liable for tax unless Buyer obtains a certificate from the purchaser stating that the gasoline blendstocks won’t be used to produce finished gasoline and otherwise complies with the conditions of §48.4081-4(b)(3) of the Manufacturers and Retailers Excise Tax Regulations.

Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's right to provide a certificate.

Buyer hasn’t been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. In addition, the Internal Revenue Service hasn’t notified Buyer that the right to provide a certificate has been withdrawn from a purchaser to which Buyer sells gasoline blendstocks tax free.

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.

Signature and date signed

Printed or typed name of person signing

Title of person signing

Name of Buyer

Employer identification number

Address of Buyer

48 Chapter 19 Appendix Publication 510 (12-2025)

Model Certificate G

CERTIFICATE OF REGISTERED FEEDSTOCK USER

(To support tax-free removals and entries (other than LUST) of kerosene under section 4082 of the Internal Revenue

Code.)

(Buyer) certifies the following under penalties of perjury: Name of buyer

Buyer is a registered feedstock user with registration number . Buyer's registration hasn’t been revoked or suspended.

The kerosene to which this certificate applies will be used by Buyer for a feedstock purpose.

This certificate applies to percent of Buyer's purchases from (name, address, and employer identification number of seller) as follows (complete as applicable):

1. A single purchase on invoice or delivery ticket number .

2. All purchases between (effective date) and (expiration date) (period not to exceed one year after the effective date) under account or order number(s) . If this certificate applies only to Buyer's purchases for certain locations, check here and list the locations.

If Buyer sells the kerosene to which this certificate relates, Buyer will be liable for tax on that sale.

Buyer will provide a new certificate to the seller if any information in this certificate changes.

If Buyer violates the terms of this certificate, the Internal Revenue Service may revoke the Buyer's registration.

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

Employer identification number

Address of Buyer

Signature and date signed

Publication 510 (12-2025) Chapter 19 Appendix 49

Model Certificate J

CERTIFICATE OF PERSON BUYING COMPRESSED NATURAL GAS (CNG) FOR A NONTAXABLE USE

(To support tax-free sales of CNG under section 4041 of the Internal Revenue Code.)

Name, address, and employer identification number of seller

(“Buyer”) certifies the following under penalties of perjury: Name of buyer

The CNG to which this certificate relates will be used in a nontaxable use.

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

If this is a single purchase certificate, check here and enter:

1. Invoice or delivery ticket number

2. (Gasoline gallon equivalents)

If this is a certificate covering all purchases under a specified account or order number, check here and enter:

1. Effective date

2. Expiration date

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

3. Buyer's account or order number

Buyer won’t claim a credit or refund under section 6427 of the Internal Revenue Code for any CNG to which this certificate relates.

Buyer will provide a new certificate to the seller if any information in this certificate changes.

Buyer understands that if Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's right to provide a certificate.

Buyer hasn’t been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. In addition, the Internal Revenue Service hasn’t notified Buyer that the right to provide a certificate has been withdrawn from a purchaser to which Buyer sells CNG tax free.

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

Employer identification number

Address of Buyer

Signature and date signed

50 Chapter 19 Appendix Publication 510 (12-2025)

Model Certificate K

CERTIFICATE OF PERSON BUYING KEROSENE FOR USE IN AVIATION FOR

COMMERCIAL AVIATION OR NONTAXABLE USE

(To support operator liability for tax on removals of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation pursuant to § 4081 of the Internal Revenue Code or to support a tax rate of zero under § 4041(c) pursuant to §§4041(c) and 4082.)

Name, address, and employer identification number of position holder

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

The kerosene for use in aviation to which this certificate relates is purchased (check one): for use on a farm for farming purposes; for use in foreign trade (reciprocal benefits required for foreign registered airlines); for use in certain helicopter and fixe d -wing air ambulance uses; for use other than as a fuel in the propulsion engine of a n aircraft; for the exclusive use of a qualified blood collector orga n ization; for the exclusive use of a nonprofit educational orga n ization; for the exclusive use of a state; for use in an aircraf t owned by an aircraft museum; for use in military aircraft; or f or use in commercial aviation (other than foreign trade).

