Irs Publication 595 - Tax Highlights For Commercial Fishermen

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Table 4. Sample Exemption Certificate

Your credit is for a claim group, explained

next, for which you did not previously file a

EXEMPTION CERTIFICATE

claim on Form 4136 for the tax year.

(To support vendor’s claim for credit or payment under section 6421 of the Internal Revenue Code)

Claims on Form 4136 (other than for gasohol

blending) are separated into seven claim

groups. Once you file Form 4136 with a claim

Name and Address of Seller

for a group, you cannot file an amended return

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

with another claim for that group. However, you

perjury:

can file an amended return with a claim for

A. Buyer will use the gasoline to which this certificate relates in a boat engaged in

another group.

commercial fishing.

Claim group table. Tables 2 and 3 show

B. Buyer bought or will buy the gasoline to which this certificate relates from the above

which claims are in each group. The numbers in

named seller at a price that does not include the excise tax.

the second column of each table refer to the line

numbers on Form 4136. The numbers in the

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

third column are from the Type of Use Table in

If this is a single purchase certificate, check here

and enter the number

the Form 4136 instructions.

of gallons of gasoline

Table 2. Claim Groups for Tax

If this is a certificate covering all purchases, check here

Years Before 2001

If Buyer uses the gasoline to which this certificate relates for a use other than

stated in the certificate, Buyer will so notify the person to whom Buyer gives this

Group

Line Number

Type of Use

certificate.

Buyer has not and will not claim a refund or credit under section 6421 of the Internal

1b, 1d-f, 2b

Revenue Code for the excise tax on the gasoline to which this certificate relates.

1a, 1d-f

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

See line instructions

imprisonment, or both, together with the costs of prosecution.

III

1c-f

5, 7

Signature and Date Signed

1c-f, 2b

3, 4, 9

3c, 7

5, 7

Printed or Typed Name and Title of Buyer

3a-b, 4, 5, 6

See line instructions

Name, Address, and Taxpayer Identification Number of Buyer

VII

return to claim the credit for that fuel tax because

credit for that amount on your income tax return,

that would be a Group II claim.

as discussed earlier.

Table 3. Claim Groups for Tax

Years After 2000

How to claim a credit. As an individual, you

claim the credit on line 65 of Form 1040. Check

Including the Credit or Refund in

Group

Line Number

Type of Use

box “b” on line 65. If you would not otherwise

Income

have to file an income tax return, you must do so

to claim a fuel tax credit.

1b, 1d-f, 2b

Include any credit or refund of excise taxes on

fuels in your gross income if you claimed the

1a, 1d-f

total cost of the fuel (including the excise taxes)

Claiming a Refund

as an expense deduction that reduced your in-

See line instructions

come tax liability.

You can file a claim for refund for any quarter of

If you use the cash method of accounting

your tax year for which you can claim $750 or

III

1c-f

5, 7

and file a claim for refund, include the refund in

more. This amount is the excise tax on all fuels

your gross income for the tax year in which you

used for any nontaxable use during that quarter

1c-f, 2b

3, 4, 9

receive the refund. If you claim a credit on your

or any prior quarter (for which no other claim has

income tax return, include the credit in gross

3c, 4c, 8

5, 7

been filed) during the tax year.

income for the tax year in which you file Form

If you cannot claim at least $750 at the end of

3a-b, 4a-b,

4136. If you file an amended return and claim a

a quarter, you carry the amount over to the next

See line instructions

5, 6, 7

credit, include the credit in gross income for the

quarter of your tax year to determine if you can

tax year in which you receive the credit.

claim at least $750 for that quarter. If you cannot

VII

claim at least $750 at the end of the fourth

Example. Ed Brown, a cash basis fisher-

quarter of your tax year, you must claim a credit

For each tax year, you can make only one

man, filed his 2000 Form 1040 on March 1,

on your income tax return, using Form 4136.

claim for each group.

2001. On his Schedule C, Ed deducted the total

Only one claim can be filed for a quarter.

cost of gasoline (including $110 of excise taxes)

How to file a quarterly claim. You make a

Example. You file your income tax return

used in his boat while engaged in commercial

claim for a refund on Form 8849. File the claim

and claim a fuel tax credit. Form 4136 shows an

fishing operations. Then, on Form 4136, he

by filling out Schedule 1 (Form 8849) and attach-

amount on line 1c for use of gasoline in a boat

claimed the $110 as a credit. Ed reports the

ing it to Form 8849. Send it to the address

engaged in commercial fishing. This is a Group

$110 as additional income on his 2001 Schedule

shown in the instructions.

IV claim. You cannot amend your return to claim

a credit for an amount on line 1d for use of

When to file a quarterly claim. You must file

gasohol in a boat engaged in commercial fishing

How To Buy Fuel Tax Free

a quarterly claim by the last day of the quarter

(Type of Use 4), since that is also a Group IV

following the last quarter included in the claim. If

claim. However, if you used the gasohol in an

you do not file a timely refund claim for the fourth

Instead of paying the fuel tax and filing a claim

off-highway business use, you can amend your

quarter of your tax year, you will have to claim a

for credit or refund when the fuel is used for a

Page 10

Irs Publication 595 - Tax Highlights For Commercial Fishermen - 2001 Page 10

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