If you paid federal excise taxes on fuel or other taxable goods and believe you're entitled to a refund, IRS Form 8849 is your pathway to recovering those funds. Whether you're a farmer using diesel for off-highway equipment, a business that purchased fuel for nontaxable purposes, or a registered vendor seeking refunds on qualifying sales, understanding Form 8849 can help you claim thousands of dollars in legitimate tax refunds.

This comprehensive guide explains everything you need to know about Form 8849 for the 2022 tax year, including who must file, step-by-step completion instructions, deadlines, common mistakes, and practical tips to maximize your refund while avoiding penalties.

What Form 8849 Is For

What Is IRS Form 8849?

Form 8849, officially titled "Claim for Refund of Excise Taxes," is the IRS form taxpayers use to request refunds of federal excise taxes paid on fuels, chemicals, vehicles, and other taxable items when those items were used or sold in ways that qualify for tax exemption or credit. The form serves as the primary mechanism for recovering excise taxes when the original tax payment doesn't match the actual tax liability.

Purpose and Overview

The federal government imposes excise taxes on various products and activities, most commonly on motor fuels like gasoline, diesel, and kerosene. These taxes fund highway construction and other infrastructure projects. However, when fuel is used for nontaxable purposes—such as farming, off-highway business use, or export—taxpayers can recover the excise tax they paid through Form 8849.

Form 8849 works in conjunction with several schedules that specify the type of refund claim being made. Unlike income tax forms that report annual earnings, Form 8849 focuses exclusively on recovering excise taxes that shouldn't have been paid in the first place or that qualify for special credits under federal law.

According to the IRS, Form 8849 and its schedules are processed at the Ogden Campus, and the form enables taxpayers to claim refunds for excise taxes reported on Form 720 (Quarterly Federal Excise Tax Return), Form 2290 (Heavy Highway Vehicle Use Tax Return), Form 730 (Monthly Tax Return for Wagers), and Form 11-C (Occupational Tax and Registration Return for Wagering).

When You’d Use Form 8849

Who Must File Form 8849? Eligibility Requirements

Not everyone who pays excise taxes needs to file Form 8849. Understanding whether you're eligible—and required—to use this form depends on your specific situation, the type of fuel or product involved, and how you used it.

Eligible Filers

Ultimate Purchasers

If you purchased fuel and used it for nontaxable purposes, you're considered an "ultimate purchaser" and may file Schedule 1 (Form 8849) to claim a refund. Common nontaxable uses include:

• Farming purposes: Fuel used on a farm for farming operations, including operating tractors, irrigation pumps, and other agricultural equipment
• Off-highway business use: Fuel used in equipment that doesn't operate on public highways, such as construction equipment, forklifts, generators, and stationary engines
• Export: Fuel exported from the United States
• State and local government use: Fuel purchased by governmental entities
• Nonprofit educational organization use: Fuel used by qualifying tax-exempt educational institutions

Registered Ultimate Vendors

Businesses registered with the IRS can file Schedule 2 (Form 8849) to claim refunds on qualifying sales of undyed diesel fuel, undyed kerosene, or kerosene for use in aviation to:

• State and local governments
• Nonprofit educational organizations
• Other buyers who waive their right to claim the refund

Alternative Fuel Producers and Sellers

Registered alternative fuelers who produce, sell, or use alternative fuels may file Schedule 3 (Form 8849) for biodiesel mixture credits, renewable diesel mixture credits, and alternative fuel credits. For 2022, special provisions allowed retroactive claims for the first three quarters of the year for alternative fuel credits.

Persons Paying Second Taxes

If you paid excise tax on fuel that had already been taxed (such as fuel bought at retail with tax included, then used to produce a taxable fuel mixture), you can file Schedule 5 (Form 8849) to recover the duplicate tax under Section 4081(e).

Other Claimants

Schedule 6 (Form 8849) covers various other refund situations, including overpayments on Form 720, Form 2290 (heavy highway vehicle use tax), Form 730 (wagering tax), and Form 11-C.

Who Cannot File Form 8849

Certain taxpayers cannot use Form 8849 for fuel tax credits:

• Individual income tax filers claiming annual credits: Most individual taxpayers should use Form 4136 (Credit for Federal Tax Paid on Fuels) attached to their income tax return (Form 1040) to claim fuel tax credits as part of their annual tax filing.
• Taxpayers claiming credits on Form 720, Schedule C: If you already filed or will file a credit claim on your quarterly Form 720, Schedule C, you cannot duplicate that claim on Form 8849.
• Unregistered alternative fuelers: To claim alternative fuel credits, you must be registered with the IRS using Form 637 (Application for Registration for Certain Excise Tax Activities) with an appropriate registration number (such as "AL" for alternative fueler).

Key Rules or Details for 2022 Tax Year

Understanding Form 8849 Schedules

Form 8849 requires you to attach one or more schedules that specify the type of refund you're claiming. Each schedule has unique eligibility requirements, claim rates, and documentation needs.

Schedule 1: Nontaxable Use of Fuels

Schedule 1 is used by ultimate purchasers who bought gasoline, diesel fuel, kerosene, aviation fuel, or liquefied petroleum gas (LPG) and used it for nontaxable purposes. Common claim types include:

• Type 1 – Farming purposes: Fuel used on farms for farming operations
• Type 2 – Off-highway business use: Fuel used in equipment not operated on public highways
• Type 3 – Export: Fuel exported from the United States
• Type 4 – Use by state/local governments: Fuel purchased by governmental entities
• Type 5 – Use on intercity and local buses: Fuel used in qualifying public transportation

Schedule 2: Sales by Registered Ultimate Vendors

Registered ultimate vendors use Schedule 2 to claim refunds on sales of:

• Undyed diesel fuel and undyed kerosene to state/local governments
• Kerosene for use in aviation
• Gasoline to nonprofit educational organizations
• Sales to buyers who waive their right to claim the refund

To file Schedule 2, you must be registered with the IRS and possess valid certificates from buyers confirming the nontaxable use.

Schedule 3: Certain Fuel Mixtures and Alternative Fuel Credit

Schedule 3 covers specialized fuel credits for renewable and alternative fuels:

• Biodiesel mixtures: Claims based on biodiesel meeting ASTM D6751 standards mixed with diesel fuel
• Renewable diesel mixtures: Claims for renewable diesel derived from biomass meeting EPA and ASTM requirements
• Alternative fuels: Credits for liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), liquefied hydrogen, P-Series fuels, and fuels derived from biomass

2022 Special Provision: For tax year 2022, the alternative fuel credits were retroactively extended for the first three quarters after expiring at the end of 2021. The IRS issued Notice 2022-39 allowing claimants to file one-time claims for the first, second, and third quarters of 2022 combined on a single Schedule 3, due by April 11, 2023.

Schedule 5: Section 4081(e) Claims

Schedule 5 addresses situations where excise tax was paid twice on the same fuel. If you paid tax when purchasing fuel, then paid tax again when producing a taxable fuel product, you can claim a refund of the first tax. You must have filed Form 720 and paid the second tax before filing Schedule 5.

Schedule 6: Other Claims

Schedule 6 serves as the catch-all schedule for refund claims not covered by other schedules, including:

• Refunds of taxes reported on Form 720 (various excise taxes on chemicals, tires, vaccines, medical devices, and more)
• Heavy highway vehicle use tax refunds (Form 2290) for vehicles sold, destroyed, stolen, or used 5,000 miles or less (7,500 for agricultural vehicles)
• Wagering tax refunds (Forms 730 and 11-C)
• Diesel-water fuel emulsion blending credits

Schedule 8: Registered Credit Card Issuers

Schedule 8 is used exclusively by registered credit card issuers to claim refunds on sales made through credit cards to state/local governments and nonprofit educational organizations.

Recordkeeping Requirements

The IRS mandates that you maintain all records at your principal place of business to enable verification of your claim. According to Publication 510, your records must include:

• Number of gallons purchased and used during the claim period
• Dates of all purchases
• Names and addresses of suppliers and amounts purchased from each
• The specific nontaxable use for which fuel was used
• Number of gallons used for each nontaxable use
• If fuel was exported, proof of exportation

Retention period: Generally, you must keep records for at least 3 years from the date you filed the claim, or 2 years from the date the tax was paid, whichever is later.

Filing Deadlines and Time Limits

Periodic Claims (Schedules 1, 2, 3, and 5)

For most fuel-related refunds, claims must meet these timing requirements:

• Claim period: Must cover at least one week of sales or use
• Minimum amount: At least $200 (unless filing electronically, in which case no minimum applies)
• Filing deadline: Must file by the last day of the first quarter following the earliest quarter of your income tax year included in the claim

Example: A calendar-year taxpayer claiming refunds for fuel used during June and July must file by September 30 (the last day of the third quarter).

One claim per quarter: You can only file one claim per quarter. If you need to combine multiple weeks or months to meet the minimum, you must do so within the deadline.

Annual Claims

If you don't meet the periodic claim requirements (minimum amount, one-week period, or quarterly filing), you can file an annual claim:

• File Form 8849 with your income tax return, or
• File within the time allowed for filing a claim for refund of income tax (generally within 3 years from the date you filed your original return, or 2 years from when you paid the tax, whichever is later)

Note: Federal, state, and local governments, and certain tax-exempt organizations must file annual claims on Form 8849; they cannot use Form 4136.

Special 2022 Deadlines

For retroactive 2022 alternative fuel credits (first, second, and third quarters), Notice 2022-39 established special rules:

• Filing period: Between October 13, 2022, and April 11, 2023
• Combined claim: All three quarters must be combined on one Schedule 3 (Form 8849)
• One submission only: The IRS would not process multiple submissions from the same claimant
• Protective claims: Previously filed "protective" or anticipatory claims had to be refiled in accordance with Notice 2022-39 to be perfected

Schedule 6 Deadlines

For Schedule 6 claims:

• General rule: File within 3 years of filing the return to which the claim relates, or 2 years from when the tax was paid, whichever is later
• Minimum amount: At least $750 (can combine with Schedule 1 diesel-water fuel emulsion claims to meet minimum)
• Quarterly filing: Must file during the first quarter following the last quarter included in the claim

Form 2290 Mileage Refunds

Refunds for vehicles used 5,000 miles or less (7,500 for agricultural vehicles) cannot be filed until after June 30 of the tax period (July 1 – June 30).

Where and How to File Form 8849

Electronic Filing (E-File)

The IRS strongly encourages electronic filing for faster processing and quicker refunds. As of 2022, the following schedules can be e-filed through approved Modernized e-File (MeF) providers:

• Schedule 1 (Nontaxable Use of Fuels)
• Schedule 2 (Sales by Registered Ultimate Vendors)
• Schedule 3 (Certain Fuel Mixtures and Alternative Fuel Credit)
• Schedule 5 (Section 4081(e) Claims)
• Schedule 6 (Other Claims)
• Schedule 8 (Registered Credit Card Issuer)

To e-file, you must work with an IRS-approved 8849 MeF provider. Visit IRS.gov/e-file-providers to find approved providers for excise tax forms.

Advantages of e-filing:

• Immediate acknowledgment of receipt
• Faster refund processing (typically 20-45 days versus 6+ months for paper)
• Reduced errors through built-in validation
• No minimum claim amount required
• Secure transmission
• Confirmation of acceptance

Paper Filing (Mail)

If you cannot e-file or prefer paper filing, mail your completed Form 8849 with attached schedules to:

For Schedule 3 (Fuel Mixture Claims):

• Internal Revenue Service
  P.O. Box 312
  Covington, KY 41012-0312
  Write "Fuel Mixture Claim" on the envelope.

For Schedule 2 (Registered Ultimate Vendor): Use the address in the Form 8849 instructions and write "Registered Ultimate Vendor Claim" on the envelope.

For all other schedules: Follow the "Where To File" instructions provided with Form 8849. According to IRS Internal Revenue Manual 4.24.22, Form 8849 returns are processed at the Ogden Campus.

Important: Paper excise tax forms experience significant processing delays—often 6 months or longer according to current IRS notices. Electronic filing is strongly recommended whenever possible.

Step-by-Step (High Level)

Step-by-Step Instructions for Completing Form 8849

Completing Form 8849 accurately requires attention to detail and proper documentation. Follow these steps to ensure your claim is processed smoothly.

Step 1: Gather Your Information

Before beginning, collect:

• Your Employer Identification Number (EIN) or Social Security Number (SSN)
• Registration numbers if applicable (Form 637 registrants)
• Detailed fuel purchase records (dates, amounts, suppliers)
• Usage documentation showing nontaxable use
• Certificates from buyers (for Schedule 2 filers)
• Prior Form 720 filings (for Schedule 5 claims)

Step 2: Complete Form 8849 Header Information

• Line 1 – Name: Enter your name exactly as shown on your EIN or SSN records. For businesses, use your official business name.
• Line 2 – Address: Provide your complete mailing address, including street, city, state, and ZIP code.
• Line 3 – EIN or SSN: Enter your taxpayer identification number. Section 6109 of the Internal Revenue Code requires you to provide this information. If you're filing Form 4136 with Form 1040 and claiming refunds on behalf of the vehicle owner, you can use the owner's TIN.
• Line 4 – Month Income Tax Year Ends: Enter the two-digit number for the month your income tax year ends (e.g., "12" for December for calendar-year taxpayers).
• Schedule Selection: Check the box(es) for the schedule(s) you're attaching. Only attach schedules for which you're making claims.

Step 3: Complete the Appropriate Schedule(s)

Each schedule has specific line items and requirements:

For Schedule 1 (Nontaxable Use of Fuels):

• Enter your registration number if applicable
• Specify the claim period (from/to dates in MMDDYYYY format)
• For each fuel type and use type, enter:
  • Column (a): Applicable tax rate per gallon
  • Column (b): Number of gallons used
  • Column (c): Claim amount (multiply rate × gallons)
  • Column (d): Credit Reference Number (CRN) – pre-printed on form

For Schedule 3 (Fuel Mixtures and Alternative Fuels):

• Enter your claimant registration number (including prefix like "AL" or "AM")
• Specify the claim period
• For biodiesel/renewable diesel mixtures (Line 2):
  • Use $1.00 per gallon rate
  • Enter gallons of biodiesel or renewable diesel in the mixture
  • Attach Certificate for Biodiesel from the producer
• For alternative fuels (Line 3):
  • Convert volumes to gasoline gallon equivalents (GGE) or diesel gallon equivalents (DGE):
    • CNG: 121 cubic feet = 1 GGE
    • LPG: 5.75 pounds or 1.353 gallons = 1 GGE
    • LNG: 6.06 pounds or 1.71 gallons = 1 DGE
  • Use $0.50 per GGE/DGE rate
  • Enter converted gallons and calculate claim amount

For Schedule 6 (Other Claims):

• Identify the type of claim using the appropriate CRN
• Attach detailed documentation including:
  • Description of the claim
  • Amount and calculation method
  • Supporting evidence (certificates, Form 2290 information, etc.)
• For Form 2290 refunds sold after July 1, 2015: Include VIN, taxable gross weight, disposition type, disposition date, computation, and purchaser name/address

Step 4: Calculate Total Refund

Add all amounts from column (c) on each schedule and enter the total in the "Total refund" box at the top of the schedule's first page. This represents your total refund claim for that schedule.

Step 5: Sign and Date the Form

Form 8849 requires an authorized signature. For businesses, this typically means:

• Sole proprietor: The owner
• Partnership: A partner
• Corporation: An officer (president, vice president, treasurer, assistant treasurer, chief accounting officer)
• Tax-exempt organization: An authorized officer

Include your title and the date. The person signing declares under penalties of perjury that the information is true, correct, and complete.

Required Documents and Supporting Evidence

The IRS requires specific documentation to substantiate your Form 8849 claim. Missing documents are a leading cause of claim delays and denials.

Essential Records for All Filers

• Purchase documentation: Invoices, receipts, or statements showing fuel purchases, including dates, quantities, prices, and supplier information
• Usage records: Logs, fuel tank records, equipment hour meters, or other evidence documenting how and when fuel was used for nontaxable purposes
• Supplier information: Names and addresses of all fuel suppliers during the claim period

Schedule-Specific Documentation

Schedule 1 (Nontaxable Use):

• Detailed usage logs separating taxable and nontaxable use
• For farming: Records showing fuel used on farm for farming purposes
• For off-highway: Equipment logs showing hours of operation and fuel consumption
• For export: Proof of exportation documents

Schedule 2 (Registered Ultimate Vendor):

• Model Certificate B (for diesel/kerosene to state/local governments)
• Model Certificate D (for kerosene for aviation)
• Model Certificate E (for gasoline to nonprofit educational organizations)
• Buyer waiver statements if applicable

Schedule 3 (Fuel Mixtures):

• Certificate for Biodiesel (Model Certificate O from Publication 510) from the biodiesel producer
• Statement of Biodiesel Reseller (Model Statement S) if applicable
• Registration documentation showing AL or AM registration number
• For renewable diesel: Edited certificates indicating renewable diesel meeting EPA and ASTM standards

Schedule 5 (Second Tax):

• Copy of the first taxpayer's report showing the first tax was paid
• Copy of statement from subsequent seller if fuel was purchased from someone other than the first taxpayer
• Your Form 720 showing payment of the second tax

Schedule 6 (Other Claims):

• Detailed explanation of the claim reason
• For Form 2290 refunds: VIN, weight category, sale/destruction/theft date and documentation
• For wagering refunds: Certificates per Regulations section 44.6419-2(d)

Common Mistakes and How to Avoid Them

Most Common Errors

1. Duplicate Claims

The single most common error is claiming the same fuel tax credit on multiple forms. You cannot claim the same amount on:

• Form 8849 and Form 4136
• Form 8849 and Form 720, Schedule C
• Form 8849 and Form 8864 (Biodiesel and Renewable Diesel Fuels Credit)
• Multiple Form 8849 schedules

Solution: Track all claims carefully and choose only one method for each gallon of fuel.

2. Missing or Incorrect Registration Numbers

Many schedules require IRS registration via Form 637. Common mistakes include:

• Filing Schedule 3 without an AL or AM registration number
• Using expired registration numbers
• Entering incorrect registration prefix codes

Solution: Apply for registration well before filing claims. Processing Form 637 can take 60-90 days or longer.

3. Insufficient Documentation

Claims lacking proper supporting documents are routinely denied. Common documentation failures include:

• No purchase receipts or invoices
• Missing supplier names and addresses
• Inadequate usage records showing nontaxable use
• Missing certificates from buyers (Schedule 2)
• No proof of exportation (export claims)

Solution: Maintain contemporaneous records. Create usage logs at the time fuel is used, not later when filing the claim.

4. Mathematical Errors

Simple calculation mistakes cause processing delays:

• Incorrect rate per gallon
• Multiplication errors in claim amounts
• Wrong conversion for alternative fuels (GGE/DGE calculations)
• Totaling errors

Solution: Double-check all calculations. Use electronic filing with built-in calculators when possible.

5. Wrong Schedule or Incorrect Claim Type

Taxpayers often select the wrong schedule or claim type:

• Ultimate purchasers using Schedule 2 (which is for registered vendors)
• Claiming the wrong nontaxable use type
• Filing Schedule 1 when they should use Form 4136

Solution: Carefully review eligibility requirements for each schedule. When in doubt, consult Publication 510 or a tax professional.

6. Mixing Incompatible Schedules

Certain schedules cannot be filed together on the same Form 8849:

• Schedules 2, 5, and 8 must each be filed on separate Form 8849 submissions
• They cannot be combined with other schedules

Solution: File separate Form 8849 submissions when required by the schedule instructions.

7. Missing Signatures or Dates

Unsigned forms or missing dates result in rejection and delays.

Solution: Ensure an authorized person signs the form with their title and date.

8. Filing Before Meeting Requirements

Some claims have specific prerequisites:

• Schedule 5 requires filing and paying tax on Form 720 first
• Form 2290 mileage refunds can't be filed until after June 30
• Alternative fuel mixture credits for 2022 Q1-Q2 required Form 720-X first

Solution: Review all prerequisites carefully and complete them in the correct sequence.

Penalties and Interest

The IRS can assess penalties for various Form 8849 violations:

Excessive Claims Penalty: If you file a refund claim for an excessive amount without reasonable cause, you may owe a penalty equal to the greater of:

• Two times the excessive amount, or
• $10

An "excessive amount" is the difference between what you claimed and what you're entitled to receive.

Fraudulent Claims: Criminal penalties apply to false or fraudulent claims, including fines and potential imprisonment.

Failure to Keep Records: Penalties and interest can result from failing to maintain adequate records to support your claim.

Failure to Register: If registration is required and you fail to register, you may face:

• Denial of the claim
• Penalties for activities conducted without registration
• Back assessments of excise taxes that weren't properly reported

Trust Fund Recovery Penalty: In severe cases involving willful failure to collect or pay excise taxes, responsible persons can face penalties up to 100% of the tax not collected or paid.

Audit Risk Factors

Certain situations increase the likelihood of IRS examination:

• Unusually large claims relative to business size
• Repeated claims with minimal supporting documentation
• Claims that appear inconsistent with business type
• History of excessive or fraudulent claims
• Industry-specific red flags (fuel distributors, alternative fuel producers)

Practical Tips, Examples, and Edge Cases for 2022

Understanding real-world applications helps you maximize legitimate refunds while avoiding pitfalls.

Tip 1: Track Fuel Use Contemporaneously

Don't wait until filing season to reconstruct fuel usage. Create a simple log as you use fuel:

Example: A construction company operating bulldozers, excavators, and dump trucks should maintain daily equipment logs showing:

• Equipment identification
• Hours operated
• Fuel consumed
• On-road vs. off-road use
• Job site/project name

When filing Form 8849 Schedule 1, this contemporaneous documentation provides bulletproof evidence of nontaxable off-highway business use.

Tip 2: Understand the On-Farm Farming Use Requirement

Not all farm-related fuel qualifies for refunds. The fuel must be used "on a farm for farming purposes." This includes:

Qualifying uses:

• Operating tractors, combines, and other farming equipment
• Irrigation pumps
• Grain dryers and crop drying equipment
• Livestock feeding equipment
• Maintenance equipment used in farming operations

Non-qualifying uses:

• Fuel used in vehicles on public highways (even if for farm business)
• Fuel used in personal vehicles
• Fuel used for residential heating

Example: A farmer purchases 1,000 gallons of diesel. He uses 800 gallons in tractors and irrigation equipment, 150 gallons in his pickup truck driving to town for supplies, and 50 gallons in his personal car. Only the 800 gallons used in farming equipment qualify for the Form 8849 refund.

Tip 3: State/Local Government Purchases Must Use Proper Documentation

Governments can achieve significant savings through excise tax exemptions, but proper procedures are essential:

Direct purchase method (Schedule 1): Government entity purchases fuel and uses it—claims refund directly as ultimate purchaser.

Credit card method (Schedule 8): Registered credit card issuer claims refund on behalf of government that purchased using a credit card.

Registered ultimate vendor method (Schedule 2): Government provides exemption certificate to registered vendor; vendor claims refund.

Example: A county road department purchases 5,000 gallons of diesel at retail, paying the $0.244 per gallon federal excise tax ($1,220). The county files Form 8849, Schedule 1, Type 4 (Use by State or Local Government) to recover the $1,220.

Tip 4: Navigate the 2022 Alternative Fuel Credit Complexity

The retroactive extension of alternative fuel credits for 2022 created unique filing requirements:

• For 2022 Q1-Q3: File one combined Schedule 3 with claims for all three quarters between October 13, 2022, and April 11, 2023.
• For 2022 Q4 and later: Alternative fuel credits must first be taken on Form 720, Schedule C, as a credit against alternative fuel or CNG tax liability. Only after taking the credit on Form 720 can any excess be claimed on Form 8849.

Example: An alternative fueler sold compressed natural gas (CNG) throughout 2022. For Q1-Q3, they filed one combined Schedule 3 (Form 8849) by April 11, 2023, claiming all three quarters at once. For Q4, they first claimed the credit on Form 720, Schedule C, filed in January 2023, then filed any excess refund on a separate Schedule 3.

Tip 5: Form 2290 Refunds Require Careful Timing

Heavy highway vehicle use tax refunds have specific requirements:

• Sold/destroyed/stolen vehicles: Can claim pro rata refund if disposition occurred before June 1 of the tax period. Must include VIN, weight category, disposition date, and (for sales after July 1, 2015) buyer name and address.
• Low-mileage refunds: Cannot file until after June 30 of the tax period. Must show vehicle was used 5,000 miles or less (7,500 for agricultural vehicles) on public highways during the entire period, regardless of how many owners.

Example: A trucking company paid $550 annual heavy vehicle use tax on July 15, 2021, for a 70,000-pound truck (tax period July 1, 2021 – June 30, 2022). The truck was totaled in an accident on March 10, 2022. The company can file Form 8849, Schedule 6, claiming a pro rata refund for the unused period (March 10 – June 30), which equals approximately $183.

