LPG credit filing questions answered

Plain-English summary

Chief Counsel addressed two questions about the alternative fuel credit for liquefied petroleum gas used in forklifts during periods when the credit was available. A claimant that files Form 720 for any § 4041 tax must first offset that liability on Form 720 and may claim the remainder on Form 8849 or Form 4136. A claimant that does not file Form 720 for any § 4041 tax may claim the entire amount on Form 4136. The advice also states that a claimant may file a claim for an open year after obtaining a registration number.

Ruling snapshot

• Question: Which forms should be used to claim the LPG alternative fuel credit, and must the claimant be registered when the fuel was used?
• Outcome: Advice given
• Key authorities: IRC §§ 4041 and 6426; Forms 720, 4136, 8849

Full text (IRS public release)

ID: CCA-916134-10 Number: 201043040
Release Date: 10/29/2010
Office: -------------
UILC: 6426.00-00

From: ------------------
Sent: Thursday 09/16/2010 1:42 PM
To: ----------------
Cc: --------------------------------------
Subject: LPG Credits

You asked 2 questions regarding the alternative fuel credit for LPG used in fork lifts for the periods when the credit was in effect. You first asked whether the claim can be made on just a Form 4136 or whether 18.3 cents per gallon needed to be made on Form 720 and the remainder taken on Form 4136. You also asked if the claimant needed to be registered at the time the fuel was used or whether could it register later and file amended returns.

First, if the claimant is a Form 720 filer for any § 4041 tax, then it has to offset that liability first on the Form 720 and may take the remainder on either the Form 8849 or the Form 4136. If the claimant is not a Form 720 filer for any § 4041 tax, it can claim the whole amount on the Form 4136. Second, it can make a claim for any open year for which the credit was available after it gets a registration number.