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Form 8849 Schedule 2

What is Form 8849 Schedule 2?

Schedule 2 of Form 8849 specifically addresses this issue of the Registered Ultimate Vendors who sell taxable fuel to the end-user or use the fuel for non-taxable purposes by acquiring the sale and seller details.

The seller details include such as the name and address of the vendor, the type of fuel sold, the number of gallons sold, and the tax paid on those sales.

Here, the Registered Ultimate Vendors are those who engage in the sale of taxable goods or services to end-users for further resale, use, or consumption. While these vendors are typically not subject to federal excise taxes on fuel, Schedule 2 enables them to claim a refund or credit for the tax paid on the fuel they've sold.

This means ‘Registered Ultimate Vendors’ can claim a refund on the taxes that they have already paid while enabling the sale to the end user, thereby avoiding double tax payment issues.. 

What are the Main Objectives of Form 8849 Schedule 2? 

The 8849 Schedule 2 is a detailed report that captures essential information about the sales conducted by registered ultimate vendors during a specific reporting period. It necessitates sale and seller particulars such as vendor identification, fuel type, gallons sold, and associated tax payments.

By completing Schedule 2 and attaching it to Form 8849, registered ultimate vendors can seek a refund or credit for the federal excise tax paid on their fuel sales. 

5 Benefits of Form 8849 Schedule 2

Refunds or Credits:

Through Schedule 2, registered ultimate vendors gain the ability to claim refunds or credits, which effectively reduces their tax liability.

Preventing Double Taxation:

Schedule 2 serves as a safeguard against double taxation, ensuring that registered ultimate vendors are not burdened by taxes on fuel sales that have already been taxed.


Adherence to IRS Regulations:

Filing Schedule 2 and Form 8849 signifies compliance with IRS regulations, mitigating the risk of penalties or audits, and establishing a commitment to tax law adherence.

Financial Savings:

The primary advantage lies in potential financial savings. By reclaiming the federal excise tax paid on fuel sales, registered ultimate vendors can enhance profitability and allocate savings for business growth.

Streamlined Tax Processes:

Schedule 2 simplifies the process of claiming fuel tax credits or refunds, offering a structured format for accurate reporting. This streamlining reduces the likelihood of errors in the tax filing process.

Who is Eligible to file Form 8849 Schedule 2?

  1. Registered Ultimate Vendors (Retailers)
  2. Interstate Truckers
  3. Bus Owners/Operators
  4. Government Entities
  5. Nonprofit Educational Organizations
  6. Nonprofit Volunteer Fire Departments

Registered Ultimate Vendors (Retailers):

This includes retailers dealing in diesel fuel, kerosene, gasoline, aviation gasoline, or alternative fuels.

Interstate Truckers:

Those who've paid federal excise tax on specific fuel types used in their business operations.

Bus Owners/Operators:

Owners or operators of buses, such as local transit buses, school buses, or qualified buses used for private transportation functions.


Government Entities:

This category encompasses state and local governments, certain Indian tribal governments, and the District of Columbia, who've paid federal excise tax on specified fuels used in their operations.

Nonprofit Educational Organizations:

Specifically, those operating school buses and paying federal excise tax on designated fuels.

Nonprofit Volunteer Fire Departments:

Entities paying federal excise tax on specific fuels used for authorized purposes.

Form 8849 Schedule 2 Specific Instructions:

Source: IRS Schedule 2(Rev. December 2020)

Line 1a: Sales of Undyed Diesel Fuel for Government Use

Claimant: Only the registered ultimate vendor is eligible, provided the necessary certificates are obtained.

Allowable sales: Diesel fuel sold exclusively by a state or local government.

Claim requirements: minimum claim of $200 for a week-long period.

Line 2a and 2b: Sales of Undyed Kerosene

Claimant: A registered ultimate vendor with the required certificates or statements.

Allowable sales: Kerosene for exclusive use by a government or from a blocked pump.

Claim requirements: Minimum claim of $100 for a week-long period.

Line 3a and 3b: Sales of Kerosene for Commercial Aviation

Claimant: Registered ultimate vendor with buyer waiver.

Allowable sales: Kerosene for use in commercial aviation.

Claim requirements: Minimum claim of $100 for a week-long period.

Lines 4a, 4b, 5a, and 5b: Sales of Gasoline or Aviation Gasoline

Claimant: Registered ultimate vendor with ultimate purchaser waiver.

Allowable sales: Gasoline or aviation gasoline for use by nonprofit educational organizations or governments.

Claim requirements: Minimum claim of $200 for a week-long period.

Lines 6 

Fill in the name, address, employer ID, and gallons of fuel sold for each governmental unit if claiming on lines 1a, 2a, 3d, or 3e (type of use 14). 

Lines 7 

Line 7, focuses on gathering information related to Government and Nonprofit Educational Organizations units. Completion of this section is necessary when you are claiming on line 4a, 4b, 5a, or 5b. To provide accurate details, you are required to input relevant information for each governmental or nonprofit educational organization unit that received the sold gasoline or aviation gasoline.

Form 8849 Schedule 2 Deadline

The claim must be submitted by the last day of the quarter following the earliest quarter of the claimant's income tax year included in the claim. For instance, if a calendar-year claimant is requesting a refund for diesel fuel sales in September and October, the deadline for filing the claim is December 31.

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