Tip 6: Biodiesel Mixture Credits Require Proper Sequencing

Biodiesel and renewable diesel mixture credits have a mandatory claiming sequence:

• First: Credit must be taken against your taxable fuel liability on Form 720, Schedule C
• Only if excess remains: Can that excess be claimed on Form 8849, Schedule 3
• If you didn't take credit on Form 720 first: Must file Form 720-X (Amended Quarterly Federal Excise Tax Return) before Form 8849 will be processed

Example: A biodiesel blender produced 50,000 gallons of biodiesel mixture in Q2 2022, entitling them to a $50,000 credit ($1.00 per gallon). Their Form 720 for Q2 showed $35,000 in taxable fuel liability. They claimed $35,000 as a credit on Form 720, Schedule C, reducing their liability to zero. They then filed Form 8849, Schedule 3, claiming the remaining $15,000 as a refund.

Tip 7: Export Claims Need Bulletproof Documentation

Export claims face heightened scrutiny. You must prove:

• The fuel actually left the United States
• You were the exporter of record
• The fuel was taxed in the U.S. before export

Acceptable proof includes:

• Export bills of lading
• Customs documents
• Shipper's export declarations
• Landing certificates from foreign destinations

Tip 8: Combine Small Claims to Meet Minimums

If your weekly or monthly fuel use doesn't meet the $200 minimum (for paper filing), combine multiple periods:

Example: A landscaping company uses 75 gallons of gas monthly in off-highway equipment (mowers, trimmers), generating about $40 in potential refunds per month ($0.183 per gallon × 75 = $13.73, plus kerosene-type jet fuel credits). They combine five months of use (375 gallons, approximately $200 claim) and file one Form 8849, Schedule 1, covering all five months.

Better approach: E-file claims, which have no minimum amount requirement, allowing monthly claims instead of waiting to accumulate $200.

What Happens After You File

Electronic filers: Refunds are typically issued via direct deposit or check within 20-45 days.

Paper filers: Refunds take 6 months or longer due to current processing backlogs.

Direct deposit: You can request direct deposit by providing your banking information.

Check: If you don't provide banking information, the IRS mails a check to the address on the form.

Interest: The IRS does not pay interest on excise tax refunds claimed on Form 8849 unless they fail to process the claim within statutorily prescribed timeframes (usually 45 days from filing or 6 months, depending on the type of claim).

FAQs

1. Who is required to file Form 8849?

Form 8849 isn't "required" for most taxpayers—it's optional. You file it when you want to claim a refund of excise taxes you've already paid. The form is used by ultimate purchasers who used fuel for nontaxable purposes, registered vendors who made qualifying sales, alternative fuelers claiming credits, and others seeking excise tax refunds.

Federal, state, and local governments, and certain tax-exempt organizations must use Form 8849 (not Form 4136) if they want to claim fuel tax credits, making it effectively required for these entities if they want refunds.

Individuals filing personal income tax returns typically use Form 4136 (attached to Form 1040) instead of Form 8849, though Form 8849 can be used for periodic refunds during the year rather than waiting until tax return time.

2. Which industries or transactions does this form apply to?

Form 8849 applies across numerous industries and transactions:

Primary industries:

• Agriculture (farmers claiming refunds on farm-use fuel)
• Construction (contractors using off-highway equipment)
• Fuel distribution (wholesalers, retailers, blenders)
• Transportation (trucking companies with Form 2290 refunds)
• Alternative energy (biodiesel, renewable diesel, alternative fuel producers)
• State and local government operations
• Aviation (airlines, charter services)
• Marine operations (commercial fishing, boat operators)

Qualifying transactions:

• Nontaxable fuel uses (farming, off-highway business, export, government use)
• Sales by registered vendors to exempt buyers
• Biodiesel and renewable diesel mixture production and sales
• Alternative fuel production and sales
• Duplicate tax payments requiring refunds
• Overpayments on quarterly excise tax returns (Form 720)
• Heavy highway vehicle use tax overpayments (Form 2290)
• Various other excise tax refund situations (chemicals, tires, medical devices, wagering)

3. What is the filing frequency and due date for this form?

Filing frequency and due dates vary by schedule and claim type:

Periodic claims (Schedules 1, 2, 3, 5):

• Frequency: Quarterly (most common), but can include multiple weeks or months within a quarter
• Due date: Last day of the first quarter following the earliest quarter of your income tax year included in the claim
• Example: Calendar-year taxpayer claiming June-July usage must file by September 30

Annual claims:

• Frequency: Once per year
• Due date: With your income tax return, or within the time allowed for filing a claim for refund of income tax (generally 3 years from filing or 2 years from payment)
• Who must file annually: Federal, state, and local governments; certain tax-exempt organizations; taxpayers who don't meet periodic claim requirements

Schedule 6 claims:

• Due date: Generally within 3 years of filing the return to which the claim relates, or 2 years from paying the tax, whichever is later
• Form 2290 mileage refunds: Cannot file until after June 30 of the tax period

2022 special deadline:

• Retroactive alternative fuel credits (Q1-Q3): Between October 13, 2022, and April 11, 2023

4. Can I file this form electronically and how do payments work?

Yes, Form 8849 with Schedules 1, 2, 3, 5, 6, and 8 can be filed electronically through IRS-approved Modernized e-File (MeF) providers. Electronic filing offers significant advantages:

• Faster processing (20-45 days vs. 6+ months for paper)
• No $200 minimum claim amount requirement
• Immediate acknowledgment of receipt
• Reduced errors through built-in validation
• Secure transmission

To e-file, visit IRS.gov/e-file-providers and select an approved provider for excise tax forms. Some providers charge fees for their services, while others may offer free filing for certain claim types.

How refunds are paid:
Form 8849 results in refunds paid to you—it's not a form where you pay taxes. Once the IRS processes your claim and approves the refund:

• Electronic filers: Refunds are typically issued via direct deposit or check within 20-45 days
• Paper filers: Refunds take 6 months or longer due to current processing backlogs
• Direct deposit: You can request direct deposit by providing your banking information
• Check: If you don't provide banking information, the IRS mails a check to the address on the form

The IRS does not pay interest on excise tax refunds claimed on Form 8849 unless they fail to process the claim within statutorily prescribed timeframes (usually 45 days from filing or 6 months, depending on the type of claim).

5. How do I claim a refund or credit on this form?

Claiming a refund on Form 8849 involves five steps:

Step 1 – Determine eligibility: Verify you qualify for the refund type you're claiming (ultimate purchaser, registered vendor, etc.)

Step 2 – Select the appropriate schedule: Choose Schedule 1, 2, 3, 5, 6, or 8 based on your claim type

Step 3 – Calculate your refund:

• Multiply the number of gallons (or units) by the applicable rate per gallon
• For alternative fuels, convert to GGE or DGE first
• Use the correct tax rate for each fuel type and claim type

Step 4 – Complete Form 8849 and schedule:

• Enter identifying information (name, EIN/SSN, address)
• Complete all required lines on the schedule
• Calculate total refund amount
• Sign and date the form

Step 5 – Attach supporting documentation:

• Include all required certificates, statements, and evidence
• Keep copies of everything for your records

Credits vs. refunds: Some excise taxes can be claimed as credits on other forms (like Form 720, Schedule C) or as refunds on Form 8849. Key rule: You can only claim each gallon of fuel or taxable item once. If you take a credit on Form 720, you cannot also claim a refund on Form 8849 for the same amount.

6. Which supporting schedules or attachments are commonly required?

Schedule 1 (Nontaxable Use of Fuels):

• Detailed records of fuel purchases (invoices, receipts)
• Usage logs showing nontaxable use
• For export: Proof of exportation documents

Schedule 2 (Registered Ultimate Vendor):

• Model Certificate B (for diesel/kerosene to governments)
• Model Certificate D (for kerosene for aviation)
• Model Certificate E (for gasoline to nonprofit educational organizations)
• Buyer waiver statements

Schedule 3 (Fuel Mixtures and Alternative Fuels):

• Certificate for Biodiesel (Model Certificate O) from biodiesel producer
• Statement of Biodiesel Reseller (Model Statement S) if applicable
• Proof of IRS registration (AL or AM number)

Schedule 5 (Section 4081(e) Claims):

• Copy of first taxpayer's report showing first tax paid
• Copy of subsequent seller's statement (if fuel purchased from intermediary)
• Your Form 720 showing second tax paid

Schedule 6 (Other Claims):

• For Form 2290 refunds: VIN, weight category, disposition date/type, computation, purchaser information (for sales after July 1, 2015)
• For Form 720 refunds: Detailed explanation, calculation, and any regulatory required documentation
• For wagering refunds: Certificates and required statements

All schedules should include:

• Names and addresses of fuel suppliers
• Dates and amounts of purchases
• Clear calculations showing how refund amounts were determined

7. What records should I keep for audits or examinations?

The IRS requires comprehensive recordkeeping. You must maintain at your principal place of business:

Fuel purchase records:

• Invoices and receipts from all fuel purchases
• Dates of purchases
• Quantities purchased (gallons)
• Prices paid (including whether excise tax was included)
• Names and addresses of all suppliers

Usage records:

• Daily or weekly logs showing how fuel was used
• Equipment identification and hour meters
• Separation of taxable vs. nontaxable use
• Project or job site information
• For farming: Documentation showing use on farm for farming purposes
• For off-highway: Equipment operation logs showing non-highway use

Certificates and registrations:

• Form 637 registration letter and number
• Certificates from biodiesel producers
• Buyer certificates (for Schedule 2 filers)
• Exemption certificates

Tax returns and prior filings:

• Copies of all filed Form 8849 schedules
• Form 720 filings (if applicable)
• Form 4136 (if you've also claimed credits on income tax returns)
• Form 2290 (for heavy vehicle refunds)

Supporting documentation:

• Export documents (bills of lading, customs forms)
• Sales records (for registered vendors)
• Production records (for fuel mixtures)

Retention period: Keep all records for at least 3 years from the filing date of your claim, or 2 years from the date the tax was paid, whichever is later. In practice, keeping records for 4-5 years is prudent as the IRS has extended timeframes for examinations in some cases.

8. What are common errors that lead to penalties or interest?

Common errors that trigger penalties include:

Excessive claims: Claiming refunds significantly larger than entitled. Penalty: Greater of 2× the excessive amount or $10.

Duplicate claims: Claiming the same fuel on Form 8849, Form 4136, Form 720 Schedule C, and/or Form 8864. Result: Denial of one claim and potential penalties for excessive claim.

False statements: Intentionally misrepresenting fuel use, quantities, or eligibility. Penalty: Criminal penalties including fines and imprisonment.

Missing or false certificates: Filing claims without required buyer certificates or using certificates known to be false. Result: Claim denial and potential fraud penalties.

Failure to maintain records: Not keeping adequate documentation to support claims. Result: Claim denial, assessment of excise taxes, and recordkeeping penalties.

Unregistered activities: Filing Schedule 2, 3, or other claims requiring registration without proper IRS registration. Result: Claim denial and potential liability for unpaid excise taxes.

Mathematical errors: While honest calculation mistakes don't typically result in penalties, repeated errors can trigger increased scrutiny and audits.

Filing without paying prerequisite taxes: Filing Schedule 5 without first paying the second tax on Form 720. Result: Claim denial and processing delays.

Claiming after deadline: Filing claims beyond the statute of limitations (generally 3 years from filing or 2 years from payment). Result: Permanent forfeiture of refund rights.

To avoid penalties:

• Maintain contemporaneous, detailed records
• Claim only fuel you're entitled to claim
• Never duplicate claims across multiple forms
• Meet all registration requirements before filing
• File within deadlines
• Attach all required documentation
• Double-check calculations
• When uncertain, consult Publication 510 or a tax professional

9. How do I amend or correct a previously filed Form 8849?

If you discover an error on a previously filed Form 8849, the correction process depends on the type of error:

For understatements (you claimed too little):

• File a new Form 8849 with the appropriate schedule showing the additional amount you're entitled to claim. Include:
  • A statement explaining this is an additional claim for the same period
  • The date of your original filing
  • The additional amount being claimed
  • Explanation of why the additional amount wasn't included originally

For overstatements (you claimed too much):
The IRS doesn't provide a specific "amended Form 8849." Instead:

If you haven't received the refund yet:

• Contact the IRS excise tax office immediately
• Send a written statement explaining the error
• Provide the corrected claim amount
• Include your name, EIN, form type, and claim date

If you've already received the refund:

• You should repay the excess amount voluntarily
• Use Form 720 to report and pay the excess refund received (if related to fuel taxes)
• Include a statement explaining the overpayment repayment
• Pay immediately to avoid interest charges

For claims requiring coordination with Form 720:
If your error relates to a claim that should have been taken on Form 720 first (like biodiesel mixture credits for 2022 Q3 or Q4):

• File Form 720-X (Amended Quarterly Federal Excise Tax Return)
• Correct the Form 720 filing first
• Then file corrected Form 8849 with a statement referencing the Form 720-X

Contact information:
For questions about pending claims or to report errors:

• Call the Excise Tax Branch: 1-866-699-4096
• Mail correspondence to the address shown on any IRS notices you've received
• For Schedule 3 claims, use the Covington, KY address shown on the schedule

Best practice: Before filing an amendment, gather all documentation supporting the corrected claim. If the correction involves complex issues or large amounts, consider consulting a tax professional to ensure proper handling.

10. Where are the official instructions and publications for Form 8849?

All official Form 8849 resources are available on IRS.gov:

Primary resources:

• About Form 8849: IRS.gov/forms-pubs/about-form-8849 – Main page with current form and schedules
• Form 8849 PDF: IRS.gov/pub/irs-pdf/f8849.pdf – Current year form
• Publication 510 (Excise Taxes): IRS.gov/publications/p510 – Comprehensive guide covering all excise taxes, refund claims, model certificates, and detailed instructions. This is the primary reference publication for Form 8849 filers.

Individual schedule instructions:

• Schedule 1: Instructions included with Form 8849 instructions
• Schedule 2: Instructions included with Form 8849 instructions
• Schedule 3: IRS.gov/pub/irs-pdf/f8849s3.pdf (includes instructions)
• Schedule 5: Instructions included with Form 8849 instructions
• Schedule 6: IRS.gov/instructions/i8849s6 – Separate detailed instructions
• Schedule 8: Instructions included with Form 8849 instructions

Related forms and publications:

• Form 637 (Registration): IRS.gov/forms-pubs/about-form-637
• Form 720 (Quarterly Excise Tax): IRS.gov/forms-pubs/about-form-720
• Form 4136 (Fuel Tax Credit): IRS.gov/forms-pubs/about-form-4136
• Publication 225 (Farmer's Tax Guide): IRS.gov/publications/p225 – Includes information on farm fuel tax credits

For 2022 specific guidance:

• Notice 2022-39: IRS.gov/pub/irs-drop/n-22-39.pdf – Alternative fuel mixture claims for 2022 retroactive quarters

Prior year forms:

• Prior Year Forms and Instructions: IRS.gov/prior-year-forms-and-instructions – Search for "8849" to find forms from previous years

Electronic filing information:

• Excise Tax e-File providers: IRS.gov/e-file-providers – List of approved MeF providers

Help and assistance:

• Excise Tax Main Page: IRS.gov/businesses/small-businesses-self-employed/excise-tax
• Excise Tax Forms and Publications: IRS.gov/businesses/small-businesses-self-employed/excise-tax-forms-and-publications
• IRS Excise Tax Helpline: 1-866-699-4096 (for technical questions)

Staying current:
The IRS regularly updates forms and instructions. Check IRS.gov/Form8849 for the latest information including:

• Recent developments and law changes
• Updated forms and schedules
• New notices and guidance
• Processing updates and delays

Always use the correct tax year version of forms when filing. Using outdated forms can cause processing delays or rejections.

Conclusion

Form 8849 provides a valuable opportunity for businesses, farmers, governments, and other taxpayers to recover excise taxes paid on fuels and other items used or sold in qualifying ways. For tax year 2022, special provisions extended alternative fuel credits and created unique filing procedures that required careful attention to deadlines and requirements.

Successfully claiming Form 8849 refunds requires meticulous recordkeeping, proper documentation, attention to deadlines, and careful adherence to the specific requirements for each schedule. By understanding who qualifies, what documentation is needed, how to complete each section accurately, and what mistakes to avoid, you can maximize legitimate refunds while minimizing the risk of penalties, audits, or claim denials.

Whether you're claiming refunds for farm fuel use, off-highway business operations, biodiesel mixtures, alternative fuels, or other excise tax situations, the key to success is maintaining contemporaneous records, filing electronically when possible, and treating Form 8849 claims with the same rigor you apply to other tax filings.

For the most current information, always consult the official IRS resources at IRS.gov/Form8849, Publication 510, and the specific instructions for the schedule you're filing. When claims involve complex situations, substantial amounts, or uncertain eligibility issues, consulting with a tax professional experienced in excise tax matters can provide valuable guidance and peace of mind.

Official Sources

• IRS.gov/forms-pubs/about-form-8849
• IRS.gov/publications/p510 (Publication 510, Excise Taxes)
• IRS.gov/pub/irs-prior/f8849s3--2022.pdf
• IRS.gov/pub/irs-pdf/i8849s6.pdf
• IRS.gov/instructions/i8849s6
• IRS.gov/irm/part4/irm_04-024-022r (Internal Revenue Manual)
• IRS.gov/irm/part4/irm_04-024-008 (Internal Revenue Manual)
• IRS.gov/pub/irs-drop/n-22-39.pdf (Notice 2022-39)
• IRS.gov/businesses/small-businesses-self-employed/excise-tax

If you paid federal excise taxes on fuel or other taxable goods and believe you're entitled to a refund, IRS Form 8849 is your pathway to recovering those funds. Whether you're a farmer using diesel for off-highway equipment, a business that purchased fuel for nontaxable purposes, or a registered vendor seeking refunds on qualifying sales, understanding Form 8849 can help you claim thousands of dollars in legitimate tax refunds.

This comprehensive guide explains everything you need to know about Form 8849 for the 2022 tax year, including who must file, step-by-step completion instructions, deadlines, common mistakes, and practical tips to maximize your refund while avoiding penalties.

What Form 8849 Is For

What Is IRS Form 8849?

Form 8849, officially titled "Claim for Refund of Excise Taxes," is the IRS form taxpayers use to request refunds of federal excise taxes paid on fuels, chemicals, vehicles, and other taxable items when those items were used or sold in ways that qualify for tax exemption or credit. The form serves as the primary mechanism for recovering excise taxes when the original tax payment doesn't match the actual tax liability.

Purpose and Overview

The federal government imposes excise taxes on various products and activities, most commonly on motor fuels like gasoline, diesel, and kerosene. These taxes fund highway construction and other infrastructure projects. However, when fuel is used for nontaxable purposes—such as farming, off-highway business use, or export—taxpayers can recover the excise tax they paid through Form 8849.

Form 8849 works in conjunction with several schedules that specify the type of refund claim being made. Unlike income tax forms that report annual earnings, Form 8849 focuses exclusively on recovering excise taxes that shouldn't have been paid in the first place or that qualify for special credits under federal law.

According to the IRS, Form 8849 and its schedules are processed at the Ogden Campus, and the form enables taxpayers to claim refunds for excise taxes reported on Form 720 (Quarterly Federal Excise Tax Return), Form 2290 (Heavy Highway Vehicle Use Tax Return), Form 730 (Monthly Tax Return for Wagers), and Form 11-C (Occupational Tax and Registration Return for Wagering).

When You’d Use Form 8849

Who Must File Form 8849? Eligibility Requirements

Not everyone who pays excise taxes needs to file Form 8849. Understanding whether you're eligible—and required—to use this form depends on your specific situation, the type of fuel or product involved, and how you used it.

Eligible Filers

Ultimate Purchasers

If you purchased fuel and used it for nontaxable purposes, you're considered an "ultimate purchaser" and may file Schedule 1 (Form 8849) to claim a refund. Common nontaxable uses include:

• Farming purposes: Fuel used on a farm for farming operations, including operating tractors, irrigation pumps, and other agricultural equipment
• Off-highway business use: Fuel used in equipment that doesn't operate on public highways, such as construction equipment, forklifts, generators, and stationary engines
• Export: Fuel exported from the United States
• State and local government use: Fuel purchased by governmental entities
• Nonprofit educational organization use: Fuel used by qualifying tax-exempt educational institutions

Registered Ultimate Vendors

Businesses registered with the IRS can file Schedule 2 (Form 8849) to claim refunds on qualifying sales of undyed diesel fuel, undyed kerosene, or kerosene for use in aviation to:

• State and local governments
• Nonprofit educational organizations
• Other buyers who waive their right to claim the refund

Alternative Fuel Producers and Sellers

Registered alternative fuelers who produce, sell, or use alternative fuels may file Schedule 3 (Form 8849) for biodiesel mixture credits, renewable diesel mixture credits, and alternative fuel credits. For 2022, special provisions allowed retroactive claims for the first three quarters of the year for alternative fuel credits.

Persons Paying Second Taxes

If you paid excise tax on fuel that had already been taxed (such as fuel bought at retail with tax included, then used to produce a taxable fuel mixture), you can file Schedule 5 (Form 8849) to recover the duplicate tax under Section 4081(e).

Other Claimants

Schedule 6 (Form 8849) covers various other refund situations, including overpayments on Form 720, Form 2290 (heavy highway vehicle use tax), Form 730 (wagering tax), and Form 11-C.

Who Cannot File Form 8849

Certain taxpayers cannot use Form 8849 for fuel tax credits:

• Individual income tax filers claiming annual credits: Most individual taxpayers should use Form 4136 (Credit for Federal Tax Paid on Fuels) attached to their income tax return (Form 1040) to claim fuel tax credits as part of their annual tax filing.
• Taxpayers claiming credits on Form 720, Schedule C: If you already filed or will file a credit claim on your quarterly Form 720, Schedule C, you cannot duplicate that claim on Form 8849.
• Unregistered alternative fuelers: To claim alternative fuel credits, you must be registered with the IRS using Form 637 (Application for Registration for Certain Excise Tax Activities) with an appropriate registration number (such as "AL" for alternative fueler).

Key Rules or Details for 2022 Tax Year

Understanding Form 8849 Schedules

Form 8849 requires you to attach one or more schedules that specify the type of refund you're claiming. Each schedule has unique eligibility requirements, claim rates, and documentation needs.

Schedule 1: Nontaxable Use of Fuels

Schedule 1 is used by ultimate purchasers who bought gasoline, diesel fuel, kerosene, aviation fuel, or liquefied petroleum gas (LPG) and used it for nontaxable purposes. Common claim types include:

• Type 1 – Farming purposes: Fuel used on farms for farming operations
• Type 2 – Off-highway business use: Fuel used in equipment not operated on public highways
• Type 3 – Export: Fuel exported from the United States
• Type 4 – Use by state/local governments: Fuel purchased by governmental entities
• Type 5 – Use on intercity and local buses: Fuel used in qualifying public transportation

Schedule 2: Sales by Registered Ultimate Vendors

Registered ultimate vendors use Schedule 2 to claim refunds on sales of:

• Undyed diesel fuel and undyed kerosene to state/local governments
• Kerosene for use in aviation
• Gasoline to nonprofit educational organizations
• Sales to buyers who waive their right to claim the refund

To file Schedule 2, you must be registered with the IRS and possess valid certificates from buyers confirming the nontaxable use.

Schedule 3: Certain Fuel Mixtures and Alternative Fuel Credit

Schedule 3 covers specialized fuel credits for renewable and alternative fuels:

• Biodiesel mixtures: Claims based on biodiesel meeting ASTM D6751 standards mixed with diesel fuel
• Renewable diesel mixtures: Claims for renewable diesel derived from biomass meeting EPA and ASTM requirements
• Alternative fuels: Credits for liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), liquefied hydrogen, P-Series fuels, and fuels derived from biomass

2022 Special Provision: For tax year 2022, the alternative fuel credits were retroactively extended for the first three quarters after expiring at the end of 2021. The IRS issued Notice 2022-39 allowing claimants to file one-time claims for the first, second, and third quarters of 2022 combined on a single Schedule 3, due by April 11, 2023.

Schedule 5: Section 4081(e) Claims

Schedule 5 addresses situations where excise tax was paid twice on the same fuel. If you paid tax when purchasing fuel, then paid tax again when producing a taxable fuel product, you can claim a refund of the first tax. You must have filed Form 720 and paid the second tax before filing Schedule 5.

