| Instructions for Form 720 |
2006 Tax Year |
This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
The first time you file Form 720, type or print your name, address (including the suite, room, or other unit number), and
the quarter ending date
(month and year). After that, the IRS will mail you a Package 720 with a preaddressed Form 720 every quarter. If your address
changes, make the
corrections on Form 720 and check the address change box above Part I of Form 720.
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 city, province or state, and country. Follow the country's practice for entering the postal code. Do not
abbreviate the country name.
Employer Identification Number (EIN)
If the EIN on the preaddressed Form 720 is wrong or you did not receive a preaddressed Form 720, enter the correct number.
If you are a one-time
filer, you may not need an EIN. See Gas guzzler tax on page 6. If you do not have an EIN, you may apply for one online. Go to the IRS
website at
www.irs.gov/businesses and click on the “Employer ID Numbers” link. You may also apply for an EIN by
calling 1-800-829-4933 (hours of operation are Monday - Friday, 7:00 a.m. to 10:00 p.m. local time), or you can fax or mail
Form SS-4, Application for
Employer Identification Number, to the IRS.
Form 720 must be signed by a person authorized by the entity to sign this return.
If you want to allow an employee of your business, a return preparer, or other third party to discuss your Form 720 with the
IRS, check the
“Yes” box in the Third Party Designee section of Form 720. Also, enter the designee's name, phone number, and any five digits that
person chooses as his or her personal identification number (PIN).
By checking the “Yes” box, you are authorizing the IRS to speak with the designee to answer any questions relating to the processing of or the
information reported on
Form 720. You are also authorizing the designee to:
-
Exchange information concerning Form 720 with the IRS, and
-
Respond to certain IRS notices that you have shared with your designee relating to Form 720. The IRS will not send notices
to your designee.
You are not authorizing the designee to receive any refund check, bind you to anything (including additional tax liability),
or otherwise represent
you before the IRS. If you want to expand the designee's authority, see Publication 947, Practice Before the IRS and Power
of Attorney.
The authorization will automatically expire one year from the due date (without regard to extensions) for filing your Form
720. If you or your
designee want to revoke this authorization, send a written statement of revocation to the Internal Revenue Service Center,
Cincinnati, OH 45999. See
Publication 947 for more information.
Use Form 6627, Environmental Taxes, to figure the environmental taxes on:
-
Oil spill liability, IRS Nos. 18 and 21;
-
Ozone-depleting chemicals (ODCs), IRS No. 98;
-
Imported products that used ODCs as materials in the manufacture or production of the product, IRS No. 19; and
-
The floor stocks tax on ODCs, IRS No. 20.
Attach Form 6627 to Form 720. The tax rates for these taxes are shown on Form 6627.
The person receiving the payment for communications services must collect and pay over the tax and file the return. Enter
the amount of tax
collected or considered collected for the quarter.
Communications Services (IRS No. 22)
The tax is 3% of amounts paid for local telephone service and teletypewriter exchange service.
If tax is collected and paid over for nontaxable services from the communications tax, the collector or taxpayer may request
a credit or refund as
described below and in Notice 2006-50.
Collectors.
The collector may request a credit or refund only if it has repaid the tax to the person from whom the tax was collected,
or obtained the consent
of that person to the allowance of the credit or refund. These requirements also apply to nontaxable service refunds.
Collectors using the regular method for deposits.
Collectors using the regular method for deposits must use Form 720X to request a credit or refund.
Collectors using the alternative method for deposits.
Collectors using the alternative method for deposits must adjust their separate accounts for the credit or refund.
For more information, see
Alternative method on page 8.
Form 720 taxpayers.
Credits or refunds for nontaxable service that was billed after February 28, 2003, and before August 1, 2006, can
be requested by taxpayers only on
their 2006 federal income tax returns. Instructions to request the credit or refund will be available with the 2006 income
tax returns. Do not use
Form 8849, Form 720, or Form 843 to make claims for nontaxable service; the IRS will not process these claims.
The person receiving the payment for air transportation services must collect and pay over the tax and file the return. Enter
the amount of tax
collected or considered collected for the quarter.
Transportation of Persons by Air (IRS No. 26)
The tax on transportation of persons by air is made up of the percentage tax and the domestic segment tax. Add the percentage
tax and the domestic
segment tax to get the total tax on transportation of persons by air.
Percentage tax.
The percentage tax is 7.5% for amounts paid for taxable transportation of persons by air.
Domestic segment tax.
For amounts paid for each domestic segment of taxable transportation of persons by air, the domestic segment tax is
$3.30 per segment for
transportation that begins in 2006.
Rural airports.
If a segment is to or from a rural airport, the domestic segment tax does not apply.
Transportation of Property by Air (IRS No. 28)
The tax is 6.25% of amounts paid for transportation of property by air.
Use of International Air Travel Facilities (IRS No. 27)
For amounts paid during 2006, the tax on international flights is:
Communication and Air Transportation Taxes—Uncollected Tax Report
A separate report is required to be filed by collecting agents of communications services (local and teletypewriter service)
and air transportation
taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses
to pay the tax, or it is
impossible for the collecting agent to collect the tax. The report must contain the following information: the name and address
of the taxpayer, the
type of facility provided or service rendered, the amount paid for the facility or service (the amount on which the tax is
based), and the date paid.
Collectors of the communications tax are not required to report any refusal to pay the tax on nontaxable service that is billed
after May 25, 2006.
Regular method taxpayers.
For regular method taxpayers, the report must be filed by the due date of the Form 720 on which the tax would have
been reported.
Alternative method taxpayers.
For alternative method taxpayers, the report must be filed by the due date of the Form 720 that includes an adjustment
to the separate account for
the uncollected tax. See Alternative method on page 8.
Where to file.
Do not file the uncollected tax report with Form 720. Instead, mail the report to:
Internal Revenue Service
Collected Excise Tax Coordinator
S:C:CP:RC:EX
1111 Constitution Avenue NW, IR-2016
Washington, DC 20224
First taxpayer's report.
If you are reporting gallons of taxable fuel that may again be subject to tax, you may need to file a first taxpayer's
report. The report must
contain all the information as shown in the Model Certificate B in the Appendix of Publication 510.
The person who paid the first tax must:
-
Give a copy of the first taxpayer's report to the buyer;
-
File the first taxpayer's report with Form 720 for the quarter for which the report relates; and
-
Write “EXCISE—FIRST TAXPAYER'S REPORT” across the top of a separate copy of the report, and by the due date of Form 720, send the
copy to: Internal Revenue Service Center, Cincinnati, OH 45999-0555.
Diesel fuel (IRS No. 60).
If you are liable for the diesel fuel tax on removal at the terminal rack, report these gallons on line 60(a). If
you are liable for the diesel
fuel tax on events other than removal at the terminal rack, report these gallons on line 60(b). If you are liable for the
diesel fuel tax because you
have produced diesel fuel by blending biodiesel with taxed diesel fuel outside of the bulk transfer/terminal system, report
these gallons of biodiesel
on line 60(c). If you report gallons on line 60(c), do not report those gallons on line 60(b).
Multiply the total number of gallons subject to tax on lines (a), (b), and (c) by $.244 and make one entry in the
tax column.
Also see Schedule T, Two-Party Exchange Information Reporting on page 9 if applicable.
Diesel-water fuel emulsion (IRS No. 104).
If you are liable for the reduced rate (see below) of tax on a diesel-water fuel emulsion removal at the terminal
rack or other taxable event,
report these gallons on the line for IRS No. 104.
Requirements.
All of the following requirements must be met to be eligible for the reduced rate: (a) the diesel-water fuel emulsion
must contain at least 14%
water, (b) the emulsion additive must be registered by a United States manufacturer under section 211 of the Clean Air Act
with the EPA, and (c) the
taxpayer must be registered by the IRS. If these requirements are not met, you must report the sale, removal, or use of a
diesel-water fuel emulsion
as diesel fuel.
Dyed diesel fuel used in trains (IRS No. 71).
If you are liable for the tax on dyed diesel fuel used in trains, report the number of gallons subject to tax on the
line for IRS No. 71.
The tax on dyed diesel fuel used in trains applies at the rate listed on Form 720. This is in addition to all other taxes
imposed on the sale or
use of the fuel.