With respect to kerosene for use in aviation purchased after June 30, 2005, for use in commercial aviation (other than foreign trade), Buyer's registration number is . Buyer's registration hasn’t been suspended or revoked by the Internal Revenue Service.

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

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's account number

Buyer agrees to provide the person liable for tax with a new certificate if any information in this certificate changes.

If the kerosene for use in aviation to which this certificate relates is being bought for use in commercial aviation (other than foreign trade), Buyer is liable for tax on its use of the fuel and will pay that tax to the government.

If Buyer sells or uses the kerosene for use in aviation to which this certificate relates for a use other than the use stated above, Buyer will be liable for tax.

Buyer understands that it must be prepared to establish by satisfactory evidence the purpose for which the fuel purchased under this certificate was used.

Buyer hasn’t been notified by the Internal Revenue Service that its right to provide a certificate has been withdrawn. If Buyer violates the terms of this certificate, the Internal Revenue Service may withdraw Buyer's right to provide a certificate.

The fraudulent use of this certificate may subject Buyer and all parties making any 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

Publication 510 (12-2025) Chapter 19 Appendix 51

Model Waiver L

52 Chapter 19 Appendix Publication 510 (12-2025)

Model Certificate M

CERTIFICATE FOR STATE USE OR NONPROFIT EDUCATIONAL

ORGANIZATION USE

(To support vendor's claim for a credit or payment 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 or aviation gasoline to which this certificate relates (check one):

For the exclusive use of a state or local government; or

For the exclusive use of a nonprofit educational organization.

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

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's 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 any credit or payment for the gasoline or aviation gasoline to which this certificate relates.

Buyer acknowledges that it hasn’t and won’t claim any credit or payment for the gasoline or aviation 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

Publication 510 (12-2025) Chapter 19 Appendix 53

Model Waiver N

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's 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 the diesel fuel or kerosene used in intercity bus transportation.

Buyer acknowledges that it hasn’t and won’t claim any credit or payment for the diesel fuel or kerosene to which this waiver relates.

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

54 Chapter 19 Appendix Publication 510 (12-2025)

Model Certificate O

CERTIFICATE FOR BIODIESEL

Certificate Identification Number: (To support a claim related to biodiesel or a biodiesel mixture under § 6426 of the Internal Revenue Code.)

The undersigned biodiesel producer (“Producer”) hereby certifies the following under penalties of perjury:

Producer's name, address, and employer identification number (EIN)

Name, address, and EIN of person buying the biodiesel from Producer

Date and location of sale to buyer

4. This certificate applies to gallons of biodiesel.

5. Producer certifies that the biodiesel to which this certificate relates is:

%

%

Agri-biodiesel (derived solely from virgin oils)

Biodiesel other than agri-biodiesel

This certificate applies to the following sale:

Invoice or delivery ticket number

Total number of gallons of biodiesel sold under that invoice or delivery ticket number (including biodiesel not covered by this certificate)

Total number of certificates issued for that invoice or delivery ticket number

Name, address, and employer identification number of reseller to whom certificate is issued (only in the case of certificates reissued to a reseller after the return of the original certificate)

7. Original Certificate Identification Number (only in the case of certificates reissued to a reseller after return of the original cer t ificate).

Producer is registered as a biodiesel producer with registration number . Producer's registration hasn’t been suspended or revoked by the Internal Revenue S ervice.

Producer certifies that the biodiesel to which this certificate relates in monoalkyl esters of long chain fatty acids derived from plant or animal matter that meets the requirements of the American Society of Testing and Materials D6751 and the registration requirements for fuels and fuel additives established by EPA under section 211 of the Clean Air Act (42 U.S.C. 7545).

Producer understands that the fraudulent use of this certificate may subject Producer and all parties making any 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 this certificate

Title of person signing

Signature and date signed

Publication 510 (12-2025) Chapter 19 Appendix 55

Model Certificate P

56 Chapter 19 Appendix Publication 510 (12-2025)

Model Certificate Q

Publication 510 (12-2025) Chapter 19 Appendix 57

Model Certificate R

CERTIFICATE OF BUYER OF TAXABLE FUEL FOR USE BY A STATE OR NONPROFIT EDUCATIONAL

ORGANIZATION

(To support credit card issuer's claim for credit, refund, or payment under § 6416(a)(4)(B) or § 6427(l)(5)(D) of the

Internal Revenue Code.)