Schedule 6: Other Claims

Schedule 6 serves as the catch-all schedule for refund claims not covered by other schedules, including:

• Refunds of taxes reported on Form 720 (various excise taxes on chemicals, tires, vaccines, medical devices, and more)
• Heavy highway vehicle use tax refunds (Form 2290) for vehicles sold, destroyed, stolen, or used 5,000 miles or less (7,500 for agricultural vehicles)
• Wagering tax refunds (Forms 730 and 11-C)
• Diesel-water fuel emulsion blending credits

Schedule 8: Registered Credit Card Issuers

Schedule 8 is used exclusively by registered credit card issuers to claim refunds on sales made through credit cards to state/local governments and nonprofit educational organizations.

Recordkeeping Requirements

The IRS mandates that you maintain all records at your principal place of business to enable verification of your claim. According to Publication 510, your records must include:

• Number of gallons purchased and used during the claim period
• Dates of all purchases
• Names and addresses of suppliers and amounts purchased from each
• The specific nontaxable use for which fuel was used
• Number of gallons used for each nontaxable use
• If fuel was exported, proof of exportation

Retention period: Generally, you must keep records for at least 3 years from the date you filed the claim, or 2 years from the date the tax was paid, whichever is later.

Filing Deadlines and Time Limits

Periodic Claims (Schedules 1, 2, 3, and 5)

For most fuel-related refunds, claims must meet these timing requirements:

• Claim period: Must cover at least one week of sales or use
• Minimum amount: At least $200 (unless filing electronically, in which case no minimum applies)
• Filing deadline: Must file by the last day of the first quarter following the earliest quarter of your income tax year included in the claim

Example: A calendar-year taxpayer claiming refunds for fuel used during June and July must file by September 30 (the last day of the third quarter).

One claim per quarter: You can only file one claim per quarter. If you need to combine multiple weeks or months to meet the minimum, you must do so within the deadline.

Annual Claims

If you don't meet the periodic claim requirements (minimum amount, one-week period, or quarterly filing), you can file an annual claim:

• File Form 8849 with your income tax return, or
• File within the time allowed for filing a claim for refund of income tax (generally within 3 years from the date you filed your original return, or 2 years from when you paid the tax, whichever is later)

Note: Federal, state, and local governments, and certain tax-exempt organizations must file annual claims on Form 8849; they cannot use Form 4136.

Special 2022 Deadlines

For retroactive 2022 alternative fuel credits (first, second, and third quarters), Notice 2022-39 established special rules:

• Filing period: Between October 13, 2022, and April 11, 2023
• Combined claim: All three quarters must be combined on one Schedule 3 (Form 8849)
• One submission only: The IRS would not process multiple submissions from the same claimant
• Protective claims: Previously filed "protective" or anticipatory claims had to be refiled in accordance with Notice 2022-39 to be perfected

Schedule 6 Deadlines

For Schedule 6 claims:

• General rule: File within 3 years of filing the return to which the claim relates, or 2 years from when the tax was paid, whichever is later
• Minimum amount: At least $750 (can combine with Schedule 1 diesel-water fuel emulsion claims to meet minimum)
• Quarterly filing: Must file during the first quarter following the last quarter included in the claim

Form 2290 Mileage Refunds

Refunds for vehicles used 5,000 miles or less (7,500 for agricultural vehicles) cannot be filed until after June 30 of the tax period (July 1 – June 30).

Where and How to File Form 8849

Electronic Filing (E-File)

The IRS strongly encourages electronic filing for faster processing and quicker refunds. As of 2022, the following schedules can be e-filed through approved Modernized e-File (MeF) providers:

• Schedule 1 (Nontaxable Use of Fuels)
• Schedule 2 (Sales by Registered Ultimate Vendors)
• Schedule 3 (Certain Fuel Mixtures and Alternative Fuel Credit)
• Schedule 5 (Section 4081(e) Claims)
• Schedule 6 (Other Claims)
• Schedule 8 (Registered Credit Card Issuer)

To e-file, you must work with an IRS-approved 8849 MeF provider. Visit IRS.gov/e-file-providers to find approved providers for excise tax forms.

Advantages of e-filing:

• Immediate acknowledgment of receipt
• Faster refund processing (typically 20-45 days versus 6+ months for paper)
• Reduced errors through built-in validation
• No minimum claim amount required
• Secure transmission
• Confirmation of acceptance

Paper Filing (Mail)

If you cannot e-file or prefer paper filing, mail your completed Form 8849 with attached schedules to:

For Schedule 3 (Fuel Mixture Claims):

• Internal Revenue Service
  P.O. Box 312
  Covington, KY 41012-0312
  Write "Fuel Mixture Claim" on the envelope.

For Schedule 2 (Registered Ultimate Vendor): Use the address in the Form 8849 instructions and write "Registered Ultimate Vendor Claim" on the envelope.

For all other schedules: Follow the "Where To File" instructions provided with Form 8849. According to IRS Internal Revenue Manual 4.24.22, Form 8849 returns are processed at the Ogden Campus.

Important: Paper excise tax forms experience significant processing delays—often 6 months or longer according to current IRS notices. Electronic filing is strongly recommended whenever possible.

Step-by-Step (High Level)

Step-by-Step Instructions for Completing Form 8849

Completing Form 8849 accurately requires attention to detail and proper documentation. Follow these steps to ensure your claim is processed smoothly.

Step 1: Gather Your Information

Before beginning, collect:

• Your Employer Identification Number (EIN) or Social Security Number (SSN)
• Registration numbers if applicable (Form 637 registrants)
• Detailed fuel purchase records (dates, amounts, suppliers)
• Usage documentation showing nontaxable use
• Certificates from buyers (for Schedule 2 filers)
• Prior Form 720 filings (for Schedule 5 claims)

Step 2: Complete Form 8849 Header Information

• Line 1 – Name: Enter your name exactly as shown on your EIN or SSN records. For businesses, use your official business name.
• Line 2 – Address: Provide your complete mailing address, including street, city, state, and ZIP code.
• Line 3 – EIN or SSN: Enter your taxpayer identification number. Section 6109 of the Internal Revenue Code requires you to provide this information. If you're filing Form 4136 with Form 1040 and claiming refunds on behalf of the vehicle owner, you can use the owner's TIN.
• Line 4 – Month Income Tax Year Ends: Enter the two-digit number for the month your income tax year ends (e.g., "12" for December for calendar-year taxpayers).
• Schedule Selection: Check the box(es) for the schedule(s) you're attaching. Only attach schedules for which you're making claims.

Step 3: Complete the Appropriate Schedule(s)

Each schedule has specific line items and requirements:

For Schedule 1 (Nontaxable Use of Fuels):

• Enter your registration number if applicable
• Specify the claim period (from/to dates in MMDDYYYY format)
• For each fuel type and use type, enter:
  • Column (a): Applicable tax rate per gallon
  • Column (b): Number of gallons used
  • Column (c): Claim amount (multiply rate × gallons)
  • Column (d): Credit Reference Number (CRN) – pre-printed on form

For Schedule 3 (Fuel Mixtures and Alternative Fuels):

• Enter your claimant registration number (including prefix like "AL" or "AM")
• Specify the claim period
• For biodiesel/renewable diesel mixtures (Line 2):
  • Use $1.00 per gallon rate
  • Enter gallons of biodiesel or renewable diesel in the mixture
  • Attach Certificate for Biodiesel from the producer
• For alternative fuels (Line 3):
  • Convert volumes to gasoline gallon equivalents (GGE) or diesel gallon equivalents (DGE):
    • CNG: 121 cubic feet = 1 GGE
    • LPG: 5.75 pounds or 1.353 gallons = 1 GGE
    • LNG: 6.06 pounds or 1.71 gallons = 1 DGE
  • Use $0.50 per GGE/DGE rate
  • Enter converted gallons and calculate claim amount

For Schedule 6 (Other Claims):

• Identify the type of claim using the appropriate CRN
• Attach detailed documentation including:
  • Description of the claim
  • Amount and calculation method
  • Supporting evidence (certificates, Form 2290 information, etc.)
• For Form 2290 refunds sold after July 1, 2015: Include VIN, taxable gross weight, disposition type, disposition date, computation, and purchaser name/address

Step 4: Calculate Total Refund

Add all amounts from column (c) on each schedule and enter the total in the "Total refund" box at the top of the schedule's first page. This represents your total refund claim for that schedule.

Step 5: Sign and Date the Form

Form 8849 requires an authorized signature. For businesses, this typically means:

• Sole proprietor: The owner
• Partnership: A partner
• Corporation: An officer (president, vice president, treasurer, assistant treasurer, chief accounting officer)
• Tax-exempt organization: An authorized officer

Include your title and the date. The person signing declares under penalties of perjury that the information is true, correct, and complete.

Required Documents and Supporting Evidence

The IRS requires specific documentation to substantiate your Form 8849 claim. Missing documents are a leading cause of claim delays and denials.

Essential Records for All Filers

• Purchase documentation: Invoices, receipts, or statements showing fuel purchases, including dates, quantities, prices, and supplier information
• Usage records: Logs, fuel tank records, equipment hour meters, or other evidence documenting how and when fuel was used for nontaxable purposes
• Supplier information: Names and addresses of all fuel suppliers during the claim period

Schedule-Specific Documentation

Schedule 1 (Nontaxable Use):

• Detailed usage logs separating taxable and nontaxable use
• For farming: Records showing fuel used on farm for farming purposes
• For off-highway: Equipment logs showing hours of operation and fuel consumption
• For export: Proof of exportation documents

Schedule 2 (Registered Ultimate Vendor):

• Model Certificate B (for diesel/kerosene to state/local governments)
• Model Certificate D (for kerosene for aviation)
• Model Certificate E (for gasoline to nonprofit educational organizations)
• Buyer waiver statements if applicable

Schedule 3 (Fuel Mixtures):

• Certificate for Biodiesel (Model Certificate O from Publication 510) from the biodiesel producer
• Statement of Biodiesel Reseller (Model Statement S) if applicable
• Registration documentation showing AL or AM registration number
• For renewable diesel: Edited certificates indicating renewable diesel meeting EPA and ASTM standards

Schedule 5 (Second Tax):

• Copy of the first taxpayer's report showing the first tax was paid
• Copy of statement from subsequent seller if fuel was purchased from someone other than the first taxpayer
• Your Form 720 showing payment of the second tax

Schedule 6 (Other Claims):

• Detailed explanation of the claim reason
• For Form 2290 refunds: VIN, weight category, sale/destruction/theft date and documentation
• For wagering refunds: Certificates per Regulations section 44.6419-2(d)

Common Mistakes and How to Avoid Them

Most Common Errors

1. Duplicate Claims

The single most common error is claiming the same fuel tax credit on multiple forms. You cannot claim the same amount on:

• Form 8849 and Form 4136
• Form 8849 and Form 720, Schedule C
• Form 8849 and Form 8864 (Biodiesel and Renewable Diesel Fuels Credit)
• Multiple Form 8849 schedules

Solution: Track all claims carefully and choose only one method for each gallon of fuel.

2. Missing or Incorrect Registration Numbers

Many schedules require IRS registration via Form 637. Common mistakes include:

• Filing Schedule 3 without an AL or AM registration number
• Using expired registration numbers
• Entering incorrect registration prefix codes

Solution: Apply for registration well before filing claims. Processing Form 637 can take 60-90 days or longer.

3. Insufficient Documentation

Claims lacking proper supporting documents are routinely denied. Common documentation failures include:

• No purchase receipts or invoices
• Missing supplier names and addresses
• Inadequate usage records showing nontaxable use
• Missing certificates from buyers (Schedule 2)
• No proof of exportation (export claims)

Solution: Maintain contemporaneous records. Create usage logs at the time fuel is used, not later when filing the claim.

4. Mathematical Errors

Simple calculation mistakes cause processing delays:

• Incorrect rate per gallon
• Multiplication errors in claim amounts
• Wrong conversion for alternative fuels (GGE/DGE calculations)
• Totaling errors

Solution: Double-check all calculations. Use electronic filing with built-in calculators when possible.

5. Wrong Schedule or Incorrect Claim Type

Taxpayers often select the wrong schedule or claim type:

• Ultimate purchasers using Schedule 2 (which is for registered vendors)
• Claiming the wrong nontaxable use type
• Filing Schedule 1 when they should use Form 4136

Solution: Carefully review eligibility requirements for each schedule. When in doubt, consult Publication 510 or a tax professional.

6. Mixing Incompatible Schedules

Certain schedules cannot be filed together on the same Form 8849:

• Schedules 2, 5, and 8 must each be filed on separate Form 8849 submissions
• They cannot be combined with other schedules

Solution: File separate Form 8849 submissions when required by the schedule instructions.

7. Missing Signatures or Dates

Unsigned forms or missing dates result in rejection and delays.

Solution: Ensure an authorized person signs the form with their title and date.

8. Filing Before Meeting Requirements

Some claims have specific prerequisites:

• Schedule 5 requires filing and paying tax on Form 720 first
• Form 2290 mileage refunds can't be filed until after June 30
• Alternative fuel mixture credits for 2022 Q1-Q2 required Form 720-X first

Solution: Review all prerequisites carefully and complete them in the correct sequence.

Penalties and Interest

The IRS can assess penalties for various Form 8849 violations:

Excessive Claims Penalty: If you file a refund claim for an excessive amount without reasonable cause, you may owe a penalty equal to the greater of:

• Two times the excessive amount, or
• $10

An "excessive amount" is the difference between what you claimed and what you're entitled to receive.

Fraudulent Claims: Criminal penalties apply to false or fraudulent claims, including fines and potential imprisonment.

Failure to Keep Records: Penalties and interest can result from failing to maintain adequate records to support your claim.

Failure to Register: If registration is required and you fail to register, you may face:

• Denial of the claim
• Penalties for activities conducted without registration
• Back assessments of excise taxes that weren't properly reported

Trust Fund Recovery Penalty: In severe cases involving willful failure to collect or pay excise taxes, responsible persons can face penalties up to 100% of the tax not collected or paid.

Audit Risk Factors

Certain situations increase the likelihood of IRS examination:

• Unusually large claims relative to business size
• Repeated claims with minimal supporting documentation
• Claims that appear inconsistent with business type
• History of excessive or fraudulent claims
• Industry-specific red flags (fuel distributors, alternative fuel producers)

Practical Tips, Examples, and Edge Cases for 2022

Understanding real-world applications helps you maximize legitimate refunds while avoiding pitfalls.

Tip 1: Track Fuel Use Contemporaneously

Don't wait until filing season to reconstruct fuel usage. Create a simple log as you use fuel:

Example: A construction company operating bulldozers, excavators, and dump trucks should maintain daily equipment logs showing:

• Equipment identification
• Hours operated
• Fuel consumed
• On-road vs. off-road use
• Job site/project name

When filing Form 8849 Schedule 1, this contemporaneous documentation provides bulletproof evidence of nontaxable off-highway business use.

Tip 2: Understand the On-Farm Farming Use Requirement

Not all farm-related fuel qualifies for refunds. The fuel must be used "on a farm for farming purposes." This includes:

Qualifying uses:

• Operating tractors, combines, and other farming equipment
• Irrigation pumps
• Grain dryers and crop drying equipment
• Livestock feeding equipment
• Maintenance equipment used in farming operations

Non-qualifying uses:

• Fuel used in vehicles on public highways (even if for farm business)
• Fuel used in personal vehicles
• Fuel used for residential heating

Example: A farmer purchases 1,000 gallons of diesel. He uses 800 gallons in tractors and irrigation equipment, 150 gallons in his pickup truck driving to town for supplies, and 50 gallons in his personal car. Only the 800 gallons used in farming equipment qualify for the Form 8849 refund.

Tip 3: State/Local Government Purchases Must Use Proper Documentation

Governments can achieve significant savings through excise tax exemptions, but proper procedures are essential:

Direct purchase method (Schedule 1): Government entity purchases fuel and uses it—claims refund directly as ultimate purchaser.

Credit card method (Schedule 8): Registered credit card issuer claims refund on behalf of government that purchased using a credit card.

Registered ultimate vendor method (Schedule 2): Government provides exemption certificate to registered vendor; vendor claims refund.

Example: A county road department purchases 5,000 gallons of diesel at retail, paying the $0.244 per gallon federal excise tax ($1,220). The county files Form 8849, Schedule 1, Type 4 (Use by State or Local Government) to recover the $1,220.

Tip 4: Navigate the 2022 Alternative Fuel Credit Complexity

The retroactive extension of alternative fuel credits for 2022 created unique filing requirements:

• For 2022 Q1-Q3: File one combined Schedule 3 with claims for all three quarters between October 13, 2022, and April 11, 2023.
• For 2022 Q4 and later: Alternative fuel credits must first be taken on Form 720, Schedule C, as a credit against alternative fuel or CNG tax liability. Only after taking the credit on Form 720 can any excess be claimed on Form 8849.

Example: An alternative fueler sold compressed natural gas (CNG) throughout 2022. For Q1-Q3, they filed one combined Schedule 3 (Form 8849) by April 11, 2023, claiming all three quarters at once. For Q4, they first claimed the credit on Form 720, Schedule C, filed in January 2023, then filed any excess refund on a separate Schedule 3.

Tip 5: Form 2290 Refunds Require Careful Timing

Heavy highway vehicle use tax refunds have specific requirements:

• Sold/destroyed/stolen vehicles: Can claim pro rata refund if disposition occurred before June 1 of the tax period. Must include VIN, weight category, disposition date, and (for sales after July 1, 2015) buyer name and address.
• Low-mileage refunds: Cannot file until after June 30 of the tax period. Must show vehicle was used 5,000 miles or less (7,500 for agricultural vehicles) on public highways during the entire period, regardless of how many owners.

Example: A trucking company paid $550 annual heavy vehicle use tax on July 15, 2021, for a 70,000-pound truck (tax period July 1, 2021 – June 30, 2022). The truck was totaled in an accident on March 10, 2022. The company can file Form 8849, Schedule 6, claiming a pro rata refund for the unused period (March 10 – June 30), which equals approximately $183.

Tip 6: Biodiesel Mixture Credits Require Proper Sequencing

Biodiesel and renewable diesel mixture credits have a mandatory claiming sequence:

• First: Credit must be taken against your taxable fuel liability on Form 720, Schedule C
• Only if excess remains: Can that excess be claimed on Form 8849, Schedule 3
• If you didn't take credit on Form 720 first: Must file Form 720-X (Amended Quarterly Federal Excise Tax Return) before Form 8849 will be processed

Example: A biodiesel blender produced 50,000 gallons of biodiesel mixture in Q2 2022, entitling them to a $50,000 credit ($1.00 per gallon). Their Form 720 for Q2 showed $35,000 in taxable fuel liability. They claimed $35,000 as a credit on Form 720, Schedule C, reducing their liability to zero. They then filed Form 8849, Schedule 3, claiming the remaining $15,000 as a refund.

Tip 7: Export Claims Need Bulletproof Documentation

Export claims face heightened scrutiny. You must prove:

• The fuel actually left the United States
• You were the exporter of record
• The fuel was taxed in the U.S. before export

Acceptable proof includes:

• Export bills of lading
• Customs documents
• Shipper's export declarations
• Landing certificates from foreign destinations

Tip 8: Combine Small Claims to Meet Minimums

If your weekly or monthly fuel use doesn't meet the $200 minimum (for paper filing), combine multiple periods:

Example: A landscaping company uses 75 gallons of gas monthly in off-highway equipment (mowers, trimmers), generating about $40 in potential refunds per month ($0.183 per gallon × 75 = $13.73, plus kerosene-type jet fuel credits). They combine five months of use (375 gallons, approximately $200 claim) and file one Form 8849, Schedule 1, covering all five months.

Better approach: E-file claims, which have no minimum amount requirement, allowing monthly claims instead of waiting to accumulate $200.

What Happens After You File

Electronic filers: Refunds are typically issued via direct deposit or check within 20-45 days.

Paper filers: Refunds take 6 months or longer due to current processing backlogs.

Direct deposit: You can request direct deposit by providing your banking information.

Check: If you don't provide banking information, the IRS mails a check to the address on the form.

Interest: The IRS does not pay interest on excise tax refunds claimed on Form 8849 unless they fail to process the claim within statutorily prescribed timeframes (usually 45 days from filing or 6 months, depending on the type of claim).

FAQs

1. Who is required to file Form 8849?

Form 8849 isn't "required" for most taxpayers—it's optional. You file it when you want to claim a refund of excise taxes you've already paid. The form is used by ultimate purchasers who used fuel for nontaxable purposes, registered vendors who made qualifying sales, alternative fuelers claiming credits, and others seeking excise tax refunds.

Federal, state, and local governments, and certain tax-exempt organizations must use Form 8849 (not Form 4136) if they want to claim fuel tax credits, making it effectively required for these entities if they want refunds.

Individuals filing personal income tax returns typically use Form 4136 (attached to Form 1040) instead of Form 8849, though Form 8849 can be used for periodic refunds during the year rather than waiting until tax return time.

2. Which industries or transactions does this form apply to?

Form 8849 applies across numerous industries and transactions:

Primary industries:

• Agriculture (farmers claiming refunds on farm-use fuel)
• Construction (contractors using off-highway equipment)
• Fuel distribution (wholesalers, retailers, blenders)
• Transportation (trucking companies with Form 2290 refunds)
• Alternative energy (biodiesel, renewable diesel, alternative fuel producers)
• State and local government operations
• Aviation (airlines, charter services)
• Marine operations (commercial fishing, boat operators)

Qualifying transactions:

• Nontaxable fuel uses (farming, off-highway business, export, government use)
• Sales by registered vendors to exempt buyers
• Biodiesel and renewable diesel mixture production and sales
• Alternative fuel production and sales
• Duplicate tax payments requiring refunds
• Overpayments on quarterly excise tax returns (Form 720)
• Heavy highway vehicle use tax overpayments (Form 2290)
• Various other excise tax refund situations (chemicals, tires, medical devices, wagering)

3. What is the filing frequency and due date for this form?

Filing frequency and due dates vary by schedule and claim type:

Periodic claims (Schedules 1, 2, 3, 5):

• Frequency: Quarterly (most common), but can include multiple weeks or months within a quarter
• Due date: Last day of the first quarter following the earliest quarter of your income tax year included in the claim
• Example: Calendar-year taxpayer claiming June-July usage must file by September 30

Annual claims:

• Frequency: Once per year
• Due date: With your income tax return, or within the time allowed for filing a claim for refund of income tax (generally 3 years from filing or 2 years from payment)
• Who must file annually: Federal, state, and local governments; certain tax-exempt organizations; taxpayers who don't meet periodic claim requirements

Schedule 6 claims:

• Due date: Generally within 3 years of filing the return to which the claim relates, or 2 years from paying the tax, whichever is later
• Form 2290 mileage refunds: Cannot file until after June 30 of the tax period

2022 special deadline:

• Retroactive alternative fuel credits (Q1-Q3): Between October 13, 2022, and April 11, 2023

4. Can I file this form electronically and how do payments work?

Yes, Form 8849 with Schedules 1, 2, 3, 5, 6, and 8 can be filed electronically through IRS-approved Modernized e-File (MeF) providers. Electronic filing offers significant advantages:

• Faster processing (20-45 days vs. 6+ months for paper)
• No $200 minimum claim amount requirement
• Immediate acknowledgment of receipt
• Reduced errors through built-in validation
• Secure transmission

To e-file, visit IRS.gov/e-file-providers and select an approved provider for excise tax forms. Some providers charge fees for their services, while others may offer free filing for certain claim types.

How refunds are paid:
Form 8849 results in refunds paid to you—it's not a form where you pay taxes. Once the IRS processes your claim and approves the refund:

• Electronic filers: Refunds are typically issued via direct deposit or check within 20-45 days
• Paper filers: Refunds take 6 months or longer due to current processing backlogs
• Direct deposit: You can request direct deposit by providing your banking information
• Check: If you don't provide banking information, the IRS mails a check to the address on the form

The IRS does not pay interest on excise tax refunds claimed on Form 8849 unless they fail to process the claim within statutorily prescribed timeframes (usually 45 days from filing or 6 months, depending on the type of claim).

5. How do I claim a refund or credit on this form?

Claiming a refund on Form 8849 involves five steps:

Step 1 – Determine eligibility: Verify you qualify for the refund type you're claiming (ultimate purchaser, registered vendor, etc.)

Step 2 – Select the appropriate schedule: Choose Schedule 1, 2, 3, 5, 6, or 8 based on your claim type

Step 3 – Calculate your refund:

• Multiply the number of gallons (or units) by the applicable rate per gallon
• For alternative fuels, convert to GGE or DGE first
• Use the correct tax rate for each fuel type and claim type

Step 4 – Complete Form 8849 and schedule:

• Enter identifying information (name, EIN/SSN, address)
• Complete all required lines on the schedule
• Calculate total refund amount
• Sign and date the form

Step 5 – Attach supporting documentation:

• Include all required certificates, statements, and evidence
• Keep copies of everything for your records

Credits vs. refunds: Some excise taxes can be claimed as credits on other forms (like Form 720, Schedule C) or as refunds on Form 8849. Key rule: You can only claim each gallon of fuel or taxable item once. If you take a credit on Form 720, you cannot also claim a refund on Form 8849 for the same amount.

