[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR48.6420-6]

[Page 213-214]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 48_MANUFACTURERS AND RETAILERS EXCISE TAXES--Table of Contents
 
    Subpart O_Refunds and Other Administrative Provisions of Special 
            Application to Retailers and Manufacturers Taxes
 
Sec. 48.6420-6  Records to be kept in substantiation of credits or payments.

    (a) In general. Every person making a claim for credit or payment 
under section 6420 must keep records sufficient to enable the district 
director to determine whether the person is entitled to credit or 
payment under section 6420 and, if so, the amount of the credit or 
payment. No particular form is prescribed for keeping the records, but 
the records must include a copy of the income tax return or claim and a 
copy of any statement or document submitted with the return or claim. 
The records must also show with respect to the taxable year covered by 
the claim--
    (1) The number of gallons of gasoline purchased and the dates of 
purchase,
    (2) The name and address of each vendor from whom gasoline was 
purchased and the total number of gallons purchased from each,
    (3) The number of gallons of gasoline purchased by the claimant and 
used during the taxable year for farming purposes on a farm of which the 
claimant is the owner, tenant, or operator,
    (4) The number of gallons of gasoline used during the taxable year 
for the purposes described in section 6420(c)(3)(A) and Sec. 48.6420-
4(d) (relating to cultivating, raising, or harvesting) by a person other 
than the owner, tenant, or operator on a farm of which the claimant is 
the owner, tenant, or operator, and
    (5) Other information as necessary to establish the correctness of 
the claim.
    (b) Acceptable records. (1) Evidence of purchases of gasoline, and 
the purposes for which it was used, to substantiate claims may include 
paid duplicate sales invoices or tickets from the gasoline dealer or 
other vendor, and detailed records of all fuel used which show the 
amount consumed on a farm

[[Page 214]]

for farming purposes and the amount used for other purposes.
    (2) Records maintained for Federal or State income tax purposes, or 
to support claims for refund of a State tax on gasoline, may be used to 
the extent that they contain the information necessary to substantiate 
the accuracy of the claim for credit under section 6420. However, the 
records must show separately the number of gallons of gasoline used on a 
farm for farming purposes.
    (3) If trucks or other vehicles are used both on and off the farm, 
an allocation of gasoline used in the vehicle will be required to show 
separately the number of gallons of gasoline used on a farm for farming 
purposes in respect of which the claim is made.
    (4) If the owner, tenant, or operator is entitled under section 
6420(c)(4)(A) to claim credit or payment in respect of gasoline used on 
the person's farm by another person other than an owner, tenant, or 
operator of the farm for a purpose described in section 6420(c)(3)(A) 
and Sec. 48.6420-4(d), the claimant must have records showing (i) the 
name and address of the person who performed the farming operation, (ii) 
a description of the type of work (such as plowing, threshing, 
combining, etc.) and the type of equipment used, (iii) the date or dates 
on which the work was done, and (iv) the number of gallons of gasoline 
so used on the claimant's farm.
    (c) Place and period for keeping records. (1) All records required 
by this section must be kept by the claimant at a convenient and safe 
location within the United States which is accessible to internal 
revenue officers and shall during normal business hours be available for 
inspection by internal revenue officers. If the claimant has a principal 
place of business in the United States, the records must be kept at that 
place of business.
    (2) Records required to substantiate a claim under section 6420 must 
be maintained for a period of at least 3 years from the last date 
prescribed for the filing of the claim for credit or payment.

[T.D. 8043, 50 FR 32038, Aug. 8, 1985]