Tag Archives: Form 8849

Federal Excise Tax Electronic Filing

Reasons to E-file Your Excise Tax Return with TaxExcise.com

You are still in Stone Age if you are still paper filing your Excise Tax returns. More than 80 percent of the taxpayers file their taxes electronically. The IRS has processed more billion’s tax returns safely and securely since 1990, the Official beginning of Efiling ERA. Very few still stick with paper filing

Below are the important reasons to switch to Efiling:

  • Trust Technology for Accuracy: For simple calculations we use our mobile phones or calculators these days, for accurate tax calculations it’s always recommended to Efile your tax returns. IRS will reject your Tax return or your claim for simplest of calculation mistake, which can happen mostly when you try to Paper file your Tax return.
  • Safety First:  E-file service provider like TaxExcise.com follows strict guidelines to provide the best in             encryption technology. When logged in to TaxExcise.com you will be in a “secure session” that is established with Secure Sockets Layer (SSL) and verified by COMODO’s Global Site Certificate Technology. While           connected with SSL, every transmission between your computer and our websites are encrypted with 128-bit (strong) encryption.
  • Response at the drop of a hat. You receive instant acknowledgement from the IRS on a tax return that is E-filed through TaxExcise.com. If the IRS rejects your tax return, you will receive an instant notification and you can quickly correct the return and resubmit it. An e-filed claim means a three times faster refund             compared to paper return.
  • Various options to pay-off: While e-filing one can enjoy different payment options like EFW Electronic Funds Withdrawal from the bank account, EFTPS Electronic Federal Tax Payment System or can even opt to the traditional check or money order option.

All the above mentioned points about E-filing can be summed up to one word “SIMPLE”.

www.taxexcise.com and www.extensiontax.com serves as a one stop shop for all your excise and extension tax needs. For all your Excise and Extension tax related questions call us @ 1-866-245-3918 or write to            support@taxexcise.com.

Federal Excise Tax Electronic Filing, Form 720 Quarterly Excise Tax Efile

Deal With The Schedules Of Form 8849- Part-I

Welcome back to our blog filers. We hope and wish you are pink of health. Today, we are going to talk about the Form 8849, an application for claims and refunds of Excise Tax. As each schedule holds upon its own value and significance, we would divide the blog into two parts and discuss each schedule in detail for better understanding.

Before any delay, we are hitting the topic. Continue reading Deal With The Schedules Of Form 8849- Part-I →

Federal Excise Tax Electronic Filing, Form 720 Quarterly Excise Tax Efile

Efile Your Excise Tax Claims Through Form 8849

Hello Tax payers, we hope you are pink of health. Quarterly Excise Tax reported through Form 720 is due by next month, it is good to gear up with your documents. Simply log into TaxExcise.com and file your return at your own convenience.

Leaving reminders aside, today we would be discussing about Form 8849, An Application for claims and refunds of Excise Tax. As you know there are various schedules under Form 8849, we would like to throw some light on the schedules & their purpose. So keep reading to know more about Form 8849. Continue reading Efile Your Excise Tax Claims Through Form 8849 →

Federal Excise Tax Electronic Filing, Form 2290 Efile, Form 720 Quarterly Excise Tax Efile, IRS Tax Tips and Alerts

Leaking Underground Storage Tank (LUST) Tax Refunds

Leaking Underground Storage Tank (LUST) Tax Refunds – How to claim refund using Form 8849

TaxExcise.com is a certified efile service provider for all Excise Tax forms. We support Form 8849 claims on excise taxes including Schedule 1,2,3,5,6 & 8.

Through www.TaxExcise.com LUST claim can be made to IRS.

What is LUST?

The LUST tax is a $.001 per gallon tax imposed on taxable fuels to fund the cleanup of leaking underground motor fuel storage tanks.

On Dec. 29, 2007, the President signed the Tax Technical Corrections Act of 2007. Section 6(d) of the Act amends Section 1362 of the Energy Policy Act of 2005 and Sections 4041, 4042, 4082 and 6430 of the Internal Revenue Code (IRC) to remove a double LUST excise tax that was previously imposed on dyed diesel fuel used in trains and fuels (other than Bunker C residual fuel oil) used on inland waterways, and to allow a refund of any second LUST tax paid. Additionally, the amendments exempt fuel used in foreign trade from the LUST tax and allow a refund of any LUST tax previously imposed on that use.

Due to amendments to the Tax Technical Corrections Act of 2007, some taxpayers are entitled to a LUST excise tax refund. Taxpayers eligible for a refund are encouraged to use Form 8849, Claim for Refund of Excise Taxes, to file a refund claim. No interest will be paid on LUST tax refunds.

Instructions for Completing Form 8849

Use www.TaxExcise.com to complete your LUST clams, also use the available efile service to claim it electronically.

LUST TAX REFUND claims on

Aviation fuel “Kerosene for use in aviation, LUST tax on foreign trade, the Credit Reference Number (CRN) 433.

Dyed diesel fuel used in trains and inland waterways,  “LUST tax on dyed diesel fuel used in trains and inland waterways” and the CRN 434.

Mail Form 8849 and Schedule 6 to:

IRS prefer electronic method to do Excise Tax claims, still you want to do it over mail, use www.Taxexcise.com prepare your claim form 8849 return and mail it to

Internal Revenue Service
P.O. Box 312
Covington, KY 41012-0312

IRS’ preferred method for claiming the LUST tax refund is the use of Form 8849. Form 8849 will be the most timely and convenient. As an alternative to filing Form 8849 to claim a refund, taxpayers may claim a credit on their federal income tax return by using line 17 on Form 4136, Claim for Federal Tax Paid on Fuels.

Taxpayers Eligible to Claim a LUST Tax Refund Under the Provisions of the Tax Technical Corrections Act of 2007

Only taxpayers involved with the tax on fuel used in inland waterways, trains and aircraft engaged in foreign trade are eligible for the LUST tax refund.

For fuel used in aircraft in foreign trade: The ultimate purchaser unless it waives its right to the claim to the ultimate vendor under IRC Section 6427(l)(4)(C).

For fuel used in inland waterways: The person that paid the tax as the operator of the vessel in which the propulsion fuel was consumed.

For fuel used in trains: The operator of the train, unless the deliverer of the fuel paid the tax under Treasury Regulation Section 48.4082-4(b)(2)(ii).

The LUST tax imposed under IRC Section 4041(a)(1)(C)(ii) does not apply after Dec. 31, 2006.

Explanation of the Term “use in foreign trade”

Generally, use in foreign trade includes any use of an aircraft in a commercial international flight that leaves the United States (subject to the reciprocity rules of IRC 4221(e)(1)).  Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for compensation or hire.

Receipt of Refund

The IRS anticipates issuance of refunds within 20 days of receipt of Form 8849.

General Scenarios

If you own a taxable fuel terminal and in 2007 reported the LUST tax on Form 720, Quarterly Federal Excise Tax Return, under abstract 119, you are not entitled to the LUST tax refund because only one LUST tax was paid on your fuel.

If you used undyed diesel fuel in your train, you are not entitled to the LUST tax refund.

If you used undyed diesel fuel in your inland waterways vessel, you may be eligible but only if you paid the inland waterways tax of $0.201 per gallon.

If you used dyed diesel fuel in your inland waterways vessel to operate generators that are not part of the propulsion system of the vessel, you are not entitled to the LUST tax refund. This fuel use is excluded from the tax imposed by IRC Section 4042, so no double LUST tax would have been paid.

References/Related Topics

Excise Tax: www.irs.gov