IRS Nos. 105, 107, 119, and 111.
Tax is imposed at $.001 per gallon on removals, entries, and sales of gasoline, diesel fuel, and kerosene described
as exempt transactions.
-
IRS No. 105, Dyed diesel fuel, LUST tax.
-
IRS No. 107, Dyed kerosene, LUST tax.
-
IRS No. 119, LUST tax, other exempt removals. Report gasoline blendstocks, kerosene used for a feedstock purpose, and diesel
fuel or
kerosene sold or used in Alaska.
-
IRS No. 111, Kerosene for use in aviation, LUST tax on nontaxable uses, including foreign trade. Report gallons of kerosene
removed directly
from a terminal into the fuel tank of an aircraft for nontaxable uses or for use in foreign trade.
Multiply the total number of gallons subject to tax for each fuel by $.001 and make the entry in the tax column.
Kerosene (IRS No. 35).
If you are liable for the kerosene tax on removal at the terminal rack, report these gallons on line 35(a). If you
are liable for the kerosene tax
on events other than removal at the terminal rack, report these gallons of kerosene on line 35(b).
Multiply the total number of gallons subject to tax on lines (a) and (b) by $.244 and make one entry in the tax column.
Also see Schedule T, Two-Party Exchange Information Reporting on page 9 if applicable.
Kerosene for use in aviation (IRS Nos. 69, 77, and 111).
Generally, kerosene is taxed at $.244 per gallon.
-
For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax
rate is $.219
per gallon. Report these gallons on the line for IRS No. 69.
-
For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in commercial aviation (other than
foreign trade),
the tax rate is generally $.044 per gallon. Report these gallons on the line for IRS No. 77.
-
For kerosene removed directly from a terminal into the fuel tank of an aircraft for nontaxable uses or for use in foreign
trade, the tax
rate is generally $.001 per gallon. Report these gallons on the line for IRS No. 111.
Other fuels (IRS No. 79).
You are liable for the tax on the fuels listed below when they are delivered into the fuel supply tank of a motor
vehicle or motorboat (or trains
for B-100). Use the following table to determine the tax for each gallon. Fill in the number of gallons and the appropriate
rate in the
Rate column on the line for IRS No. 79. If more than one rate applies, leave the Rate column blank and attach a schedule showing
the rates and number of gallons taxed at each rate.
| Fuel |
Tax Rate
per Gallon |
| Qualified— |
|
|
|
|
Ethanol produced from coal
|
|
.1325
|
|
Methanol produced from coal
|
|
.1235
|
| Partially exempt— |
|
|
|
|
Ethanol produced from natural gas
|
|
.114
|
|
Methanol produced from natural gas
|
|
.0925
|
| B-100 (100% biodiesel) |
|
.244
|
| Other fuels not shown |
|
.184
|
Gasoline (IRS No. 62).
If you are liable for the gasoline tax on removal at the terminal rack, report these gallons on line 62(a). If you
are liable for the gasoline tax
on events other than removal at the terminal rack, report these gallons on line 62(b). If you are liable for the gasoline
tax because you have blended
alcohol with taxed gasoline outside of the bulk transfer/terminal system, report these gallons of alcohol on line 62(c). If
you report gallons on line
62(c), do not report those gallons on line 62(b).
Multiply the total number of gallons subject to tax on lines (a), (b), and (c) by $.184. Combine the tax for lines
(a), (b), and (c), and make one
entry in the tax column.
Also see Schedule T, Two-Party Exchange Information Reporting on page 9 if applicable.
Alternative fuel (IRS Nos. 112, 118, and 120-124).
Alternative fuel is any liquid other than gas oil, fuel oil, or any product taxable under Internal Revenue Code section
4081. You are liable for
tax on alternative fuel delivered into the fuel supply tank of a motor vehicle or motorboat, or on certain bulk sales. Report
the tax on the line for
the IRS No. listed below.
|
Alternative Fuel
|
IRS Number
|
|
Liquefied petroleum gas (LPG)
|
112
|
| “P Series” fuels
|
118
|
|
Compressed natural gas (CNG)
|
120
|
|
Liquefied hydrogen
|
121
|
|
Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process
|
122
|
|
Liquid hydrocarbons derived from biomass
|
123
|
|
Liquefied natural gas (LNG)
|
124
|
LPG includes propane, butane, pentane, or mixtures of those gases. CNG is taxed at $.183 per gasoline gallon equivalent
(126.67 cubic feet).
Truck, trailer, and semitrailer chassis and bodies, and tractors (IRS No. 33)
The tax is 12% (.12) of the sales price on the first retail sale of each unit. The tax applies to:
-
Truck chassis and bodies except truck chassis and bodies suitable for use with a vehicle with a gross vehicle weight (GVW)
of 33,000 pounds
or less,
-
Trailer and semitrailer chassis and bodies except trailer and semitrailer chassis and bodies suitable for use with a vehicle
with a GVW of
26,000 pounds or less, and
-
Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer, except tractors
that have a gross
vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less. Generally, gross combined weight
means the weight of a
tractor and the weight of its trailer(s).
The sales price of a vehicle includes the sales price of certain related parts and accessories sold on or in connection with
the sale of the
vehicle.
Figure the tax for each vehicle sold and enter the total for the quarter on the line for IRS No. 33.
Gross vehicle weight.
The gross vehicle weight means the maximum total weight of a loaded vehicle. Generally, this maximum total weight
is the gross vehicle weight
rating provided by the manufacturer or determined by the seller of the completed article. The seller's gross vehicle weight
rating must be determined
for excise tax purposes on the basis of the strength of the chassis frame and the axle capacity and placement. The seller
may not take into account
any readily attachable components (such as tires or rim assemblies) in determining the gross vehicle weight. See Regulations
section 145.4051-1(e)(3)
for more information.
The following four classifications of truck body types meet the suitable for use standard and will be excluded from
the retail excise tax.
-
Platform truck bodies 21 feet or less in length.
-
Dry freight and refrigerated truck van bodies 24 feet or less in length.
-
Dump truck bodies with load capacities of eight cubic yards or less.
-
Refuse packer truck bodies with load capacities of 20 cubic yards or less.
For more information, see Rev. Proc. 2005-19, which is on page 832 of Internal Revenue Bulletin 2005-14 at
www.irs.gov/pub/irs-irbs/irb05-14.pdf.
Section 4051(d) tire credit.
A tax credit may be taken equal to the amount of tax that has been imposed on each tire that is sold on or in connection
with the first retail sale
of a taxable vehicle reported on IRS No. 33. Claim the section 4051(d) tire credit on Schedule C, line 15a.
Transportation by water (IRS No. 29).
A tax is imposed on the operator of commercial ships. The tax is $3 for each passenger on a commercial passenger ship
that has berth or stateroom
accommodations for at least 17 passengers if the trip is over 1 or more nights. A voyage extends “ over 1 or more nights” if it lasts longer than
24 hours. The tax also applies to passengers on any commercial ship that transports passengers engaged in gambling aboard
the ship beyond the
territorial waters of the United States. Enter the number of passengers for the quarter on the line for IRS
No. 29.
Obligations not in registered form (IRS No. 31).
For obligations issued during the quarter, enter the principal amount of the obligation multiplied by the number of
calendar years (or portion
thereof) during the period beginning on the issue date and ending on the maturity date on the line for IRS No. 31.
Do not include the excise tax on coal in the sales price when determining which tax rate to use.
Underground mined coal (IRS Nos. 36 and 37).
The tax on underground mined coal is the lower of $1.10 per ton or 4.4% (.044) of the sales price. Enter on the line
for IRS No. 36 the number of
tons of underground mined coal sold at $25 or more per ton. Enter on the line for IRS No. 37 the total sales price for all
sales of underground mined
coal sold at a selling price of less than $25 per ton.
Surface mined coal (IRS Nos. 38 and 39).
The tax on surface mined coal is the lower of $.55 per ton or 4.4% (.044) of the sales price. Enter on the line for
IRS No. 38
the number of tons of surface mined coal sold at $12.50 or more per ton. Enter on the line for IRS No. 39 the total sales
price for all sales of
surface mined coal sold at a selling price of less than $12.50 per ton.
Taxable tires (IRS Nos. 108, 109, and 113).