Name, address, and employer identification number of credit card issuer.

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

A.Buyer will use the taxable fuel to which this certificate relates for the exclusive use of a state; or

B.Buyer will use the gasoline to which this certificate relates for the exclusive use of a nonprofit educational

organization.

C.This certificate applies to all purchases made with the credit card identified below during the period specified:

a. Effective date of certificate

b. Expiration date of certificate

(period not to exceed 2 years after effective date)

c. Buyer's account number

▪Buyer will provide a new certificate to the credit card issuer 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

purchased with the credit card to which this certificate relates.

▪Buyer acknowledges that it hasn’t and won’t claim any credit or payment for the taxable fuel purchased with

the credit card 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

58 Chapter 19 Appendix Publication 510 (12-2025)

Model Statement S

STATEMENT OF BIODIESEL RESELLER (To support a claim related to biodiesel or a biodiesel mixture under § 6426 of the Internal Revenue Code.)

The undersigned biodiesel producer (“Reseller”) hereby certifies the following under penalties of perjury:

Reseller's name, address, and employer identification number (EIN)

Name, address, and EIN of Reseller's buyer

Date and location of sale to buyer

4. Volume of biodiesel sold

5. Certificate Identification Number on the Certificate for Biodiesel

Reseller has bought the biodiesel described in the accompanying Certificate for Biodiesel and Reseller has no reason to believe that any information in the certificate is false.

Reseller hasn’t been notified by the Internal Revenue Service that its right to provide a certificate or statement has been withdrawn.

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

Printed or typed name of person signing this certificate

Title of person signing

Signature and date signed

Publication 510 (12-2025) Chapter 19 Appendix 59

Model Certificate T

CERTIFICATE TO SUPPORT NONTAXABLE SALE OF ARTICLES LISTED IN § 4051 FOR RESALE OR LONG-TERM LEASE

I hereby certify that I am______________________________(Title) of ______________________, (Name of purchaser) that I am authorized to execute this certificate, and that:

The undersigned buyer of articles listed in section 4051 ("Buyer") hereby certifies the following under penalties of perjury: (Check appropriate line) ___ the article or articles specified in the accompanying order, or on the reverse side hereof, (or) ___ all orders placed by the purchaser for the period commencing ___________ (Date) (period not to exceed 12 calendar quarters), are purchased either for resale or for lease on a long-term basis. I have filed Form 637 and have received registration number____________.

I understand that the fraudulent use of this certificate to secure exemption will subject me and all parties making such fraudulent use to a fine of not more than $10,000, or to imprisonment for not more than 5 years, or both, together with costs of prosecution.

Printed or typed name of person signing this certificate

Title of person signing

Signature and date signed

60 Chapter 19 Appendix Publication 510 (12-2025)

To help us develop a more useful index, please let us know if you have ideas for index entries. Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

A

Affiliated corporations 29 Agri-biodiesel, defined 4 Air transportation taxes 27

Claiming a refund 22 Filing claims 20 Coal :

Blending 33 Exemptions 33 Producer 32 Production 32 Selling price 33 Tax rates 32 Coin-operated telephones 27 Comments 3 Commercial aviation 20 Commercial fishing 19 Commercial waterway

service 27 News services 27 Nonprofit educational

organizations 27 Radio broadcasts 27 Security systems 27 Exempt sales, heavy trucks 37 Exemptions :

Coin-operated telephones 27 Installation charges 27 International organizations 27 Mobile radio telephone

225-mile-zone rule 28 Aircraft management

services 30 Alaska 28, 29 Baggage 29 Bonus tickets 29 Credits or refunds 30 Exemptions 28 Export 29 Fixed-wing aircraft 29 Hawaii 28, 29 Helicopters 29 International air travel

organizations 27 Nonprofit hospitals 27 Private communication

service 26 Qualified blood collector

Free tax services 42 Fuels :

Alternative fuel 12 Diesel 7 Diesel-water fuel emulsion 10 For use in aviation 10 Gasoline 5 Kerosene 7 Other fuels 12

G

Gambling 38 Gas guzzler tax :

Automobiles 33 Credit or refund 34 Limousines 33 Vehicles not subject to tax 34 Gasoline blendstocks 6 Gasoline, defined 5

