Rev. Rul. 67-28

The purpose of this Revenue Ruling is to issue guidelines for the filing of claims by the United States, State, and local governments, and certain tax-exempt organizations for payment of 2 cents a gallon of the Federal excise tax paid on gasoline used after June 30, 1965, for certain nonhighway purposes under section 6421 of the Internal Revenue Code of 1954. These guidelines also apply to claims filed by such governments and organizations of 4 cents a gallon for gasoline used on farms for farming purposes after June 30, 1965, under section 6420 of the Code, or of 6 cents a gallon for lubricating oil used otherwise than in a highway motor vehicle after December 31, 1965, under section 6424 of the Code.

Section 6421 of the Code provides for a payment to the ultimate purchaser of a portion of the Federal excise tax paid on gasoline which is used for certain nonhighway purposes. Unless a person is entitled to a payment of $1,000 or more for any of the first three quarters of his taxable year, he may not file more than one claim for payment or credit with respect to gasoline used during his taxable year.

In order to obtain this payment, persons required to file an income tax return must claim as a credit against their income tax for the taxable year in which the gasoline is used those amounts for which quarterly claims have not been filed. Governments and tax-exempt organizations which are not required to file an income tax return for the taxable year may file a cumulative claim for these amounts.

Any claims filed under section 6421 of the Code by governments and tax-exempt organizations (not required to file an income tax return) must be filed on or before the 15th day of the 5th calendar month following the close of the taxable year of the governmental unit or tax-exempt organization. In the case of fiscal years ending on or after June 30, 1966, and before September 1, 1966, a claim for gasoline used after June 30, 1965, and before the end of the fiscal year will be treated as timely filed if the claim is filed before February 1, 1967. (Regulations to be issued under section 6421 will so provide.)

For the purpose of these claims, the `taxable year' of a government or an exempt organization will generally be the annual period (calendar or fiscal year) on the basis of which it regularly keeps its books, except that the first `taxable year' beginning after Juen 30, 1965, includes both the first such annual accounting period which begins after June 30, 1965, and also the period (if any) after June 30, 1965, and preceding this annual accounting period. Thus, a government or tax-exempt organization (other than an organization required to file an income tax return) which keeps its books on a calendar-year basis would have until May 15, 1967, to file a claim for gasoline used in calendar year 1966 and the last 6 calendar months of 1965.

These guidelines do not affect the time and manner in which the amount due may be claimed by a tax-exempt organization which is required to file an income tax return for the taxable year. Such organizations can claim the amount due for gasoline used during the taxable year (exclusive of amounts covered by payment claims filed for any of the first three quarters) only as a credit against income tax on a timely filed Form 990-C, Exempt Cooperative Association Income Tax Return, or 990-T, Exempt Organization Business Income Tax Return. See Rev. Rul. 66-48, C.B. 1966-1, 9.

Claims by a State or local government or a tax-exempt organization (not required to file an income tax return) should be filed with the Internal Revenue Service Center for the internal revenue region in which the principal place of business or principal office of the government or organization is located. No duplicate claim need be filed if a claim has already been filed with a district director of internal revenue.

Payments are allowable only for gasoline which was purchased tax paid. Thus, for example, a State or local government should not file a claim for any gasoline which it purchased tax free from the producer, even though the State or local government used the gasoline for nonhighway purposes. See Rev. Rul. 66-276, C.B. 1966-2, 505.

Similarly, a government or tax-exempt organization as the ultimate purchaser of gasoline should not file a claim for payment if it is known that another person is entitled to claim a payment or refund for the same gasoline. For example, a State or local government should not file a claim if it has executed, or intends to execute, a certificate of ultimate purchaser, or other documentation, to enable the producer to claim a refund for the gasoline. See Rev. Rul. 66-276, C.B. 1966-2, 505.

Revenue Ruling 66-48, C.B. 1966-1, 9, and Revenue Ruling 66-276, C.B. 1966-2, 505, are hereby supplemented.

¹ Based on Technical Information Release 867, dated November 29, 1966.