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IRS Sets Deadline for 2014 Claims for $0.50 Alternative Fuel Credit

IRS Notice 2015-3 establishes procedures for claiming the $0.50 credit for alternative fuel sold or used in calendar year 2014. The notice released on January 16 indicates that a single one-time claim for all alternative fuels, including CNG and LNG should be made no later than August 8, 2015. Claims should be made using Form 8849 (Claim for Refund of Excise Taxes) with accompanying Schedule 3 (Certain Fuel Mixtures and the Alternative Fuel Credit), and claims should cover the whole year. The notice indicates that taxpayers who filed protective or anticipatory claims in 2014 must refile their claims; the IRS will not consider the previous claims perfected by the extension of the tax credits. Claims for 2014 may be submitted as early as January 16, 2015 but February 9, 2015 is the official start date for filing such claims and the date that will be used for determining whether the IRS owes interest on any late payments to taxpayers.

Based on our reading of Notice 2015-3, it does not appear to require taxpayers to file a 720X form (Amended Quarterly Federal Excise Tax Return) as has been required in past years and is required for sellers of alternative fuel mixtures. To file a claim, a person must be a registered alternative fueler. If you previously submitted claims to the IRS then you are likely registered. First time claimants who are not registered must file Form 637 (Application for Registration) prior to making claims for credits. Persons intending to file the claim should seek advice from tax counsel or an accountant.

• Notice 2015-3 is available here.
• IRS tax forms can be located here.