A tax is imposed on taxable tires sold by the manufacturer, producer, or importer at the rate of $.0945 ($.04725 in
the case of a biasply tire or
super single tire) for each 10 pounds of the maximum rated load capacity over 3,500 pounds. Figure the tax for each tire sold
in each category as
shown in the chart below and enter the total for the quarter on the line for IRS No. 108, 109, or 113.
|
IRS No.
|
Taxable Tire Category
|
Rate (for each 10 pounds of the maximum rated load capacity over 3,500 pounds)
|
|
108
|
Taxable tires other than biasply or super single tires
|
$.0945
|
|
109
|
Taxable tires, biasply or super single tires (other than super single tires designed for steering)
|
$.04725
|
|
113
|
Taxable tires, super single tires designed for steering
|
$.0945
|
A taxable tire is any tire of the type used on highway vehicles if wholly or partially made of rubber and if marked according to federal
regulations for highway use. A biasply tire is a pneumatic tire on which the ply cords that extend to the beads are laid at
alternate angles
substantially less than 90 degrees to the centerline of the tread. A super single tire is a tire greater than 13 inches in
cross section width
designed to replace 2 tires in a dual fitment, but does not include any tire designed for steering.
Gas guzzler tax (IRS No. 40).
Use Form 6197,
Gas Guzzler Tax, to figure the liability for this tax. Attach
Form 6197 to Form 720. The tax rates for the gas guzzler tax are shown on Form 6197.
One-time filing.
If you import a gas guzzling automobile, you may be eligible to make a one-time filing of Form 720 and Form 6197 if
you meet all of the following
conditions.
-
You do not import gas guzzling automobiles in the course of your trade or business.
-
You are not required to file Form 720 reporting excise taxes for the calendar quarter, except for a one-time filing.
Follow the steps below to make a one-time filing.
-
File Form 720 for the quarter in which you incur liability for the tax. See When To File on page 1.
-
Pay the tax with Form 720. No deposits are required.
-
If you are an individual and do not have an employer identification number (EIN), enter your social security number (SSN)
or individual
taxpayer identification number (ITIN) on Form 720 and Form 720-V in the space for the EIN.
-
Check the one-time filing box on the line for the gas guzzler tax.
Vaccine taxes (IRS No. 97).
A tax is imposed on the sale or use of a vaccine manufactured, produced, or entered into the United States at $.75
per dose if it:
-
Contains diptheria toxoid, tetanus toxoid, pertussis bacteria, extracted or partial cell bacteria, specific pertussis antigens,
or polio
virus;
-
Is against measles, mumps, rubella, hepatitis A, hepatitis B, chicken pox, or rotavirus gastroenteritis;
-
Is any HIB (haemophilus influenza type B) vaccine;
-
Is any conjugate vaccine against streptococcus pneumoniae; or
-
Is any trivalent vaccine against influenza.
If any taxable vaccine is combined with one or more additional taxable vaccines, then the tax is imposed on each vaccine
included in the
combination.
Example.
MMR contains three taxable vaccines: measles, mumps, and rubella. The tax per dose on MMR is $2.25 (3 x $.75).
Add the tax for each taxable vaccine and enter the total tax on the line for IRS No. 97.
Policies issued by foreign insurers (IRS No. 30).
Enter the amount of premiums paid during the quarter on policies issued by foreign insurers. Multiply the premiums
paid by the rates listed on Form
720 and enter the total for the three types of insurance on the line for IRS No. 30.
Who must file.
The person who pays the premium to the foreign insurer (or to any nonresident person such as a foreign broker) must
pay the tax and file the
return. Otherwise, any person who issued or sold the policy, or who is insured under the policy, is required to pay the tax
and file the return.
Treaty-based return positions under section 6114.
Foreign insurers and reinsurers who take the position that a treaty of the United States overrules, or otherwise modifies,
an Internal Revenue law
of the United States must disclose such position. This disclosure must be made once a year on a statement which must report
the payments of premiums
that are exempt from the excise tax on policies issued by foreign insurers for the previous calendar year. This statement
is filed with the 1st
quarter Form 720, which is due before May 1 of each year.
You may be able to use Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), as a disclosure
statement.
At the top of Form 720, write “ Section 6114 Treaty.” If you have no other transactions reportable on Form 720, complete Form 720 as follows.
-
If this is your final return, check the final return box.
-
Write “None” on lines 1 and 3.
-
Sign the return.
You need an EIN to file Form 720. If you do not have an EIN, see Employer Identification Number (EIN) on page 2.
Where to file.
All filers should mail Form 720 with the attached Form 8833 or disclosure statement to: Internal Revenue Service Center,
Cincinnati, OH 45999-0009.
Also, see the Caution under Private Delivery Services on page 2.
Sport fishing equipment (other than fishing rods and fishing poles) (IRS No. 41).
The tax on sport fishing equipment is 10% (.10) of the sales price. The tax is paid by the manufacturer, producer,
or importer. Taxable articles
include reels, fly fishing lines (and other lines not over 130 pounds test), fishing spears, spear guns, spear tips, terminal
tackle, fishing supplies
and accessories, and any parts or accessories sold on or in connection with these articles. See Publication 510 for a complete
list of taxable
articles. Add the tax on each sale during the quarter and enter the total on the line for IRS No. 41.
Fishing rods and fishing poles (IRS No. 110).
The tax on fishing rods and fishing poles (and component parts) taxed at a rate of 10% will have a maximum tax of
$10 per article. The tax is paid
by the manufacturer, producer, or importer. Add the tax on each sale during the quarter and enter the total on the line for
IRS No. 110.
Electric outboard motors (IRS No. 42).
The tax on an electric outboard motor is 3% (.03) of the sales price. The tax is paid by the manufacturer, producer,
or importer. Add the tax on
each sale during the quarter and enter the total on the line for IRS No. 42.
Fishing tackle boxes (IRS No. 114).
The tax on fishing tackle boxes is 3% (.03) of the sales price. The tax is paid by the manufacturer, producer, or
importer. Add the tax on each
sale during the quarter and enter the total on the line for IRS No. 114.
Bows, quivers, broadheads, and points (IRS No. 44).
The tax on bows is 11% (.11) of the sales price. The tax is paid by the manufacturer, producer, or importer. It applies
to bows having a peak draw
weight of 30 pounds or more. The tax is also imposed on the sale of any part or accessory suitable for inclusion in or attachment
to a taxable bow and
any quiver, broadhead, or point suitable for use with arrows described below. Add the tax on each sale during the quarter
and enter the total on the
line for IRS No. 44.
Arrow shafts (IRS No. 106).
The tax on arrow shafts is $.40 per arrow shaft. The tax is paid by the manufacturer, producer, or importer of any
arrow shaft (whether sold
separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow which
after its assembly meets
either of the following conditions.
-
It measures 18 inches or more in overall length.
-
It measures less than 18 inches in overall length but is suitable for use with a taxable bow, described earlier.
Add the tax on each sale during the quarter and enter the total on the line for IRS No. 106.
Inland waterways fuel use tax (IRS No. 64).
If you are liable for the inland waterways fuel use tax, report the number of gallons subject to tax on the line for
IRS No. 64.
The inland waterways fuel use tax applies at the rate listed on Form 720. This is in addition to all other taxes imposed on
the sale or use of the
fuel.
Alcohol sold as but not used as fuel (IRS No. 51).
An excise tax is imposed if the alcohol fuel mixture credit or alcohol credit was claimed and any person later: (a) uses a mixture or
straight alcohol for a purpose other than fuel, (b) separates the alcohol from the mixture, or (c) mixes the straight alcohol.
Use the following table to determine the tax for each gallon of alcohol. Fill in the number of gallons and the appropriate
rate in the
Rate column on the line for IRS No. 51. If more than one rate applies, leave the Rate column blank and attach a schedule showing
the rates and number of gallons taxed at each rate.
| IF the alcohol is... |
AND... |
THEN the tax rate per gallon is... |
|
at least 190 proof
|
• is ethanol
|
$
|
.51
|
|
| |
• is methanol
|
|
.60
|
|
| |
• benefited from the
small ethanol
producer credit
|
|
.61
|
|
|
at least 150 proof but
|
• is ethanol
|
$
|
.3778
|
|
|
less than 190 proof
|
• is methanol
|
|
.45
|
|
| |
• benefited from the
small ethanol
producer credit
|
|
.4778
|
|
Biodiesel sold as but not used as fuel (IRS No. 117).
