SnowRidge
Elite Member
</font><font color="blue" class="small">( The IRS fuel credit works but you don't get back all the tax. You only get the fed portion back, which is about half. It does require an extra form also but it's a pretty simple form. )</font>
Unfortunately, you can't claim the federal diesel tax on it.
From IRS form 4136, "Credit for Federal Tax Paid on Fuels" part 3
"Nontaxable Use of Undyded Diesel Fuel"
<font color="green"> Claims cannot be made on line 3 for diesel fuel used on a farm for farming purposes. Only registered ultimate vendors may make those claims </font>
(emphasis added)
An excerpt from a 2000 report by the Treasury Department's Inspector General follows:
<font color="purple">Only the "registered ultimate vendor" (i.e., the person who sells the fuel to the person who actually uses it) can claim a credit or refund for undyed diesel fuel used on a farm for farming purposes. The prior audit identified more than 23,000 taxpayers who incorrectly claimed $4.5 million in tax credits on their 1995 individual income tax returns for undyed diesel fuel used on farms. At least 19,000 of these taxpayers incorrectly received over $2 million in credits for undyed diesel fuel because the amount claimed was less than the dollar amount that was subject to IRS review. Paid return preparers had prepared 83 percent of the returns that incorrectly claimed credits for undyed diesel fuel. Beginning with TY 1996, the IRS changed the tax form, the taxpayer instructions, and the tax publication to include specific statements that tax credits are not allowed for undyed diesel fuel used on a farm for farming purposes. </font>
The little guy who doesn't use enough to qualify for delivery service by a diesel supplier gets the shaft again. So much for our "compassionate" government.
SnowRidge
Unfortunately, you can't claim the federal diesel tax on it.
From IRS form 4136, "Credit for Federal Tax Paid on Fuels" part 3
"Nontaxable Use of Undyded Diesel Fuel"
<font color="green"> Claims cannot be made on line 3 for diesel fuel used on a farm for farming purposes. Only registered ultimate vendors may make those claims </font>
(emphasis added)
An excerpt from a 2000 report by the Treasury Department's Inspector General follows:
<font color="purple">Only the "registered ultimate vendor" (i.e., the person who sells the fuel to the person who actually uses it) can claim a credit or refund for undyed diesel fuel used on a farm for farming purposes. The prior audit identified more than 23,000 taxpayers who incorrectly claimed $4.5 million in tax credits on their 1995 individual income tax returns for undyed diesel fuel used on farms. At least 19,000 of these taxpayers incorrectly received over $2 million in credits for undyed diesel fuel because the amount claimed was less than the dollar amount that was subject to IRS review. Paid return preparers had prepared 83 percent of the returns that incorrectly claimed credits for undyed diesel fuel. Beginning with TY 1996, the IRS changed the tax form, the taxpayer instructions, and the tax publication to include specific statements that tax credits are not allowed for undyed diesel fuel used on a farm for farming purposes. </font>
The little guy who doesn't use enough to qualify for delivery service by a diesel supplier gets the shaft again. So much for our "compassionate" government.
SnowRidge
