Rev. Rul. 66-48

Advice has been requested in respect of a number of questions regarding the recovery of excise taxes on gasoline and lubricating oil under sections 39 and 6424 of the Internal Revenue Code of 1954, as added by sections 809(c) and 202(b), respectively, of the Excise Tax Reduction Act of 1965, Public Law 89-44, C.B. 1965-2, 568, and section 6421 of the Code, as amended by section 809(b) of such Act. The questions relate to a taxpayer who reports on the basis of a calendar year. The specific questions and the answers thereto are as follows:

QUESTION 1: Do the transitional rules in section 39(b) of the Code mean that where a taxpayer chooses to take the credit, the credit attributable to the tax determined under section 6421(a) of the Code which is taken in the tax return for 1966 may include such tax covering the period July 1, 1965 to December 31, 1966?

Answer: Yes. The credit for gasoline tax will first be taken on the return for the first full taxable year beginning after June 30, 1965. The credit on the first return will include any tax paid on gasoline used after June 30, 1965, but before the beginning of such taxable year. In the typical case of a calendar year taxpayer, a credit for gasoline tax will first be taken on the income tax return filed for the year 1966 and will cover the period from June 30, 1965, through December 31, 1966.

QUESTION 2: May the taxpayer take a credit for the tax covering the period July 1, 1965, to December 31, 1965, in his 1965 income tax return?

Answer: No. This credit may not be taken on the 1965 income tax return.

QUESTION 3: Assuming that the taxpayer chooses to file claims for refund pursuant to the provisions of sections 6421 and 6424 of the Code, will a claim covering the period July 1, 1965 to December 31, 1965, be allowed under section 6421(c)(3) of the Code if filed not later than the due date of return for 1965? If such a claim is not allowable, then assuming that $1,000 or more is payable with respect to gasoline used during the thrid quarter of 1965, will a claim timely filed under section 6421(c)(3)(B) of the Code be allowed and may the taxpayer take a tax credit under section 39 of the Code for the amount payable with respect to gasoline used during the fourth quarter of 1965?

Answer: There are two methods for obtaining the amount of the refund allowable under section 6421 of the Code. Generally, the amount due must be claimed by the ultimate purchase as a credit against his income tax for the taxable year. However, if $1,000 or more is payable with respect to gasoline used during any of the first three quarters of his taxable year, a claim for refund may be filed under section 6421(c)(3)(B) of the Code with respect to gasoline used during such quarter. As stated above, a credit in the case of a calendar year taxpayer may not be taken on the 1965 income tax return but will be taken on the 1966 return and will cover the period from June 30, 1965, through December 31, 1966. In the case of a claim for refund under section 6421(c)(3)(B) of the Code, the provisions of subparagraph (B) should be read in context with the provision in subparagraph (A) which provides that, for purposes of this paragraph, a person's first taxable year beginning after June 30, 1965, shall include the period after June 30, 1965, and before the beginning of such first taxable year. When this is done, it is deemed that claims for refund may be filed for all quarters in the taxable year except the last quarter. Thus, a claim for refund timely filed under section 6421(c)(3)(B) of the Code would be acceptable in respect of gasoline used during either the third or fourth quarter of 1965.

QUESTION 4: Will a claim for refund of gasoline tax for the period July 1, 1965, to December 31, 1966, be allowed if filed on or before the

Answer: No. Unless a refund claim

Answer: No. Unless a refund claims was or is filed on or before the last day of the first quarter following the quarter in which the gasoline was used, the amount due must be claimed as a credit on the 1966 income tax return no later than the time prescribed by law for filing such return.

QUESTION 5: Where taxpayer files quarterly claims pursuant to sections 6421(c)(3)(B) and 6424(b)(2) of the Code, may he take a tax credit under section 39 of the Code with respect to taxes payable to him for any quarter for which a claim was not filed?

Answer: The taxapayer should claim the amount payable to him as a credit on his return with respect to gasoline and lubricating oil used during any quarters in the taxable year for which a claim was not filed under sections 6421(c)(3)(B) and 6424(b)(2) of the Code. In any case, a tax payment for the last quarter may be claimed only as a credit on the income tax return.

QUESTION 6: Will a single claim on Form 843 covering both gasoline and lubricating oil taxes payable to taxpayer be acceptable, or must separate claims be filed?

Answer: Where it is appropriate to file a claim on Form 843, a single Form 843 covering both gasoline and lubricating oil taxes payable to a taxpayer will be acceptable if there is shown on the Form 843 separate computations in respect of each tax and all the supporting information is submitted therewith.