Privacy Act and Paperwork Reduction Act Notice.

We ask for the information on these forms in order to carry out the Internal Revenue laws of the United States. Section 4101 and its regulations require you to file an information return with the IRS. Forms 720-TO and 720-CS are used to report the information. Section 6109 requires you to provide your taxpayer identification number. Routine uses of tax information include giving it to the Department of Justice for civil and criminal litigation, and to cities, states, and the District of Columbia for use in administering their tax laws. If you fail to provide this information in a timely manner, you may be subject to penalties.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.

The time needed to complete and file these forms will vary depending on individual circumstances. The estimated average times are:

Form	Recordkeeping	Learning about the law or the form	Preparing and sending the form to the IRS
720-TO	18 hr., 52 min.	30 min.	49 min.
720-CS	12 hr., 25 min.	30 min.	43 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can write to the Tax Forms Committee, Western Area Distribution Center, Rancho Cordova, CA 95743-0001. Do not send the tax form to this address. Instead, see Where To File on page 1.

General Instructions

These instructions are for paper filers. See Pub. 3536, Excise Tax EDI Guide, for the electronic reporting instructions.

Purpose of Forms

Form 720-TO is an information return that will be used by terminal operators to report their monthly receipts and disbursements of liquid products.

Form 720-CS is an information return that will be used by carriers to report their monthly receipts and disbursements of liquid products.

A liquid product is any liquid that is transported into storage at a terminal or delivered out of a terminal. See the product code table on page 5.

When To File

Form 720-TO and 720-CS must be filed monthly. The report is due the last day of the month following the month in which the transaction occurs. The first month for reporting is April, 2001, and must be filed by May 31, 2001.

If any due date for filing a return falls on a Saturday, Sunday, or legal holiday, you may file the return on the next business day.

Send your return to the IRS using the U.S. Postal Service or a designated private delivery service to meet the timely mailing as timely filing/paying rule. See Private Delivery Services below.

Where To File

Mail Forms 720-TO and 720-CS to the Internal Revenue Service Center, Cincinnati, OH 45999. Send the forms to the IRS in a flat mailing (not folded). Do not staple, tear, or tape any of these forms. If you are sending many forms, you may send them in conveniently sized packages. On each package, write your name and EIN and number the packages consecutively. Postal regulations require forms and packages to be sent by First-Class Mail.

How To Complete Forms 720-TO and 720-CS

Below are suggestions that will allow the IRS to process the submitted forms in the most economical manner:

1. If you need additional forms or schedules, you may use photocopies.
2. Although handwritten forms are acceptable, the IRS prefers that you type or machine print data entries using 10 pitch (pica) or 12 pitch (elite) black type. Use block print, not script characters. Insert data in the middle of the blocks well separated from other printing and guidelines, and take other measures to guarantee a dark black, clear, sharp image.
3. Do not enter 0 (zero) or None in data entry boxes when no entry is required. Leave the boxes blank unless the instructions specifically require that you enter a 0 (zero).

Extension of Time To File

You may request an extension of up to 30 days to file a return. Explain the cause of the delay fully and send your request to the Internal Revenue Service Center, Cincinnati, OH 45999.

Corrected Returns

If you filed a return with the IRS and later discover you made an error, you must correct it as soon as possible. If you filed your return electronically, see Pub. 3536 for instructions.

When making a correction to a paper filed return, you must send in the first page of Form 720-TO or 720-CS and the schedule(s) that needs to be corrected with the Void box checked. Identify the transaction you are correcting, either by highlighting or attaching an explanation. Then, complete another first page of Form 720-TO or 720-CS along with the corrected schedule(s) with the Corrected box checked. On the corrected schedule(s), only enter the information for the transaction you are correcting.

Recordkeeping

Keep copies of information returns you have filed with the IRS or the data to reconstruct for at least 3 years from the date of the return. Your records must be available at all times for inspection by the IRS.

Penalty

Failure to file correct information returns by the due date.   If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also applies if you report an incorrect employer identification number (EIN) or fail to report an EIN where required.

