IRS Form 8849 refund claims

tax 8849

Schedule 3 Claims - Certain Fuel Mixtures and the Alternative Fuel Credit :

RS Tax Form 8849 Schedule 3 is used to make claims for Biodiesel or Renewable Diesel Mixture Credit and Alternative Fuel Credit. The refund claimed on Schedule 3 can now be less than $200 if the claim is filed electronically.

The credits for alcohol fuel mixtures expired after December 31, 2011 and cannot be claimed now. The Line no 1 is reserved.

The biodiesel mixture credit and renewable diesel mixture credit must first be taken as a credit against your taxable fuel liability (gasoline, diesel fuel, and kerosene) reported on Form 720. Similarly, the alternative fuel credit must first be taken on Form 720 as a credit against your alternative fuel or compressed natural gas (CNG) tax liability.

If you have these tax liabilities and you did not make the claim on Schedule C (Form 720) as a credit against those liabilities, you must first file Form 720X, Amended Quarterly Federal Excise Tax Return, before Form 8849, Schedule 3, can be used for the refund. You cannot claim any amounts on Form 8849 that you claimed (or will claim) on Schedule C (Form 720), Form 720X, or Form 4136, Credit for Federal Tax Paid on Fuels.

The alternative fuel mixture credit cannot be claimed on this form or on Form 4136. It must be taken as a credit against your taxable fuel liability (gasoline, diesel fuel, and kerosene) reported on Form 720.

  • Biodiesel or Renewable Diesel Mixture Credit
  • Alternative Fuel Credit
Coordination with Excise Tax Credit

Only one credit may be taken for any one gallon of alternative fuel. If any amount is claimed (or will be claimed) for any gallon of biodiesel mixture, renewable diesel mixture, or alternative fuel on Form 720, Form 720X, or Form 4136, then a claim cannot be made on Form 8849 for that gallon of biodiesel mixture, renewable diesel mixture, or alternative fuel.

Excise Tax Liability

Persons who blend an untaxed liquid with taxable fuel to produce a taxable fuel mixture outside the bulk transfer terminal system must pay the excise tax on the volume of the untaxed liquid in the mixture. Use Form 720 to report these taxes. You also must be registered with the IRS as a blender (M registrants). Line 3 claimants must also have an AL registration number. See Form 637, Application for Registration (For Certain Excise Tax Activities).

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