IRS Guidance for 50¢ per GGE rebate

Good news. Now SoCalGas customers can apply for the 50¢ per GGE [Gasoline Gallon Equivalent] rebate for all of 2010 and 2011. Follow the attached special guidance for the 2010 year [below]. Remember to find the total CCF sum near the end of the SoCalGas bill, multiply by 100 to get cubic feet and then divide by 121 cubic feet (CF) per gasoline gallon equivalent. The result is the number of gallons which can be claimed on IRS Form 8849 schedule 3. Do not try to convert therms to gallons. Questions? Call me.

Steve Anthony

Southern California Gas Co.
Sr. NGV Account Executive
Work 213 244 3583
Cell 213 248 1692

IRS Issues Guidance for 2010 Fuel Credits for CNG and LNG

On Friday, the Internal Revenue Service (IRS) issued a notice with instructions on how to make a claim for CNG or LNG that was used or sold in 2010. Notice 2011-10, "Biodiesel and Alternative Fuels; Claims for 2010; Excise Tax," has not yet been published in the Internal Revenue Bulletin (IRB) but was posted on the IRS website (see below). As we previously reported in our newsletter, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Act) (PL 111-312, § 701), extends the CNG and LNG fuel credits for 2011 and also made them retroactive for 2010. The Act requires that the IRS issue guidance concerning one-time claims to be made for 2010 fuel use or sales. Notice 2011-10 satisfies the Congressional mandate.

The IRS guidance indicates that claimants should use Form 8849, Schedule 3. Claimants who have not yet filed their quarterly 720 Excise Tax Form for the last quarter of 2010 should not claim the excise offset on that form or seek to claim payment on that form. The IRS apparently wants all section 6426 and 6427 claims relating to the use or sale of CNG and LNG in 2010 to be made using Form 8849, Schedule 3. As always, only those claimants who previously have registered with the IRS using Form 637 may make claims for payment. Claims must be submitted no later than August 1, 2011 and can be filed immediately. Only one claim should be made for 2010 fuel use or sales. The IRS must make payments on claims within 60 days of their being filed, or pay interest on late payments. All claims submitted prior to February 2, 2011 will be treated as having been made on February 2 for purposes of determining whether the IRS has timely paid a claim.

The IRS guidance also indicates that any persons who filed "protective" or anticipatory claims relating to CNG or LNG must refile these claims using Forms 8849, Schedule 3.
For more information, contact Jeff Clarke 202.824.7364, or
jclarke@NGVAmerica.org.

To view Notice 2011-10, click here: http://www.irs.gov/pub/irs-drop/n-11-10.pdf.