An excise tax is imposed if the (a) biodiesel or renewable diesel mixture credit or (b) biodiesel or renewable diesel
credit was claimed and
any person later: (a) uses a mixture or straight biodiesel or renewable diesel for a purpose other than as fuel, (b) separates the
biodiesel or renewable diesel from the mixture, or (c) mixes the straight biodiesel or renewable diesel.
The tax is $.50 per gallon of biodiesel, $1.00 per gallon of agri-biodiesel, and $1.00 per gallon of renewable diesel.
An additional $.10 is added
if the agri-biodiesel benefited from the small agri-biodiesel producer credit. Fill in the number of gallons and the appropriate
rate in the
Rate column on the line for IRS No. 117. If more than one rate applies, leave the Rate column blank and attach a schedule
showing the rates and number of gallons taxed at each rate.
Ozone-depleting chemicals floor stocks tax (IRS No. 20).
Use Form 6627 to figure the liability for this tax. Enter the amount from Form 6627, Part IV, line 4, column (d) on
the line for IRS No. 20. Attach
Form 6627 to Form 720 that is due July 31 of each year. Deposit the payment by June 30 at an authorized financial institution.
See How To Make
Deposits below.
Line 4.
Report on Form 720, line 4, the total claims from Schedule C, line 16. See the instructions for Schedule C-Claims on page 9.
Line 6.
Include on line 6 the amount from line 11 of your previous return that you applied to this return and the amount from
Form 720X, line 5b.
Note.
Include on line 6 of your next return the amount from line 11 you want to have applied to that return.
If you owe other federal tax, interest, or penalty, the overpayment on line 11 and line 7 will first be applied to the unpaid
amounts.
Line 10.
If line 3 is more than line 9, enter the difference in line 10. You do not have to pay if line 10 is under $1.00.
You may pay the amount shown on line 10 using EFTPS or by check or money order. If you pay using EFTPS, do not file
Form 720-V, Payment Voucher.
If you do not deposit as required and, instead, pay the taxes with Form 720, you may be subject to a penalty.
Generally, semimonthly deposits of excise taxes are required. A semimonthly period is the first 15 days of a month (the first
semimonthly period) or the 16th through the last day of a month (the second semimonthly period).
However, no deposit is required for the situations listed below. The taxes are payable with the return.
-
The net liability for taxes listed in Part I (Form 720) does not exceed $2,500 for the quarter.
-
The gas guzzler tax is being paid on a one-time filing. See Gas guzzler tax on page 6.
-
The liability is for taxes listed in Part II (Form 720), except for the floor stocks tax that generally requires a single
deposit. See
Floor Stocks Tax above.
To avoid a penalty, make your deposits timely and do not mail your deposits directly to the IRS. Records of your deposits
will be sent to the IRS
for crediting to your accounts.
Electronic deposit requirement.
You must make electronic deposits of all depository taxes (such as deposits for employment tax, excise tax, and corporate
income tax) using the
Electronic Federal Tax Payment System (EFTPS) in 2006 if:
-
The total deposits of such taxes in 2004 exceeded $200,000 or
-
You were required to use EFTPS in 2005.
If you are required to use EFTPS and use Form 8109, Federal Tax Deposit Coupon, instead, you may be subject to a 10%
penalty. If you are not
required to use EFTPS, you may participate voluntarily. To get more information or to enroll in EFTPS, visit the EFTPS website
at
www.eftps.gov or call 1-800-555-4477. Also see Publication 966, The Secure Way to Pay Your Federal Taxes.
Depositing on time.
For EFTPS deposits to be on time, you must initiate the transaction at least 1 business day before the date the deposit
is due.
Federal tax deposit coupons.
If you are not making deposits by EFTPS, use Form 8109 to make the deposits at an authorized financial institution.
See the instructions in the
coupon book for additional information. If you do not have a coupon book, call 1-800-829-4933.
You will automatically be enrolled in EFTPS when you apply for an EIN. You will receive a separate mailing containing instructions
for activating
your EFTPS enrollment after you receive your EIN. You will still have the option to use FTD coupons, but see Electronic deposit
requirement
above.
There are two methods for determining deposits: the regular method and the alternative method.
The regular method applies to all taxes in Part I of Form 720 except for communications and air transportation taxes if deposits
are based on
amounts billed or tickets sold, rather than on amounts actually collected. See Alternative method below.
If you are depositing more than one tax under a method, combine all the taxes under the method and make one deposit for the
semimonthly period.
Regular method.
The deposit of tax for a semimonthly period is due by the 14th day following that period. Generally, this is the 29th
day of a month for the first
semimonthly period and the 14th day of the following month for the second semimonthly period. If the 14th or the 29th day
falls on a Saturday, Sunday,
or legal holiday, you must make the deposit by the immediately preceding day that is not a Saturday, Sunday, or legal holiday.
Alternative method (IRS Nos. 22, 26, 27, and 28).
Deposits of communications and air transportation taxes may be based on taxes included in amounts billed or tickets
sold during a semimonthly
period instead of on taxes actually collected during the period. Under the alternative method, the tax included in amounts
billed or tickets sold
during a semimonthly period is considered collected during the first 7 days of the second following semimonthly period. The
deposit of tax is due by
the 3rd banking day after the 7th day of that period.
Example.
The tax included in amounts billed or tickets sold for the period June 16-30, 2006, is considered collected from July
16-22, 2006, and must be
deposited by
July 26, 2006.
To use the alternative method, you must keep separate accounts of the tax included in amounts billed or tickets sold
during the month and report on
Form 720 the tax included in amounts billed or tickets sold and not the amount of tax that is actually collected. For example,
amounts billed in
December, January, and February are considered collected during January, February, and March and are reported on Form 720
as the tax for the 1st
quarter of the calendar year.
The separate account for each month must reflect:
-
All items of tax included in amounts billed or tickets sold during the month, and
-
Other items of adjustment relating to tax for prior months (within the statute of limitations on credits or refunds).
The separate account for any month cannot include an adjustment resulting from a refusal to pay or inability to collect
unless the refusal has been
reported to the IRS. See Communications and Air Transportation Taxes—Uncollected Tax Report on page 3.
The net tax liability that is considered collected during the semimonthly period must be either:
-
The net amount of tax reflected in the separate account for the corresponding semimonthly period of the preceding month, or
-
One-half of the net amount of tax reflected in the separate account for the preceding month.
Special rule for deposits of taxes in September 2006.
If you are required to make deposits, see the chart below. The special rule does not apply to taxes not required to
be deposited (see Payment
of Taxes on page 7). See Regulations sections 40.6302(c)-2 and 40.6302(c)-3 for rules to figure the net tax liability for the deposits
due in
September.
Additional deposit of taxes in September 2006
| |
For thePeriod |
|
| Type of Tax |
Beginning on |
|
Ending on |
Due Date |
|
Regular method taxes
|
|
|
|
|
|
EFTPS
1 |
Sept. 16
|
|
Sept. 26
|
Sept. 29
|
|
Non-EFTPS
|
Sept. 16
|
|
Sept. 25
|
Sept. 28
|
|
Alternative method taxes (IRS Nos. 22, 26, 27, and 28) (based on amounts billed)
|
|
|
|
|
|
EFTPS
1 |
Sept. 1
|
|
Sept. 11
|
Sept. 29
|
|
Non-EFTPS
|
Sept. 1
|
|
Sept. 10
|
Sept. 28
|
| 1See Electronic deposit requirement above.
|
For the remaining days in September, be sure to make your deposits by the regular due date.
Deposits of taxes for a semimonthly period must be at least 95% of the amount of net tax liability for that period, unless
the safe harbor rule
applies. See Safe Harbor Rule below.
The net tax liability for a semimonthly period is the total liability for the period minus any claims allowed on Schedule
C for the period. Net tax
liability for a semimonthly period may be figured by dividing the net tax liability for the month by 2, provided this method
of computation is used
for all semimonthly periods in the calendar quarter.
The net tax liability for a semimonthly period is not reduced by any amounts from Form 720X.
