It's time to be thinking about filing for your tax refund for last year's diesel fuel purchases.

As much as 17 cents of every gallon of qualified diesel fuel you purchased for your full-size coaches last year can go back into your pocket -- if you are an eligible operator.

The 17 cents represents that portion of the 24.4 cents per gallon in federal excise taxes that Congress says coach companies can recapture. The remaining 7.4 cents per gallon stays with Uncle Sam.

Although this article refers to the 17 cents per gallon as a refund, the IRS calls it a tax credit, which you may collect in cash.

The Internal Revenue Service forms that must be filed to claim the 17 cents per gallon refund have not changed in recent years. Form 4136 is used for full-year and fourth-quarter refunds, and Form 8849 is used for claiming any cumulative refund of more than $750 through the first three quarters of the year.

Remember, Form 8849 can only be used for refunds due from the first three tax quarters; you must use Form 4136 for fourth-quarter and full-year refunds.

Lastly, Form 720 is used if you must pay the IRS taxes due for fuel you purchased tax-free (red-dyed fuel) during the year. The submissions must be sent to the IRS Cincinnati Service Center, P.O. Box 12267, 201 W. Rivercenter Blvd., Covington, KY 41019.

Tax codes, forms

Here are the applicable Tax Code citations, definitions and guidelines for the fuel tax refund:

The federal excise tax on a gallon of diesel fuel is 24.4 cents. Tax Code §6427(b) allows qualified commercial operators to claim a tax credit (which you may receive in cash) of 17 cents per gallon.

If you operate under a contract for a fully tax-exempt entity (school district or municipality), you may be eligible for the return of all 24.4 cents. Have your accountant check.

A "qualified" local or intercity bus, in terms of this federal provision, is any (a) diesel-powered vehicle, (b) designed with a seating capacity of at least 20 adults (excluding the driver), and (c)operated for compensation and available to the general public.

You may benefit by filing a Form 637 with the IRS, pre-identifying your company as a qualified tax-reduced buyer. Ask your accountant to advise you.

You also should be eligible to receive a refund of the 10 percent federal excise tax on tires. Successfully filing of Form 637 may allow you to avoid paying this tax at the time of tire purchases.

To file for unclaimed refunds for as many as three years past, it is recommended that you use IRS Form 1120X, the amended business tax form. Be sure you have supporting receipts on file.

Some state fuel taxes may be refundable. Check with your state or one of the commercially available state guides. Do not expect to capture state fuel tax refunds through the International Fuel Tax Agreement system. Funds are processed directly by each state.

Help through the Net

The IRS Web site, www.irs.gov, provides easy access to printable tax forms, instructions and lots of guidance. Virtually every form is there in printable form, using Adobe Acrobat. The Acrobat file reader is available as a free download, using a link provided on the IRS Web site.

t is strongly suggest you get a copy of IRS Publication 510, Excise Taxes. It is available from your accountant, most governmental tax form repositories and on the IRS Web site.

One final note: Not many accountants are expert in the motorcoach industry. Many accountants who encounter the fuel tax refund for the first time will question your ability to qualify. Photocopy this article and share it with your accountant.