Form 8849 Schedule 2: Fuel Tax Refund Guide
What is Form 8849 Schedule 2?
- Schedule 2 of Form 8849 specifically addresses this issue of the Registered Ultimate Vendors who sell taxable fuel to the end-user or use the fuel for non-taxable purposes by acquiring the sale and seller details.
- The seller details include such as the name and address of the vendor, the type of fuel sold, the number of gallons sold, and the tax paid on those sales.
- Here, the Registered Ultimate Vendors are those who engage in the sale of taxable goods or services to end-users for further resale, use, or consumption. While these vendors are typically not subject to federal excise taxes on fuel, Schedule 2 enables them to claim a refund or credit for the tax paid on the fuel they've sold.
- This means ‘Registered Ultimate Vendors’ can claim a refund on the taxes that they have already paid while enabling the sale to the end user, thereby avoiding double tax payment issues.
What are the main objectives of
Form 8849 Schedule 2?
- The 8849 Schedule 2 is a detailed report that captures essential information about the sales conducted by registered ultimate vendors during a specific reporting period. It necessitates sale and seller particulars such as vendor identification, fuel type, gallons sold, and associated tax payments.
- By completing Schedule 2 and attaching it to Form 8849, registered ultimate vendors can seek a refund or credit for the federal excise tax paid on their fuel sales.
5 Benefits of Form 8849 Schedule 2
Who is Eligible to File Form 8849 Schedule 2?
Purchasers of Fuel
This includes retailers dealing in diesel fuel, kerosene, gasoline, aviation gasoline, or alternative fuels.
Truckers
Those who've paid federal excise tax on specific fuel types used in their business operations.
Operators
Owners or operators of buses, such as local transit buses, school buses, or qualified buses used for private transportation functions.
Entities
This category encompasses state and local governments, certain Indian tribal governments, and the District of Columbia, who've paid federal excise tax on specified fuels used in their operations.
Organizations
Specifically, those operating school buses and paying federal excise tax on designated fuels.
Fire Departments
Entities paying federal excise tax on specific fuels used for authorized purposes.
Form 8849 Schedule 2 Specific Instructions
Source : IRS Schedule 2(Rev. December 2020)
Only the registered ultimate vendor is eligible, provided the necessary certificates are obtained.
Allowable Sale :Diesel fuel sold exclusively by a state or local government.
Claim Requirements :Minimum claim of $200 for a week-long period.
A registered ultimate vendor with the required certificates or statements.
Allowable Sale :Kerosene for exclusive use by a government or from a blocked pump.
Claim Requirements :Minimum claim of $100 for a week-long period.
A registered ultimate vendor with the required certificates or statements.
Allowable Sale :Kerosene for use in commercial aviation.
Claim Requirements :Minimum claim of $100 for a week-long period.
Registered ultimate vendor with ultimate purchaser waiver.
Allowable Sale :Gasoline or aviation gasoline for use by nonprofit educational organizations or governments.
Claim Requirements :Minimum claim of $200 for a week-long period.
Fill in the name, address, employer ID, and gallons of fuel sold for each governmental unit if claiming on lines 1a, 2a, 3d, or 3e (type of use 14).
Line 7, focuses on gathering information related to Government and Nonprofit Educational Organizations units. Completion of this section is necessary when you are claiming on line 4a, 4b, 5a, or 5b. To provide accurate details, you are required to input relevant information for each governmental or nonprofit educational organization unit that received the sold gasoline or aviation gasoline.
Form 8849 Schedule 2 Deadline
- The claim must be submitted by the last day of the quarter following the earliest quarter of the claimant's income tax year included in the claim. For instance, if a calendar-year claimant is requesting a refund for diesel fuel sales in September and October, the deadline for filing the claim is December 31.
Last quarter, I used the Simple 720 Portal for my PCORI filings, and the process was incredibly smooth—I completed everything in just a few minutes. I used to worry a lot about the filing process, but now I feel at ease knowing I can get it done with just a few clicks. I've also started using Simple 720 for both PCORI and complete excise tax filings.
We’ve been filing excise taxes online through Simple 720 for the past three quarters, and it has saved us a significant amount of time and energy. This efficiency has allowed my team to focus more on other critical operational tasks. Thanks to Simple 720 for their excellent product and outstanding customer support—I just processed another e-file effortlessly!
Over the past three quarters, we’ve successfully transitioned to filing our excise taxes online, leading to substantial time and energy savings. This streamlined approach has enabled our team to focus more on other essential operational tasks. We greatly appreciate Simple 720 for the exceptional quality of their product and the invaluable support provided by their customer service team.
