Form 8849 Online vs Manual Filing: Complete Guide
If there is an individual whose payments have exceeded the amount for some federal excise taxes and is therefore entitled to a refund of excise tax, he or she may file the IRS Form 8849 which is titled "Claim for Refund of Excise Taxes."
Based on the refund, the correct Form 8849 schedule should be filled out. IRS Form 8849 may be manually filed using paper filing or electronically using an authorized IRS e-file service. Comparison of these two filing options will be beneficial in filing the form.
What Is Form 8849 and What Is Its Purpose?
Form 8849, Claim for Refund of Excise Taxes, is a form used for claiming a refund of specific federal excise taxes. Taxpayers are required to choose and fill out the appropriate schedule based on the kind of tax and refund claimed.
The IRS facilitates the filing of Form 8849 together with schedules 1, 2, 5, 6, and 8 through the use of approved e-filing software. This makes it easier to file a claim of refund using the internet since less paperwork is required than when filing a paper return.
How to File Form 8849: Manual vs Online Filing Steps
Before embarking on either process, find out what is the basis of your claim and which Form 8849 schedule to use.
Manual Filing Steps
Step 1: Download the Latest Version of Form 8849
Navigate to the IRS website and download the latest version of Form 8849 – Claim for Refund of Excise Taxes.
Step 2: Complete Form 8849
Provide all the necessary taxpayer or business details in Form 8849 as follows:
Name and Address
Employer Identification Number (EIN)/Social Security Number (SSN)
Amount of total refund claimed
And other necessary information pertaining to the claim
Ensure that all the necessary fields on the form are filled out correctly by referring to the form and IRS guidelines.
Step 3: Select the Applicable Form 8849 Schedule
Figure out which schedule of Form 8849 is relevant to your excise tax refund claim. You may download the appropriate schedule which you will have to fill out and attach to the form 8849.
Your schedule choice will depend on the reason for your refund claim. There are various schedules of Form 8849 for various types of excise tax refund claims.
Step 4: Complete the Appropriate Schedule
Fill out the applicable schedule with the required information. For example, if you are claiming a refund for certain nontaxable uses of fuel, the applicable claims may be reported on Schedule 1 (Nontaxable Use of Fuels).
Enter your taxpayer or business information on the schedule consistently with the information provided on Form 8849.
The details that would be needed would depend on the type of schedule as well as the claim being made. It could range from details relating to the tax paid, vehicle information, fuel consumption/purchase details, tax periods, quantities, dates, and so forth.
Step 5: Complete the Applicable Claim Category and Calculate the Refund
In the chosen schedule, determine and fill in the particular claim classification that pertains to your refund.
This is exemplified by filling out Schedule 1 for non-taxable use of fuel where the type of use, the number of gallons used, and other information necessary in the schedule must be provided.
Step 6: Calculating the Refund amount
The refund amount should be determined based on the particular applicable rate in that claim. The formula to calculate will be mentioned in the form itself. Generally it would be rate x quantity for most cases.
Check all the information, the applicable rates, and the determined refund amount carefully.
Step 7: Prepare the Explanation for the Refund Claim
An explanation has to be provided stating why you are seeking a refund. Provide an explanation about the facts and situations that are making you make such a request, along with any other information required from the schedule 8849 form.
Step 8: Attach the Required Supporting Documents
The documents which are required to be attached for support of your refund request have to be gathered. These may be invoices, records of taxes paid, data about the vehicles, fuel data, sales documentation, receipts, etc.
Step 9: Analyze the Entire Filing Package
Review Form 8849 with its proper schedule, computation of refund, explanation, and supporting papers for accuracy of all information presented in the claim.
Step 10: Send the Filing Package to the IRS
Assemble Form 8849, the proper schedule, the explanation, and supporting papers into a single filing package.
Send the package to the address of the IRS that corresponds to the appropriate Form 8849 schedule. Remember that there may be different mailing addresses for different schedules; therefore, you need to check the current instructions of the IRS.
Check the Form 8849 mailing address by reading this blog.
How to File Form 8849 Online Through the Simple720 Portal?
Step 1: Choose an IRS-Authorized Online Filing Portal
An IRS approved online portal that supports e-filing of Form 8849 and its respective schedule has to be selected.
Step 2: Enter Your Business or Taxpayer Information
Sign up for an account or log in and then enter the required taxpayer or business information, including the legal name, EIN, address, and more.
Step 3: Selection of Appropriate Form 8849 Schedule
It is important for one to select the appropriate schedule depending on the nature of the claim being made. This will dictate what type of information needs to be filled in by the user in the portal.
Step 4: Filling in the Details of the Schedule and Calculation of the Refund
Enter the details that will be asked of you in accordance with the claim category chosen. These details could be related to the fuel being claimed, quantity, vehicle details, taxes paid, and many others.
The computation of the refund amount will be done automatically by the online portal itself.
Step 5: Include the Reason for Refund Claim and Related Evidence
An explanation document is supposed to be included to explain why you need a refund claim, together with the evidence or proof documents supporting your claim.
Step 6: Verify Your Refund Claim
Ensure that the information about your business, schedule, refund amount, claim, and proofs are accurate.
Step 7: Pay the Processing Fee
Pay the processing service fee charged by the online portal. In case with Simple720 it is a less expensive fee.
Step 8: Submit Form 8849 Electronically
E-file your claim using the online portal. Simple720 will deliver the electronic filings to the IRS.
Form 8849 Online vs Manual Filing: Which Is Better?
Why Online Filing Can Be a Better Choice for Form 8849
Manually filing Form 8849 requires the downloading of the necessary forms, filling out all the necessary details, computing the refund, gathering the supporting documents, and sending the completed forms to the IRS.
However, with online filing, the entire process is made much easier using one single interface that can gather all the necessary claim details, automatically compute the refund, attach the supporting documents, and electronically send the filing to the IRS.
Online filing allows taxpayers who wish to make their work simpler and less complicated to have an easier process while filing Form 8849.
File Form 8849 Online with Simple720
Simple720 is an IRS-authorized e-filing portal that can simplify the filing of Form 8849 for refunds. You can fill out the required form using online software and then easily file the same to the IRS along with all the attachments. It is important to choose the appropriate schedule of Form 8849 before you start filling out the claim.
Choose Simple720 for your Form 8849 refund claims online!
