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IRS Guidance on Filing 2014 Biodiesel, Renewable Diesel and Alternative Fuel Mixture Credits

The IRS has issued guidance to taxpayers on how to claim the biodiesel, renewable diesel and alternative fuel mixture tax credits for the 2014 calendar year. 

Notice 2015-03 requires taxpayers to file all claims for biodiesel and renewable diesel mixture credits on IRS Form 8849, Schedule 3.  All claims for calendar year 2014 should be filed on a single Form 8849.  Under this guidance claimants of biodiesel and renewable diesel mixture credits cannot use Form 720 for claims for the fourth quarter of 2014.   The period in which taxpayers may file claims for 2014 begins on February 9, 2015 and runs through August 8, 2015.    The IRS will accept claims filed in accordance with the notice between January 16, 2015 and February 9, 2015 (such claims will be treated as filed on February 9, 2015).  The IRS will issue a payment of the credit to the taxpayer within 60 days of receipt of the claim.

The guidance requires claimants of the alternative fuel mixture credit to file all claims – including the fourth quarter – on IRS Form 720X (Amended Quarterly Excise Tax Return).  Claims for the alternative fuel mixture credit must not exceed the claimants excise tax liability incurred during the quarter to which the claim relates.  The period in which taxpayers may file claims for the alternative fuel mixture credit begins on February 9,. 2015.  Claimants must file within three years from the tax return was filed or two years from when the excise tax was paid, whichever is later.