Rev. Rul. 59-90

Advice has been requested whether a timely filed Form 2240, Claim for Refund of Federal Tax on Gasoline Used on a Farm, may be regarded and processed as a claim for the payment provided by section 6421(a) of the Internal Revenue Code of 1954, with respect to gasoline used for certain nonhighway purposes, under the circumstances described below.

A company filed a claim under the provisions of section 6420(a) of the Code, on Form 2240 for a payment equivalent to the Federal excise tax on the gasoline used in a manner described by the claim. The claim was disallowed because the gasoline was not used on a farm for farming purposes within the meaning of that section. However, it was determined that the company was entitled to a payment, under the provisions of section 6421(a) of the Code, equal to one cent for each gallon of gasoline used in the manner described.

Under the provisions of section 6421(a) of the Code, if gasoline is used otherwise than as a fuel in a highway vehicle (1) which, at the time of such use, is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (2) which, in the case of a highway vehicle owned by the United States, is used on the highway, the Secretary of the Treasury or his delegate shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to one cent for each gallon of gasoline so used. Section 6421(c) of the Code provides that not more than one claim may be filed under subsection (a) by any person with respect to gasoline used during the one-year period ending on June 30th of any year. Also, no claim shall be allowed under this section with respect to any one-year period unless filed on or before September 30th of the year in which such one-year period ends. (Under the provisions of section 6420(b) of the Code, relating to payments provided by section 6420(a), the time for filing a claim and the period covered are the same as in section 6421(c) of the Code.)

Ordinarily, the claim for the one-cent payment for each gallon of gasoline used for nonhighway purposes is filed on Form 843, Claim. However, since the Form 2240 was timely filed and the claimant is otherwise entitled to the payment provided by section 6421(a) of the Code, it is held that such Form 2240 may be regarded and processed as a claim under the provisions of that section of the Code.