6. Which supporting schedules or attachments are commonly required?

Schedule 1 (Nontaxable Use of Fuels):

• Detailed records of fuel purchases (invoices, receipts)
• Usage logs showing nontaxable use
• For export: Proof of exportation documents

Schedule 2 (Registered Ultimate Vendor):

• Model Certificate B (for diesel/kerosene to governments)
• Model Certificate D (for kerosene for aviation)
• Model Certificate E (for gasoline to nonprofit educational organizations)
• Buyer waiver statements

Schedule 3 (Fuel Mixtures and Alternative Fuels):

• Certificate for Biodiesel (Model Certificate O) from biodiesel producer
• Statement of Biodiesel Reseller (Model Statement S) if applicable
• Proof of IRS registration (AL or AM number)

Schedule 5 (Section 4081(e) Claims):

• Copy of first taxpayer's report showing first tax paid
• Copy of subsequent seller's statement (if fuel purchased from intermediary)
• Your Form 720 showing second tax paid

Schedule 6 (Other Claims):

• For Form 2290 refunds: VIN, weight category, disposition date/type, computation, purchaser information (for sales after July 1, 2015)
• For Form 720 refunds: Detailed explanation, calculation, and any regulatory required documentation
• For wagering refunds: Certificates and required statements

All schedules should include:

• Names and addresses of fuel suppliers
• Dates and amounts of purchases
• Clear calculations showing how refund amounts were determined

7. What records should I keep for audits or examinations?

The IRS requires comprehensive recordkeeping. You must maintain at your principal place of business:

Fuel purchase records:

• Invoices and receipts from all fuel purchases
• Dates of purchases
• Quantities purchased (gallons)
• Prices paid (including whether excise tax was included)
• Names and addresses of all suppliers

Usage records:

• Daily or weekly logs showing how fuel was used
• Equipment identification and hour meters
• Separation of taxable vs. nontaxable use
• Project or job site information
• For farming: Documentation showing use on farm for farming purposes
• For off-highway: Equipment operation logs showing non-highway use

Certificates and registrations:

• Form 637 registration letter and number
• Certificates from biodiesel producers
• Buyer certificates (for Schedule 2 filers)
• Exemption certificates

Tax returns and prior filings:

• Copies of all filed Form 8849 schedules
• Form 720 filings (if applicable)
• Form 4136 (if you've also claimed credits on income tax returns)
• Form 2290 (for heavy vehicle refunds)

Supporting documentation:

• Export documents (bills of lading, customs forms)
• Sales records (for registered vendors)
• Production records (for fuel mixtures)

Retention period: Keep all records for at least 3 years from the filing date of your claim, or 2 years from the date the tax was paid, whichever is later. In practice, keeping records for 4-5 years is prudent as the IRS has extended timeframes for examinations in some cases.

8. What are common errors that lead to penalties or interest?

Common errors that trigger penalties include:

Excessive claims: Claiming refunds significantly larger than entitled. Penalty: Greater of 2× the excessive amount or $10.

Duplicate claims: Claiming the same fuel on Form 8849, Form 4136, Form 720 Schedule C, and/or Form 8864. Result: Denial of one claim and potential penalties for excessive claim.

False statements: Intentionally misrepresenting fuel use, quantities, or eligibility. Penalty: Criminal penalties including fines and imprisonment.

Missing or false certificates: Filing claims without required buyer certificates or using certificates known to be false. Result: Claim denial and potential fraud penalties.

Failure to maintain records: Not keeping adequate documentation to support claims. Result: Claim denial, assessment of excise taxes, and recordkeeping penalties.

Unregistered activities: Filing Schedule 2, 3, or other claims requiring registration without proper IRS registration. Result: Claim denial and potential liability for unpaid excise taxes.

Mathematical errors: While honest calculation mistakes don't typically result in penalties, repeated errors can trigger increased scrutiny and audits.

Filing without paying prerequisite taxes: Filing Schedule 5 without first paying the second tax on Form 720. Result: Claim denial and processing delays.

Claiming after deadline: Filing claims beyond the statute of limitations (generally 3 years from filing or 2 years from payment). Result: Permanent forfeiture of refund rights.

To avoid penalties:

• Maintain contemporaneous, detailed records
• Claim only fuel you're entitled to claim
• Never duplicate claims across multiple forms
• Meet all registration requirements before filing
• File within deadlines
• Attach all required documentation
• Double-check calculations
• When uncertain, consult Publication 510 or a tax professional

9. How do I amend or correct a previously filed Form 8849?

If you discover an error on a previously filed Form 8849, the correction process depends on the type of error:

For understatements (you claimed too little):

• File a new Form 8849 with the appropriate schedule showing the additional amount you're entitled to claim. Include:
  • A statement explaining this is an additional claim for the same period
  • The date of your original filing
  • The additional amount being claimed
  • Explanation of why the additional amount wasn't included originally

For overstatements (you claimed too much):
The IRS doesn't provide a specific "amended Form 8849." Instead:

If you haven't received the refund yet:

• Contact the IRS excise tax office immediately
• Send a written statement explaining the error
• Provide the corrected claim amount
• Include your name, EIN, form type, and claim date

If you've already received the refund:

• You should repay the excess amount voluntarily
• Use Form 720 to report and pay the excess refund received (if related to fuel taxes)
• Include a statement explaining the overpayment repayment
• Pay immediately to avoid interest charges

For claims requiring coordination with Form 720:
If your error relates to a claim that should have been taken on Form 720 first (like biodiesel mixture credits for 2022 Q3 or Q4):

• File Form 720-X (Amended Quarterly Federal Excise Tax Return)
• Correct the Form 720 filing first
• Then file corrected Form 8849 with a statement referencing the Form 720-X

Contact information:
For questions about pending claims or to report errors:

• Call the Excise Tax Branch: 1-866-699-4096
• Mail correspondence to the address shown on any IRS notices you've received
• For Schedule 3 claims, use the Covington, KY address shown on the schedule

Best practice: Before filing an amendment, gather all documentation supporting the corrected claim. If the correction involves complex issues or large amounts, consider consulting a tax professional to ensure proper handling.

10. Where are the official instructions and publications for Form 8849?

All official Form 8849 resources are available on IRS.gov:

Primary resources:

• About Form 8849: IRS.gov/forms-pubs/about-form-8849 – Main page with current form and schedules
• Form 8849 PDF: IRS.gov/pub/irs-pdf/f8849.pdf – Current year form
• Publication 510 (Excise Taxes): IRS.gov/publications/p510 – Comprehensive guide covering all excise taxes, refund claims, model certificates, and detailed instructions. This is the primary reference publication for Form 8849 filers.

Individual schedule instructions:

• Schedule 1: Instructions included with Form 8849 instructions
• Schedule 2: Instructions included with Form 8849 instructions
• Schedule 3: IRS.gov/pub/irs-pdf/f8849s3.pdf (includes instructions)
• Schedule 5: Instructions included with Form 8849 instructions
• Schedule 6: IRS.gov/instructions/i8849s6 – Separate detailed instructions
• Schedule 8: Instructions included with Form 8849 instructions

Related forms and publications:

• Form 637 (Registration): IRS.gov/forms-pubs/about-form-637
• Form 720 (Quarterly Excise Tax): IRS.gov/forms-pubs/about-form-720
• Form 4136 (Fuel Tax Credit): IRS.gov/forms-pubs/about-form-4136
• Publication 225 (Farmer's Tax Guide): IRS.gov/publications/p225 – Includes information on farm fuel tax credits

For 2022 specific guidance:

• Notice 2022-39: IRS.gov/pub/irs-drop/n-22-39.pdf – Alternative fuel mixture claims for 2022 retroactive quarters

Prior year forms:

• Prior Year Forms and Instructions: IRS.gov/prior-year-forms-and-instructions – Search for "8849" to find forms from previous years

Electronic filing information:

• Excise Tax e-File providers: IRS.gov/e-file-providers – List of approved MeF providers

Help and assistance:

• Excise Tax Main Page: IRS.gov/businesses/small-businesses-self-employed/excise-tax
• Excise Tax Forms and Publications: IRS.gov/businesses/small-businesses-self-employed/excise-tax-forms-and-publications
• IRS Excise Tax Helpline: 1-866-699-4096 (for technical questions)

Staying current:
The IRS regularly updates forms and instructions. Check IRS.gov/Form8849 for the latest information including:

• Recent developments and law changes
• Updated forms and schedules
• New notices and guidance
• Processing updates and delays

Always use the correct tax year version of forms when filing. Using outdated forms can cause processing delays or rejections.

Conclusion

Form 8849 provides a valuable opportunity for businesses, farmers, governments, and other taxpayers to recover excise taxes paid on fuels and other items used or sold in qualifying ways. For tax year 2022, special provisions extended alternative fuel credits and created unique filing procedures that required careful attention to deadlines and requirements.

Successfully claiming Form 8849 refunds requires meticulous recordkeeping, proper documentation, attention to deadlines, and careful adherence to the specific requirements for each schedule. By understanding who qualifies, what documentation is needed, how to complete each section accurately, and what mistakes to avoid, you can maximize legitimate refunds while minimizing the risk of penalties, audits, or claim denials.

Whether you're claiming refunds for farm fuel use, off-highway business operations, biodiesel mixtures, alternative fuels, or other excise tax situations, the key to success is maintaining contemporaneous records, filing electronically when possible, and treating Form 8849 claims with the same rigor you apply to other tax filings.

For the most current information, always consult the official IRS resources at IRS.gov/Form8849, Publication 510, and the specific instructions for the schedule you're filing. When claims involve complex situations, substantial amounts, or uncertain eligibility issues, consulting with a tax professional experienced in excise tax matters can provide valuable guidance and peace of mind.

Official Sources

• IRS.gov/forms-pubs/about-form-8849
• IRS.gov/publications/p510 (Publication 510, Excise Taxes)
• IRS.gov/pub/irs-prior/f8849s3--2022.pdf
• IRS.gov/pub/irs-pdf/i8849s6.pdf
• IRS.gov/instructions/i8849s6
• IRS.gov/irm/part4/irm_04-024-022r (Internal Revenue Manual)
• IRS.gov/irm/part4/irm_04-024-008 (Internal Revenue Manual)
• IRS.gov/pub/irs-drop/n-22-39.pdf (Notice 2022-39)
• IRS.gov/businesses/small-businesses-self-employed/excise-tax

If you paid federal excise taxes on fuel or other taxable goods and believe you're entitled to a refund, IRS Form 8849 is your pathway to recovering those funds. Whether you're a farmer using diesel for off-highway equipment, a business that purchased fuel for nontaxable purposes, or a registered vendor seeking refunds on qualifying sales, understanding Form 8849 can help you claim thousands of dollars in legitimate tax refunds.

This comprehensive guide explains everything you need to know about Form 8849 for the 2022 tax year, including who must file, step-by-step completion instructions, deadlines, common mistakes, and practical tips to maximize your refund while avoiding penalties.

What Form 8849 Is For

What Is IRS Form 8849?

Form 8849, officially titled "Claim for Refund of Excise Taxes," is the IRS form taxpayers use to request refunds of federal excise taxes paid on fuels, chemicals, vehicles, and other taxable items when those items were used or sold in ways that qualify for tax exemption or credit. The form serves as the primary mechanism for recovering excise taxes when the original tax payment doesn't match the actual tax liability.

Purpose and Overview

The federal government imposes excise taxes on various products and activities, most commonly on motor fuels like gasoline, diesel, and kerosene. These taxes fund highway construction and other infrastructure projects. However, when fuel is used for nontaxable purposes—such as farming, off-highway business use, or export—taxpayers can recover the excise tax they paid through Form 8849.

Form 8849 works in conjunction with several schedules that specify the type of refund claim being made. Unlike income tax forms that report annual earnings, Form 8849 focuses exclusively on recovering excise taxes that shouldn't have been paid in the first place or that qualify for special credits under federal law.

According to the IRS, Form 8849 and its schedules are processed at the Ogden Campus, and the form enables taxpayers to claim refunds for excise taxes reported on Form 720 (Quarterly Federal Excise Tax Return), Form 2290 (Heavy Highway Vehicle Use Tax Return), Form 730 (Monthly Tax Return for Wagers), and Form 11-C (Occupational Tax and Registration Return for Wagering).

When You’d Use Form 8849

Who Must File Form 8849? Eligibility Requirements

Not everyone who pays excise taxes needs to file Form 8849. Understanding whether you're eligible—and required—to use this form depends on your specific situation, the type of fuel or product involved, and how you used it.

Eligible Filers

Ultimate Purchasers

If you purchased fuel and used it for nontaxable purposes, you're considered an "ultimate purchaser" and may file Schedule 1 (Form 8849) to claim a refund. Common nontaxable uses include:

• Farming purposes: Fuel used on a farm for farming operations, including operating tractors, irrigation pumps, and other agricultural equipment
• Off-highway business use: Fuel used in equipment that doesn't operate on public highways, such as construction equipment, forklifts, generators, and stationary engines
• Export: Fuel exported from the United States
• State and local government use: Fuel purchased by governmental entities
• Nonprofit educational organization use: Fuel used by qualifying tax-exempt educational institutions

Registered Ultimate Vendors

Businesses registered with the IRS can file Schedule 2 (Form 8849) to claim refunds on qualifying sales of undyed diesel fuel, undyed kerosene, or kerosene for use in aviation to:

• State and local governments
• Nonprofit educational organizations
• Other buyers who waive their right to claim the refund

Alternative Fuel Producers and Sellers

Registered alternative fuelers who produce, sell, or use alternative fuels may file Schedule 3 (Form 8849) for biodiesel mixture credits, renewable diesel mixture credits, and alternative fuel credits. For 2022, special provisions allowed retroactive claims for the first three quarters of the year for alternative fuel credits.

Persons Paying Second Taxes

If you paid excise tax on fuel that had already been taxed (such as fuel bought at retail with tax included, then used to produce a taxable fuel mixture), you can file Schedule 5 (Form 8849) to recover the duplicate tax under Section 4081(e).

Other Claimants

Schedule 6 (Form 8849) covers various other refund situations, including overpayments on Form 720, Form 2290 (heavy highway vehicle use tax), Form 730 (wagering tax), and Form 11-C.

Who Cannot File Form 8849

Certain taxpayers cannot use Form 8849 for fuel tax credits:

• Individual income tax filers claiming annual credits: Most individual taxpayers should use Form 4136 (Credit for Federal Tax Paid on Fuels) attached to their income tax return (Form 1040) to claim fuel tax credits as part of their annual tax filing.
• Taxpayers claiming credits on Form 720, Schedule C: If you already filed or will file a credit claim on your quarterly Form 720, Schedule C, you cannot duplicate that claim on Form 8849.
• Unregistered alternative fuelers: To claim alternative fuel credits, you must be registered with the IRS using Form 637 (Application for Registration for Certain Excise Tax Activities) with an appropriate registration number (such as "AL" for alternative fueler).

Key Rules or Details for 2022 Tax Year

Understanding Form 8849 Schedules

Form 8849 requires you to attach one or more schedules that specify the type of refund you're claiming. Each schedule has unique eligibility requirements, claim rates, and documentation needs.

Schedule 1: Nontaxable Use of Fuels

Schedule 1 is used by ultimate purchasers who bought gasoline, diesel fuel, kerosene, aviation fuel, or liquefied petroleum gas (LPG) and used it for nontaxable purposes. Common claim types include:

• Type 1 – Farming purposes: Fuel used on farms for farming operations
• Type 2 – Off-highway business use: Fuel used in equipment not operated on public highways
• Type 3 – Export: Fuel exported from the United States
• Type 4 – Use by state/local governments: Fuel purchased by governmental entities
• Type 5 – Use on intercity and local buses: Fuel used in qualifying public transportation

Schedule 2: Sales by Registered Ultimate Vendors

Registered ultimate vendors use Schedule 2 to claim refunds on sales of:

• Undyed diesel fuel and undyed kerosene to state/local governments
• Kerosene for use in aviation
• Gasoline to nonprofit educational organizations
• Sales to buyers who waive their right to claim the refund

To file Schedule 2, you must be registered with the IRS and possess valid certificates from buyers confirming the nontaxable use.

Schedule 3: Certain Fuel Mixtures and Alternative Fuel Credit

Schedule 3 covers specialized fuel credits for renewable and alternative fuels:

• Biodiesel mixtures: Claims based on biodiesel meeting ASTM D6751 standards mixed with diesel fuel
• Renewable diesel mixtures: Claims for renewable diesel derived from biomass meeting EPA and ASTM requirements
• Alternative fuels: Credits for liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), liquefied hydrogen, P-Series fuels, and fuels derived from biomass

2022 Special Provision: For tax year 2022, the alternative fuel credits were retroactively extended for the first three quarters after expiring at the end of 2021. The IRS issued Notice 2022-39 allowing claimants to file one-time claims for the first, second, and third quarters of 2022 combined on a single Schedule 3, due by April 11, 2023.

Schedule 5: Section 4081(e) Claims

Schedule 5 addresses situations where excise tax was paid twice on the same fuel. If you paid tax when purchasing fuel, then paid tax again when producing a taxable fuel product, you can claim a refund of the first tax. You must have filed Form 720 and paid the second tax before filing Schedule 5.

Schedule 6: Other Claims

Schedule 6 serves as the catch-all schedule for refund claims not covered by other schedules, including:

• Refunds of taxes reported on Form 720 (various excise taxes on chemicals, tires, vaccines, medical devices, and more)
• Heavy highway vehicle use tax refunds (Form 2290) for vehicles sold, destroyed, stolen, or used 5,000 miles or less (7,500 for agricultural vehicles)
• Wagering tax refunds (Forms 730 and 11-C)
• Diesel-water fuel emulsion blending credits

Schedule 8: Registered Credit Card Issuers

Schedule 8 is used exclusively by registered credit card issuers to claim refunds on sales made through credit cards to state/local governments and nonprofit educational organizations.

Recordkeeping Requirements

The IRS mandates that you maintain all records at your principal place of business to enable verification of your claim. According to Publication 510, your records must include:

• Number of gallons purchased and used during the claim period
• Dates of all purchases
• Names and addresses of suppliers and amounts purchased from each
• The specific nontaxable use for which fuel was used
• Number of gallons used for each nontaxable use
• If fuel was exported, proof of exportation

Retention period: Generally, you must keep records for at least 3 years from the date you filed the claim, or 2 years from the date the tax was paid, whichever is later.

Filing Deadlines and Time Limits

Periodic Claims (Schedules 1, 2, 3, and 5)

For most fuel-related refunds, claims must meet these timing requirements:

• Claim period: Must cover at least one week of sales or use
• Minimum amount: At least $200 (unless filing electronically, in which case no minimum applies)
• Filing deadline: Must file by the last day of the first quarter following the earliest quarter of your income tax year included in the claim

Example: A calendar-year taxpayer claiming refunds for fuel used during June and July must file by September 30 (the last day of the third quarter).

One claim per quarter: You can only file one claim per quarter. If you need to combine multiple weeks or months to meet the minimum, you must do so within the deadline.

Annual Claims

If you don't meet the periodic claim requirements (minimum amount, one-week period, or quarterly filing), you can file an annual claim:

• File Form 8849 with your income tax return, or
• File within the time allowed for filing a claim for refund of income tax (generally within 3 years from the date you filed your original return, or 2 years from when you paid the tax, whichever is later)

Note: Federal, state, and local governments, and certain tax-exempt organizations must file annual claims on Form 8849; they cannot use Form 4136.

Special 2022 Deadlines

For retroactive 2022 alternative fuel credits (first, second, and third quarters), Notice 2022-39 established special rules:

• Filing period: Between October 13, 2022, and April 11, 2023
• Combined claim: All three quarters must be combined on one Schedule 3 (Form 8849)
• One submission only: The IRS would not process multiple submissions from the same claimant
• Protective claims: Previously filed "protective" or anticipatory claims had to be refiled in accordance with Notice 2022-39 to be perfected

Schedule 6 Deadlines

For Schedule 6 claims:

• General rule: File within 3 years of filing the return to which the claim relates, or 2 years from when the tax was paid, whichever is later
• Minimum amount: At least $750 (can combine with Schedule 1 diesel-water fuel emulsion claims to meet minimum)
• Quarterly filing: Must file during the first quarter following the last quarter included in the claim

Form 2290 Mileage Refunds

Refunds for vehicles used 5,000 miles or less (7,500 for agricultural vehicles) cannot be filed until after June 30 of the tax period (July 1 – June 30).

Where and How to File Form 8849

Electronic Filing (E-File)

The IRS strongly encourages electronic filing for faster processing and quicker refunds. As of 2022, the following schedules can be e-filed through approved Modernized e-File (MeF) providers:

• Schedule 1 (Nontaxable Use of Fuels)
• Schedule 2 (Sales by Registered Ultimate Vendors)
• Schedule 3 (Certain Fuel Mixtures and Alternative Fuel Credit)
• Schedule 5 (Section 4081(e) Claims)
• Schedule 6 (Other Claims)
• Schedule 8 (Registered Credit Card Issuer)

To e-file, you must work with an IRS-approved 8849 MeF provider. Visit IRS.gov/e-file-providers to find approved providers for excise tax forms.

Advantages of e-filing:

• Immediate acknowledgment of receipt
• Faster refund processing (typically 20-45 days versus 6+ months for paper)
• Reduced errors through built-in validation
• No minimum claim amount required
• Secure transmission
• Confirmation of acceptance

Paper Filing (Mail)

If you cannot e-file or prefer paper filing, mail your completed Form 8849 with attached schedules to:

For Schedule 3 (Fuel Mixture Claims):

• Internal Revenue Service
  P.O. Box 312
  Covington, KY 41012-0312
  Write "Fuel Mixture Claim" on the envelope.

For Schedule 2 (Registered Ultimate Vendor): Use the address in the Form 8849 instructions and write "Registered Ultimate Vendor Claim" on the envelope.

For all other schedules: Follow the "Where To File" instructions provided with Form 8849. According to IRS Internal Revenue Manual 4.24.22, Form 8849 returns are processed at the Ogden Campus.

Important: Paper excise tax forms experience significant processing delays—often 6 months or longer according to current IRS notices. Electronic filing is strongly recommended whenever possible.

Step-by-Step (High Level)

Step-by-Step Instructions for Completing Form 8849

Completing Form 8849 accurately requires attention to detail and proper documentation. Follow these steps to ensure your claim is processed smoothly.

Step 1: Gather Your Information

Before beginning, collect:

• Your Employer Identification Number (EIN) or Social Security Number (SSN)
• Registration numbers if applicable (Form 637 registrants)
• Detailed fuel purchase records (dates, amounts, suppliers)
• Usage documentation showing nontaxable use
• Certificates from buyers (for Schedule 2 filers)
• Prior Form 720 filings (for Schedule 5 claims)

Step 2: Complete Form 8849 Header Information

• Line 1 – Name: Enter your name exactly as shown on your EIN or SSN records. For businesses, use your official business name.
• Line 2 – Address: Provide your complete mailing address, including street, city, state, and ZIP code.
• Line 3 – EIN or SSN: Enter your taxpayer identification number. Section 6109 of the Internal Revenue Code requires you to provide this information. If you're filing Form 4136 with Form 1040 and claiming refunds on behalf of the vehicle owner, you can use the owner's TIN.
• Line 4 – Month Income Tax Year Ends: Enter the two-digit number for the month your income tax year ends (e.g., "12" for December for calendar-year taxpayers).
• Schedule Selection: Check the box(es) for the schedule(s) you're attaching. Only attach schedules for which you're making claims.

