Information Release

XT 2001-05  - Habitual Filing Problems - May 25, 2001

Each month when reviewing motor fuel tax returns, habitual errors and mistakes are discovered that hamper our processing of the returns. Please carefully review the following issues. If necessary, correct any of the problems that may affect your return.

FILING OF RETURN

The tax return (and supporting schedules and recaps) must be filed and paid on or before the last day of the month following the report period. Those taxpayers who pay by electronic funds transfer (EFT) must ensure that even though payment may be made timely, the return must also be submitted timely.

SUBTOTALING OF SUPPLIERS/PURCHASERS

You are required to list each receipt of fuel on a separate line and group like suppliers (suppliers with the same FEIN) together and provide a gallonage subtotal by supplier. You are also required to list each disbursement of fuel on a separate line and you must group like purchasers (purchasers with the same FEIN) together and provide a gallonage subtotal by purchaser. See instructions on the back of the receipt and disbursement schedules.

COMPLETING SCHEDULE 3

When reporting fuel imported into Ohio (schedule 3), you must provide the city and state point of origin (column 4) of the fuel. It is also imperative that like states be grouped together and subtotaled by state of origin See instructions on the back of the receipt schedule.

COMPLETING SCHEDULE 7

When exporting fuel out of Ohio, you must report each export on schedule 7. A separate export schedule, in duplicate, must be submitted for each destination state and submit a duplicate schedule 7 for each destination state. The duplicate copy is sent to the destination state as indicated on the export schedule. See instructions on the back of the disbursement schedule.

BOOK ADJUSTMENT

Book adjustments should only be reported on schedules 2 and 6. Please use the following format for reporting book adjustments: Receipts Schedule (schedule type 2). In column 3, report "BA". In column 5, report "From product type _____" (the blank would be filled in with the product type number). In column10, report the total gallons transferred for the month. Disbursements Schedule (schedule type 6). In column 3, report "BA". In column 6, report "To product type _____" (the blank would be filled in with the product type number). In column 11, report the gallons transferred for the month.

Do not report book adjustments on any schedules other than 2 or 6.

WHOLE GALLONS

Do not use fractions of gallons when reporting gallonage figures. Use whole gallons only for returns, recaps and schedules.

DATE RECEIVED/DATE SHIPPED

When completing column 7 on the "receipt schedule" (form MF-2-1), you must use the date you received the product, not the invoice date. When completing column 8 on the "disbursement schedule" (form MF-2-2), you must use the date you shipped the product, not the invoice date. See instructions on the back of the receipt and disbursement schedules.

REPORTING NUMBER 1 DISTILLATE PRODUCTS

Much confusion has been created by the recent changes in federal law as it relates to dyed and undyed kerosene. This is a reminder that for Ohio reporting purposes, all number 1 product (kerosene) that is dyed should be reported under product code 227 (low sulfur dyed). DO NOT report dyed number 1 product under product code 142 (kerosene). All number 1 product that is undyed or clear (this includes K-1 kerosene and aviation jet fuel) should be reported under product code 142.

DOCUMENT NUMBER

The document number to be reported in column 8 on the receipt schedule (form MF-2-1) or column 9 on the disbursement schedule (form MF-2-2) is the bill of lading number if the product is picked up at a terminal. If the product is picked up from a location other than a terminal, the document number to be reported is the invoice number See instructions on the back of the receipt and disbursement schedules.

The privilege of being a licensed motor fuel dealer has certain obligations and requirements. These obligations and requirements include the filing of accurate and concise returns, schedules and recaps. Dealers who continually file incomplete, inaccurate or false returns are subject to revocation of their motor fuel dealer’s license. If you have any questions about this release or would like to discuss your filing requirements, please contact the Motor Fuel Tax Compliance Unit at (614) 466-3503.