H

transportation 13 Communications taxes :

Hawaii, air transportation

facilities 29 Military personnel 28 Package tours 28 Persons by air 28 Persons liable 28, 29 Property by air 29 Tax rates 28 Taxable transportation 28 Travel agency 28 Uninterrupted international 28 Aircraft 20

Aviation gasoline 15 Gasoline 15 Kerosene for use in aviation 17 Undyed diesel fuel 15 Undyed kerosene 15 Credit or refund :

Credits or refunds 27 Exemptions 26 Figuring the tax 26 Local telephone service 26 Local-only service 26 Private communication

organizations 27, 31 Qualified blood collector

service 26 Teletypewriter exchange

service 26 Credit card purchases :

Air transportation taxes 28 Bonus tickets 29 Coal 33 Communications taxes 26 Federal government 27 Fixed-wing aircraft 29 For export 31 Further manufacturing 31 Helicopters 29 Indian handicrafts 31 Indian tribal governments 27 Military personnel 28 Nonprofit educational

organizations 31 State and local governments 27,

taxes 28 Heavy Motor Vehicle User Fee 3 Heavy trucks :

Affiliated corporations 29 Small planes 29 Aircraft museum 20 Alaska :

First retail sale, defined 35 Further manufacture 37 Installment sales 37 Parts or accessories 35 Presumptive retail sales price 36 Related persons 36 Separate purchases 35 Tax base 36 Tax rate 34 Helicopter 20 Help ( See Tax help) Highway vehicle 18, 20 Highway vehicle

31 Taxable tires 33 Vessel supplies 31 Export 19 Exported taxable fuel 14

Air transportation taxes 28 Tax on diesel fuel or kerosene 9 Alcohol and tobacco taxes 3 Alternative fuel, defined 4 American Red Cross 27 Answering service 27 Appeal procedures 42 Approved refinery, defined 4 Approved terminal, defined 4 Arrow shafts 32 Assistance ( See Tax help) Aviation gasoline, defined 5

Net tax liability 41 Deposits, How to make 40 Diesel fuel :

Gas guzzler tax 34 Manufacturers taxes 31 Resale of tax-paid

semitrailers 36 Retail tax 37 Tire tax 33 Vaccines 34 Credits 22

F

(Diesel-powered) 7

D

Identifying number 21 Imported taxable products

(ODCs) 25 Indoor tanning services 39 Information returns, liquid

Deposits :

I

Farming 18 Federal government 27 Fishing 19 Fishing rods and fishing

poles. 32 Fishing tackle boxes 32 Fixed-wing aircraft 29 Floor stocks tax :

Ozone-depleting chemicals 26 Floor stocks, ODCs 24 Foreign trade 19 Form :

B

Back-up tax 10 Biodiesel, defined 4 Blended taxable fuel, defined 4 Blender, defined 4 Blocked pump 15 Blood collector organizations,

Definitions 7 Exported 7 Diesel-water fuel emulsion,

products 5 Inland and intracoasal

waterways 13 Intercity and local buses 19 Interest and penalties 42 International air travel

defined 4 Dyed diesel fuel 9 Dyed kerosene 9

K

Kerosene :

Definitions 7 Exported 7 For use in aviation 10

L

Liquid products, information

returns 5 Local telephone service 26 Local-only service 26

facilities 29

qualified 20, 27 Boats 19 Bonus tickets 29 Bows, Quivers, Broadheads, and

E

Electric outboard motors 32 Enterer, defined 4 Entry, defined 4 Environmental taxes :

Points 32 Bulk transfer, defined 4 Bulk transfer/terminal system,

Credit or refund 25 Exceptions 25 Ozone-depleting chemicals

defined 4 Buses 19

1363 29 4136 22 6197 33, 34, 40 6627 24, 40 720 22, 34, 39, 40 720-X 40 7208 39, 40 8849 22 8864 14 Form 720 :

Attachments 40 Due dates 40 Final return 40 Schedule A 40 Schedule C 40 Schedule T 40

Tire tax 33

C

Chemicals, ozone-depleting 24 Claims :

Claiming a credit 22

(ODCs) 24 United States (defined) 24 Examination procedures 42 Exempt articles, retail tax 37 Exempt communication services :