Step 3: Complete the Appropriate Schedule(s)

Each schedule has specific line items and requirements:

For Schedule 1 (Nontaxable Use of Fuels):

• Enter your registration number if applicable
• Specify the claim period (from/to dates in MMDDYYYY format)
• For each fuel type and use type, enter:
  • Column (a): Applicable tax rate per gallon
  • Column (b): Number of gallons used
  • Column (c): Claim amount (multiply rate × gallons)
  • Column (d): Credit Reference Number (CRN) – pre-printed on form

For Schedule 3 (Fuel Mixtures and Alternative Fuels):

• Enter your claimant registration number (including prefix like "AL" or "AM")
• Specify the claim period
• For biodiesel/renewable diesel mixtures (Line 2):
  • Use $1.00 per gallon rate
  • Enter gallons of biodiesel or renewable diesel in the mixture
  • Attach Certificate for Biodiesel from the producer
• For alternative fuels (Line 3):
  • Convert volumes to gasoline gallon equivalents (GGE) or diesel gallon equivalents (DGE):
    • CNG: 121 cubic feet = 1 GGE
    • LPG: 5.75 pounds or 1.353 gallons = 1 GGE
    • LNG: 6.06 pounds or 1.71 gallons = 1 DGE
  • Use $0.50 per GGE/DGE rate
  • Enter converted gallons and calculate claim amount

For Schedule 6 (Other Claims):

• Identify the type of claim using the appropriate CRN
• Attach detailed documentation including:
  • Description of the claim
  • Amount and calculation method
  • Supporting evidence (certificates, Form 2290 information, etc.)
• For Form 2290 refunds sold after July 1, 2015: Include VIN, taxable gross weight, disposition type, disposition date, computation, and purchaser name/address

Step 4: Calculate Total Refund

Add all amounts from column (c) on each schedule and enter the total in the "Total refund" box at the top of the schedule's first page. This represents your total refund claim for that schedule.

Step 5: Sign and Date the Form

Form 8849 requires an authorized signature. For businesses, this typically means:

• Sole proprietor: The owner
• Partnership: A partner
• Corporation: An officer (president, vice president, treasurer, assistant treasurer, chief accounting officer)
• Tax-exempt organization: An authorized officer

Include your title and the date. The person signing declares under penalties of perjury that the information is true, correct, and complete.

Required Documents and Supporting Evidence

The IRS requires specific documentation to substantiate your Form 8849 claim. Missing documents are a leading cause of claim delays and denials.

Essential Records for All Filers

• Purchase documentation: Invoices, receipts, or statements showing fuel purchases, including dates, quantities, prices, and supplier information
• Usage records: Logs, fuel tank records, equipment hour meters, or other evidence documenting how and when fuel was used for nontaxable purposes
• Supplier information: Names and addresses of all fuel suppliers during the claim period

Schedule-Specific Documentation

Schedule 1 (Nontaxable Use):

• Detailed usage logs separating taxable and nontaxable use
• For farming: Records showing fuel used on farm for farming purposes
• For off-highway: Equipment logs showing hours of operation and fuel consumption
• For export: Proof of exportation documents

Schedule 2 (Registered Ultimate Vendor):

• Model Certificate B (for diesel/kerosene to state/local governments)
• Model Certificate D (for kerosene for aviation)
• Model Certificate E (for gasoline to nonprofit educational organizations)
• Buyer waiver statements if applicable

Schedule 3 (Fuel Mixtures):

• Certificate for Biodiesel (Model Certificate O from Publication 510) from the biodiesel producer
• Statement of Biodiesel Reseller (Model Statement S) if applicable
• Registration documentation showing AL or AM registration number
• For renewable diesel: Edited certificates indicating renewable diesel meeting EPA and ASTM standards

Schedule 5 (Second Tax):

• Copy of the first taxpayer's report showing the first tax was paid
• Copy of statement from subsequent seller if fuel was purchased from someone other than the first taxpayer
• Your Form 720 showing payment of the second tax

Schedule 6 (Other Claims):

• Detailed explanation of the claim reason
• For Form 2290 refunds: VIN, weight category, sale/destruction/theft date and documentation
• For wagering refunds: Certificates per Regulations section 44.6419-2(d)

Common Mistakes and How to Avoid Them

Most Common Errors

1. Duplicate Claims

The single most common error is claiming the same fuel tax credit on multiple forms. You cannot claim the same amount on:

• Form 8849 and Form 4136
• Form 8849 and Form 720, Schedule C
• Form 8849 and Form 8864 (Biodiesel and Renewable Diesel Fuels Credit)
• Multiple Form 8849 schedules

Solution: Track all claims carefully and choose only one method for each gallon of fuel.

2. Missing or Incorrect Registration Numbers

Many schedules require IRS registration via Form 637. Common mistakes include:

• Filing Schedule 3 without an AL or AM registration number
• Using expired registration numbers
• Entering incorrect registration prefix codes

Solution: Apply for registration well before filing claims. Processing Form 637 can take 60-90 days or longer.

3. Insufficient Documentation

Claims lacking proper supporting documents are routinely denied. Common documentation failures include:

• No purchase receipts or invoices
• Missing supplier names and addresses
• Inadequate usage records showing nontaxable use
• Missing certificates from buyers (Schedule 2)
• No proof of exportation (export claims)

Solution: Maintain contemporaneous records. Create usage logs at the time fuel is used, not later when filing the claim.

4. Mathematical Errors

Simple calculation mistakes cause processing delays:

• Incorrect rate per gallon
• Multiplication errors in claim amounts
• Wrong conversion for alternative fuels (GGE/DGE calculations)
• Totaling errors

Solution: Double-check all calculations. Use electronic filing with built-in calculators when possible.

5. Wrong Schedule or Incorrect Claim Type

Taxpayers often select the wrong schedule or claim type:

• Ultimate purchasers using Schedule 2 (which is for registered vendors)
• Claiming the wrong nontaxable use type
• Filing Schedule 1 when they should use Form 4136

Solution: Carefully review eligibility requirements for each schedule. When in doubt, consult Publication 510 or a tax professional.

6. Mixing Incompatible Schedules

Certain schedules cannot be filed together on the same Form 8849:

• Schedules 2, 5, and 8 must each be filed on separate Form 8849 submissions
• They cannot be combined with other schedules

Solution: File separate Form 8849 submissions when required by the schedule instructions.

7. Missing Signatures or Dates

Unsigned forms or missing dates result in rejection and delays.

Solution: Ensure an authorized person signs the form with their title and date.

8. Filing Before Meeting Requirements

Some claims have specific prerequisites:

• Schedule 5 requires filing and paying tax on Form 720 first
• Form 2290 mileage refunds can't be filed until after June 30
• Alternative fuel mixture credits for 2022 Q1-Q2 required Form 720-X first

Solution: Review all prerequisites carefully and complete them in the correct sequence.

Penalties and Interest

The IRS can assess penalties for various Form 8849 violations:

Excessive Claims Penalty: If you file a refund claim for an excessive amount without reasonable cause, you may owe a penalty equal to the greater of:

• Two times the excessive amount, or
• $10

An "excessive amount" is the difference between what you claimed and what you're entitled to receive.

Fraudulent Claims: Criminal penalties apply to false or fraudulent claims, including fines and potential imprisonment.

Failure to Keep Records: Penalties and interest can result from failing to maintain adequate records to support your claim.

Failure to Register: If registration is required and you fail to register, you may face:

• Denial of the claim
• Penalties for activities conducted without registration
• Back assessments of excise taxes that weren't properly reported

Trust Fund Recovery Penalty: In severe cases involving willful failure to collect or pay excise taxes, responsible persons can face penalties up to 100% of the tax not collected or paid.

Audit Risk Factors

Certain situations increase the likelihood of IRS examination:

• Unusually large claims relative to business size
• Repeated claims with minimal supporting documentation
• Claims that appear inconsistent with business type
• History of excessive or fraudulent claims
• Industry-specific red flags (fuel distributors, alternative fuel producers)

Practical Tips, Examples, and Edge Cases for 2022

Understanding real-world applications helps you maximize legitimate refunds while avoiding pitfalls.

Tip 1: Track Fuel Use Contemporaneously

Don't wait until filing season to reconstruct fuel usage. Create a simple log as you use fuel:

Example: A construction company operating bulldozers, excavators, and dump trucks should maintain daily equipment logs showing:

• Equipment identification
• Hours operated
• Fuel consumed
• On-road vs. off-road use
• Job site/project name

When filing Form 8849 Schedule 1, this contemporaneous documentation provides bulletproof evidence of nontaxable off-highway business use.

Tip 2: Understand the On-Farm Farming Use Requirement

Not all farm-related fuel qualifies for refunds. The fuel must be used "on a farm for farming purposes." This includes:

Qualifying uses:

• Operating tractors, combines, and other farming equipment
• Irrigation pumps
• Grain dryers and crop drying equipment
• Livestock feeding equipment
• Maintenance equipment used in farming operations

Non-qualifying uses:

• Fuel used in vehicles on public highways (even if for farm business)
• Fuel used in personal vehicles
• Fuel used for residential heating

Example: A farmer purchases 1,000 gallons of diesel. He uses 800 gallons in tractors and irrigation equipment, 150 gallons in his pickup truck driving to town for supplies, and 50 gallons in his personal car. Only the 800 gallons used in farming equipment qualify for the Form 8849 refund.

Tip 3: State/Local Government Purchases Must Use Proper Documentation

Governments can achieve significant savings through excise tax exemptions, but proper procedures are essential:

Direct purchase method (Schedule 1): Government entity purchases fuel and uses it—claims refund directly as ultimate purchaser.

Credit card method (Schedule 8): Registered credit card issuer claims refund on behalf of government that purchased using a credit card.

Registered ultimate vendor method (Schedule 2): Government provides exemption certificate to registered vendor; vendor claims refund.

Example: A county road department purchases 5,000 gallons of diesel at retail, paying the $0.244 per gallon federal excise tax ($1,220). The county files Form 8849, Schedule 1, Type 4 (Use by State or Local Government) to recover the $1,220.

Tip 4: Navigate the 2022 Alternative Fuel Credit Complexity

The retroactive extension of alternative fuel credits for 2022 created unique filing requirements:

• For 2022 Q1-Q3: File one combined Schedule 3 with claims for all three quarters between October 13, 2022, and April 11, 2023.
• For 2022 Q4 and later: Alternative fuel credits must first be taken on Form 720, Schedule C, as a credit against alternative fuel or CNG tax liability. Only after taking the credit on Form 720 can any excess be claimed on Form 8849.

Example: An alternative fueler sold compressed natural gas (CNG) throughout 2022. For Q1-Q3, they filed one combined Schedule 3 (Form 8849) by April 11, 2023, claiming all three quarters at once. For Q4, they first claimed the credit on Form 720, Schedule C, filed in January 2023, then filed any excess refund on a separate Schedule 3.

Tip 5: Form 2290 Refunds Require Careful Timing

Heavy highway vehicle use tax refunds have specific requirements:

• Sold/destroyed/stolen vehicles: Can claim pro rata refund if disposition occurred before June 1 of the tax period. Must include VIN, weight category, disposition date, and (for sales after July 1, 2015) buyer name and address.
• Low-mileage refunds: Cannot file until after June 30 of the tax period. Must show vehicle was used 5,000 miles or less (7,500 for agricultural vehicles) on public highways during the entire period, regardless of how many owners.

Example: A trucking company paid $550 annual heavy vehicle use tax on July 15, 2021, for a 70,000-pound truck (tax period July 1, 2021 – June 30, 2022). The truck was totaled in an accident on March 10, 2022. The company can file Form 8849, Schedule 6, claiming a pro rata refund for the unused period (March 10 – June 30), which equals approximately $183.

Tip 6: Biodiesel Mixture Credits Require Proper Sequencing

Biodiesel and renewable diesel mixture credits have a mandatory claiming sequence:

• First: Credit must be taken against your taxable fuel liability on Form 720, Schedule C
• Only if excess remains: Can that excess be claimed on Form 8849, Schedule 3
• If you didn't take credit on Form 720 first: Must file Form 720-X (Amended Quarterly Federal Excise Tax Return) before Form 8849 will be processed

Example: A biodiesel blender produced 50,000 gallons of biodiesel mixture in Q2 2022, entitling them to a $50,000 credit ($1.00 per gallon). Their Form 720 for Q2 showed $35,000 in taxable fuel liability. They claimed $35,000 as a credit on Form 720, Schedule C, reducing their liability to zero. They then filed Form 8849, Schedule 3, claiming the remaining $15,000 as a refund.

Tip 7: Export Claims Need Bulletproof Documentation

Export claims face heightened scrutiny. You must prove:

• The fuel actually left the United States
• You were the exporter of record
• The fuel was taxed in the U.S. before export

Acceptable proof includes:

• Export bills of lading
• Customs documents
• Shipper's export declarations
• Landing certificates from foreign destinations

Tip 8: Combine Small Claims to Meet Minimums

If your weekly or monthly fuel use doesn't meet the $200 minimum (for paper filing), combine multiple periods:

Example: A landscaping company uses 75 gallons of gas monthly in off-highway equipment (mowers, trimmers), generating about $40 in potential refunds per month ($0.183 per gallon × 75 = $13.73, plus kerosene-type jet fuel credits). They combine five months of use (375 gallons, approximately $200 claim) and file one Form 8849, Schedule 1, covering all five months.

Better approach: E-file claims, which have no minimum amount requirement, allowing monthly claims instead of waiting to accumulate $200.

What Happens After You File

Electronic filers: Refunds are typically issued via direct deposit or check within 20-45 days.

Paper filers: Refunds take 6 months or longer due to current processing backlogs.

Direct deposit: You can request direct deposit by providing your banking information.

Check: If you don't provide banking information, the IRS mails a check to the address on the form.

Interest: The IRS does not pay interest on excise tax refunds claimed on Form 8849 unless they fail to process the claim within statutorily prescribed timeframes (usually 45 days from filing or 6 months, depending on the type of claim).

FAQs

1. Who is required to file Form 8849?

Form 8849 isn't "required" for most taxpayers—it's optional. You file it when you want to claim a refund of excise taxes you've already paid. The form is used by ultimate purchasers who used fuel for nontaxable purposes, registered vendors who made qualifying sales, alternative fuelers claiming credits, and others seeking excise tax refunds.

Federal, state, and local governments, and certain tax-exempt organizations must use Form 8849 (not Form 4136) if they want to claim fuel tax credits, making it effectively required for these entities if they want refunds.

Individuals filing personal income tax returns typically use Form 4136 (attached to Form 1040) instead of Form 8849, though Form 8849 can be used for periodic refunds during the year rather than waiting until tax return time.

2. Which industries or transactions does this form apply to?

Form 8849 applies across numerous industries and transactions:

Primary industries:

• Agriculture (farmers claiming refunds on farm-use fuel)
• Construction (contractors using off-highway equipment)
• Fuel distribution (wholesalers, retailers, blenders)
• Transportation (trucking companies with Form 2290 refunds)
• Alternative energy (biodiesel, renewable diesel, alternative fuel producers)
• State and local government operations
• Aviation (airlines, charter services)
• Marine operations (commercial fishing, boat operators)

Qualifying transactions:

• Nontaxable fuel uses (farming, off-highway business, export, government use)
• Sales by registered vendors to exempt buyers
• Biodiesel and renewable diesel mixture production and sales
• Alternative fuel production and sales
• Duplicate tax payments requiring refunds
• Overpayments on quarterly excise tax returns (Form 720)
• Heavy highway vehicle use tax overpayments (Form 2290)
• Various other excise tax refund situations (chemicals, tires, medical devices, wagering)

3. What is the filing frequency and due date for this form?

Filing frequency and due dates vary by schedule and claim type:

Periodic claims (Schedules 1, 2, 3, 5):

• Frequency: Quarterly (most common), but can include multiple weeks or months within a quarter
• Due date: Last day of the first quarter following the earliest quarter of your income tax year included in the claim
• Example: Calendar-year taxpayer claiming June-July usage must file by September 30

Annual claims:

• Frequency: Once per year
• Due date: With your income tax return, or within the time allowed for filing a claim for refund of income tax (generally 3 years from filing or 2 years from payment)
• Who must file annually: Federal, state, and local governments; certain tax-exempt organizations; taxpayers who don't meet periodic claim requirements

Schedule 6 claims:

• Due date: Generally within 3 years of filing the return to which the claim relates, or 2 years from paying the tax, whichever is later
• Form 2290 mileage refunds: Cannot file until after June 30 of the tax period

2022 special deadline:

• Retroactive alternative fuel credits (Q1-Q3): Between October 13, 2022, and April 11, 2023

4. Can I file this form electronically and how do payments work?

Yes, Form 8849 with Schedules 1, 2, 3, 5, 6, and 8 can be filed electronically through IRS-approved Modernized e-File (MeF) providers. Electronic filing offers significant advantages:

• Faster processing (20-45 days vs. 6+ months for paper)
• No $200 minimum claim amount requirement
• Immediate acknowledgment of receipt
• Reduced errors through built-in validation
• Secure transmission

To e-file, visit IRS.gov/e-file-providers and select an approved provider for excise tax forms. Some providers charge fees for their services, while others may offer free filing for certain claim types.

How refunds are paid:
Form 8849 results in refunds paid to you—it's not a form where you pay taxes. Once the IRS processes your claim and approves the refund:

• Electronic filers: Refunds are typically issued via direct deposit or check within 20-45 days
• Paper filers: Refunds take 6 months or longer due to current processing backlogs
• Direct deposit: You can request direct deposit by providing your banking information
• Check: If you don't provide banking information, the IRS mails a check to the address on the form

The IRS does not pay interest on excise tax refunds claimed on Form 8849 unless they fail to process the claim within statutorily prescribed timeframes (usually 45 days from filing or 6 months, depending on the type of claim).

5. How do I claim a refund or credit on this form?

Claiming a refund on Form 8849 involves five steps:

Step 1 – Determine eligibility: Verify you qualify for the refund type you're claiming (ultimate purchaser, registered vendor, etc.)

Step 2 – Select the appropriate schedule: Choose Schedule 1, 2, 3, 5, 6, or 8 based on your claim type

Step 3 – Calculate your refund:

• Multiply the number of gallons (or units) by the applicable rate per gallon
• For alternative fuels, convert to GGE or DGE first
• Use the correct tax rate for each fuel type and claim type

Step 4 – Complete Form 8849 and schedule:

• Enter identifying information (name, EIN/SSN, address)
• Complete all required lines on the schedule
• Calculate total refund amount
• Sign and date the form

Step 5 – Attach supporting documentation:

• Include all required certificates, statements, and evidence
• Keep copies of everything for your records

Credits vs. refunds: Some excise taxes can be claimed as credits on other forms (like Form 720, Schedule C) or as refunds on Form 8849. Key rule: You can only claim each gallon of fuel or taxable item once. If you take a credit on Form 720, you cannot also claim a refund on Form 8849 for the same amount.

6. Which supporting schedules or attachments are commonly required?

Schedule 1 (Nontaxable Use of Fuels):

• Detailed records of fuel purchases (invoices, receipts)
• Usage logs showing nontaxable use
• For export: Proof of exportation documents

Schedule 2 (Registered Ultimate Vendor):

• Model Certificate B (for diesel/kerosene to governments)
• Model Certificate D (for kerosene for aviation)
• Model Certificate E (for gasoline to nonprofit educational organizations)
• Buyer waiver statements

Schedule 3 (Fuel Mixtures and Alternative Fuels):

• Certificate for Biodiesel (Model Certificate O) from biodiesel producer
• Statement of Biodiesel Reseller (Model Statement S) if applicable
• Proof of IRS registration (AL or AM number)

Schedule 5 (Section 4081(e) Claims):

• Copy of first taxpayer's report showing first tax paid
• Copy of subsequent seller's statement (if fuel purchased from intermediary)
• Your Form 720 showing second tax paid

Schedule 6 (Other Claims):

• For Form 2290 refunds: VIN, weight category, disposition date/type, computation, purchaser information (for sales after July 1, 2015)
• For Form 720 refunds: Detailed explanation, calculation, and any regulatory required documentation
• For wagering refunds: Certificates and required statements

All schedules should include:

• Names and addresses of fuel suppliers
• Dates and amounts of purchases
• Clear calculations showing how refund amounts were determined

7. What records should I keep for audits or examinations?

The IRS requires comprehensive recordkeeping. You must maintain at your principal place of business:

Fuel purchase records:

• Invoices and receipts from all fuel purchases
• Dates of purchases
• Quantities purchased (gallons)
• Prices paid (including whether excise tax was included)
• Names and addresses of all suppliers

Usage records:

• Daily or weekly logs showing how fuel was used
• Equipment identification and hour meters
• Separation of taxable vs. nontaxable use
• Project or job site information
• For farming: Documentation showing use on farm for farming purposes
• For off-highway: Equipment operation logs showing non-highway use

Certificates and registrations:

• Form 637 registration letter and number
• Certificates from biodiesel producers
• Buyer certificates (for Schedule 2 filers)
• Exemption certificates

Tax returns and prior filings:

• Copies of all filed Form 8849 schedules
• Form 720 filings (if applicable)
• Form 4136 (if you've also claimed credits on income tax returns)
• Form 2290 (for heavy vehicle refunds)

Supporting documentation:

• Export documents (bills of lading, customs forms)
• Sales records (for registered vendors)
• Production records (for fuel mixtures)

Retention period: Keep all records for at least 3 years from the filing date of your claim, or 2 years from the date the tax was paid, whichever is later. In practice, keeping records for 4-5 years is prudent as the IRS has extended timeframes for examinations in some cases.

8. What are common errors that lead to penalties or interest?

Common errors that trigger penalties include:

Excessive claims: Claiming refunds significantly larger than entitled. Penalty: Greater of 2× the excessive amount or $10.

Duplicate claims: Claiming the same fuel on Form 8849, Form 4136, Form 720 Schedule C, and/or Form 8864. Result: Denial of one claim and potential penalties for excessive claim.

False statements: Intentionally misrepresenting fuel use, quantities, or eligibility. Penalty: Criminal penalties including fines and imprisonment.

Missing or false certificates: Filing claims without required buyer certificates or using certificates known to be false. Result: Claim denial and potential fraud penalties.

Failure to maintain records: Not keeping adequate documentation to support claims. Result: Claim denial, assessment of excise taxes, and recordkeeping penalties.

Unregistered activities: Filing Schedule 2, 3, or other claims requiring registration without proper IRS registration. Result: Claim denial and potential liability for unpaid excise taxes.

Mathematical errors: While honest calculation mistakes don't typically result in penalties, repeated errors can trigger increased scrutiny and audits.

Filing without paying prerequisite taxes: Filing Schedule 5 without first paying the second tax on Form 720. Result: Claim denial and processing delays.

Claiming after deadline: Filing claims beyond the statute of limitations (generally 3 years from filing or 2 years from payment). Result: Permanent forfeiture of refund rights.

To avoid penalties:

• Maintain contemporaneous, detailed records
• Claim only fuel you're entitled to claim
• Never duplicate claims across multiple forms
• Meet all registration requirements before filing
• File within deadlines
• Attach all required documentation
• Double-check calculations
• When uncertain, consult Publication 510 or a tax professional

9. How do I amend or correct a previously filed Form 8849?

If you discover an error on a previously filed Form 8849, the correction process depends on the type of error:

For understatements (you claimed too little):

• File a new Form 8849 with the appropriate schedule showing the additional amount you're entitled to claim. Include:
  • A statement explaining this is an additional claim for the same period
  • The date of your original filing
  • The additional amount being claimed
  • Explanation of why the additional amount wasn't included originally

For overstatements (you claimed too much):
The IRS doesn't provide a specific "amended Form 8849." Instead:

If you haven't received the refund yet:

• Contact the IRS excise tax office immediately
• Send a written statement explaining the error
• Provide the corrected claim amount
• Include your name, EIN, form type, and claim date

If you've already received the refund:

• You should repay the excess amount voluntarily
• Use Form 720 to report and pay the excess refund received (if related to fuel taxes)
• Include a statement explaining the overpayment repayment
• Pay immediately to avoid interest charges

For claims requiring coordination with Form 720:
If your error relates to a claim that should have been taken on Form 720 first (like biodiesel mixture credits for 2022 Q3 or Q4):

• File Form 720-X (Amended Quarterly Federal Excise Tax Return)
• Correct the Form 720 filing first
• Then file corrected Form 8849 with a statement referencing the Form 720-X

Contact information:
For questions about pending claims or to report errors:

• Call the Excise Tax Branch: 1-866-699-4096
• Mail correspondence to the address shown on any IRS notices you've received
• For Schedule 3 claims, use the Covington, KY address shown on the schedule

Best practice: Before filing an amendment, gather all documentation supporting the corrected claim. If the correction involves complex issues or large amounts, consider consulting a tax professional to ensure proper handling.

10. Where are the official instructions and publications for Form 8849?

All official Form 8849 resources are available on IRS.gov:

Primary resources:

• About Form 8849: IRS.gov/forms-pubs/about-form-8849 – Main page with current form and schedules
• Form 8849 PDF: IRS.gov/pub/irs-pdf/f8849.pdf – Current year form
• Publication 510 (Excise Taxes): IRS.gov/publications/p510 – Comprehensive guide covering all excise taxes, refund claims, model certificates, and detailed instructions. This is the primary reference publication for Form 8849 filers.

