IRS Releases Rules for Claimants of Biodiesel and Alternative Fuel Credits: Notice 2018-21 provides rules implementing portions of the Bipartisan Budget Act of 2018, Pub. L. 115–123 that claimants must follow to make a one-time claim for payment of the credits and payments allowable under sections 6426(c), 6426(d), and 6427(e) for biodiesel (including renewable diesel) mixtures and alternative fuels sold or used during calendar year 2017. The notice also provides instructions for how a claimant may offset its section 4081 liability with the section 6426(e) alternative fuel mixture credit for 2017, as well as instructions for how a claimant may make certain income tax claims relating to biodiesel, second generation biofuel, and alternative fuel. In addition, the notice provides a temporary modified safe harbor for semimonthly deposits of the oil spill liability tax imposed by section 4611, which was reinstated effective March 1, 2018.
Miscellaneous Guidance: Revenue Ruling 2018-7 announces the rates of interest on overpayments and underpayments of tax for the second calendar quarter of 2018, beginning April 1. The interest rates will be 5% for overpayments (4% in the case of a corporation), 2.5% for the portion of a corporate overpayment exceeding $10,000, 5% for underpayments, and 7% for large corporate underpayments.