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however, provides that “an aerial or other applicator of
fertilizers or other substances” who is the ultimate purchaser of
the gasoline will be treated as having used the gasoline on a
farm for farming purposes if the owner, tenant, or operator of
the farm “waives (at such time and in such form and manner as the
Secretary shall prescribe) his right to be treated as the user
and ultimate purchaser of the gasoline”.
Pursuant to the authority granted in section
6420(c)(4)(B)(ii), the Secretary prescribed section 48.6420-
4(l)(2), Manufacturers & Retailers Excise Tax Regs., which
provides:
To waive the right to be treated as user and ultimate
purchaser of gasoline which is used on a farm by an
aerial applicator or other applicator, the owner,
tenant, or operator of a farm who is otherwise entitled
to treatment as user and ultimate purchaser must
execute an irrevocable written agreement (as here
described) no later than the date on which the aerial
applicator or other applicator claiming the credit or
payment files its return for the taxable year in which
the gasoline is used. * * * The waiver may be in the
form shown under paragraph (l)(6) of this section or in
any other form that meets the requirements of this
paragraph and clearly states that the owner, tenant, or
operator of the farm knowingly waives the right to
receive the credit or payment. [Emphasis added.]
The agreement in which the owner, tenant, or operator of the
farm waives his right to receive a credit under section 6420 may
be a separate document or it may appear in the applicator’s
invoice for service or other document from the applicator to the
owner, tenant, or operator. See sec. 48.6420-4(l)(3),
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Last modified: May 25, 2011