This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
Use Form 4136 to claim a credit for certain nontaxable uses (or sales) of fuel during the income tax year. Also use Form 4136
if you are claiming
the alternative fuel credit, a blender claiming a credit for a diesel-water fuel emulsion, or a producer claiming a credit
for an alcohol fuel
mixture, biodiesel or renewable diesel mixture, or an alternative fuel mixture.
Instead of waiting to claim an annual credit on Form 4136, you may file:
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Form 8849, Claim for Refund of Excise Taxes, to claim a periodic refund; or
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Form 720, Quarterly Federal Excise Tax Return, to claim a credit against your taxable fuel liability.
You cannot claim any amounts on Form 4136 that you claimed on Form 8849 or Schedule C (Form 720).
Partnerships.
Partnerships (other than electing large partnerships) cannot file this form. Instead, they must include a statement
on Schedule K-1 (Form 1065),
Partner's Share of Income, Deductions, Credits, etc., showing the allocation to each partner specifying the number of gallons
of each fuel used during
the tax year, the applicable credit per gallon, the nontaxable use or sale, and any additional information required to be
submitted.
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Publication 510, Excise Taxes for 2006, has more information on nontaxable uses and the definitions of terms, such as ultimate
vendor and
blocked pump. Pub. 510 also contains information on fuel tax credits and refunds previously in
Pub. 378.
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Publication 225, Farmer's Tax Guide, also includes information on credits and refunds for the federal excise tax on fuels
applicable to
farmers.
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Notice 2005-4. You can find Notice 2005-4 on page 289 of Internal Revenue Bulletin 2005-2 at
www.irs.gov/pub/irs-irbs/irb05-02.pdf.
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Notice 2005-62. You can find Notice 2005-62 on page 443 of Internal Revenue Bulletin 2005-35 at
www.irs.gov/pub/irs-irbs/irb05-35.pdf.
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Notice 2005-80. You can find Notice 2005-80 on page 953 of Internal Revenue Bulletin 2005-46 at
www.irs.gov/pub/irs-irbs/irb05-46.pdf.
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Notice 2006-92. You can find Notice 2006-92 in Internal Revenue Bulletin 2006-43 at
www.irs.gov/pub/irs-irbs/irb06-43.pdf.
You must keep records to support any credits claimed on this return for at least 3 years from the date the return is due or
filed, whichever is
later.
Including the Fuel Tax Credit in Income
You must include in your gross income the amount of the credit from line 20 if you took a deduction on your tax return that
included the amount of
the taxes and that deduction reduced your income tax liability. See Pub. 510 for more information.