The safe harbor rule applies separately to deposits under the regular method and the alternative method. Persons who filed
Form 720 for the
look-back quarter (the 2nd calendar quarter preceding the current quarter) are considered to meet the semimonthly deposit
requirement if the deposit
for each semimonthly period in the current quarter is at least ⅙ (16.67%) of the net tax liability reported for the look-back
quarter.
For the semimonthly period for which the additional deposit is required (September 1-11 and 16-26 for EFTPS, or September
1-10 and 16-25 for
non-EFTPS), the additional deposit must be at least 11/90 (12.23%), 10/90 (11.12%) for non-EFTPS, of the net tax liability
reported for the look-back quarter. Also, the total deposit for that semimonthly period must be at least ⅙ (16.67%) of the
net tax
liability reported for the look-back quarter.
Exceptions.
The safe harbor rule does not apply to:
-
The 1st and 2nd quarters beginning on or after the effective date of an increase in the rate of tax unless the deposit of
taxes for each
semimonthly period in the calendar quarter is at least ⅙ (16.67%) of the tax liability you would have had for the look-back
quarter if
the increased rate of tax had been in effect for that look-back quarter;
-
Any quarter if liability includes any tax not in effect throughout the look-back quarter; or
-
For deposits under the alternative method, any quarter if liability includes any tax not in effect throughout the look-back
quarter and the
month preceding the look-back quarter.
Requirements to be met.
For the safe harbor rule to apply, you must:
-
Make each deposit timely at an authorized financial institution, and
-
Pay any underpayment for the current quarter by the due date of the return.
If you meet the requirements and use the safe harbor rule, check the box on line 5 of Form 720.
The IRS may withdraw the right to make deposits of tax using the safe harbor rule from any person not complying with these
rules.
Schedule A—Excise Tax Liability
How to complete.
Complete Schedule A to record net tax liabilities for Part I taxes for each semimonthly period in a quarter even if
your net liability is under
$2,500.
The following table will help you determine which boxes to complete on Schedule A.
| IF you are reporting under the... |
THEN you report on line... |
AND enter the net tax liability in boxes... |
|
Regular method
|
1
|
A-G
|
|
Alternative method
|
2
|
M-S
|
If you are reporting more than one type of tax on
lines 1 and 2:
-
Add the net tax liability for each tax for each semimonthly period, and
-
Enter the total in the applicable box.
Additional rules.
Report communications and air transportation taxes based on:
-
Actual collections on line 1, or
-
Amounts billed or tickets sold on line 2. The amount of tax to report for a semimonthly period is the net amount that is considered
collected during that period.
Example.
The amounts billed for communications services from June 1-15, 2006, are considered collected during the period July
1-7, 2006, and are reported
for the 3rd quarter of 2006 on Schedule A in box M, not the 2nd quarter of 2006.
Reporting tax liability under the special September rule.
An additional reporting is required under the special September rule (for the period shown in the chart above) as
follows:
| Regular method taxes |
Enter the tax liability for the period beginning September 16 and ending September 25/26 in box G,
Special rule for September.
|
| Alternative method taxes |
Enter the tax included in amounts billed or tickets sold during the period beginning September 1 and
ending September 10/11 in box S, Special rule for September box on the 4th quarter return. |
For the remaining days in the September period, report the liability as follows:
| Regular method taxes |
Enter the liability for the period beginning September 26/27 and ending September 30 in box
F. |
| Alternative method taxes |
Enter the tax included in the amounts billed or tickets sold for the period beginning September 11/12
and ending September 15 in box M of the 4th quarter return. Enter the tax included in amounts billed or tickets sold during the
period beginning September 16 and ending September 30 in box N of the 4th quarter return. |
Schedule T—Two-Party Exchange Information Reporting
In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of
taxable fuel from the
terminal at the terminal rack. A two-party exchange means a transaction (other than a sale) where the delivering person and
receiving person are both
taxable fuel registrants and all of the following occur.
-
The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the
terminal as
reflected in the records of the terminal operator.
-
The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person.
-
The terminal operator in its records treats the receiving person as the person that removes the product across the terminal
rack for
purposes of reporting the transaction on Form 720-TO, Terminal Operator Report.
-
The transaction is the subject of a written contract.
Information reporting.
Schedule T—Two-Party Exchange Information Reporting, is used to report gallons of taxable fuel:
-
Received in a two-party exchange within a terminal. These gallons must also be included on the appropriate line on page 1
of Form 720,
or
-
Delivered in a two-party exchange contemporaneous with a removal across the rack.
Enter all gallons of fuel received or delivered in a two-party exchange within a terminal for the applicable fuel.
Complete all information requested for each line, including month income tax year ends and period of claim. Enter the month
as “MM.” Enter the
period of claim as “MM/DD/YYYY.” Your claim will be disallowed if you do not follow the required procedures or do not provide all the required
information. Also, you are certifying to the applicable statement(s) on Schedule C when you make a claim. See Pub. 510 for
more information.
You must include in gross income (income tax return) the amount from line 4 of Form 720 if you took a deduction on the income
tax return that
included the amount of the taxes and that deduction reduced the income tax liability. See Publication 510 for more information.
Do not use Schedule C:
-
If you are not reporting a liability on Form 720, in Part I or Part II.
-
To claim amounts that you took or will take as a credit on Form 4136, Credit for Federal Tax Paid on Fuels, or as a refund
on Form 8849,
Claim for Refund of Excise Taxes, and its separate schedules (see the Caution below).
-
To request an abatement or refund of interest under section 6404(e) (due to IRS errors or delays) or an abatement or refund
of a penalty or
addition to tax under section 6404(f) (due to erroneous IRS written advice). Instead, use Form 843, Claim for Refund and Request
for Abatement. Also
use Form 843 to request refund of the penalty under section 6715 for misuse of dyed fuel.
-
To make adjustments to liability reported on Forms 720 filed for prior quarters, use Form 720X.
If you make a claim for alcohol, biodiesel or renewable diesel, or alternative fuel used to produce a mixture, claim for refund
or credit on Form
8849, Form 4136, Form 6478, or Form 8864 can only be made after the sum of the alcohol fuel mixture credit, biodiesel or renewable
diesel mixture
credit, and alternative fuel mixture credit is first applied to reduce your taxable fuel liability reported on Form 720 for
any particular quarter.
See Pub. 510, Notice 2005-4, and Notice 2005-62 for more information.
The following table lists the nontaxable uses of fuels. You must enter the number from the table in the Type of use column as required.
| No. |
Type of Use |
|
1
|
On a farm for farming purposes
|
|
2
|
Off-highway business use (for business use other than in a highway vehicle registered or required to be registered for highway
use) (other than use in mobile machinery)
|
|
3
|
Export
|
|
4
|
In a boat engaged in commercial fishing
|
|
5
|
In certain intercity and local buses
|
|
6
|
In a qualified local bus
|
|
7
|
In a bus transporting students and employees of schools (school buses)
|
|
8
|
For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of
a
train or diesel-powered highway vehicle (but not off-highway business use)
|
|
9
|
In foreign trade
|
|
10
|
Certain helicopter and fixed-wing aircraft uses
|
|
11
|
Exclusive use by a qualified blood collector organization (beginning after December 31, 2006)
|
|
12
|
In a highway vehicle owned by the United States that is not used on a highway
|
|
13
|
Exclusive use by a nonprofit educational organization
|
|
14
|
Exclusive use by a state, political subdivision of a state, or the District of Columbia
|
|
15
|
In an aircraft or vehicle owned by an aircraft museum
|
|
16
|
In military aircraft
|
|
17
|
For use in the production of alternative fuel
|
Claim requirements for lines 1 through 6 and lines 15b-15d.
The following requirements must be met.
-
The amount of the claim must be at least $750 (combining amounts on lines 1, 2, 3, 4, 5, 6, 15b, 15c, and 15d). This amount
may be met
by:
-
Making a claim for fuel used during any quarter of a claimant's income tax year, or
-
Aggregating amounts from any quarters of the claimant's income tax year for which no other claim has been made.
-
Claims must be filed during the first quarter following the last quarter of the claimant's income tax year included in the
claim. For
example, a calendar year income taxpayer's claim for the first quarter is due June 30 if filed on Form 8849. However, Form
720 must be filed by April
30.