American Red Cross 27 Answering service 27

Publication 510 (12-2025) 61

Rebates 30 Retail dealer preparation

Credit against heavy truck

M

Throughputter, defined 5 Tires :

tax 37 Credit or refund of tax 33 Train 20 Train (Diesel-powered) 7 Travel agency 28 TTY/TDD information 42 Two-party exchanges 5, 8

Manufacturer, defined 30 Manufacturers taxes :

Arrow shafts 32 Bows, Quivers, Broadheads, and

Payment of taxes 40 Penalties :

Dyed diesel fuel 9 Dyed kerosene 9 Pipeline operator, defined 4 Position holder, defined 4 Publications ( See Tax help)

Q

Qualified local bus 19

R

costs 30 Warranty charges 30 School bus 19 Second generation biofuel 4 Security systems 27 Ship passenger tax 37 Special September rule, When to

Points 32 Coal 32 Credits or refunds 31 Exemptions 31 Gas guzzler tax 33 Lease 30 Lease payments 31 Partial payments 31 Registration 31 Related person 32 Requirements for exempt

deposit 41 Sport fishing equipment :

U

transportation 28 Used other than as a fuel :

List of equipment 32 Resales 32 State and local governments 27 State or local governments 20 State or nonprofit educational

Ultimate purchaser 20 Uninterrupted international air

Alternative fuels 17 Aviation gasoline 14 Diesel fuel 15 Diesel-water fuel emulsion 15 Gasoline 14 Kerosene 15 Liquefied petroleum gas

sales 31 Sale 30 Sport fishing equipment 32 Taxable Tires 33 Vaccines 34 Military aircraft 20 Mobile radio telephone

Rack, defined 4 Radio broadcasts 27 Refiner, defined 4 Refinery, defined 4 Refunds 22 Refunds of second tax 17 Registered ultimate vendor 15,

obligations 38 Related persons :

organization use 14 State use 15, 21 State, defined 5 Suggestions 3

Diesel fuel and kerosene 19 Uses, nontaxable :

21 Registrant 5 Registration 5 Registration-required

T

service 27

Tanning tax 39 Tax help 42 Tax on Petroleum 24 Tax rate 32

Air transportation of persons 28 Air transportation of property 29 Arrow shafts 32 Bows, Quivers, Broadheads, and

N

Vaccines :

(LPG) 17 Other fuels 17

News services 27 Nonprofit educational

organization 20 Nonprofit educational

Heavy trucks 36 Sport fishing equipment 32 Removal, defined 4 Repurchase of corporate

V

Gas guzzler 33 Imported 34 Law enforcement 34 Vendors, registered ultimate 15,

organization use and state use 21 Nonprofit educational

stock 39 Retail tax :

Points 32 Coal 32 Electric outboard motor 32 International air travel

facilities 29 Obligations not in registered

form 38 Policies issued by foreign

Credit or refund 34 Manufacturers tax 34 Vehicles :

organizations 27 Nontaxable uses, definitions 18 Nontaxable uses, type of use

Credits or refunds 37 Heavy trucks 34 Rulings Program 42 Rural airports 28

S

table 18

21 Vessel operator, defined 5

W

Wagering and occupational

wagering fee 3 When to deposit 41

O

Obligations not in registered

form 38 Off-highway use 18 Other fuels (Including Alternative

Sale, defined 4 Sales by registered ultimate

vendors, gasoline 14 Sales by registered ultimate

vendors, kerosene for use in aviation 16 Sales price :

persons 38 Ship passenger tax 37 Sport fishing equipment 32 Trucks 34 Taxable fuel registrant 5 Taxable tires :

Exemptions 33 Taxable Tires :

fuels) 12 Other fuels, defined 4 Ozone-depleting chemicals :

service 26 Terminal operator, defined 5 Terminal, defined 5

Floor stocks tax 26 Imported taxable products 25

Bonus goods 30 Cost of transportation 30 Delivery costs 30 Discounts 30 Installation costs 30 Insurance costs 30 Local advertising charges 30 Manufacturers excise tax 30

Manufacturers taxes 33 Taxes, Payment of 40 Taxpayer identification

number 21 Teletypewriter exchange

P

Patient-centered outcomes

research fee 39

62 Publication 510 (12-2025)