The IRS has provided exclusive claims procedures addressed in Notice 2011-10 for biodiesel and alternative fuels credits, which were both extended through 2010 and 2011 as part of 2010 Tax Relief Act. For detailed information regarding the 2010 tax changes, please refer to our special report here.
The biodiesel fuel credit is the sum of three credits: the biodiesel mixture credit, the biodiesel credit, and the small agri-biodiesel producer credit. The credit is $1.00 for each gallon of biodiesel used in the production of a qualified biodiesel mixture. Alternative fuel includes liquefied petroleum gas; certain other liquefied fuels, including fuels derived from biomass; and liquid fuel derived from coal through a specified process. The credit is 50 cents per gallon of alternative fuel. Congress excluded black liquor and any other fuel from the production of paper or pulp from the definition of alternative fuel.
Notice 2011-10 provides the only method for claiming 2010 biodiesel and alternative fuel incentives credits. The IRS will not process or pay claims submitted by any method, or on any form, not described in this notice. Any taxpayers that filed protective claims for 2010 must refile under the procedures provided in this notice.
Taxpayers must submit claims for 2010 on Form 8849, Claim for Refund of Excise Taxes, including Schedule Three, Certain Fuel Mixtures and the Alternative Fuel Credit. All claims from a single claimant must be submitted on a single Form 8849. The IRS reminds taxpayers that they must be registered with the IRS to make claims under Code Secs. 6426(d) and (e) and 6427(e). Claimants that are not already registered with the IRS may apply for registration by filing Form 637, Application for Registration (For Certain Excise Tax Activities).
Although claims may be submitted as early as January 14, 2011, the 180-day claim period begins February 2, 2011 and ends August 1, 2011. The IRS will not process claims filed after that date.
For more information regarding biodiesel and alternative fuels credit claim procedures, please contact Maria D. Stromple at firstname.lastname@example.org or (412) 697-5489.
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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.