Rev. Rul. 68-403

Advice has been requested as to the effect of a claim for refund on Form 843 for an amount payable under section 6421 of the Internal Revenue Code of 1954 with respect to gasoline used for nonhighway purposes, instead of properly claiming credit for such amount on his Federal income tax return. Two cases are cited as examples.

In one instance the taxpayer filed a Form 843 claiming a gasoline tax payment with respect to gasoline used for nonhighway purposes during an entire taxable year. The claim was filed before the time prescribed for filing the income tax return for the taxable year involved. The taxpayer filed a return on which he did not claim credit for the gasoline tax payment.

In another case the taxpayer filed a claim on Form 843 for an amount in excess of $1,000 with respect to gasoline used during the fourth quarter of his taxable year. The claim was filed before the time prescribed for filing the income tax return for the taxable year involved. The taxpayer filed a return on which he did not claim credit for the gasoline tax payment.

Section 6421(a) of the Code provides that, if gasoline is used for nonhighway purposes, the ultimate purchaser shall be paid two cents for each gallon of gasoline so used. Paragraphs (1) and (2) of section 6421(i) provide that, except for claims of $1,000 or more with respect to gasoline used during any of the first three quarters of a taxable year, payment shall be made under section 6421(a) only to the Federal government, a State or local government, or certain tax-exempt organizations. Paragraph (3) of section 6421(i) refers other claimants to section 39 of the Code for allowance of an amount payable to a tax payer under section 6421(a) as a credit against income tax for the taxable year.

Section 6421(c)(3)(A) of the Code provides in the case of gasoline used after June 30, 1965, that, except for certain quarterly claims, not more than one claim may be filed by any person with respect to gasoline used during his taxable year, and no claim shall be allowed with respect to gasoline used during any taxable year unless filed by such person not later than the time prescribed by law for filing an income tax return for such taxable year.

While gasoline tax payments are not allowable as such, except for those referred to in section 6421(i), an income tax credit in the amount of a payment claimed on a Form 843 may be allowed under section 39 of the Code in cases where the claim was filed on or before the time prescribed for filing the taxpayer's income tax return for the taxable year during which the gasoline was used.

Accordingly, in the cases cited above, the claim may be associated with the return and a credit in the amount of the payment claimed on the Form 843 may be allowed on the return as provided by section 39 of the Code.

Similarly, the conclusion stated above also applies to claims on Form 843 covering amounts payable under sections 6420 and 6424 of the Code