Registered ultimate vendors of fuels can recover federal excise taxes on specific nontaxable sales using IRS Form 8849 Schedule 2 (Sales by Registered Ultimate Vendors). This schedule attaches to Form 8849, Claim for Refund of Excise Taxes, and helps businesses recoup taxes paid on undyed diesel fuel, undyed kerosene, aviation kerosene, gasoline, and aviation gasoline sold to exempt buyers such as state/local governments, certain buses, nonprofit educational organizations, or for approved aviation uses.
As of February 2026, the current version remains Schedule 2 (Form 8849) Rev. December 2020 (with the post-2020 CRN correction applied). The IRS has made no rate changes or major revisions for 2025–2026 claims. Download the official PDF here: https://www.irs.gov/pub/irs-pdf/f8849s2.pdf.
This guide, based exclusively on current IRS.gov resources (About Form 8849 page updated January 23, 2026, the form itself, and Publication 510 references), explains eligibility, rates, step-by-step completion, filing rules, and best practices to ensure fast, accurate refunds.
What Is IRS Form 8849 Schedule 2?
Form 8849 claims refunds of excise taxes already paid and reported. Schedule 2 specifically covers sales by registered ultimate vendors (not ultimate purchasers or credit card issuers).
You qualify as a registered ultimate vendor if the IRS issued you a valid registration letter with one of these prefixes:
- UV — Undyed diesel/kerosene, gasoline, aviation gasoline, and certain aviation kerosene claims
- UB — Undyed diesel/kerosene for intercity/local buses
- UP — Kerosene from blocked pumps
- UA — Kerosene for aviation use
Without a valid IRS registration (Form 637), you cannot file Schedule 2 claims.
The schedule allows refunds only when the ultimate buyer waives their right to claim (via certificate or waiver) and the vendor meets strict documentation rules. Only one claim per gallon is allowed.
Who Should File Schedule 2?
Use Schedule 2 if you are a registered ultimate vendor who:
- Sold undyed diesel fuel or undyed kerosene (other than aviation) at a tax-excluded price to exempt users
- Sold kerosene for aviation use
- Sold gasoline or aviation gasoline to qualifying nonprofit educational organizations or governments
Do not use Schedule 2 if:
- The buyer paid with a government or nonprofit credit card (use Schedule 8 instead for credit card issuers)
- You are the ultimate purchaser (use Schedule 1)
- The claim involves biodiesel, alternative fuels, or mixtures (use Schedule 3)
Eligible Claims and Current Refund Rates (2026)
All rates come directly from the December 2020 revision (still current in 2026). Enter gallons sold, multiply by the rate, and total in column (c). Use the correct Credit Reference Number (CRN) for each line.
Line 1 – Undyed Diesel Fuel
- 1a: Use by state/local government → $0.243/gal (CRN 360)
- 1b: Certain intercity/local buses → $0.17/gal (CRN 350)
Line 2 – Undyed Kerosene (non-aviation)
- 2a: Use by state/local government → $0.243/gal (CRN 346)
- 2b: Sales from a blocked pump → $0.243/gal
- 2c: Certain intercity/local buses → $0.17/gal (CRN 347)
Line 3 – Kerosene for Use in Aviation
- 3a: Commercial aviation (taxed at $0.219) → $0.175/gal (CRN 355)
- 3b: Commercial aviation (taxed at $0.244) → $0.200/gal (CRN 417)
- 3c: Nonexempt use in noncommercial aviation → $0.025/gal (CRN 418)
- 3d: Other nontaxable uses (taxed at $0.244) → $0.243/gal (CRN 346)
- 3e: Other nontaxable uses (taxed at $0.219) → $0.218/gal (CRN 369)
- 3f: LUST tax on aviation fuels in foreign trade → $0.001/gal (CRN 433)
Line 4 – Gasoline
- 4a: Nonprofit educational organization → $0.183/gal (CRN 362)
- 4b: State/local government → $0.183/gal
Line 5 – Aviation Gasoline
- 5a: Nonprofit educational organization → $0.193/gal (CRN 324)
- 5b: State/local government → $0.193/gal
Lines 6 & 7 — Detailed buyer information (TIN, name, gallons) for government and nonprofit claims on specified lines.
