The Internal Revenue Service (IRS) has issued new and simplified filing procedures for 2012 retroactive biodiesel blender claims. The new procedure allows claims for all four quarters of 2012 to be filed on IRS Form 8849 Schedule 3. Blenders are no longer required to file amended IRS Form 720X returns to obtain 2012 biodiesel blending credits provided the claim is filed by July 1, 2013.
The biodiesel blender’s credit was reinstated by Congress in December 2012. The $1 per-gallon credit is reinstated to December 31, 2013, and made retroactive back through calendar year 2012, when the credit was expired. This means that fuel retailers may now file retroactive credit claims for biodiesel blends created between January 1, 2012, and December 31, 2012. Also, new credit claims may be made for biodiesel blends created during calendar year 2013. These claims are not subject to the special procedures for retroactive claims. Instead, 2013 claim procedures are the same as required before the blenders credit expired.
After, July 1, 2013, all 2012 retroactive biodiesel claims must be taken on IRS Form 720X amended quarterly return. The credit must first be taken against any federal motor fuel excise tax liability generated for the 2012 quarter in which the biodiesel blend was created. Credits in excess of liability may then be taken as an annual income tax credit on IRS Form 4136.
Click here for IRS Notice 2013-26, which outlines the biodiesel and alternative fuels claims for 2012.
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