Form 8494 Instructions for Fuel Tax Direct Deposit
Ensure your fuel tax credit refund is deposited directly to your account. This guide details the correct preparation and attachment of Form 8494 to your return.
Taxpayers entitled to a refund of federal excise taxes on fuels can have these funds deposited directly into a bank account by the Internal Revenue Service (IRS). This process requires submitting a specific form to authorize the direct deposit, ensuring the refund is transferred electronically instead of by paper check. This authorization is a separate step from the calculation and justification of the fuel tax credit itself.
Purpose of Form 8849 and Who Should File
Form 8849, “Claim for Refund of Excise Taxes,” is used to request a refund of federal excise taxes, including those on fuel. The form serves as the claim document and must be accompanied by a schedule detailing the basis for the refund, such as Schedule 1, “Nontaxable Use of Fuels.”
The form is for individuals and businesses who purchased fuel with federal excise tax included but used it for a nontaxable purpose. Common examples include fuel consumed in off-highway business use, such as in farming machinery, construction equipment, or vehicles operated on private land. The filer is the ultimate purchaser of the fuel who bore the cost of the tax.
While some fuel credits can be claimed on an annual income tax return with Form 4136, Form 8849 is for periodic claims. A business can file Form 8849 for any quarter where the refundable amount is $750 or more, allowing for a faster recovery of the tax.
Information Required to Complete Form 8849
To complete Form 8849, you will need the claimant’s full legal name, Social Security Number (SSN) or Employer Identification Number (EIN), and a current mailing address. You must also identify the tax period for the claim, which for quarterly filers is the calendar quarter ending March 31, June 30, September 30, or December 31. You also need records like fuel purchase invoices that show the date of purchase, seller’s name, and gallons bought to substantiate the claim.
For those requesting a direct deposit, financial institution details are required. This includes the name of the bank or credit union, its nine-digit Routing Transit Number (RTN), the depositor’s account number, and whether the account is checking or savings. The RTN and account number can be found at the bottom of a check. The official version of Form 8849 and its schedules are available on the IRS website.
Step-by-Step Guide to Completing Form 8849
Begin by entering the claimant’s basic information, such as name, address, and EIN or SSN, at the top of the form. You must also enter the calendar quarter or year for which you are filing the claim.
Part I of the form is for direct deposit details. On line 4a, enter the nine-digit RTN. Check either box 4b for a checking account or 4c for a savings account. On line 4d, write the depositor account number. Verifying these numbers for accuracy can prevent a delayed or misdirected refund.
In Part II, “Claim Summary,” you list the amounts from attached schedules. For fuel tax refunds, check the box for Schedule 1 on line 5 of Form 8849. Then, enter the total refund amount calculated from that schedule in the corresponding space.
The final step is to sign and date the form in Part III, “Signature.” The person signing must be authorized to do so, certifying under penalties of perjury that all information is true, correct, and complete. The IRS will not process an unsigned claim.
How to File Form 8849
Form 8849 is a stand-alone claim filed separately with the IRS, not as part of an annual income tax return. It must be accompanied by at least one numbered schedule, such as Schedule 1 for fuel tax, that justifies the refund amount.
For paper filing, the completed Form 8849 and all attached schedules should be mailed to the IRS address listed in the form’s instructions. The correct address depends on the claimant’s principal business or legal residence location. It is good practice to maintain a copy of the filing package for your records.
Many taxpayers file Form 8849 electronically through an IRS-approved e-file provider, which is often faster and provides receipt confirmation. After the IRS reviews and approves the claim, the refund will be issued. Those who provided direct deposit information will receive their refund faster than waiting for a mailed paper check.