n-05-24.pdf

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Part III - Administrative, Procedural, and Miscellaneous

Modification of Notice 2005-04

Notice 2005-24
Section 1. PURPOSE
This notice modifies Notice 2005-4, 2005-2 I.R.B. 289, by extending the
transitional rule related to sales of gasoline on oil company credit cards and by making
several corrections to Notice 2005-4. Notice 2005-4 provides guidance on certain
excise tax provisions in the Internal Revenue Code that were added or affected by the
American Jobs Creation Act of 2004 (Pub. L. 108-357) (Act).
Section 2. GASOLINE; SALES ON OIL COMPANY CREDIT CARDS
Section 7 of Notice 2005-4 provides guidance on § 6416(a)(4), as amended by
the Act. Section 7(a)(1)(ii) provides that the pre-2005 rules relating to sales of gasoline
to state and local governments and nonprofit educational organizations on oil company
credit cards issued to those entities will generally apply to sales before March 1, 2005.
The notice also states that Congress may wish to address this issue before March 1,

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2005, and that Treasury and the Service would assist Congress in designing an
administrable alternative.
In a February 25, 2005, letter to Treasury, the chairman and ranking member of
the Finance Committee and the chairman of the Ways and Means Committee noted that
the conferees to the Act removed language from the bill that would have changed the
administration of refund claims for gasoline sales charged on a credit card. They further
noted that the intent of the conferees in removing this language was “to retain the pre-
JOBS Act treatment of these claims and not to effect any changes with respect to sales
on oil company credit cards.” The letter also notes that, if Treasury concludes that a
technical correction is needed to preserve the rules in effect prior to 2005, the
signatories “will facilitate the enactment of such technical legislation at the earliest
opportunity.”
Treasury and the Service believe that it would be appropriate to continue to apply
the oil company credit card rule until Congress has had an opportunity to address the
issue. Accordingly, the oil company credit card rule will remain in effect until modified
by a statutory change or by future guidance on this issue.
Section 3. CORRECTIONS TO NOTICE 2005-4
(a)
Aviation-grade kerosene; certificate for commercial aviation and exempt use.
In § 4(g)(2), which contains a model certificate for persons buying aviation-grade
kerosene for commercial aviation or nontaxable use, “___ for export;” is removed from
the list in the certificate of possible uses of the aviation-grade kerosene to which the
certificate relates.

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(b) Aviation-grade kerosene; claims by registered ultimate vendors (nontaxable
uses)--(i) In § 4(h)(6)(ii), which contains a model waiver for ultimate purchasers of
aviation-grade kerosene used in nontaxable uses, “___ for use on a farm for farming
purposes;” and “___ for the exclusive use of a state;” are removed from the list in the
waiver of possible uses of the aviation-grade kerosene to which the waiver relates. For
rules relating to claims by registered ultimate vendors of kerosene (including aviation-
grade kerosene) for farming and state use, see § 48.6427-9 of the Manufacturers and
Retailers Excise Tax Regulations.
(ii) In § 4(h)(6)(ii), “___ other nontaxable use (Describe nontaxable use) _____;”
is added to the waiver immediately before the last item in the list of possible uses of the
aviation-grade kerosene to which the waiver relates.
(c)
Gasoline; claims by registered ultimate vendors. In § 7(a)(1)(ii), first
sentence, the language “based on a price that excludes the tax” is removed and “based
on a price that includes the tax” is added in its place.
Section 4. EFFECT ON OTHER DOCUMENTS
Notice 2005-4 is modified as described in §§ 2 and 3 of this notice.
Section 5. EFFECTIVE DATE
This notice is effective January 1, 2005, the effective date of Notice 2005-4.
Section 6. DRAFTING INFORMATION
The principal authors of this notice are Susan Athy and Deborah Karet of the
Office of the Associate Chief Counsel (Passthroughs and Special Industries). For
further information regarding this notice, please contact Ms. Karet (concerning aviation-

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grade kerosene) or Ms. Athy (concerning all other issues) at (202) 622-3130 (not a toll-
free call).