Key certification: Fuel must show no visible dye (attach explanation if dyed). For most lines, buyers must provide Model certificates or waivers from Pub. 510 (e.g., Model P for government undyed fuel, Model N for buses).
Step-by-Step: How to Complete Schedule 2 (Form 8849)?
- Download and prepare — Use the latest PDF from IRS.gov. Attach only to a separate Form 8849 (do not combine with other schedules).
- Header information:
- Name and EIN (must match Form 8849)
- Total refund (sum of all column (c))
- Period of claim (MMDDYYYY from/to — at least 1 week for most diesel/kerosene claims)
- Registration number and type (UV/UB/UP/UA)
- Complete applicable lines — Fill rate, gallons, amount, and CRN. Check the dyed-fuel box and attach explanation if needed.
- Lines 6 or 7 — List every government unit or nonprofit with TIN, name, and gallons (attach extra sheets if needed).
- Certifications — Sign the built-in statements confirming certificates/waivers, no credit-card purchases where prohibited, and accurate information.
- Attach supporting documents — Keep certificates/waivers on file (do not mail unless requested), but be prepared to provide them.
Filing Deadlines, Minimums, and Methods (2026)
Paper filing:
- Mark envelope clearly: “Registered Ultimate Vendor Claim”
- Mail to: Internal Revenue Service, P.O. Box 312, Covington, KY 41012-0312
- Deadline: Last day of the first quarter following the earliest quarter in your claim period (calendar-year example: September–October sales → file by December 31).
Minimum claim amounts (combine lines 1–5 where allowed):
- $200 for diesel/gasoline claims
- $100 for kerosene claims
If you miss the 1-week or minimum thresholds, see “Annual Claims” rules in Form 8849 instructions.
E-filing (recommended for speed):
- IRS accepts electronic Form 8849 with Schedule 2 via approved MeF providers.
- Refunds process in approximately 20 days after acceptance (vs. longer paper timelines).
Common Mistakes to Avoid
- Missing or expired buyer certificates/waivers
- Claiming fuel sold via government/nonprofit credit cards
- Filing multiple schedules on one Form 8849
- Incorrect registration number or type
- Forgetting Lines 6/7 buyer details
- Using outdated pre-December 4, 2020 PDF (CRN 1b was corrected to 350)
Always cross-check the latest Form 8849 instructions and Pub. 510 (Excise Taxes) on IRS.gov.
Related Schedules on Form 8849
| Schedule | Purpose | When to Use Instead of Schedule 2 |
|---|---|---|
| Schedule 1 | Nontaxable use by ultimate purchasers | You are the end user, not the vendor |
| Schedule 3 | Biodiesel/renewable diesel/alternative fuel mixtures | Biofuel credits |
| Schedule 5 | Prior tax paid on same fuel | Double taxation relief |
| Schedule 6 | Other excise claims | Non-fuel claims |
| Schedule 8 | Credit card issuer sales to governments/nonprofits | Credit-card purchases |
Where to Get the Latest Official Resources (2026)?
- Main form & Schedule 2: irs.gov/forms-pubs/about-form-8849
- Schedule 2 PDF: irs.gov/pub/irs-pdf/f8849s2.pdf
- Form 8849 instructions & Pub. 510: Search IRS.gov/Form8849
- E-file providers: IRS 8849 MeF Approved List
- Registration: Form 637 instructions
Important Disclaimer: This guide summarizes official IRS information as of February 2026 for educational purposes. Tax rules can change, and individual circumstances vary. Always verify with the latest IRS publications or consult a qualified tax professional or excise tax advisor before filing. Incorrect claims may delay refunds or trigger audits.
By following this guide and using the official December 2020 Schedule 2 (with CRN correction), registered ultimate vendors can efficiently claim their excise tax refunds on exempt fuel sales. Download the form today and ensure your documentation is complete for the fastest possible processing.
For questions specific to your situation, visit IRS.gov or contact the IRS Excise Tax line. Accurate filing means faster refunds—get it right the first time with this comprehensive resource.