Individual schedule instructions:

• Schedule 1: Instructions included with Form 8849 instructions
• Schedule 2: Instructions included with Form 8849 instructions
• Schedule 3: IRS.gov/pub/irs-pdf/f8849s3.pdf (includes instructions)
• Schedule 5: Instructions included with Form 8849 instructions
• Schedule 6: IRS.gov/instructions/i8849s6 – Separate detailed instructions
• Schedule 8: Instructions included with Form 8849 instructions

Related forms and publications:

• Form 637 (Registration): IRS.gov/forms-pubs/about-form-637
• Form 720 (Quarterly Excise Tax): IRS.gov/forms-pubs/about-form-720
• Form 4136 (Fuel Tax Credit): IRS.gov/forms-pubs/about-form-4136
• Publication 225 (Farmer's Tax Guide): IRS.gov/publications/p225 – Includes information on farm fuel tax credits

For 2022 specific guidance:

• Notice 2022-39: IRS.gov/pub/irs-drop/n-22-39.pdf – Alternative fuel mixture claims for 2022 retroactive quarters

Prior year forms:

• Prior Year Forms and Instructions: IRS.gov/prior-year-forms-and-instructions – Search for "8849" to find forms from previous years

Electronic filing information:

• Excise Tax e-File providers: IRS.gov/e-file-providers – List of approved MeF providers

Help and assistance:

• Excise Tax Main Page: IRS.gov/businesses/small-businesses-self-employed/excise-tax
• Excise Tax Forms and Publications: IRS.gov/businesses/small-businesses-self-employed/excise-tax-forms-and-publications
• IRS Excise Tax Helpline: 1-866-699-4096 (for technical questions)

Staying current:
The IRS regularly updates forms and instructions. Check IRS.gov/Form8849 for the latest information including:

• Recent developments and law changes
• Updated forms and schedules
• New notices and guidance
• Processing updates and delays

Always use the correct tax year version of forms when filing. Using outdated forms can cause processing delays or rejections.

Conclusion

Form 8849 provides a valuable opportunity for businesses, farmers, governments, and other taxpayers to recover excise taxes paid on fuels and other items used or sold in qualifying ways. For tax year 2022, special provisions extended alternative fuel credits and created unique filing procedures that required careful attention to deadlines and requirements.

Successfully claiming Form 8849 refunds requires meticulous recordkeeping, proper documentation, attention to deadlines, and careful adherence to the specific requirements for each schedule. By understanding who qualifies, what documentation is needed, how to complete each section accurately, and what mistakes to avoid, you can maximize legitimate refunds while minimizing the risk of penalties, audits, or claim denials.

Whether you're claiming refunds for farm fuel use, off-highway business operations, biodiesel mixtures, alternative fuels, or other excise tax situations, the key to success is maintaining contemporaneous records, filing electronically when possible, and treating Form 8849 claims with the same rigor you apply to other tax filings.

For the most current information, always consult the official IRS resources at IRS.gov/Form8849, Publication 510, and the specific instructions for the schedule you're filing. When claims involve complex situations, substantial amounts, or uncertain eligibility issues, consulting with a tax professional experienced in excise tax matters can provide valuable guidance and peace of mind.

Official Sources

• IRS.gov/forms-pubs/about-form-8849
• IRS.gov/publications/p510 (Publication 510, Excise Taxes)
• IRS.gov/pub/irs-prior/f8849s3--2022.pdf
• IRS.gov/pub/irs-pdf/i8849s6.pdf
• IRS.gov/instructions/i8849s6
• IRS.gov/irm/part4/irm_04-024-022r (Internal Revenue Manual)
• IRS.gov/irm/part4/irm_04-024-008 (Internal Revenue Manual)
• IRS.gov/pub/irs-drop/n-22-39.pdf (Notice 2022-39)
• IRS.gov/businesses/small-businesses-self-employed/excise-tax

If you paid federal excise taxes on fuel or other taxable goods and believe you're entitled to a refund, IRS Form 8849 is your pathway to recovering those funds. Whether you're a farmer using diesel for off-highway equipment, a business that purchased fuel for nontaxable purposes, or a registered vendor seeking refunds on qualifying sales, understanding Form 8849 can help you claim thousands of dollars in legitimate tax refunds.

This comprehensive guide explains everything you need to know about Form 8849 for the 2022 tax year, including who must file, step-by-step completion instructions, deadlines, common mistakes, and practical tips to maximize your refund while avoiding penalties.

What Form 8849 Is For

What Is IRS Form 8849?

Form 8849, officially titled "Claim for Refund of Excise Taxes," is the IRS form taxpayers use to request refunds of federal excise taxes paid on fuels, chemicals, vehicles, and other taxable items when those items were used or sold in ways that qualify for tax exemption or credit. The form serves as the primary mechanism for recovering excise taxes when the original tax payment doesn't match the actual tax liability.

Purpose and Overview

The federal government imposes excise taxes on various products and activities, most commonly on motor fuels like gasoline, diesel, and kerosene. These taxes fund highway construction and other infrastructure projects. However, when fuel is used for nontaxable purposes—such as farming, off-highway business use, or export—taxpayers can recover the excise tax they paid through Form 8849.

Form 8849 works in conjunction with several schedules that specify the type of refund claim being made. Unlike income tax forms that report annual earnings, Form 8849 focuses exclusively on recovering excise taxes that shouldn't have been paid in the first place or that qualify for special credits under federal law.

According to the IRS, Form 8849 and its schedules are processed at the Ogden Campus, and the form enables taxpayers to claim refunds for excise taxes reported on Form 720 (Quarterly Federal Excise Tax Return), Form 2290 (Heavy Highway Vehicle Use Tax Return), Form 730 (Monthly Tax Return for Wagers), and Form 11-C (Occupational Tax and Registration Return for Wagering).

When You’d Use Form 8849

Who Must File Form 8849? Eligibility Requirements

Not everyone who pays excise taxes needs to file Form 8849. Understanding whether you're eligible—and required—to use this form depends on your specific situation, the type of fuel or product involved, and how you used it.

Eligible Filers

Ultimate Purchasers

If you purchased fuel and used it for nontaxable purposes, you're considered an "ultimate purchaser" and may file Schedule 1 (Form 8849) to claim a refund. Common nontaxable uses include:

• Farming purposes: Fuel used on a farm for farming operations, including operating tractors, irrigation pumps, and other agricultural equipment
• Off-highway business use: Fuel used in equipment that doesn't operate on public highways, such as construction equipment, forklifts, generators, and stationary engines
• Export: Fuel exported from the United States
• State and local government use: Fuel purchased by governmental entities
• Nonprofit educational organization use: Fuel used by qualifying tax-exempt educational institutions

Registered Ultimate Vendors

Businesses registered with the IRS can file Schedule 2 (Form 8849) to claim refunds on qualifying sales of undyed diesel fuel, undyed kerosene, or kerosene for use in aviation to:

• State and local governments
• Nonprofit educational organizations
• Other buyers who waive their right to claim the refund

Alternative Fuel Producers and Sellers

Registered alternative fuelers who produce, sell, or use alternative fuels may file Schedule 3 (Form 8849) for biodiesel mixture credits, renewable diesel mixture credits, and alternative fuel credits. For 2022, special provisions allowed retroactive claims for the first three quarters of the year for alternative fuel credits.

Persons Paying Second Taxes

If you paid excise tax on fuel that had already been taxed (such as fuel bought at retail with tax included, then used to produce a taxable fuel mixture), you can file Schedule 5 (Form 8849) to recover the duplicate tax under Section 4081(e).

Other Claimants

Schedule 6 (Form 8849) covers various other refund situations, including overpayments on Form 720, Form 2290 (heavy highway vehicle use tax), Form 730 (wagering tax), and Form 11-C.

Who Cannot File Form 8849

Certain taxpayers cannot use Form 8849 for fuel tax credits:

• Individual income tax filers claiming annual credits: Most individual taxpayers should use Form 4136 (Credit for Federal Tax Paid on Fuels) attached to their income tax return (Form 1040) to claim fuel tax credits as part of their annual tax filing.
• Taxpayers claiming credits on Form 720, Schedule C: If you already filed or will file a credit claim on your quarterly Form 720, Schedule C, you cannot duplicate that claim on Form 8849.
• Unregistered alternative fuelers: To claim alternative fuel credits, you must be registered with the IRS using Form 637 (Application for Registration for Certain Excise Tax Activities) with an appropriate registration number (such as "AL" for alternative fueler).

Key Rules or Details for 2022 Tax Year

Understanding Form 8849 Schedules

Form 8849 requires you to attach one or more schedules that specify the type of refund you're claiming. Each schedule has unique eligibility requirements, claim rates, and documentation needs.

Schedule 1: Nontaxable Use of Fuels

Schedule 1 is used by ultimate purchasers who bought gasoline, diesel fuel, kerosene, aviation fuel, or liquefied petroleum gas (LPG) and used it for nontaxable purposes. Common claim types include:

• Type 1 – Farming purposes: Fuel used on farms for farming operations
• Type 2 – Off-highway business use: Fuel used in equipment not operated on public highways
• Type 3 – Export: Fuel exported from the United States
• Type 4 – Use by state/local governments: Fuel purchased by governmental entities
• Type 5 – Use on intercity and local buses: Fuel used in qualifying public transportation

Schedule 2: Sales by Registered Ultimate Vendors

Registered ultimate vendors use Schedule 2 to claim refunds on sales of:

• Undyed diesel fuel and undyed kerosene to state/local governments
• Kerosene for use in aviation
• Gasoline to nonprofit educational organizations
• Sales to buyers who waive their right to claim the refund

To file Schedule 2, you must be registered with the IRS and possess valid certificates from buyers confirming the nontaxable use.

Schedule 3: Certain Fuel Mixtures and Alternative Fuel Credit

Schedule 3 covers specialized fuel credits for renewable and alternative fuels:

• Biodiesel mixtures: Claims based on biodiesel meeting ASTM D6751 standards mixed with diesel fuel
• Renewable diesel mixtures: Claims for renewable diesel derived from biomass meeting EPA and ASTM requirements
• Alternative fuels: Credits for liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), liquefied hydrogen, P-Series fuels, and fuels derived from biomass

2022 Special Provision: For tax year 2022, the alternative fuel credits were retroactively extended for the first three quarters after expiring at the end of 2021. The IRS issued Notice 2022-39 allowing claimants to file one-time claims for the first, second, and third quarters of 2022 combined on a single Schedule 3, due by April 11, 2023.

Schedule 5: Section 4081(e) Claims

Schedule 5 addresses situations where excise tax was paid twice on the same fuel. If you paid tax when purchasing fuel, then paid tax again when producing a taxable fuel product, you can claim a refund of the first tax. You must have filed Form 720 and paid the second tax before filing Schedule 5.

Schedule 6: Other Claims

Schedule 6 serves as the catch-all schedule for refund claims not covered by other schedules, including:

• Refunds of taxes reported on Form 720 (various excise taxes on chemicals, tires, vaccines, medical devices, and more)
• Heavy highway vehicle use tax refunds (Form 2290) for vehicles sold, destroyed, stolen, or used 5,000 miles or less (7,500 for agricultural vehicles)
• Wagering tax refunds (Forms 730 and 11-C)
• Diesel-water fuel emulsion blending credits

Schedule 8: Registered Credit Card Issuers

Schedule 8 is used exclusively by registered credit card issuers to claim refunds on sales made through credit cards to state/local governments and nonprofit educational organizations.

Recordkeeping Requirements

The IRS mandates that you maintain all records at your principal place of business to enable verification of your claim. According to Publication 510, your records must include:

• Number of gallons purchased and used during the claim period
• Dates of all purchases
• Names and addresses of suppliers and amounts purchased from each
• The specific nontaxable use for which fuel was used
• Number of gallons used for each nontaxable use
• If fuel was exported, proof of exportation

Retention period: Generally, you must keep records for at least 3 years from the date you filed the claim, or 2 years from the date the tax was paid, whichever is later.

Filing Deadlines and Time Limits

Periodic Claims (Schedules 1, 2, 3, and 5)

For most fuel-related refunds, claims must meet these timing requirements:

• Claim period: Must cover at least one week of sales or use
• Minimum amount: At least $200 (unless filing electronically, in which case no minimum applies)
• Filing deadline: Must file by the last day of the first quarter following the earliest quarter of your income tax year included in the claim

Example: A calendar-year taxpayer claiming refunds for fuel used during June and July must file by September 30 (the last day of the third quarter).

One claim per quarter: You can only file one claim per quarter. If you need to combine multiple weeks or months to meet the minimum, you must do so within the deadline.

Annual Claims

If you don't meet the periodic claim requirements (minimum amount, one-week period, or quarterly filing), you can file an annual claim:

• File Form 8849 with your income tax return, or
• File within the time allowed for filing a claim for refund of income tax (generally within 3 years from the date you filed your original return, or 2 years from when you paid the tax, whichever is later)

Note: Federal, state, and local governments, and certain tax-exempt organizations must file annual claims on Form 8849; they cannot use Form 4136.

Special 2022 Deadlines

For retroactive 2022 alternative fuel credits (first, second, and third quarters), Notice 2022-39 established special rules:

• Filing period: Between October 13, 2022, and April 11, 2023
• Combined claim: All three quarters must be combined on one Schedule 3 (Form 8849)
• One submission only: The IRS would not process multiple submissions from the same claimant
• Protective claims: Previously filed "protective" or anticipatory claims had to be refiled in accordance with Notice 2022-39 to be perfected

Schedule 6 Deadlines

For Schedule 6 claims:

• General rule: File within 3 years of filing the return to which the claim relates, or 2 years from when the tax was paid, whichever is later
• Minimum amount: At least $750 (can combine with Schedule 1 diesel-water fuel emulsion claims to meet minimum)
• Quarterly filing: Must file during the first quarter following the last quarter included in the claim

Form 2290 Mileage Refunds

Refunds for vehicles used 5,000 miles or less (7,500 for agricultural vehicles) cannot be filed until after June 30 of the tax period (July 1 – June 30).

Where and How to File Form 8849

Electronic Filing (E-File)

The IRS strongly encourages electronic filing for faster processing and quicker refunds. As of 2022, the following schedules can be e-filed through approved Modernized e-File (MeF) providers:

• Schedule 1 (Nontaxable Use of Fuels)
• Schedule 2 (Sales by Registered Ultimate Vendors)
• Schedule 3 (Certain Fuel Mixtures and Alternative Fuel Credit)
• Schedule 5 (Section 4081(e) Claims)
• Schedule 6 (Other Claims)
• Schedule 8 (Registered Credit Card Issuer)

To e-file, you must work with an IRS-approved 8849 MeF provider. Visit IRS.gov/e-file-providers to find approved providers for excise tax forms.

Advantages of e-filing:

• Immediate acknowledgment of receipt
• Faster refund processing (typically 20-45 days versus 6+ months for paper)
• Reduced errors through built-in validation
• No minimum claim amount required
• Secure transmission
• Confirmation of acceptance

Paper Filing (Mail)

If you cannot e-file or prefer paper filing, mail your completed Form 8849 with attached schedules to:

For Schedule 3 (Fuel Mixture Claims):

• Internal Revenue Service
  P.O. Box 312
  Covington, KY 41012-0312
  Write "Fuel Mixture Claim" on the envelope.

For Schedule 2 (Registered Ultimate Vendor): Use the address in the Form 8849 instructions and write "Registered Ultimate Vendor Claim" on the envelope.

For all other schedules: Follow the "Where To File" instructions provided with Form 8849. According to IRS Internal Revenue Manual 4.24.22, Form 8849 returns are processed at the Ogden Campus.

Important: Paper excise tax forms experience significant processing delays—often 6 months or longer according to current IRS notices. Electronic filing is strongly recommended whenever possible.

Step-by-Step (High Level)

Step-by-Step Instructions for Completing Form 8849

Completing Form 8849 accurately requires attention to detail and proper documentation. Follow these steps to ensure your claim is processed smoothly.

Step 1: Gather Your Information

Before beginning, collect:

• Your Employer Identification Number (EIN) or Social Security Number (SSN)
• Registration numbers if applicable (Form 637 registrants)
• Detailed fuel purchase records (dates, amounts, suppliers)
• Usage documentation showing nontaxable use
• Certificates from buyers (for Schedule 2 filers)
• Prior Form 720 filings (for Schedule 5 claims)

Step 2: Complete Form 8849 Header Information

• Line 1 – Name: Enter your name exactly as shown on your EIN or SSN records. For businesses, use your official business name.
• Line 2 – Address: Provide your complete mailing address, including street, city, state, and ZIP code.
• Line 3 – EIN or SSN: Enter your taxpayer identification number. Section 6109 of the Internal Revenue Code requires you to provide this information. If you're filing Form 4136 with Form 1040 and claiming refunds on behalf of the vehicle owner, you can use the owner's TIN.
• Line 4 – Month Income Tax Year Ends: Enter the two-digit number for the month your income tax year ends (e.g., "12" for December for calendar-year taxpayers).
• Schedule Selection: Check the box(es) for the schedule(s) you're attaching. Only attach schedules for which you're making claims.

Step 3: Complete the Appropriate Schedule(s)

Each schedule has specific line items and requirements:

For Schedule 1 (Nontaxable Use of Fuels):

• Enter your registration number if applicable
• Specify the claim period (from/to dates in MMDDYYYY format)
• For each fuel type and use type, enter:
  • Column (a): Applicable tax rate per gallon
  • Column (b): Number of gallons used
  • Column (c): Claim amount (multiply rate × gallons)
  • Column (d): Credit Reference Number (CRN) – pre-printed on form

For Schedule 3 (Fuel Mixtures and Alternative Fuels):

• Enter your claimant registration number (including prefix like "AL" or "AM")
• Specify the claim period
• For biodiesel/renewable diesel mixtures (Line 2):
  • Use $1.00 per gallon rate
  • Enter gallons of biodiesel or renewable diesel in the mixture
  • Attach Certificate for Biodiesel from the producer
• For alternative fuels (Line 3):
  • Convert volumes to gasoline gallon equivalents (GGE) or diesel gallon equivalents (DGE):
    • CNG: 121 cubic feet = 1 GGE
    • LPG: 5.75 pounds or 1.353 gallons = 1 GGE
    • LNG: 6.06 pounds or 1.71 gallons = 1 DGE
  • Use $0.50 per GGE/DGE rate
  • Enter converted gallons and calculate claim amount

For Schedule 6 (Other Claims):

• Identify the type of claim using the appropriate CRN
• Attach detailed documentation including:
  • Description of the claim
  • Amount and calculation method
  • Supporting evidence (certificates, Form 2290 information, etc.)
• For Form 2290 refunds sold after July 1, 2015: Include VIN, taxable gross weight, disposition type, disposition date, computation, and purchaser name/address

Step 4: Calculate Total Refund

Add all amounts from column (c) on each schedule and enter the total in the "Total refund" box at the top of the schedule's first page. This represents your total refund claim for that schedule.

Step 5: Sign and Date the Form

Form 8849 requires an authorized signature. For businesses, this typically means:

• Sole proprietor: The owner
• Partnership: A partner
• Corporation: An officer (president, vice president, treasurer, assistant treasurer, chief accounting officer)
• Tax-exempt organization: An authorized officer

Include your title and the date. The person signing declares under penalties of perjury that the information is true, correct, and complete.

Required Documents and Supporting Evidence

The IRS requires specific documentation to substantiate your Form 8849 claim. Missing documents are a leading cause of claim delays and denials.

Essential Records for All Filers

• Purchase documentation: Invoices, receipts, or statements showing fuel purchases, including dates, quantities, prices, and supplier information
• Usage records: Logs, fuel tank records, equipment hour meters, or other evidence documenting how and when fuel was used for nontaxable purposes
• Supplier information: Names and addresses of all fuel suppliers during the claim period

Schedule-Specific Documentation

Schedule 1 (Nontaxable Use):

• Detailed usage logs separating taxable and nontaxable use
• For farming: Records showing fuel used on farm for farming purposes
• For off-highway: Equipment logs showing hours of operation and fuel consumption
• For export: Proof of exportation documents

Schedule 2 (Registered Ultimate Vendor):

• Model Certificate B (for diesel/kerosene to state/local governments)
• Model Certificate D (for kerosene for aviation)
• Model Certificate E (for gasoline to nonprofit educational organizations)
• Buyer waiver statements if applicable

Schedule 3 (Fuel Mixtures):

• Certificate for Biodiesel (Model Certificate O from Publication 510) from the biodiesel producer
• Statement of Biodiesel Reseller (Model Statement S) if applicable
• Registration documentation showing AL or AM registration number
• For renewable diesel: Edited certificates indicating renewable diesel meeting EPA and ASTM standards

Schedule 5 (Second Tax):

• Copy of the first taxpayer's report showing the first tax was paid
• Copy of statement from subsequent seller if fuel was purchased from someone other than the first taxpayer
• Your Form 720 showing payment of the second tax

Schedule 6 (Other Claims):

• Detailed explanation of the claim reason
• For Form 2290 refunds: VIN, weight category, sale/destruction/theft date and documentation
• For wagering refunds: Certificates per Regulations section 44.6419-2(d)

Common Mistakes and How to Avoid Them

Most Common Errors

1. Duplicate Claims

The single most common error is claiming the same fuel tax credit on multiple forms. You cannot claim the same amount on:

• Form 8849 and Form 4136
• Form 8849 and Form 720, Schedule C
• Form 8849 and Form 8864 (Biodiesel and Renewable Diesel Fuels Credit)
• Multiple Form 8849 schedules

Solution: Track all claims carefully and choose only one method for each gallon of fuel.

2. Missing or Incorrect Registration Numbers

Many schedules require IRS registration via Form 637. Common mistakes include:

• Filing Schedule 3 without an AL or AM registration number
• Using expired registration numbers
• Entering incorrect registration prefix codes

Solution: Apply for registration well before filing claims. Processing Form 637 can take 60-90 days or longer.

3. Insufficient Documentation

Claims lacking proper supporting documents are routinely denied. Common documentation failures include:

• No purchase receipts or invoices
• Missing supplier names and addresses
• Inadequate usage records showing nontaxable use
• Missing certificates from buyers (Schedule 2)
• No proof of exportation (export claims)

Solution: Maintain contemporaneous records. Create usage logs at the time fuel is used, not later when filing the claim.

4. Mathematical Errors

Simple calculation mistakes cause processing delays:

• Incorrect rate per gallon
• Multiplication errors in claim amounts
• Wrong conversion for alternative fuels (GGE/DGE calculations)
• Totaling errors

Solution: Double-check all calculations. Use electronic filing with built-in calculators when possible.

5. Wrong Schedule or Incorrect Claim Type

Taxpayers often select the wrong schedule or claim type:

• Ultimate purchasers using Schedule 2 (which is for registered vendors)
• Claiming the wrong nontaxable use type
• Filing Schedule 1 when they should use Form 4136

Solution: Carefully review eligibility requirements for each schedule. When in doubt, consult Publication 510 or a tax professional.

6. Mixing Incompatible Schedules

Certain schedules cannot be filed together on the same Form 8849:

• Schedules 2, 5, and 8 must each be filed on separate Form 8849 submissions
• They cannot be combined with other schedules

Solution: File separate Form 8849 submissions when required by the schedule instructions.

7. Missing Signatures or Dates

Unsigned forms or missing dates result in rejection and delays.

Solution: Ensure an authorized person signs the form with their title and date.

8. Filing Before Meeting Requirements

Some claims have specific prerequisites:

• Schedule 5 requires filing and paying tax on Form 720 first
• Form 2290 mileage refunds can't be filed until after June 30
• Alternative fuel mixture credits for 2022 Q1-Q2 required Form 720-X first

Solution: Review all prerequisites carefully and complete them in the correct sequence.

Penalties and Interest

The IRS can assess penalties for various Form 8849 violations:

Excessive Claims Penalty: If you file a refund claim for an excessive amount without reasonable cause, you may owe a penalty equal to the greater of:

• Two times the excessive amount, or
• $10

An "excessive amount" is the difference between what you claimed and what you're entitled to receive.

Fraudulent Claims: Criminal penalties apply to false or fraudulent claims, including fines and potential imprisonment.

Failure to Keep Records: Penalties and interest can result from failing to maintain adequate records to support your claim.

Failure to Register: If registration is required and you fail to register, you may face:

• Denial of the claim
• Penalties for activities conducted without registration
• Back assessments of excise taxes that weren't properly reported

Trust Fund Recovery Penalty: In severe cases involving willful failure to collect or pay excise taxes, responsible persons can face penalties up to 100% of the tax not collected or paid.

Audit Risk Factors

Certain situations increase the likelihood of IRS examination:

• Unusually large claims relative to business size
• Repeated claims with minimal supporting documentation
• Claims that appear inconsistent with business type
• History of excessive or fraudulent claims
• Industry-specific red flags (fuel distributors, alternative fuel producers)

Practical Tips, Examples, and Edge Cases for 2022

Understanding real-world applications helps you maximize legitimate refunds while avoiding pitfalls.

