Form 4136 is used to claim several credits related to the use or sale of fuel, such as the biodiesel or renewable diesel mixture credit, the alternative fuel credit, and the sustainable aviation fuel credit.
What is Form 4136?
Form 4136 is used to claim credits against the gasoline excise tax imposed by the Federal Government. These credits can be used for: biodiesel or renewable diesel mixtures, alternative fuel credit, nontaxable use or sale of fuel, blending a diesel-water fuel emulsion, exporting dyed fuels or gasoline blendstocks, and sustainable aviation fuel credit. Form 4136 can’t be used by ultimate vendors for gasoline claims, and partnerships must include a statement of each partner’s tax credit on the Schedule K-1 instead. Lastly, users of Form 4136 must keep records to support the credits claimed for at least 3 years, and any credits must be included in gross income if a deduction for the portion of taxes was also taken.
IRS Form 4136 – Who Needs to Fill It Out?
The IRS Form 4136 is used to claim credits for the use of certain types of fuel, including biodiesel and renewable diesel mixtures, alternative fuel, nontaxable uses or sales of fuel, diesel-water fuel emulsions, and sustainable aviation fuels. It must be attached to a tax return and can’t be used by ultimate vendors to make gasoline claims. The form should not be filled out by partnerships (other than electing large partnerships) who must provide a statement on Schedule K-1 (Form 1065) instead. Records must be kept by the filer to support claims for at least 3 years from the date the return is due or filed, whichever is later. Any credit claimed on the form may need to be included in gross income depending on deductions taken.
Step-by-Step: Form 4136 Instructions For Filling Out the Document
Instructions for filling out the Form 4136 document step by step include first reading and understanding the purpose of the form which is to claim the biodiesel/renewable diesel mixture credit, alternative fuel credits, a credit for certain non-taxable uses of the fuel, and other credits outlined in the Notice documents. When filing, Form 4136 must be attached to the tax return, although it is possible to file Form 8849 or Form 720 to claim a periodic refund or credit. Ultimate vendors may not use Form 4136 to make gas claims, and partnerships must provide a statement on Schedule K-1 showing allocations to each partner with the required information. Before filing, also read through Pub. 510, Pub. 225, and the Notice documents for additional information, and ensure records of all claims are kept for 3 years. On the return, taxes claimed also must be included in gross income, with deductions from the tax liability specifically outlined in Pub. 510.
Below, we present a table that will help you understand how to fill out Form 4136.
| Information Required for Form 4136 | Details |
|---|---|
| Claiming Credits | What Form 4136 is used for |
| Filing Instructions | How to attach the form to your tax return |
| Ultimate Vendors | Special considerations for ultimate vendors |
| Additional Resources | Where to find more information |
Do You Need to File Form 4136 Each Year?
Form 4136 is typically used on an annual basis to claim credits for biodiesel or renewable diesel mixtures, alternative fuels, nontaxable uses of fuel, sales of fuel, and fuel exports. In some cases, you may be able to file Form 8849 or Form 720 instead to claim a periodic refund or credit against your excise tax liability, respectively. Requirements for recordkeeping and reporting your fuel tax credit are clearly explained in the instructions included with Form 4136. Partnerships (other than electing large partnerships) need to include a statement on Schedule K-1 (Form 1065) when reporting fuel tax credits instead of filing Form 4136. Be sure to check for any notices that may apply to your particular situation.
Download the official IRS Form 4136 PDF
On the official IRS website, you will find a link to download Form 4136. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 4136
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