The IRS has published transition relief (Notice 2013-26) that extends taxpayers' ability to claim payments for the biodiesel mixture credit and the alternative fuel credit on Form 8849 until July 1, 2013.
The American Taxpayer Relief Act of 2012 retroactively extended the fuel tax credits that expired at the end of 2011. Generally, the biodiesel mixture credit and alternative fuel credit must first be claimed on Form 720 to offset any excise tax liability. Taxpayers without excise tax liability or with credit amounts in excess of liability can claim their payments under Section 6427(e) on Form 8849 Schedule C. But Form 8849 must generally be filed before the last day of the first quarter following the earliest quarter of the income tax year included in the claim. If the payment is not claimed on Form 8849, taxpayers are allowed a refundable income tax credit under Section 34 by filing Form 4136 with their income tax return.
Notice 2013-26 provides that taxpayers can claim their 2012 payments for the biodiesel mixture credit and alternative fuel credit on Form 8849 until July 1, 2013. All the claims for 2012 can be made on a single Form 8849. Taxpayers who have already claimed their credit under Section 34 with a Form 4136 on their 2012 tax return can amend their return to remove that claim and instead file a claim for payment under Section 6427(e) on Form 8849.
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