Tip 1: Track Fuel Use Contemporaneously

Don't wait until filing season to reconstruct fuel usage. Create a simple log as you use fuel:

Example: A construction company operating bulldozers, excavators, and dump trucks should maintain daily equipment logs showing:

• Equipment identification
• Hours operated
• Fuel consumed
• On-road vs. off-road use
• Job site/project name

When filing Form 8849 Schedule 1, this contemporaneous documentation provides bulletproof evidence of nontaxable off-highway business use.

Tip 2: Understand the On-Farm Farming Use Requirement

Not all farm-related fuel qualifies for refunds. The fuel must be used "on a farm for farming purposes." This includes:

Qualifying uses:

• Operating tractors, combines, and other farming equipment
• Irrigation pumps
• Grain dryers and crop drying equipment
• Livestock feeding equipment
• Maintenance equipment used in farming operations

Non-qualifying uses:

• Fuel used in vehicles on public highways (even if for farm business)
• Fuel used in personal vehicles
• Fuel used for residential heating

Example: A farmer purchases 1,000 gallons of diesel. He uses 800 gallons in tractors and irrigation equipment, 150 gallons in his pickup truck driving to town for supplies, and 50 gallons in his personal car. Only the 800 gallons used in farming equipment qualify for the Form 8849 refund.

Tip 3: State/Local Government Purchases Must Use Proper Documentation

Governments can achieve significant savings through excise tax exemptions, but proper procedures are essential:

Direct purchase method (Schedule 1): Government entity purchases fuel and uses it—claims refund directly as ultimate purchaser.

Credit card method (Schedule 8): Registered credit card issuer claims refund on behalf of government that purchased using a credit card.

Registered ultimate vendor method (Schedule 2): Government provides exemption certificate to registered vendor; vendor claims refund.

Example: A county road department purchases 5,000 gallons of diesel at retail, paying the $0.244 per gallon federal excise tax ($1,220). The county files Form 8849, Schedule 1, Type 4 (Use by State or Local Government) to recover the $1,220.

Tip 4: Navigate the 2022 Alternative Fuel Credit Complexity

The retroactive extension of alternative fuel credits for 2022 created unique filing requirements:

• For 2022 Q1-Q3: File one combined Schedule 3 with claims for all three quarters between October 13, 2022, and April 11, 2023.
• For 2022 Q4 and later: Alternative fuel credits must first be taken on Form 720, Schedule C, as a credit against alternative fuel or CNG tax liability. Only after taking the credit on Form 720 can any excess be claimed on Form 8849.

Example: An alternative fueler sold compressed natural gas (CNG) throughout 2022. For Q1-Q3, they filed one combined Schedule 3 (Form 8849) by April 11, 2023, claiming all three quarters at once. For Q4, they first claimed the credit on Form 720, Schedule C, filed in January 2023, then filed any excess refund on a separate Schedule 3.

Tip 5: Form 2290 Refunds Require Careful Timing

Heavy highway vehicle use tax refunds have specific requirements:

• Sold/destroyed/stolen vehicles: Can claim pro rata refund if disposition occurred before June 1 of the tax period. Must include VIN, weight category, disposition date, and (for sales after July 1, 2015) buyer name and address.
• Low-mileage refunds: Cannot file until after June 30 of the tax period. Must show vehicle was used 5,000 miles or less (7,500 for agricultural vehicles) on public highways during the entire period, regardless of how many owners.

Example: A trucking company paid $550 annual heavy vehicle use tax on July 15, 2021, for a 70,000-pound truck (tax period July 1, 2021 – June 30, 2022). The truck was totaled in an accident on March 10, 2022. The company can file Form 8849, Schedule 6, claiming a pro rata refund for the unused period (March 10 – June 30), which equals approximately $183.

Tip 6: Biodiesel Mixture Credits Require Proper Sequencing

Biodiesel and renewable diesel mixture credits have a mandatory claiming sequence:

• First: Credit must be taken against your taxable fuel liability on Form 720, Schedule C
• Only if excess remains: Can that excess be claimed on Form 8849, Schedule 3
• If you didn't take credit on Form 720 first: Must file Form 720-X (Amended Quarterly Federal Excise Tax Return) before Form 8849 will be processed

Example: A biodiesel blender produced 50,000 gallons of biodiesel mixture in Q2 2022, entitling them to a $50,000 credit ($1.00 per gallon). Their Form 720 for Q2 showed $35,000 in taxable fuel liability. They claimed $35,000 as a credit on Form 720, Schedule C, reducing their liability to zero. They then filed Form 8849, Schedule 3, claiming the remaining $15,000 as a refund.

Tip 7: Export Claims Need Bulletproof Documentation

Export claims face heightened scrutiny. You must prove:

• The fuel actually left the United States
• You were the exporter of record
• The fuel was taxed in the U.S. before export

Acceptable proof includes:

• Export bills of lading
• Customs documents
• Shipper's export declarations
• Landing certificates from foreign destinations

Tip 8: Combine Small Claims to Meet Minimums

If your weekly or monthly fuel use doesn't meet the $200 minimum (for paper filing), combine multiple periods:

Example: A landscaping company uses 75 gallons of gas monthly in off-highway equipment (mowers, trimmers), generating about $40 in potential refunds per month ($0.183 per gallon × 75 = $13.73, plus kerosene-type jet fuel credits). They combine five months of use (375 gallons, approximately $200 claim) and file one Form 8849, Schedule 1, covering all five months.

Better approach: E-file claims, which have no minimum amount requirement, allowing monthly claims instead of waiting to accumulate $200.

What Happens After You File

Electronic filers: Refunds are typically issued via direct deposit or check within 20-45 days.

Paper filers: Refunds take 6 months or longer due to current processing backlogs.

Direct deposit: You can request direct deposit by providing your banking information.

Check: If you don't provide banking information, the IRS mails a check to the address on the form.

Interest: The IRS does not pay interest on excise tax refunds claimed on Form 8849 unless they fail to process the claim within statutorily prescribed timeframes (usually 45 days from filing or 6 months, depending on the type of claim).

FAQs

1. Who is required to file Form 8849?

Form 8849 isn't "required" for most taxpayers—it's optional. You file it when you want to claim a refund of excise taxes you've already paid. The form is used by ultimate purchasers who used fuel for nontaxable purposes, registered vendors who made qualifying sales, alternative fuelers claiming credits, and others seeking excise tax refunds.

Federal, state, and local governments, and certain tax-exempt organizations must use Form 8849 (not Form 4136) if they want to claim fuel tax credits, making it effectively required for these entities if they want refunds.

Individuals filing personal income tax returns typically use Form 4136 (attached to Form 1040) instead of Form 8849, though Form 8849 can be used for periodic refunds during the year rather than waiting until tax return time.

2. Which industries or transactions does this form apply to?

Form 8849 applies across numerous industries and transactions:

Primary industries:

• Agriculture (farmers claiming refunds on farm-use fuel)
• Construction (contractors using off-highway equipment)
• Fuel distribution (wholesalers, retailers, blenders)
• Transportation (trucking companies with Form 2290 refunds)
• Alternative energy (biodiesel, renewable diesel, alternative fuel producers)
• State and local government operations
• Aviation (airlines, charter services)
• Marine operations (commercial fishing, boat operators)

Qualifying transactions:

• Nontaxable fuel uses (farming, off-highway business, export, government use)
• Sales by registered vendors to exempt buyers
• Biodiesel and renewable diesel mixture production and sales
• Alternative fuel production and sales
• Duplicate tax payments requiring refunds
• Overpayments on quarterly excise tax returns (Form 720)
• Heavy highway vehicle use tax overpayments (Form 2290)
• Various other excise tax refund situations (chemicals, tires, medical devices, wagering)

3. What is the filing frequency and due date for this form?

Filing frequency and due dates vary by schedule and claim type:

Periodic claims (Schedules 1, 2, 3, 5):

• Frequency: Quarterly (most common), but can include multiple weeks or months within a quarter
• Due date: Last day of the first quarter following the earliest quarter of your income tax year included in the claim
• Example: Calendar-year taxpayer claiming June-July usage must file by September 30

Annual claims:

• Frequency: Once per year
• Due date: With your income tax return, or within the time allowed for filing a claim for refund of income tax (generally 3 years from filing or 2 years from payment)
• Who must file annually: Federal, state, and local governments; certain tax-exempt organizations; taxpayers who don't meet periodic claim requirements

Schedule 6 claims:

• Due date: Generally within 3 years of filing the return to which the claim relates, or 2 years from paying the tax, whichever is later
• Form 2290 mileage refunds: Cannot file until after June 30 of the tax period

2022 special deadline:

• Retroactive alternative fuel credits (Q1-Q3): Between October 13, 2022, and April 11, 2023

4. Can I file this form electronically and how do payments work?

Yes, Form 8849 with Schedules 1, 2, 3, 5, 6, and 8 can be filed electronically through IRS-approved Modernized e-File (MeF) providers. Electronic filing offers significant advantages:

• Faster processing (20-45 days vs. 6+ months for paper)
• No $200 minimum claim amount requirement
• Immediate acknowledgment of receipt
• Reduced errors through built-in validation
• Secure transmission

To e-file, visit IRS.gov/e-file-providers and select an approved provider for excise tax forms. Some providers charge fees for their services, while others may offer free filing for certain claim types.

How refunds are paid:
Form 8849 results in refunds paid to you—it's not a form where you pay taxes. Once the IRS processes your claim and approves the refund:

• Electronic filers: Refunds are typically issued via direct deposit or check within 20-45 days
• Paper filers: Refunds take 6 months or longer due to current processing backlogs
• Direct deposit: You can request direct deposit by providing your banking information
• Check: If you don't provide banking information, the IRS mails a check to the address on the form

The IRS does not pay interest on excise tax refunds claimed on Form 8849 unless they fail to process the claim within statutorily prescribed timeframes (usually 45 days from filing or 6 months, depending on the type of claim).

5. How do I claim a refund or credit on this form?

Claiming a refund on Form 8849 involves five steps:

Step 1 – Determine eligibility: Verify you qualify for the refund type you're claiming (ultimate purchaser, registered vendor, etc.)

Step 2 – Select the appropriate schedule: Choose Schedule 1, 2, 3, 5, 6, or 8 based on your claim type

Step 3 – Calculate your refund:

• Multiply the number of gallons (or units) by the applicable rate per gallon
• For alternative fuels, convert to GGE or DGE first
• Use the correct tax rate for each fuel type and claim type

Step 4 – Complete Form 8849 and schedule:

• Enter identifying information (name, EIN/SSN, address)
• Complete all required lines on the schedule
• Calculate total refund amount
• Sign and date the form

Step 5 – Attach supporting documentation:

• Include all required certificates, statements, and evidence
• Keep copies of everything for your records

Credits vs. refunds: Some excise taxes can be claimed as credits on other forms (like Form 720, Schedule C) or as refunds on Form 8849. Key rule: You can only claim each gallon of fuel or taxable item once. If you take a credit on Form 720, you cannot also claim a refund on Form 8849 for the same amount.

6. Which supporting schedules or attachments are commonly required?

Schedule 1 (Nontaxable Use of Fuels):

• Detailed records of fuel purchases (invoices, receipts)
• Usage logs showing nontaxable use
• For export: Proof of exportation documents

Schedule 2 (Registered Ultimate Vendor):

• Model Certificate B (for diesel/kerosene to governments)
• Model Certificate D (for kerosene for aviation)
• Model Certificate E (for gasoline to nonprofit educational organizations)
• Buyer waiver statements

Schedule 3 (Fuel Mixtures and Alternative Fuels):

• Certificate for Biodiesel (Model Certificate O) from biodiesel producer
• Statement of Biodiesel Reseller (Model Statement S) if applicable
• Proof of IRS registration (AL or AM number)

Schedule 5 (Section 4081(e) Claims):

• Copy of first taxpayer's report showing first tax paid
• Copy of subsequent seller's statement (if fuel purchased from intermediary)
• Your Form 720 showing second tax paid

Schedule 6 (Other Claims):

• For Form 2290 refunds: VIN, weight category, disposition date/type, computation, purchaser information (for sales after July 1, 2015)
• For Form 720 refunds: Detailed explanation, calculation, and any regulatory required documentation
• For wagering refunds: Certificates and required statements

All schedules should include:

• Names and addresses of fuel suppliers
• Dates and amounts of purchases
• Clear calculations showing how refund amounts were determined

7. What records should I keep for audits or examinations?

The IRS requires comprehensive recordkeeping. You must maintain at your principal place of business:

Fuel purchase records:

• Invoices and receipts from all fuel purchases
• Dates of purchases
• Quantities purchased (gallons)
• Prices paid (including whether excise tax was included)
• Names and addresses of all suppliers

Usage records:

• Daily or weekly logs showing how fuel was used
• Equipment identification and hour meters
• Separation of taxable vs. nontaxable use
• Project or job site information
• For farming: Documentation showing use on farm for farming purposes
• For off-highway: Equipment operation logs showing non-highway use

Certificates and registrations:

• Form 637 registration letter and number
• Certificates from biodiesel producers
• Buyer certificates (for Schedule 2 filers)
• Exemption certificates

Tax returns and prior filings:

• Copies of all filed Form 8849 schedules
• Form 720 filings (if applicable)
• Form 4136 (if you've also claimed credits on income tax returns)
• Form 2290 (for heavy vehicle refunds)

Supporting documentation:

• Export documents (bills of lading, customs forms)
• Sales records (for registered vendors)
• Production records (for fuel mixtures)

Retention period: Keep all records for at least 3 years from the filing date of your claim, or 2 years from the date the tax was paid, whichever is later. In practice, keeping records for 4-5 years is prudent as the IRS has extended timeframes for examinations in some cases.

8. What are common errors that lead to penalties or interest?

Common errors that trigger penalties include:

Excessive claims: Claiming refunds significantly larger than entitled. Penalty: Greater of 2× the excessive amount or $10.

Duplicate claims: Claiming the same fuel on Form 8849, Form 4136, Form 720 Schedule C, and/or Form 8864. Result: Denial of one claim and potential penalties for excessive claim.

False statements: Intentionally misrepresenting fuel use, quantities, or eligibility. Penalty: Criminal penalties including fines and imprisonment.

Missing or false certificates: Filing claims without required buyer certificates or using certificates known to be false. Result: Claim denial and potential fraud penalties.

Failure to maintain records: Not keeping adequate documentation to support claims. Result: Claim denial, assessment of excise taxes, and recordkeeping penalties.

Unregistered activities: Filing Schedule 2, 3, or other claims requiring registration without proper IRS registration. Result: Claim denial and potential liability for unpaid excise taxes.

Mathematical errors: While honest calculation mistakes don't typically result in penalties, repeated errors can trigger increased scrutiny and audits.

Filing without paying prerequisite taxes: Filing Schedule 5 without first paying the second tax on Form 720. Result: Claim denial and processing delays.

Claiming after deadline: Filing claims beyond the statute of limitations (generally 3 years from filing or 2 years from payment). Result: Permanent forfeiture of refund rights.

To avoid penalties:

• Maintain contemporaneous, detailed records
• Claim only fuel you're entitled to claim
• Never duplicate claims across multiple forms
• Meet all registration requirements before filing
• File within deadlines
• Attach all required documentation
• Double-check calculations
• When uncertain, consult Publication 510 or a tax professional

9. How do I amend or correct a previously filed Form 8849?

If you discover an error on a previously filed Form 8849, the correction process depends on the type of error:

For understatements (you claimed too little):

• File a new Form 8849 with the appropriate schedule showing the additional amount you're entitled to claim. Include:
  • A statement explaining this is an additional claim for the same period
  • The date of your original filing
  • The additional amount being claimed
  • Explanation of why the additional amount wasn't included originally

For overstatements (you claimed too much):
The IRS doesn't provide a specific "amended Form 8849." Instead:

If you haven't received the refund yet:

• Contact the IRS excise tax office immediately
• Send a written statement explaining the error
• Provide the corrected claim amount
• Include your name, EIN, form type, and claim date

If you've already received the refund:

• You should repay the excess amount voluntarily
• Use Form 720 to report and pay the excess refund received (if related to fuel taxes)
• Include a statement explaining the overpayment repayment
• Pay immediately to avoid interest charges

For claims requiring coordination with Form 720:
If your error relates to a claim that should have been taken on Form 720 first (like biodiesel mixture credits for 2022 Q3 or Q4):

• File Form 720-X (Amended Quarterly Federal Excise Tax Return)
• Correct the Form 720 filing first
• Then file corrected Form 8849 with a statement referencing the Form 720-X

Contact information:
For questions about pending claims or to report errors:

• Call the Excise Tax Branch: 1-866-699-4096
• Mail correspondence to the address shown on any IRS notices you've received
• For Schedule 3 claims, use the Covington, KY address shown on the schedule

Best practice: Before filing an amendment, gather all documentation supporting the corrected claim. If the correction involves complex issues or large amounts, consider consulting a tax professional to ensure proper handling.

10. Where are the official instructions and publications for Form 8849?

All official Form 8849 resources are available on IRS.gov:

Primary resources:

• About Form 8849: IRS.gov/forms-pubs/about-form-8849 – Main page with current form and schedules
• Form 8849 PDF: IRS.gov/pub/irs-pdf/f8849.pdf – Current year form
• Publication 510 (Excise Taxes): IRS.gov/publications/p510 – Comprehensive guide covering all excise taxes, refund claims, model certificates, and detailed instructions. This is the primary reference publication for Form 8849 filers.

Individual schedule instructions:

• Schedule 1: Instructions included with Form 8849 instructions
• Schedule 2: Instructions included with Form 8849 instructions
• Schedule 3: IRS.gov/pub/irs-pdf/f8849s3.pdf (includes instructions)
• Schedule 5: Instructions included with Form 8849 instructions
• Schedule 6: IRS.gov/instructions/i8849s6 – Separate detailed instructions
• Schedule 8: Instructions included with Form 8849 instructions

Related forms and publications:

• Form 637 (Registration): IRS.gov/forms-pubs/about-form-637
• Form 720 (Quarterly Excise Tax): IRS.gov/forms-pubs/about-form-720
• Form 4136 (Fuel Tax Credit): IRS.gov/forms-pubs/about-form-4136
• Publication 225 (Farmer's Tax Guide): IRS.gov/publications/p225 – Includes information on farm fuel tax credits

For 2022 specific guidance:

• Notice 2022-39: IRS.gov/pub/irs-drop/n-22-39.pdf – Alternative fuel mixture claims for 2022 retroactive quarters

Prior year forms:

• Prior Year Forms and Instructions: IRS.gov/prior-year-forms-and-instructions – Search for "8849" to find forms from previous years

Electronic filing information:

• Excise Tax e-File providers: IRS.gov/e-file-providers – List of approved MeF providers

Help and assistance:

• Excise Tax Main Page: IRS.gov/businesses/small-businesses-self-employed/excise-tax
• Excise Tax Forms and Publications: IRS.gov/businesses/small-businesses-self-employed/excise-tax-forms-and-publications
• IRS Excise Tax Helpline: 1-866-699-4096 (for technical questions)

Staying current:
The IRS regularly updates forms and instructions. Check IRS.gov/Form8849 for the latest information including:

• Recent developments and law changes
• Updated forms and schedules
• New notices and guidance
• Processing updates and delays

Always use the correct tax year version of forms when filing. Using outdated forms can cause processing delays or rejections.

Conclusion

Form 8849 provides a valuable opportunity for businesses, farmers, governments, and other taxpayers to recover excise taxes paid on fuels and other items used or sold in qualifying ways. For tax year 2022, special provisions extended alternative fuel credits and created unique filing procedures that required careful attention to deadlines and requirements.

Successfully claiming Form 8849 refunds requires meticulous recordkeeping, proper documentation, attention to deadlines, and careful adherence to the specific requirements for each schedule. By understanding who qualifies, what documentation is needed, how to complete each section accurately, and what mistakes to avoid, you can maximize legitimate refunds while minimizing the risk of penalties, audits, or claim denials.

Whether you're claiming refunds for farm fuel use, off-highway business operations, biodiesel mixtures, alternative fuels, or other excise tax situations, the key to success is maintaining contemporaneous records, filing electronically when possible, and treating Form 8849 claims with the same rigor you apply to other tax filings.

For the most current information, always consult the official IRS resources at IRS.gov/Form8849, Publication 510, and the specific instructions for the schedule you're filing. When claims involve complex situations, substantial amounts, or uncertain eligibility issues, consulting with a tax professional experienced in excise tax matters can provide valuable guidance and peace of mind.

Official Sources

• IRS.gov/forms-pubs/about-form-8849
• IRS.gov/publications/p510 (Publication 510, Excise Taxes)
• IRS.gov/pub/irs-prior/f8849s3--2022.pdf
• IRS.gov/pub/irs-pdf/i8849s6.pdf
• IRS.gov/instructions/i8849s6
• IRS.gov/irm/part4/irm_04-024-022r (Internal Revenue Manual)
• IRS.gov/irm/part4/irm_04-024-008 (Internal Revenue Manual)
• IRS.gov/pub/irs-drop/n-22-39.pdf (Notice 2022-39)
• IRS.gov/businesses/small-businesses-self-employed/excise-tax

If you paid federal excise taxes on fuel or other taxable goods and believe you're entitled to a refund, IRS Form 8849 is your pathway to recovering those funds. Whether you're a farmer using diesel for off-highway equipment, a business that purchased fuel for nontaxable purposes, or a registered vendor seeking refunds on qualifying sales, understanding Form 8849 can help you claim thousands of dollars in legitimate tax refunds.

This comprehensive guide explains everything you need to know about Form 8849 for the 2022 tax year, including who must file, step-by-step completion instructions, deadlines, common mistakes, and practical tips to maximize your refund while avoiding penalties.

What Form 8849 Is For

What Is IRS Form 8849?

Form 8849, officially titled "Claim for Refund of Excise Taxes," is the IRS form taxpayers use to request refunds of federal excise taxes paid on fuels, chemicals, vehicles, and other taxable items when those items were used or sold in ways that qualify for tax exemption or credit. The form serves as the primary mechanism for recovering excise taxes when the original tax payment doesn't match the actual tax liability.

Purpose and Overview

The federal government imposes excise taxes on various products and activities, most commonly on motor fuels like gasoline, diesel, and kerosene. These taxes fund highway construction and other infrastructure projects. However, when fuel is used for nontaxable purposes—such as farming, off-highway business use, or export—taxpayers can recover the excise tax they paid through Form 8849.

Form 8849 works in conjunction with several schedules that specify the type of refund claim being made. Unlike income tax forms that report annual earnings, Form 8849 focuses exclusively on recovering excise taxes that shouldn't have been paid in the first place or that qualify for special credits under federal law.

According to the IRS, Form 8849 and its schedules are processed at the Ogden Campus, and the form enables taxpayers to claim refunds for excise taxes reported on Form 720 (Quarterly Federal Excise Tax Return), Form 2290 (Heavy Highway Vehicle Use Tax Return), Form 730 (Monthly Tax Return for Wagers), and Form 11-C (Occupational Tax and Registration Return for Wagering).

When You’d Use Form 8849

Who Must File Form 8849? Eligibility Requirements

Not everyone who pays excise taxes needs to file Form 8849. Understanding whether you're eligible—and required—to use this form depends on your specific situation, the type of fuel or product involved, and how you used it.

Eligible Filers

Ultimate Purchasers

If you purchased fuel and used it for nontaxable purposes, you're considered an "ultimate purchaser" and may file Schedule 1 (Form 8849) to claim a refund. Common nontaxable uses include:

• Farming purposes: Fuel used on a farm for farming operations, including operating tractors, irrigation pumps, and other agricultural equipment
• Off-highway business use: Fuel used in equipment that doesn't operate on public highways, such as construction equipment, forklifts, generators, and stationary engines
• Export: Fuel exported from the United States
• State and local government use: Fuel purchased by governmental entities
• Nonprofit educational organization use: Fuel used by qualifying tax-exempt educational institutions

Registered Ultimate Vendors

Businesses registered with the IRS can file Schedule 2 (Form 8849) to claim refunds on qualifying sales of undyed diesel fuel, undyed kerosene, or kerosene for use in aviation to:

• State and local governments
• Nonprofit educational organizations
• Other buyers who waive their right to claim the refund

Alternative Fuel Producers and Sellers

Registered alternative fuelers who produce, sell, or use alternative fuels may file Schedule 3 (Form 8849) for biodiesel mixture credits, renewable diesel mixture credits, and alternative fuel credits. For 2022, special provisions allowed retroactive claims for the first three quarters of the year for alternative fuel credits.

Persons Paying Second Taxes

If you paid excise tax on fuel that had already been taxed (such as fuel bought at retail with tax included, then used to produce a taxable fuel mixture), you can file Schedule 5 (Form 8849) to recover the duplicate tax under Section 4081(e).