-
Only one claim may be filed for any quarter.
-
The fuel must have been used for a nontaxable use during the period of claim.
-
The ultimate purchaser is the only person eligible to make the claim.
If requirements 1-3 above are not met, see Annual Claims on page 14.
Exported taxable fuel.
The claim rates for exported taxable fuel are listed on lines 1b, 2c, 3e, and 4d, and in the instructions for lines
15b and 15c. Taxpayers making a
claim for exported taxable fuel must include with their records proof of exportation. Proof of exportation includes:
-
A copy of the export bill of lading issued by the delivering carrier,
-
A certificate by the agent or representative of the export carrier showing actual exportation of the fuel,
-
A certificate of lading signed by a customs officer of the foreign country to which the fuel is exported, or
-
A statement of the foreign consignee showing receipt of the fuel.
Line 1. Nontaxable Use of Gasoline
Allowable uses.
The gasoline must have been used during the period of claim for type of use 2, 4, 5, 7, or 12. For exported gasoline,
see Exported taxable
fuel above. Type of use 2 does not include any personal use or use in a motorboat.
Line 2. Nontaxable Use of Aviation Gasoline
Allowable uses.
For line 2b, the aviation gasoline must have been used during the period of claim for type of use 9, 10, or 16. For
exported aviation gasoline, see
Exported taxable fuel above.
Line 3. Nontaxable Use of Undyed Diesel Fuel
Ultimate purchasers use line 3d to make claims for diesel fuel used on a farm for farming purposes.
Allowable uses.
For line 3a, the diesel fuel must have been used during the period of claim for type of use 2, 6, 7, 8, or 12. For
exported undyed diesel fuel, see
Exported taxable fuel above. Type of use 2 does not include any personal use or use in a motorboat. Type of use 8 includes use as heating
oil and use in a motorboat.
Line 4. Nontaxable Use of Undyed Kerosene (Other Than Kerosene Used in Aviation)
Ultimate purchasers use line 4c to make claims for kerosene used on a farm for farming purposes.
Allowable uses.
For line 4a, the kerosene must have been used during the period of claim for type of use 2, 6, 7, 8, or 12. For exported
undyed kerosene, see
Exported taxable fuel on page 10. Type of use 2 does not include any personal use or use in a motorboat. Type of use 8 includes use as
heating oil and use in a motorboat.
Exception.
Claims for kerosene used in aviation on a farm for farming purposes must be claimed by the ultimate vendor.
Line 5. Kerosene Used in Commercial Aviation (Other Than Foreign Trade)
Claimant.
The ultimate purchaser of the kerosene used in commercial aviation (other than foreign trade) is eligible to make
this claim.
Allowable uses.
For lines 5a and 5b, claimant certifies that the right to make the claim has not been waived. If the claimant buys
kerosene partly for use in
commercial aviation and partly for use in noncommercial aviation, see the rules in Notice 2005-80, section 3(e)(3). Only one
claim may be filed with
respect to any gallon of kerosene used in commercial aviation.
Line 6. Nontaxable Use of Alternative Fuel
Claimant.
The ultimate purchaser of the taxed alternative fuel is the only person eligible to make this claim.
Allowable uses.
The alternative fuel must have been used during the period of claim for type of use 1, 2, 3, 4, 5, 6, 7, 13, 14, or
15.
Type of use 5.
Write “ Bus” in the space to the left of the Type of use column. Enter the correct claim rate in the Rate column. The
claim rates for type of use 5 are listed below.
|
Line number
|
Claim rate
|
|
6a
|
$.109
|
|
6b
|
.110
|
|
6c
|
.109*
|
|
6d
|
.110
|
|
6e
|
.17
|
|
6f
|
.17
|
|
6g
|
.169
|
|
* This is the claim rate per gasoline gallon equivalent (126.67 cubic feet of
CNG).
|
Information for Claims on Lines 7-11
Registration number.
To make an ultimate vendor claim on lines 7-11, you are required to be registered. Enter your registration number,
including the prefix, on
the applicable line for your claim. If you are not registered, you cannot make a claim at this time. Use Form 637, Application
for Registration (For
Certain Excise Tax Activities), to apply for one.
Required certificates or waivers.
The required certificates or waivers for lines 7-11 are listed in the line instructions and are available in Pub.
510.
Line 7a. Sales By Registered Ultimate Vendors of Undyed Diesel Fuel
Claimant.
For line 7a, the registered ultimate vendor of the diesel fuel is the only person eligible to make this claim and
has obtained the required
certificate from the buyer and has no reason to believe any information in the certificate is false. See Model Certificate
P in Pub. 510. Only one
claim may be filed with respect to any gallon of diesel fuel.
Allowable sales.
The fuel must have been sold during the period of claim for the exclusive use by a state or local government (including
essential government use by
an Indian tribal government).
Claim requirements.
The following requirements must be met.
-
The claim must be for diesel fuel sold during a period that is at least 1 week.
-
The amount of the claim must be at least $200. To meet this minimum requirement, amounts from line 7, 8, and 9 may be combined.
-
Claims must be filed by the last day of the first quarter following the earliest quarter of the claimant's income tax year
included in the
claim. For example, a calendar year income taxpayer's claim for the first quarter is due June 30 if filed on Form 8849. However,
Form 720 must be
filed by April 30.
If requirements 1-3 above are not met, see Annual Claims on page 14.
Registration number.
Enter your UV registration number in the space provided.
Information to be submitted.
For claims on line 7a, attach a separate sheet with the name and TIN of each governmental unit to whom the diesel
fuel was sold and the number of
gallons sold to each.
Line 7b. Sales by Registered Ultimate Vendors of Undyed Diesel Fuel for Use in Certain Intercity and Local Buses
Claimant.
For line 7b, the registered ultimate vendor of the diesel fuel is eligible to make a claim only if the buyer waives
his or her right to make the
claim by providing the registered ultimate vendor with an unexpired waiver. See Model Waiver N in Pub. 510. Only one claim
may be filed with respect
to any gallon of diesel fuel.
Claim requirements.
The following requirements must be met.
-
The claim must be for diesel fuel sold during a period that is at least 1 week.
-
The amount of the claim must be at least $200. To meet this minimum requirement, amounts from lines 7, 8, and 9 may be combined.
-
Claims must be filed by the last day of the first quarter following the earliest quarter of the claimant's income tax year
included in the
claim. For example, a calendar year income taxpayer's claim for the first quarter is due June 30 if filed on Form 8849. However,
Form 720 must be
filed by April 30.
If requirements 1-3 above are not met, see Annual Claims on page 14.
Registration number.
Enter your UB registration number in the space provided.
Lines 8a and 8b. Sales By Registered Ultimate Vendors of Undyed Kerosene (Other Than Kerosene Sold for Use in Aviation)
Claimant.
For line 8a, the registered ultimate vendor of the kerosene is the only person eligible to make this claim and has
obtained the required
certificate from the buyer and has no reason to believe any information in the certificate is false. See Model Certificate
P in Pub. 510. For line 8b,
claimant has a statement, if required, that contains: the date of sale, name and address of the buyer, and the number of gallons
of kerosene sold to
the buyer. For lines 8a and 8b, only one claim may be filed with respect to any gallon of kerosene.
Allowable sales.
The fuel must have been sold during the period of claim:
-
For line 8a, use by a state or local government (including essential government use by an Indian tribal government), or
-
For line 8b, from a blocked pump.
Claim requirements.
The following requirements must be met.
-
The claim must be for kerosene sold during a period that is at least 1 week.
-
The amount of the claim must be at least $100. To meet this minimum, amounts from lines 8 and 9 may be combined.
-
Claims must be filed by the last day of the first quarter following the earliest quarter of the claimant's income tax year
included in the
claim. For example, a calendar year income taxpayer's claim for the first quarter is due June 30 if filed on Form 8849. However,
Form 720 must be
filed by April 30.
If requirements 1-3 above are not met, see Annual Claims on page 14.
Registration number.
Enter your UV or UP registration number in the space provided.
Information to be submitted.
For claims on line 8a, attach a separate sheet with the name and TIN of each governmental unit to whom the kerosene
was sold and the number of
gallons sold to each.
