Aviation fuels used in foreign trade. . Aviation gasoline and kerosene for use in aviation are exempt from the leaking underground storage tank (LUST) tax.

Dyed diesel fuel used in trains. The train operator is no longer liable for the leaking underground storage tank (LUST) tax on dyed diesel fuel used in trains. IRS No. 71 has been removed from Form 720. The position holder of the dyed diesel fuel generally is liable for the LUST tax under IRS No. 105.

Inland waterways fuel use. Generally, the inland waterways fuel use tax is $.20 (IRS No. 64). However, the leaking underground storage tank (LUST) tax (IRS No. 125) must be paid on any liquid fuel used on inland waterways that is not subject to LUST tax under section 4041(d) or 4081. For example, gallons of Bunker C residual fuel oil must be reported under both IRS Nos. 64 and 125.

Use of international air travel facilities. The tax on use of international air travel facilities for amounts paid during 2008 is:

Domestic segment tax. For amounts paid for each domestic segment of taxable transportation of persons by air, the domestic segment tax is $3.50 per segment for transportation that begins in 2008.

Arrow shafts. The tax on arrow shafts sold during 2008 is $.43 per arrow shaft. See Arrow Shafts in chapter 5.

Disregarded entities and qualified subchapter S subsidiaries. After December 31, 2007, qualified subchapter S subsidiaries (QSubs) and eligible single-owner disregarded entities are treated as separate entities for excise tax and reporting purposes. QSubs and eligible single-owner disregarded entities must pay and report excise taxes (other than IRS Nos. 31, 51, and 117), register for excise tax activities, and claim any refunds, credits, and payments under the entity's employer identification number (EIN). These actions cannot take place under the owner's taxpayer identification number (TIN). Some QSubs and disregarded entities may already have an EIN. However, if you are unsure, please call the IRS Business and Specialty Tax line at 1-800-829-4933. Generally, QSubs and eligible single-owner disregarded entities will continue to be treated as disregarded entities for other federal tax purposes (other than employment taxes). Thus, taxpayers filing Form 4136, Credit for Federal Tax Paid on Fuels, with Form 1040, Individual Income Tax Return, can use the owner's TIN. For more information on these new regulations, see Treasury Decision (T.D.) 9356. You can find T.D. 9356 on page 675 of Internal Revenue Bulletin 2007-39 at www.irs.gov/pub/irs-irbs/irb07-39.pdf.

Wagering taxes. You can find the information in the instructions for Forms 730 and 11-C, as applicable.

Registration for certain activities. You are required to be registered for certain excise tax activities, such as blending of gasoline, diesel fuel, or kerosene outside the bulk transfer/terminal system. See the instructions for Form 637 for the list of activities for which you must register. Also see Registration Requirements under Fuel Taxes in chapter 1 for information on registration for activities related to fuel. Each business unit that has, or is required to have, a separate employer identification number must be registered. To apply for registration, complete Form 637 and provide the information requested in its instructions. If your application is approved, you will receive a Letter of Registration showing the activities for which you are registered, the effective date of the registration, and your registration number. A copy of Form 637 is not a Letter of Registration.

Imported products table. The imported products table can be found in Regulations section 52.4682-3(f)(6).

Qualified blood collector organizations. Qualified blood collector organizations are generally exempt from many federal excise taxes including the tax on fuels, tires, communication services, and for heavy vehicles.  Each blood collector organization must be registered by the IRS as a condition for applying for the exemption (or credit or payments).  To apply for registration, see Form 637, Application for Registration (For Certain Excise Tax Activities).

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

This publication covers the excise taxes for which you may be liable during 2008 and which are reported on Form 720. It also covers fuel tax credits and refunds.

In addition to the taxes discussed in this publication, you may have to report certain other excise taxes.

For tax forms relating to alcohol and tobacco, visit the Alcohol and Tobacco Tax and Trade Bureau website at www.ttb.gov.

Heavy Highway Vehicle Use Tax

You report the federal excise tax on the use of certain trucks, truck tractors, and buses used on public highways on Form 2290, Heavy Highway Vehicle Use Tax Return. The tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. Vans, pickup trucks, panel trucks, and similar trucks generally are not subject to this tax.

Note.   A Spanish version (Formulario 2290(SP)) and a French version (Formulaire 2290(FR)) and separate instructions for each are also available. See How To Get Tax Help in
chapter 15.

Registration of vehicles.   Generally, you must prove that you paid your heavy highway vehicle use tax to register your taxable vehicle with your state motor vehicle department or to enter the United States in a Canadian or Mexican registered taxable vehicle. Generally, a copy of Schedule 1 (Form 2290) is stamped by the IRS and returned to you as proof of payment.

  

If you have questions on Form 2290, see How To Get Tax Help in chapter 15, or you can call the Form 2290 call site at 1-866-699-4096 (toll free) from the United States, and 1-859-669-5733 (not toll free) from Canada and Mexico. The hours of service are 8:00 a.m. to 6:00 p.m. Eastern time.