Private Delivery Services

You can use certain private delivery services designated by the IRS to meet the timely mailing as timely filing/paying rule for tax returns and payments. The most recent list of designated private delivery services was published by the IRS in August 1999. This list includes only the following:

• Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, Second Day Service.
• DHL Worldwide Express (DHL): DHL Same Day Service, DHL USA Overnight.
• Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day.
• United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M.

The private delivery service can tell you how to get written proof of the mailing date.

How To Get Forms and Publications

Personal Computer

You can access the IRS Web Site 24 hours a day, 7 days a week at www.irs.gov to:

• Download forms, instructions, and publications.
• See answers to frequently asked tax questions.
• Search publications on-line by topic or keyword.
• Send us comments or request help by e-mail.
• Sign up to receive local and national tax news by e-mail.

You can also reach us using file transfer protocol at ftp.irs.gov.

CD-ROM

Order Pub. 1796, Federal Tax Products on CD-ROM, and get:

• Current year forms, instructions, and publications.
• Prior year forms, instructions, and publications.
• Popular tax forms that may be filled in electronically, printed out for submission, and saved for recordkeeping.
• The Internal Revenue Bulletin.

Buy the CD-ROM on the Internet at www.irs.gov/cdorders from the National Technical Information Service (NTIS) for $21 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) to buy the CD-ROM for $21 (plus a $5 handling fee).

Phone

You can get forms, publications, and automated information 24 hours a day, 7 days a week, by phone. Call 1-800-TAX-FORM (1-800-829-3676) to order current and prior year forms, instructions, and publications. You should receive your order within 10 days.

Walk-in

You can pick up some of the most requested forms, instructions, and publications at many IRS offices, post offices, and libraries. Some IRS offices, libraries, grocery stores, office supply stores, and copy centers have an extensive collection of products available to photocopy or print from a CD-ROM.

Unresolved Tax Problems

If you have attempted to deal with an IRS problem unsuccessfully, you should contact the Taxpayer Advocate. The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels.

While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review.

Your assigned personal advocate will listen to your point of view and will work with you to address the concerns. You can expect the advocate to provide:

• A "fresh look" at a new or on-going problem.
• Timely acknowledgment.
• The name and phone number of the individual assigned to your case.
• Updates on progress.
• Timeframes for action.
• Speedy resolution.
• Courteous service.

When contacting the Taxpayer Advocate, you should provide the following information:

• Your name, address, and employer identification number.
• The name and telephone number of an authorized contact person and the hours he or she can be reached.
• The type of tax return and year(s) involved.
• A detailed description of the problem.
• Previous attempts to solve the problem and the office that had been contacted.
• A description of the hardship you are facing (if applicable).

You may contact a Taxpayer Advocate by calling a toll-free number, 1-877-777-4778. Persons who have access to TTY/TDD equipment may call 1-800-829-4059 and ask for Taxpayer Advocate assistance. If you prefer, you may call, write, or fax the Taxpayer Advocate office in your area. See Pub. 1546, The Taxpayer Advocate Service of the IRS, for a list of addresses and fax numbers.

Specific Instructions

Name and Address

Include the suite, room, or other unit number after the street address.

P.O. Box

If the Post Office does not deliver mail to the street address and you have a P.O. box, show the box number instead of the street address.

Foreign Address

Enter the information in the following order: city, province or state, and country. Follow the country's practice for entering the postal code. Do not abbreviate the country's name.

Contact Information

Enter the name, daytime telephone number, fax number, and e-mail address for the person who has information about this information return.

Identification Numbers

Employer Identification Number (EIN)

Enter your EIN. If you do not have an EIN, use Form SS-4, Application for Employer Identification Number, to apply for one. You can get this form at Social Security Administration offices or by calling 1-800-TAX-FORM (1-800-829-3676). You can ask for an EIN by calling the tele-TIN phone number for your service center listed in the instructions for Form SS-4. If you do not have your EIN by the time you must file your information return, enter Applied for in any space where your EIN must be entered.

