IRS Form 8849 (Schedule 5) – If you’ve paid federal excise tax twice on the same batch of taxable fuel—such as gasoline, diesel fuel, or kerosene—under IRC Section 4081, you may qualify for a refund of the “second” tax. IRS Form 8849 Schedule 5 (Section 4081(e) Claims) is the official way to claim that refund. This schedule attaches directly to Form 8849, Claim for Refund of Excise Taxes.
Businesses in the fuel supply chain, especially taxable fuel registrants and terminal position holders, commonly use this form. This comprehensive, SEO-optimized guide draws exclusively from official IRS sources (including the latest Form 8849 pages, Schedule 5 PDF, Publication 510, and Announcement 2026-01) to explain eligibility, filing steps, required documentation, deadlines, and 2026 updates.
What Is Section 4081(e) and Why Does It Matter?
IRC Section 4081 imposes excise tax on taxable fuels at multiple points in the supply chain (e.g., removal from a refinery or terminal, entry into the U.S., or sale by a registrant). When the same fuel incurs tax more than once and both taxes are paid and reported to the IRS on Form 720, Section 4081(e) allows a refund of the second tax paid.
Key conditions (per Pub. 510 and Schedule 5 instructions):
- The first tax must have been paid to the government and not credited or refunded elsewhere.
- The claimant (second taxpayer) must certify that the second tax amount was not included in the fuel’s selling price and was not collected from the purchaser.
- No interest is paid on the refund.
This prevents double taxation on the same fuel without allowing credits against other liabilities. It applies to fuels listed in Part I of Schedule 5.
Download the official form: Schedule 5 (Form 8849) PDF (Rev. January 2006) — the version currently linked on IRS.gov for Section 4081(e) claims (as of February 2026). A draft Rev. March 2026 exists but is not for filing.
Who Qualifies to File Schedule 5?
Only the person who reported and paid the second tax on Form 720 can file. Typical filers include:
- Taxable fuel registrants (Form 637 registrants)
- Position holders at approved terminals
- Owners/importers who incur a second taxable event
Note: Ultimate purchasers (e.g., farmers, off-highway users) generally use Schedule 1 instead. Registered ultimate vendors use Schedule 2. This schedule is not for nontaxable uses or mixture credits (those go on Schedules 1 or 3).
Eligible Fuels and Credit Reference Numbers (CRNs)
Schedule 5 (Part I) covers these fuels with their associated CRNs (from current form and Pub. 510):
| Line | Type of Fuel | CRN |
|---|---|---|
| 1 | Gasoline | 362 |
| 2 | Aviation gasoline | 324 |
| 3 | Diesel fuel | 360 |
| 4 | Kerosene | 346 |
| 5 | Diesel-water fuel emulsion | 309 |
| 6 | Dyed diesel fuel, dyed kerosene, and other exempt removals (for 4081(e)) | 303 |
| 7 | Kerosene for use in aviation | 369 |
| 8 | Kerosene for use in commercial aviation (other than foreign trade) | 355 |
2026 Update (Draft Only): The March 2026 draft adds lines 9–10 for new Section 6435 dyed fuel claims (CRNs 472 and 473) under Announcement 2026-01. These allow recovery of tax on clear diesel/kerosene later removed as dyed for nontaxable use—but do not file these yet. The IRS cautions that authority is limited to the original taxpayer who paid the first tax. Use only the current 2006 Schedule 5 for standard 4081(e) claims.
Step-by-Step: How to Complete Schedule 5?
- Complete Form 8849 header — Enter your name, EIN, and claimant’s registration number (if registered).
- Part I (Claim for Refund or Payment of Tax):
- List each fuel type.
- Enter the total claim amount in column (a) and corresponding CRN in column (b).
- Check the box for “Section 4081(e) claims” (complete Part II).
- Part II (Supporting Information):
- For each claim: Enter line number from Part I, date second tax liability incurred (MMDDYYYY), gallons claimed, and amount of second tax paid.
- Total all amounts and carry to Form 8849.
- Certifications (printed on the form):
- Second tax not included in price or collected from purchaser.
- Attached First Taxpayer’s Report (and Statement of Subsequent Seller if applicable).
Attach to Form 8849 — Do not file Schedule 5 with any other schedule.
Required Documentation (Critical for Approval)
You must attach:
- A copy of the First Taxpayer’s Report (Model Certificate B in Pub. 510 Appendix B) — prepared by the first taxpayer and filed with their Form 720.
- If the fuel passed through intermediate sellers: A copy of the Statement of Subsequent Seller (Model Certificate A).
These documents prove the first tax was paid and reported. Keep originals in your records. See Pub. 510 (December 2025 edition) for full model certificates and examples.
Example (from Schedule 5 instructions): A registrant sells gasoline to a non-registrant (provides First Taxpayer’s Report), who sells to another registrant (provides Statement of Subsequent Seller). The second registrant pays the second tax upon terminal removal and files Schedule 5 with the supporting reports for a full refund of the second tax.
Filing Deadlines and Processing
- Deadline: Within 3 years from the date you filed the Form 720 reporting the second tax, or 2 years from the date you paid the second tax—whichever is later.
- Paper Filing Address (for Schedule 5): Internal Revenue Service
P.O. Box 312
Covington, KY 41012-0312Write “Section 4081(e) Claim” clearly on the envelope (per Schedule 5 instructions). Use U.S. Postal Service only for P.O. boxes.
- E-Filing Option: IRS accepts electronic filing of Form 8849 with Schedule 5 through approved Modernized e-File (MeF) providers. Refunds for qualifying e-filed claims (including Schedules 1, 2, 3, 5, 6, 8) are often processed faster—typically within 20 days for certain schedules. Check the list of approved transmitters on IRS.gov.
Recent Developments (as of February 2026)
- Schedule 5 itself remains Rev. January 2006 for standard 4081(e) claims.
- Draft Schedule 5 (Rev. March 2026) introduces Section 6435 dyed fuel provisions per Announcement 2026-01—but do not file the draft. Monitor IRS.gov/Form8849 for the final version.
- Always reference the latest Publication 510 (Excise Taxes) for rates, exemptions, and model certificates.
- E-filing continues to expand for faster refunds.
Common Mistakes to Avoid
- Filing without the First Taxpayer’s Report or Statement of Subsequent Seller.
- Claiming as an ultimate purchaser (use Schedule 1 instead).
- Missing the “Section 4081(e) Claim” notation on the envelope.
- Including the claim on the wrong schedule or combining with non-4081(e) claims improperly.
- Filing before paying and reporting the second tax on Form 720.
- Claiming interest (none is allowed).
Resources
- Official IRS Page: About Form 8849
- Schedule 5 PDF (current): https://www.irs.gov/pub/irs-pdf/f8849s5.pdf
- Publication 510 (Excise Taxes): irs.gov/publications/p510
- E-File Providers: Search “8849 MeF providers” on IRS.gov
- Form 720 Instructions for reporting the second tax
Important Disclaimer: This guide is for informational purposes only and is based on current IRS publications as of February 2026. Tax rules can change. Consult a qualified tax professional or the IRS directly for your specific situation. Always download the latest forms and instructions from IRS.gov.
By following this guide and using proper documentation, eligible claimants can successfully recover the second Section 4081 tax. For questions on your specific fuel transactions, review Pub. 510 or contact the IRS Excise Tax line.
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