Other Claimants

Schedule 6 (Form 8849) covers various other refund situations, including overpayments on Form 720, Form 2290 (heavy highway vehicle use tax), Form 730 (wagering tax), and Form 11-C.

Who Cannot File Form 8849

Certain taxpayers cannot use Form 8849 for fuel tax credits:

• Individual income tax filers claiming annual credits: Most individual taxpayers should use Form 4136 (Credit for Federal Tax Paid on Fuels) attached to their income tax return (Form 1040) to claim fuel tax credits as part of their annual tax filing.
• Taxpayers claiming credits on Form 720, Schedule C: If you already filed or will file a credit claim on your quarterly Form 720, Schedule C, you cannot duplicate that claim on Form 8849.
• Unregistered alternative fuelers: To claim alternative fuel credits, you must be registered with the IRS using Form 637 (Application for Registration for Certain Excise Tax Activities) with an appropriate registration number (such as "AL" for alternative fueler).

Key Rules or Details for 2022 Tax Year

Understanding Form 8849 Schedules

Form 8849 requires you to attach one or more schedules that specify the type of refund you're claiming. Each schedule has unique eligibility requirements, claim rates, and documentation needs.

Schedule 1: Nontaxable Use of Fuels

Schedule 1 is used by ultimate purchasers who bought gasoline, diesel fuel, kerosene, aviation fuel, or liquefied petroleum gas (LPG) and used it for nontaxable purposes. Common claim types include:

• Type 1 – Farming purposes: Fuel used on farms for farming operations
• Type 2 – Off-highway business use: Fuel used in equipment not operated on public highways
• Type 3 – Export: Fuel exported from the United States
• Type 4 – Use by state/local governments: Fuel purchased by governmental entities
• Type 5 – Use on intercity and local buses: Fuel used in qualifying public transportation

Schedule 2: Sales by Registered Ultimate Vendors

Registered ultimate vendors use Schedule 2 to claim refunds on sales of:

• Undyed diesel fuel and undyed kerosene to state/local governments
• Kerosene for use in aviation
• Gasoline to nonprofit educational organizations
• Sales to buyers who waive their right to claim the refund

To file Schedule 2, you must be registered with the IRS and possess valid certificates from buyers confirming the nontaxable use.

Schedule 3: Certain Fuel Mixtures and Alternative Fuel Credit

Schedule 3 covers specialized fuel credits for renewable and alternative fuels:

• Biodiesel mixtures: Claims based on biodiesel meeting ASTM D6751 standards mixed with diesel fuel
• Renewable diesel mixtures: Claims for renewable diesel derived from biomass meeting EPA and ASTM requirements
• Alternative fuels: Credits for liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), liquefied hydrogen, P-Series fuels, and fuels derived from biomass

2022 Special Provision: For tax year 2022, the alternative fuel credits were retroactively extended for the first three quarters after expiring at the end of 2021. The IRS issued Notice 2022-39 allowing claimants to file one-time claims for the first, second, and third quarters of 2022 combined on a single Schedule 3, due by April 11, 2023.

Schedule 5: Section 4081(e) Claims

Schedule 5 addresses situations where excise tax was paid twice on the same fuel. If you paid tax when purchasing fuel, then paid tax again when producing a taxable fuel product, you can claim a refund of the first tax. You must have filed Form 720 and paid the second tax before filing Schedule 5.

Schedule 6: Other Claims

Schedule 6 serves as the catch-all schedule for refund claims not covered by other schedules, including:

• Refunds of taxes reported on Form 720 (various excise taxes on chemicals, tires, vaccines, medical devices, and more)
• Heavy highway vehicle use tax refunds (Form 2290) for vehicles sold, destroyed, stolen, or used 5,000 miles or less (7,500 for agricultural vehicles)
• Wagering tax refunds (Forms 730 and 11-C)
• Diesel-water fuel emulsion blending credits

Schedule 8: Registered Credit Card Issuers

Schedule 8 is used exclusively by registered credit card issuers to claim refunds on sales made through credit cards to state/local governments and nonprofit educational organizations.

Recordkeeping Requirements

The IRS mandates that you maintain all records at your principal place of business to enable verification of your claim. According to Publication 510, your records must include:

• Number of gallons purchased and used during the claim period
• Dates of all purchases
• Names and addresses of suppliers and amounts purchased from each
• The specific nontaxable use for which fuel was used
• Number of gallons used for each nontaxable use
• If fuel was exported, proof of exportation

Retention period: Generally, you must keep records for at least 3 years from the date you filed the claim, or 2 years from the date the tax was paid, whichever is later.

Filing Deadlines and Time Limits

Periodic Claims (Schedules 1, 2, 3, and 5)

For most fuel-related refunds, claims must meet these timing requirements:

• Claim period: Must cover at least one week of sales or use
• Minimum amount: At least $200 (unless filing electronically, in which case no minimum applies)
• Filing deadline: Must file by the last day of the first quarter following the earliest quarter of your income tax year included in the claim

Example: A calendar-year taxpayer claiming refunds for fuel used during June and July must file by September 30 (the last day of the third quarter).

One claim per quarter: You can only file one claim per quarter. If you need to combine multiple weeks or months to meet the minimum, you must do so within the deadline.

Annual Claims

If you don't meet the periodic claim requirements (minimum amount, one-week period, or quarterly filing), you can file an annual claim:

• File Form 8849 with your income tax return, or
• File within the time allowed for filing a claim for refund of income tax (generally within 3 years from the date you filed your original return, or 2 years from when you paid the tax, whichever is later)

Note: Federal, state, and local governments, and certain tax-exempt organizations must file annual claims on Form 8849; they cannot use Form 4136.

Special 2022 Deadlines

For retroactive 2022 alternative fuel credits (first, second, and third quarters), Notice 2022-39 established special rules:

• Filing period: Between October 13, 2022, and April 11, 2023
• Combined claim: All three quarters must be combined on one Schedule 3 (Form 8849)
• One submission only: The IRS would not process multiple submissions from the same claimant
• Protective claims: Previously filed "protective" or anticipatory claims had to be refiled in accordance with Notice 2022-39 to be perfected

Schedule 6 Deadlines

For Schedule 6 claims:

• General rule: File within 3 years of filing the return to which the claim relates, or 2 years from when the tax was paid, whichever is later
• Minimum amount: At least $750 (can combine with Schedule 1 diesel-water fuel emulsion claims to meet minimum)
• Quarterly filing: Must file during the first quarter following the last quarter included in the claim

Form 2290 Mileage Refunds

Refunds for vehicles used 5,000 miles or less (7,500 for agricultural vehicles) cannot be filed until after June 30 of the tax period (July 1 – June 30).

Where and How to File Form 8849

Electronic Filing (E-File)

The IRS strongly encourages electronic filing for faster processing and quicker refunds. As of 2022, the following schedules can be e-filed through approved Modernized e-File (MeF) providers:

• Schedule 1 (Nontaxable Use of Fuels)
• Schedule 2 (Sales by Registered Ultimate Vendors)
• Schedule 3 (Certain Fuel Mixtures and Alternative Fuel Credit)
• Schedule 5 (Section 4081(e) Claims)
• Schedule 6 (Other Claims)
• Schedule 8 (Registered Credit Card Issuer)

To e-file, you must work with an IRS-approved 8849 MeF provider. Visit IRS.gov/e-file-providers to find approved providers for excise tax forms.

Advantages of e-filing:

• Immediate acknowledgment of receipt
• Faster refund processing (typically 20-45 days versus 6+ months for paper)
• Reduced errors through built-in validation
• No minimum claim amount required
• Secure transmission
• Confirmation of acceptance

Paper Filing (Mail)

If you cannot e-file or prefer paper filing, mail your completed Form 8849 with attached schedules to:

For Schedule 3 (Fuel Mixture Claims):

• Internal Revenue Service
  P.O. Box 312
  Covington, KY 41012-0312
  Write "Fuel Mixture Claim" on the envelope.

For Schedule 2 (Registered Ultimate Vendor): Use the address in the Form 8849 instructions and write "Registered Ultimate Vendor Claim" on the envelope.

For all other schedules: Follow the "Where To File" instructions provided with Form 8849. According to IRS Internal Revenue Manual 4.24.22, Form 8849 returns are processed at the Ogden Campus.

Important: Paper excise tax forms experience significant processing delays—often 6 months or longer according to current IRS notices. Electronic filing is strongly recommended whenever possible.

Step-by-Step (High Level)

Step-by-Step Instructions for Completing Form 8849

Completing Form 8849 accurately requires attention to detail and proper documentation. Follow these steps to ensure your claim is processed smoothly.

Step 1: Gather Your Information

Before beginning, collect:

• Your Employer Identification Number (EIN) or Social Security Number (SSN)
• Registration numbers if applicable (Form 637 registrants)
• Detailed fuel purchase records (dates, amounts, suppliers)
• Usage documentation showing nontaxable use
• Certificates from buyers (for Schedule 2 filers)
• Prior Form 720 filings (for Schedule 5 claims)

Step 2: Complete Form 8849 Header Information

• Line 1 – Name: Enter your name exactly as shown on your EIN or SSN records. For businesses, use your official business name.
• Line 2 – Address: Provide your complete mailing address, including street, city, state, and ZIP code.
• Line 3 – EIN or SSN: Enter your taxpayer identification number. Section 6109 of the Internal Revenue Code requires you to provide this information. If you're filing Form 4136 with Form 1040 and claiming refunds on behalf of the vehicle owner, you can use the owner's TIN.
• Line 4 – Month Income Tax Year Ends: Enter the two-digit number for the month your income tax year ends (e.g., "12" for December for calendar-year taxpayers).
• Schedule Selection: Check the box(es) for the schedule(s) you're attaching. Only attach schedules for which you're making claims.

Step 3: Complete the Appropriate Schedule(s)

Each schedule has specific line items and requirements:

For Schedule 1 (Nontaxable Use of Fuels):

• Enter your registration number if applicable
• Specify the claim period (from/to dates in MMDDYYYY format)
• For each fuel type and use type, enter:
  • Column (a): Applicable tax rate per gallon
  • Column (b): Number of gallons used
  • Column (c): Claim amount (multiply rate × gallons)
  • Column (d): Credit Reference Number (CRN) – pre-printed on form

For Schedule 3 (Fuel Mixtures and Alternative Fuels):

• Enter your claimant registration number (including prefix like "AL" or "AM")
• Specify the claim period
• For biodiesel/renewable diesel mixtures (Line 2):
  • Use $1.00 per gallon rate
  • Enter gallons of biodiesel or renewable diesel in the mixture
  • Attach Certificate for Biodiesel from the producer
• For alternative fuels (Line 3):
  • Convert volumes to gasoline gallon equivalents (GGE) or diesel gallon equivalents (DGE):
    • CNG: 121 cubic feet = 1 GGE
    • LPG: 5.75 pounds or 1.353 gallons = 1 GGE
    • LNG: 6.06 pounds or 1.71 gallons = 1 DGE
  • Use $0.50 per GGE/DGE rate
  • Enter converted gallons and calculate claim amount

For Schedule 6 (Other Claims):

• Identify the type of claim using the appropriate CRN
• Attach detailed documentation including:
  • Description of the claim
  • Amount and calculation method
  • Supporting evidence (certificates, Form 2290 information, etc.)
• For Form 2290 refunds sold after July 1, 2015: Include VIN, taxable gross weight, disposition type, disposition date, computation, and purchaser name/address

Step 4: Calculate Total Refund

Add all amounts from column (c) on each schedule and enter the total in the "Total refund" box at the top of the schedule's first page. This represents your total refund claim for that schedule.

Step 5: Sign and Date the Form

Form 8849 requires an authorized signature. For businesses, this typically means:

• Sole proprietor: The owner
• Partnership: A partner
• Corporation: An officer (president, vice president, treasurer, assistant treasurer, chief accounting officer)
• Tax-exempt organization: An authorized officer

Include your title and the date. The person signing declares under penalties of perjury that the information is true, correct, and complete.

Required Documents and Supporting Evidence

The IRS requires specific documentation to substantiate your Form 8849 claim. Missing documents are a leading cause of claim delays and denials.

Essential Records for All Filers

• Purchase documentation: Invoices, receipts, or statements showing fuel purchases, including dates, quantities, prices, and supplier information
• Usage records: Logs, fuel tank records, equipment hour meters, or other evidence documenting how and when fuel was used for nontaxable purposes
• Supplier information: Names and addresses of all fuel suppliers during the claim period

Schedule-Specific Documentation

Schedule 1 (Nontaxable Use):

• Detailed usage logs separating taxable and nontaxable use
• For farming: Records showing fuel used on farm for farming purposes
• For off-highway: Equipment logs showing hours of operation and fuel consumption
• For export: Proof of exportation documents

Schedule 2 (Registered Ultimate Vendor):

• Model Certificate B (for diesel/kerosene to state/local governments)
• Model Certificate D (for kerosene for aviation)
• Model Certificate E (for gasoline to nonprofit educational organizations)
• Buyer waiver statements if applicable

Schedule 3 (Fuel Mixtures):

• Certificate for Biodiesel (Model Certificate O from Publication 510) from the biodiesel producer
• Statement of Biodiesel Reseller (Model Statement S) if applicable
• Registration documentation showing AL or AM registration number
• For renewable diesel: Edited certificates indicating renewable diesel meeting EPA and ASTM standards

Schedule 5 (Second Tax):

• Copy of the first taxpayer's report showing the first tax was paid
• Copy of statement from subsequent seller if fuel was purchased from someone other than the first taxpayer
• Your Form 720 showing payment of the second tax

Schedule 6 (Other Claims):

• Detailed explanation of the claim reason
• For Form 2290 refunds: VIN, weight category, sale/destruction/theft date and documentation
• For wagering refunds: Certificates per Regulations section 44.6419-2(d)

Common Mistakes and How to Avoid Them

Most Common Errors

1. Duplicate Claims

The single most common error is claiming the same fuel tax credit on multiple forms. You cannot claim the same amount on:

• Form 8849 and Form 4136
• Form 8849 and Form 720, Schedule C
• Form 8849 and Form 8864 (Biodiesel and Renewable Diesel Fuels Credit)
• Multiple Form 8849 schedules

Solution: Track all claims carefully and choose only one method for each gallon of fuel.

2. Missing or Incorrect Registration Numbers

Many schedules require IRS registration via Form 637. Common mistakes include:

• Filing Schedule 3 without an AL or AM registration number
• Using expired registration numbers
• Entering incorrect registration prefix codes

Solution: Apply for registration well before filing claims. Processing Form 637 can take 60-90 days or longer.

3. Insufficient Documentation

Claims lacking proper supporting documents are routinely denied. Common documentation failures include:

• No purchase receipts or invoices
• Missing supplier names and addresses
• Inadequate usage records showing nontaxable use
• Missing certificates from buyers (Schedule 2)
• No proof of exportation (export claims)

Solution: Maintain contemporaneous records. Create usage logs at the time fuel is used, not later when filing the claim.

4. Mathematical Errors

Simple calculation mistakes cause processing delays:

• Incorrect rate per gallon
• Multiplication errors in claim amounts
• Wrong conversion for alternative fuels (GGE/DGE calculations)
• Totaling errors

Solution: Double-check all calculations. Use electronic filing with built-in calculators when possible.

5. Wrong Schedule or Incorrect Claim Type

Taxpayers often select the wrong schedule or claim type:

• Ultimate purchasers using Schedule 2 (which is for registered vendors)
• Claiming the wrong nontaxable use type
• Filing Schedule 1 when they should use Form 4136

Solution: Carefully review eligibility requirements for each schedule. When in doubt, consult Publication 510 or a tax professional.

6. Mixing Incompatible Schedules

Certain schedules cannot be filed together on the same Form 8849:

• Schedules 2, 5, and 8 must each be filed on separate Form 8849 submissions
• They cannot be combined with other schedules

Solution: File separate Form 8849 submissions when required by the schedule instructions.

7. Missing Signatures or Dates

Unsigned forms or missing dates result in rejection and delays.

Solution: Ensure an authorized person signs the form with their title and date.

8. Filing Before Meeting Requirements

Some claims have specific prerequisites:

• Schedule 5 requires filing and paying tax on Form 720 first
• Form 2290 mileage refunds can't be filed until after June 30
• Alternative fuel mixture credits for 2022 Q1-Q2 required Form 720-X first

Solution: Review all prerequisites carefully and complete them in the correct sequence.

Penalties and Interest

The IRS can assess penalties for various Form 8849 violations:

Excessive Claims Penalty: If you file a refund claim for an excessive amount without reasonable cause, you may owe a penalty equal to the greater of:

• Two times the excessive amount, or
• $10

An "excessive amount" is the difference between what you claimed and what you're entitled to receive.

Fraudulent Claims: Criminal penalties apply to false or fraudulent claims, including fines and potential imprisonment.

Failure to Keep Records: Penalties and interest can result from failing to maintain adequate records to support your claim.

Failure to Register: If registration is required and you fail to register, you may face:

• Denial of the claim
• Penalties for activities conducted without registration
• Back assessments of excise taxes that weren't properly reported

Trust Fund Recovery Penalty: In severe cases involving willful failure to collect or pay excise taxes, responsible persons can face penalties up to 100% of the tax not collected or paid.

Audit Risk Factors

Certain situations increase the likelihood of IRS examination:

• Unusually large claims relative to business size
• Repeated claims with minimal supporting documentation
• Claims that appear inconsistent with business type
• History of excessive or fraudulent claims
• Industry-specific red flags (fuel distributors, alternative fuel producers)

Practical Tips, Examples, and Edge Cases for 2022

Understanding real-world applications helps you maximize legitimate refunds while avoiding pitfalls.

Tip 1: Track Fuel Use Contemporaneously

Don't wait until filing season to reconstruct fuel usage. Create a simple log as you use fuel:

Example: A construction company operating bulldozers, excavators, and dump trucks should maintain daily equipment logs showing:

• Equipment identification
• Hours operated
• Fuel consumed
• On-road vs. off-road use
• Job site/project name

When filing Form 8849 Schedule 1, this contemporaneous documentation provides bulletproof evidence of nontaxable off-highway business use.

Tip 2: Understand the On-Farm Farming Use Requirement

Not all farm-related fuel qualifies for refunds. The fuel must be used "on a farm for farming purposes." This includes:

Qualifying uses:

• Operating tractors, combines, and other farming equipment
• Irrigation pumps
• Grain dryers and crop drying equipment
• Livestock feeding equipment
• Maintenance equipment used in farming operations

Non-qualifying uses:

• Fuel used in vehicles on public highways (even if for farm business)
• Fuel used in personal vehicles
• Fuel used for residential heating

Example: A farmer purchases 1,000 gallons of diesel. He uses 800 gallons in tractors and irrigation equipment, 150 gallons in his pickup truck driving to town for supplies, and 50 gallons in his personal car. Only the 800 gallons used in farming equipment qualify for the Form 8849 refund.

Tip 3: State/Local Government Purchases Must Use Proper Documentation

Governments can achieve significant savings through excise tax exemptions, but proper procedures are essential:

Direct purchase method (Schedule 1): Government entity purchases fuel and uses it—claims refund directly as ultimate purchaser.

Credit card method (Schedule 8): Registered credit card issuer claims refund on behalf of government that purchased using a credit card.

Registered ultimate vendor method (Schedule 2): Government provides exemption certificate to registered vendor; vendor claims refund.

Example: A county road department purchases 5,000 gallons of diesel at retail, paying the $0.244 per gallon federal excise tax ($1,220). The county files Form 8849, Schedule 1, Type 4 (Use by State or Local Government) to recover the $1,220.

Tip 4: Navigate the 2022 Alternative Fuel Credit Complexity

The retroactive extension of alternative fuel credits for 2022 created unique filing requirements:

• For 2022 Q1-Q3: File one combined Schedule 3 with claims for all three quarters between October 13, 2022, and April 11, 2023.
• For 2022 Q4 and later: Alternative fuel credits must first be taken on Form 720, Schedule C, as a credit against alternative fuel or CNG tax liability. Only after taking the credit on Form 720 can any excess be claimed on Form 8849.

Example: An alternative fueler sold compressed natural gas (CNG) throughout 2022. For Q1-Q3, they filed one combined Schedule 3 (Form 8849) by April 11, 2023, claiming all three quarters at once. For Q4, they first claimed the credit on Form 720, Schedule C, filed in January 2023, then filed any excess refund on a separate Schedule 3.

Tip 5: Form 2290 Refunds Require Careful Timing

Heavy highway vehicle use tax refunds have specific requirements:

• Sold/destroyed/stolen vehicles: Can claim pro rata refund if disposition occurred before June 1 of the tax period. Must include VIN, weight category, disposition date, and (for sales after July 1, 2015) buyer name and address.
• Low-mileage refunds: Cannot file until after June 30 of the tax period. Must show vehicle was used 5,000 miles or less (7,500 for agricultural vehicles) on public highways during the entire period, regardless of how many owners.

Example: A trucking company paid $550 annual heavy vehicle use tax on July 15, 2021, for a 70,000-pound truck (tax period July 1, 2021 – June 30, 2022). The truck was totaled in an accident on March 10, 2022. The company can file Form 8849, Schedule 6, claiming a pro rata refund for the unused period (March 10 – June 30), which equals approximately $183.

Tip 6: Biodiesel Mixture Credits Require Proper Sequencing

Biodiesel and renewable diesel mixture credits have a mandatory claiming sequence:

• First: Credit must be taken against your taxable fuel liability on Form 720, Schedule C
• Only if excess remains: Can that excess be claimed on Form 8849, Schedule 3
• If you didn't take credit on Form 720 first: Must file Form 720-X (Amended Quarterly Federal Excise Tax Return) before Form 8849 will be processed

Example: A biodiesel blender produced 50,000 gallons of biodiesel mixture in Q2 2022, entitling them to a $50,000 credit ($1.00 per gallon). Their Form 720 for Q2 showed $35,000 in taxable fuel liability. They claimed $35,000 as a credit on Form 720, Schedule C, reducing their liability to zero. They then filed Form 8849, Schedule 3, claiming the remaining $15,000 as a refund.

Tip 7: Export Claims Need Bulletproof Documentation

Export claims face heightened scrutiny. You must prove:

• The fuel actually left the United States
• You were the exporter of record
• The fuel was taxed in the U.S. before export

Acceptable proof includes:

• Export bills of lading
• Customs documents
• Shipper's export declarations
• Landing certificates from foreign destinations

Tip 8: Combine Small Claims to Meet Minimums

If your weekly or monthly fuel use doesn't meet the $200 minimum (for paper filing), combine multiple periods:

Example: A landscaping company uses 75 gallons of gas monthly in off-highway equipment (mowers, trimmers), generating about $40 in potential refunds per month ($0.183 per gallon × 75 = $13.73, plus kerosene-type jet fuel credits). They combine five months of use (375 gallons, approximately $200 claim) and file one Form 8849, Schedule 1, covering all five months.

Better approach: E-file claims, which have no minimum amount requirement, allowing monthly claims instead of waiting to accumulate $200.

What Happens After You File

Electronic filers: Refunds are typically issued via direct deposit or check within 20-45 days.

Paper filers: Refunds take 6 months or longer due to current processing backlogs.

Direct deposit: You can request direct deposit by providing your banking information.

Check: If you don't provide banking information, the IRS mails a check to the address on the form.

Interest: The IRS does not pay interest on excise tax refunds claimed on Form 8849 unless they fail to process the claim within statutorily prescribed timeframes (usually 45 days from filing or 6 months, depending on the type of claim).

FAQs

1. Who is required to file Form 8849?

Form 8849 isn't "required" for most taxpayers—it's optional. You file it when you want to claim a refund of excise taxes you've already paid. The form is used by ultimate purchasers who used fuel for nontaxable purposes, registered vendors who made qualifying sales, alternative fuelers claiming credits, and others seeking excise tax refunds.

Federal, state, and local governments, and certain tax-exempt organizations must use Form 8849 (not Form 4136) if they want to claim fuel tax credits, making it effectively required for these entities if they want refunds.

Individuals filing personal income tax returns typically use Form 4136 (attached to Form 1040) instead of Form 8849, though Form 8849 can be used for periodic refunds during the year rather than waiting until tax return time.

2. Which industries or transactions does this form apply to?

Form 8849 applies across numerous industries and transactions:

Primary industries:

• Agriculture (farmers claiming refunds on farm-use fuel)
• Construction (contractors using off-highway equipment)
• Fuel distribution (wholesalers, retailers, blenders)
• Transportation (trucking companies with Form 2290 refunds)
• Alternative energy (biodiesel, renewable diesel, alternative fuel producers)
• State and local government operations
• Aviation (airlines, charter services)
• Marine operations (commercial fishing, boat operators)

Qualifying transactions: