Under the Further Consolidated Appropriations Act of 2020, the refundable biodiesel blender credits were extended.
How is the refundable biodiesel blender credit usually filed?
A one-time claim can be made for the $1.00/gallon refund on biodiesel mixture gallons for 2018 and 2019. Total gallons for these two years need to be combined and reported on one Form 8849, Claim for Refund of Excise Taxes. Form 8849 Schedule 3, Certain Fuel Mixtures and the Alternative Fuel Credit, must be included with the submission with appropriate gallons reported on Line 2. It should be noted that the refund received from these credits is not-taxable. You can find additional rules and information on the IRS website here.
The 180-day claim period for these credits begins on February 14, 2020. Therefore, all claims would need to be filed by August 11, 2020. The IRS is required to pay the refund within 60 days after the claim is received (anything received before February 14th is deemed to be received on February 14th). If not paid within 60 days, the IRS will include interest from the claim filing date.
If you are concerned about compliance with the proper payment and filing of the refundable biodiesel blender credit, you are invited to contact us for additional guidance and assistance.