Line 8c. Sales by Registered Ultimate Vendors of Undyed Kerosene for Use in Certain Intercity and Local Buses
Claimant.
For line 8c, the registered ultimate vendor of the kerosene is eligible to make a claim only if the buyer waives his
or her right to make the claim
by providing the registered ultimate vendor with an unexpired waiver. See Model Waiver N in Pub. 510. Only one claim may be
filed with respect to any
gallon of kerosene.
Claim requirements.
The following requirements must be met.
-
The claim must be for kerosene sold during a period that is at least 1 week.
-
The amount of the claim must be at least $100. To meet this minimum, amounts from lines 8 and 9 may be combined.
-
Claims must be filed by the last day of the first quarter following the earliest quarter of the claimant's income tax year
included in the
claim. For example, a calendar year income taxpayer's claim for the first quarter is due June 30 if filed on Form 8849. However,
Form 720 must be
filed by April 30.
If requirements 1-3 above are not met, see Annual Claims on page 14.
Registration number.
Enter your UB registration number in the space provided.
Line 9a and 9b. Sales By Registered Ultimate Vendors of Kerosene For Use in Commercial Aviation (Other Than Foreign Trade)
Claimant.
The registered ultimate vendor of the kerosene sold for use in commercial aviation is eligible to make this claim
only if the buyer waives his or
her right by providing the registered ultimate vendor with an unexpired waiver. See Model Waiver L in Pub. 510. Only one claim
may be filed with
respect to any gallon of kerosene sold for use in commercial aviation.
Allowable sales.
The kerosene sold for use in commercial aviation must have been sold during the period of claim for use in commercial
aviation (other than foreign
trade).
Claim requirements.
The following requirements must be met.
-
The claim must be for kerosene sold for use in commercial aviation during a period that is at least 1 week.
-
The amount of the claim must be at least $100. To meet this minimum, amounts from lines 8 and 9 may be combined.
-
Claims must be filed by the last day of the first quarter following the earliest quarter of the claimant's income tax year
included in the
claim. For example, a calendar year income taxpayer's claim for the first quarter is due June 30 if filed on Form 8849. However,
Form 720 must be
filed by April 30.
If requirements 1-3 above are not met, see Annual Claims on page 14.
Registration number.
Enter your UA registration number in the space provided.
Line 9c, 9d, and 9e. Sales By Registered Ultimate Vendors of Kerosene Sold For Use in Noncommercial Aviation
Claimant.
The registered ultimate vendor of the kerosene sold for use in noncommercial aviation is the only person eligible
to make this claim and has
obtained the required certificate from the ultimate purchaser. For type of use 1, 9, 10, 13, 15, or 16, see Model Certificate
Q in Pub. 510. For type
of use 14, see Model Certificate P in Pub. 510. Only one claim may be filed with respect to any gallon of kerosene sold for
use in noncommercial
aviation.
Allowable sales.
For line 9c, the kerosene must have been sold for a nonexempt use in noncommercial aviation. For lines 9d and 9e,
the kerosene sold for use in
noncommercial aviation must have been sold during the period of claim for type of use 1, 9, 10, 13, 14, 15, or 16.
Claim requirements.
The following requirements must be met.
-
The claim must be for kerosene sold for use in noncommercial aviation during a period that is at least 1 week.
-
The amount of the claim must be at least $100. To meet this minimum, amounts from lines 8 and 9 may be combined.
-
Claims must be filed by the last day of the first quarter following the earliest quarter of the claimant's income tax year
included in the
claim. For example, a calendar year income taxpayer's claim for the first quarter is due June 30 if filed on Form 8849. However,
Form 720 must be
filed by April 30.
If requirements 1-3 above are not met, see Annual Claims on page 14.
Registration number.
Enter your UA (UV if type of use 14) registration number in the space provided.
Information to be submitted.
For claims on lines 9d and 9e, attach a separate sheet with the name and TIN of each governmental unit to whom the
kerosene was sold and the number
of gallons sold to each.
Lines 10 and 11. Sales by Registered Ultimate Vendors of Gasoline and Aviation Gasoline
Claimant.
The registered ultimate vendor of the gasoline or aviation gasoline is eligible to make a claim on lines 10 and 11
if the buyer waives his or her
right to make the claim by providing the registered ultimate vendor with an unexpired certificate. See Model Certificate M
in Pub. 510. Only one claim
may be filed with respect to any gallon of gasoline or aviation gasoline.
Allowable sales.
The gasoline or aviation gasoline must have been sold during the period of claim for:
-
Use by a nonprofit educational organization, or
-
Use by a state or local government (including essential government use by an Indian tribal government).
Claim requirements.
The following requirements must be met.
-
The claim must be for gasoline or aviation gasoline sold or used during a period that is at least 1 week.
-
The amount of the claim must be at least $200. To meet this minimum, amounts from lines 10 and 11 may be combined.
-
Claims must be filed by the last day of the first quarter following the earliest quarter of the claimant's income tax year
included in the
claim. For example, a calendar year income taxpayer's claim for January and February is due June 30 if filed on Form 8849.
However, Form 720 must be
filed by April 30.
Registration number.
Enter your UV registration number in the space provided.
Information to be submitted.
For claims on lines 10 and 11, attach a separate sheet with the name and TIN of each nonprofit educational organization
or governmental unit to
whom the gasoline or aviation gasoline was sold and the number of gallons sold to each.
Line 12. Alcohol Fuel Mixture Credit
Claimant.
The person that produced and sold or used the mixture in their trade or business is the only person eligible to make
this claim. The credit is
based on the gallons of alcohol in the mixture.
How to claim the credit.
Any alcohol fuel mixture credit must first be taken on Schedule C to reduce your taxable fuel liability reported on
Form 720. Any excess credit may
be taken on Schedule C (Form 720), Form 8849, Form 4136, or Form 6478. See Notice 2005-4 and Notice 2005-62 for more information.
Claim requirements.
The following requirements must be met if the credit exceeds the amount of taxable fuel liability reported.
-
The claim must be for an alcohol fuel mixture sold or used during a period that is at least 1 week.
-
The amount of the claim must be at least $200. To meet this minimum, amounts from lines 12, 13, and 14 may be combined.
If requirements 1 and 2 above are not met, see Annual Claims on page 14.
Registration number.
If you are a registered blender or a taxable fuel registrant, enter your registration number on line 12.
Line 13. Biodiesel or Renewable Diesel Mixture Credit
Claimant.
The person that produced and sold or used the mixture in their trade or business is the only person eligible to make
this claim. The credit is
based on the gallons of biodiesel or renewable diesel in the mixture.
How to claim the credit.
Any biodiesel or renewable diesel mixture credit must first be taken on Schedule C to reduce your taxable fuel liability
reported on Form 720. Any
excess credit may be taken on Schedule C (Form 720), Form 8849, Form 4136, or Form 8864. See Notice 2005-4 and item 4 below
for more information.
Claim requirements.
Requirements 1 and 2 must be met only if the credit exceeds the amount of taxable fuel liability reported. Requirements
3 and 4 must be met for all
claims.
-
The claim must be for a biodiesel or renewable diesel mixture sold or used during a period that is at least 1 week.
-
The amount of the claim must be at least $200. To meet this minimum, amounts from lines 12, 13, and 14 may be combined.
-
The biodiesel used to produce the biodiesel mixture meets ASTM D6751 and is registered with the EPA as a fuel and fuel additive
under
section 211 of the Clean Air Act.
-
The Certificate for Biodiesel and, if applicable, Statement of Biodiesel Reseller must be attached to the first claim filed
that is
supported by the certificate or statement. See Model Certificate O and Model Statement S in Pub. 510. If the certificate and
statement are not
attached to Form 720 because they are attached to a previously-filed claim on Schedule 3 (Form 8849) for the biodiesel, attach
a separate sheet with
the following information.
-
Certificate identification number.
-
Total gallons of biodiesel on certificate.
-
Total gallons claimed on Schedule 3 (Form 8849).
-
Total gallons claimed on Schedule C (Form 720),
line 13.
If requirements 1 and 2 above are not met, see Annual Claims on page 14.
Registration number.
If you are a registered blender or a taxable fuel registrant, enter your registration number on line 13.
