- 8 - product of the number of gallons of gasoline so used multiplied by the rate at which tax was imposed on such gasoline by section 4081. (2) Limitation in case of nonscheduled intercity or local buses.--Paragraph (1)(A) shall not apply in respect of gasoline used in any automobile bus while engaged in furnishing transportation which is not scheduled and not along regular routes unless the seating capacity of such bus is at least 20 adults (not including the driver). Petitioners argue that they would be entitled to a payment under section 6421(b)(1)(A) and therefore entitled to claim an income tax credit under section 34(a)(2). Respondent contends that petitioners do not meet the requirements for claiming a payment under section 6421(b)(1)(A). There are three essential elements to a claim for payment under section 6421(b)(1)(A) in situations (like this one) where the seating capacity of each vehicle is fewer than 20 adults. A taxpayer must establish that the excise tax was paid on gasoline (1) used in an automobile bus, (2) while engaged in furnishing (for compensation) passenger land transportation available to the general public, and (3) which was scheduled along regular routes. See sec. 6421. We shall address these elements separately. II. “Automobile Bus” Requirement Petitioners argue that the vans and 4-door sedans used to transport passengers qualify as “buses”. Whether a sedan or vanPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011