Form 637 Registration Number

Enter the assigned IRS number. If you do not have a registration number, use Form 637, Application for Registration (For Certain Excise Tax Activities). Form 637 has information on how to apply for a registration number.

Carrier and Consignor Names and EINs

EINs are used to associate and verify transactions you report to the IRS. Therefore, it is important that you furnish correct names and EINs for carriers and consignors on the forms sent to the IRS.

Use Form W-9, Request for Taxpayer Identification Number, to request the EIN. You may be subject to a penalty for an incorrect or missing EIN on an information return. See Penalty on page 1. You are required to maintain the confidentiality of information obtained on a Form W-9 relating to the taxpayer's identity and you may use such information only to comply with the tax laws.

Note:   Foreign persons cannot use Form W-9 to furnish their taxpayer identification number. Instead, they must use the appropriate Form W-8. See the Instructions for the Requester of Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY.

Signature

Form 720-TO and Form 720-CS must be signed by a person who has authority to sign for the taxpayer.

Terminal Operator Report, Form 720-TO

Purpose of Form

Use Form 720-TO to report receipts and disbursements of all liquid products to and from all approved terminals.

Definitions

Terminal means a taxable fuel storage and distribution facility that is supplied by pipeline or vessel and from which taxable fuel may be removed at a rack. However, the term does not include any facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline and from which no gasoline is removed. Also, the term does not include any facility where finished gasoline, undyed diesel fuel, or undyed kerosene is stored if the facility is operated by a taxable fuel registrant and all such taxable fuel stored at the facility has been previously taxed under section 4081 upon removal from a refinery or terminal.

Approved terminal means a terminal that is operated by a taxable fuel registrant that is a terminal operator.

Position holder means (for IRS information reporting only), with respect to a liquid product in a terminal, the person that holds the inventory position in the liquid product as reflected on the records of the terminal operator. A person holds the inventory position in a liquid product when that person has a contractual agreement with the terminal operator for the use of storage facilities and terminaling services at a terminal with respect to the liquid product. The term also includes a terminal operator that owns a liquid product in its terminal.

Net gallons means liquid product measured in U.S. gallons corrected to a temperature of sixty-degrees (60°) Fahrenheit or fifteen-degrees (15°) Celsius and to a pressure of fourteen and seven-tenths (14.7) pounds per square inch (psi).

Gross gallons means the total product measured in U.S. gallons without temperature or barometric adjustments.

Consignor means the person that hires the carrier to transport liquid product.

Who Must File

Each terminal operator is required to file a separate Form 720-TO for each approved terminal.

Part II - Terminal

Name and location of terminal.   Enter the name and location of the terminal as published in the Federal Register for that terminal. The list of terminals is also available on the IRS Web Site at www.irs.gov. Click on "Tax Info For Business," then click on "Excise Tax," and then click on "Terminal Control Number (TCN) Database."

Terminal control number (TCN).   Enter the TCN assigned to the terminal's physical location by the IRS. Follow the instructions above to access the IRS Web Site and the "Terminal Control Number (TCN) Database." The instructions on the web page will tell you how to retrieve the TCN you need.

Part III - Transactions for the Month

Part III is for the terminal operator to provide a monthly summary of the terminal receipts and disbursements by product code.

Line 1.   Enter the physical inventory of net gallons by product code at the beginning of the reporting period. This should be the same number as reported for actual ending inventory the previous month.

Line 2.   If you have more than one Schedule A, Terminal Operator Receipts, for a product code, combine the totals from each column (f) for the product code and enter the total on line 2.

Line 4.   If you have more than one Schedule B, Terminal Operator Disbursements by Position Holder, for a product code, combine the totals from each column (g) for the product code and enter the total on line 4.

Line 6.   Enter all gains and losses by product code. The amount entered on line 6 will show any difference, plus or (minus), between lines 5 and 7.

Line 7.   Enter the actual physical ending inventory at the terminal.

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