[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: 26CFR48.6427-5]

[Page 227-228]
 
                       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. 48.6427-5  Records to be kept in substantiation of credits or payments.

    (a) In general. Every person making a claim for credit or payment 
under section 6427 must keep records sufficient to enable the district 
director to determine whether the person is entitled to credit or 
payment under such section 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 period covered by the 
claim--
    (1) The number of gallons of fuel purchased and the dates of 
purchase,
    (2) The name and address of each vendor from whom fuel was purchased 
and the total number of gallons purchased from each,
    (3) The number of gallons of fuel purchased by the claimant and used 
during the period covered by the claim for nontaxable purposes, farming 
purposes, for other purposes taxable at a lower rate, in local, 
intercity, or school buses, and
    (4) Other information as necessary to establish the correctness of 
the claim.
    (b) Acceptable records. (1) Evidence of purchases of fuel, and the 
purposes for which it was used, to substantiate claims may include paid 
duplicate sales invoices or tickets from the fuel

[[Page 228]]

dealer or other vendor, and detailed records of all fuel used which show 
the amount used the prescribed purpose 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 fuel, may be used to the 
extent that they contain the information necessary to substantiate the 
accuracy of the claim for credit under section 6427. However, the 
records must show separately the number of gallons of fuel used for 
nontaxable purposes, farming purposes, other purposes taxable at a lower 
rate, or in intercity, local, or school buses during the period covered 
by the claim.
    (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 6427 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 32049, Aug. 8, 1985]