Line 14. Alternative Fuel Credit and Alternative Fuel Mixture Credit
Claimant.
For the alternative fuel credit, the registered alternative fueler who (1) sold an alternative fuel at retail and
delivered it into the fuel supply
tank of a motor vehicle or motorboat, (2) sold an alternative fuel, delivered it in bulk for taxable use in a motor vehicle
or motorboat, and received
the required statement from the buyer, or (3) used an alternative fuel (not sold at retail or in bulk as previously described)
in a motor vehicle or
motorboat, is the only person eligible to make this claim.
For the alternative fuel mixture credit, the registered alternative fueler that produced and sold or used the mixture
as a fuel in their trade or
business is the only person eligible to make this claim. The credit is based on the gallons of alternative fuel in the mixture.
How to claim the credit.
Any alternative fuel credit and alternative fuel mixture credit must first be taken on Schedule C to reduce your taxable
fuel liability reported on
Form 720.
-
The total amount of the alternative fuel credit for the period is limited to the claimant's section 4041 liability reported on
Form 720. Any excess of the section 4041 liability must be claimed as a credit on Form 4136.
-
The total amount of the alternative fuel mixture credit for the period can be claimed on Schedule C (Form 720), Schedule 3
(Form 8849), or
Form 4136.
Claim requirements.
To claim either credit, you must be registered by the IRS. To claim the alternative fuel mixture credit, the following
requirements must be met if
the credit exceeds the amount of taxable fuel liability reported.
-
The claim must be for an alternative fuel mixture sold or used (as described above under Claimant) during a period that is at
least 1 week.
-
The amount of the claim must be at least $200. To meet the minimum, amounts from lines 12, 13, and 14 may be combined.
If requirements 1 and 2 above are not met, see Annual Claims below.
Registration number.
You must enter your registration number in the space provided.
If a claim on lines 1-9, 12-14, or 15b-15e was not made for any gallons, an annual claim may be made. Generally, an annual
claim
is made on Form 4136 for the income tax year during which the fuel was used by the ultimate purchaser, sold by the registered
ultimate vendor, used to
produce an alcohol fuel mixture and biodiesel mixture, or used in mobile machinery. See Form 4136 for more information.
For claims under section 6416(b)(2) relating to certain uses and resales of certain articles subject to manufacturers or retailers
excise taxes,
claimant certifies that it sold the article at a tax-excluded price, repaid the amount of tax to the ultimate vendor, or has
obtained the written
consent of the ultimate vendor to make the claim; and has the required supporting information.
Lines 15b and 15c. Exported Dyed Diesel Fuel and Exported Dyed Kerosene
For exported dyed diesel fuel and exported dyed kerosene, see Exported taxable fuel on page 10. The claim rate for each fuel is $.001.
Line 15d. Diesel-Water Fuel Emulsion
The claim rate for the nontaxable use of a diesel-water fuel emulsion taxed at $.198 (CRN 309) is $.197. The fuel must have
been used during the
period of claim for type of use 1, 2, 3, 5, 6, 7, 8, or 12. For type of use 5, the claim rate is $.124 (CRN 309). For use
in trains, the claim rate in
$.174 (CRN 309). For type of use 3 (exported), the claim rate is $.198 (CRN 306) and is reported on line 15d.
The claim rate for undyed diesel fuel taxed at $.244 (CRN 310) and used to produce a diesel-water fuel emulsion is $.046 per
gallon of diesel fuel
so used (blender claims). The claimant must attach a statement certifying that: (a) the claimant produced a diesel-water fuel
emulsion containing at
least 14% water, (b) the emulsion additive is registered by a United States manufacturer under section 211 of the Clean Air
Act with the EPA, (c) the
claimant used undyed diesel fuel taxed at $.244 to produce the diesel-water emulsion, and (d) the claimant sold or used the
diesel-water fuel emulsion
in the blender's trade or business. The blender claimant must be registered by the IRS and must enter their registration number
on line 15d and enter
the applicable CRN.
Claim requirements.
See Claim requirements for lines 1 through 6 and lines 15b-15d on page 10.
Line 15e. Registered Credit Card Issuers
Allowable sales.
The gasoline (CRN 362), aviation gasoline (CRN 324), diesel fuel (CRN 360), kerosene (CRN 346), or kerosene for use
in aviation (CRN 369) must have
been purchased with a credit card issued to the ultimate purchaser during the period of claim:
-
For gasoline or aviation gasoline, for the exclusive use by a state or local government (including essential government use
by an Indian
tribal government) or for the exclusive use of a nonprofit educational organization; or
-
For diesel fuel, kerosene, or kerosene for use in aviation, for the exclusive use by a state or local government (including
essential
government use by an Indian tribal government).
Claimant.
The registered credit card issuer is the only person eligible to make this claim if the credit card issuer:
-
Is registered by the IRS;
-
Has not collected the amount of tax from the ultimate purchaser or has obtained the written consent of the ultimate purchaser
to make the
claim;
-
Certifies that it has repaid or agreed to repay the amount of tax to the ultimate vendor, has obtained the written consent
of the ultimate
vendor to make the claim, or has otherwise made arrangements which directly or indirectly provide the ultimate vendor with
reimbursement of the tax;
and
-
Has in its possession an unexpired certificate from the ultimate purchaser and has no reason to believe any of the information
in the
certificate is false. See Model Certificate R in Pub. 510.
If any of these conditions is not met, the credit card issuer must collect the tax from the ultimate purchaser and
only the ultimate purchaser can
make the claim.
Claim requirements.
The following requirements must be met.
-
The claim must be for gasoline, aviation gasoline, diesel fuel, kerosene, or kerosene for use in aviation sold during a period
that is at
least 1 week.
-
The amount of the claim must be at least $200 ($100 for kerosene or kerosene for use in aviation).
-
Claims must be filed by the last day of the first quarter following the earliest quarter of the claimant's income tax year
included in the
claim. For example, a calendar year income taxpayer's claim for the first quarter is due June 30 if filed on Form 8849. However,
Form 720 must be
filed by April 30.
-
The claimant must enter its registration number on line 15e, the amount of the claim, and the applicable CRN (see Allowable sales
above). If the claim is for more than one fuel, use the blank lines 15f through 15i, or attach a separate sheet listing the
fuels, amount, and
CRN.
Do not use line 15f to make communication tax claims for nontaxable service. See Communications Taxes on page 3.
Use line 15f for claims relating to taxes listed in the table below. See Pub. 510 for information on allowable claims relating
to these taxes. If
you need additional space, attach other sheet(s). You must include the following information for each claim.
-
A detailed description of the claim.
-
Any additional information required by the regulations.
-
The amount of the claim.
-
How you figured the claim amount.
-
Any other information to support the claim.
Claim requirement.
Generally, the claim must be filed within 3 years from the time the return was filed or 2 years from the time the tax was
paid, whichever is later.
| Tax |
CRN |
|
Ozone-depleting chemicals (ODCs)
|
398
|
|
Oil spill liability
|
349
|
|
Truck, trailer, and semitrailer chassis and bodies, and tractors
|
383
|
|
Passenger vehicles (luxury tax)
|
392
|
|
Taxable tires other than biasply or super single tires
|
396
|
|
Taxable tires, biasply or super single tires (other than super single tires designed for steering)
|
304
|
|
Taxable tires, super single tires designed for steering
|
305
|
|
Gas guzzler automobiles
|
340
|
|
Vaccines
|
397
|
|
Sport fishing equipment
|
341
|
|
Fishing rods and fishing poles
|
308
|
|
Fishing tackle boxes
|
387
|
|
Electric outboard motors
|
342
|
|
Bows, quivers, broadheads, and points
|
344
|
|
Arrow shafts
|
389
|
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 your concerns. You can
expect the advocate to
provide you with:
-
A "fresh look" at your new or ongoing problem,
-
Timely acknowledgment,
-
The name and phone number of the individual assigned to your case,
-
Updates on progress,
-
Timeframes for action,
-
Speedy resolution, and
-
Courteous service.
When contacting the Taxpayer Advocate, you should provide the following information.
-
Your name, address, and taxpayer identification number (TIN).
-
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) or period(s) (for quarterly returns) involved.
-
A detailed description of the problem.
-
Previous attempts to solve the problem and the office you 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 numbers.
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