Motor Fuels Tax Minute, Episode 4

On this episode, Leanne Sobel and Emilda Santiesteban discuss Form 8849, Schedule 3, specifically the time limits for claiming the biodiesel mixture excise tax credit as a refund payment.


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Detailed Transcription of Weaver’s Motor Fuels Tax Minute, Episode 4


Leanne: Welcome to Weaver's Motor Fuels Tax Minute, where we talk all things motor fuel tax. This week we're talking about the time limits for claiming the biodiesel mixture excise tax credit as a refund payment on Form 8849, Schedule 3.


Emilda: Yes, Leanne. The instructions to the form state the following: the claim must be filed by the last day of the first quarter following the earliest quarter at the claimant's income tax year included in the claim. So, what does that really mean?


Leanne: That's a great question, Emilda, and it is pretty confusing. What the language means is that the timing of the claim is limited by the earliest date included in the claim. An example to explain this is: a calendar year taxpayer filing the Form 8849 with claims for June, July, August and September, would have to file the form no later than September 30th. This is because the earliest forms that are included in the claim are in the second quarter, and therefore, requires the claim to be filed no later than the end of the third quarter, which is September 30th.


Emilda: Good point, Leanne. So in addition to filing the claim timely, taxpayers should also know that each claim should be for biodiesel or a renewable diesel mixture sold, or used, during a period of at least one week. Also, if filing a paper claim, the claim should be for a minimum of $200.


Leanne: That's right. The key takeaway from this is that taxpayers need to know their income tax year and they need to pay attention to the dates of the transactions being included in their claim. A taxpayer who misses the filing deadline will have to consider claiming the credit as an income tax credit instead.


Emilda: That's this week's Motor Fuel Tax Minute. Stay tuned next week when we will be discussing the Superfund exemption for motor fuel blending.

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Leanne Sobel

Leanne Sobel

Director, Motor Fuels and Excise Tax Services


Leanne Sobel, J.D., has over 15 years of experience in legal tax matters. Her career focus includes federal and state tax and…

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