Instructions For Form 720 - Quarterly Federal Excise Tax Return

How to claim the credit. Any alcohol fuel mixture credit

Registration number. If you are a registered blender or a

must first be taken on Schedule C to reduce your taxable

taxable fuel registrant, enter your registration number on line

fuel liability for gasoline, diesel fuel, and kerosene reported

13.

on Form 720. Any excess credit may be taken on Schedule

Line 14. Alternative Fuel Credit and

C (Form 720), Form 8849, Form 4136, or Form 6478. See

Notice 2005-4 and Notice 2005-62 for more information.

Alternative Fuel Mixture Credit

Claim requirements. The following requirements must be

Claimant. For the alternative fuel credit, the registered

met if the credit exceeds the amount of taxable fuel liability

alternative fueler who (1) sold an alternative fuel at retail and

reported.

delivered it into the fuel supply tank of a motor vehicle or

1. The claim must be for an alcohol fuel mixture sold or

motorboat, (2) sold an alternative fuel, delivered it in bulk for

used during a period that is at least 1 week.

taxable use in a motor vehicle or motorboat, and received

2. The amount of the claim must be at least $200. To

the required statement from the buyer, or (3) used an

meet this minimum, amounts from lines 12, 13, and 14 may

alternative fuel (not sold at retail or in bulk as previously

be combined.

described) in a motor vehicle or motorboat is the only

person eligible to make this claim.

If requirements 1 and 2 above are not met, see Annual

For the alternative fuel mixture credit, the registered

Claims below.

alternative fueler that produced and sold or used the mixture

Registration number. If you are a registered blender or a

as a fuel in their trade or business is the only person eligible

taxable fuel registrant, enter your registration number on line

to make this claim. The credit is based on the gallons of

12.

alternative fuel in the mixture.

Line 13. Biodiesel or Renewable Diesel

How to claim the credit. Any alternative fuel credit must

first be taken on Schedule C to reduce your liability for

Mixture Credit

alternative fuel and CNG reported on Form 720. Any

Claimant. The person that produced and sold or used the

alternative fuel mixture credit must first be taken on

mixture in their trade or business is the only person eligible

Schedule C to reduce your taxable fuel liability for gasoline,

to make this claim. The credit is based on the gallons of

diesel fuel, and kerosene reported on Form 720. Any excess

biodiesel or renewable diesel in the mixture.

alternative fuel credit and alternative fuel mixture credit may

How to claim the credit. Any biodiesel or renewable

be taken on Schedule C (Form 720), Form 8849, or Form

diesel mixture credit must first be taken on Schedule C to

4136.

reduce your taxable fuel liability for gasoline, diesel fuel, and

Claim requirements. To claim either credit, you must be

kerosene reported on Form 720. Any excess credit may be

registered by the IRS. To claim the alternative fuel mixture

taken on Schedule C (Form 720), Form 8849, Form 4136, or

credit, the following requirements must be met if the credit

Form 8864. See Notice 2005-4 and item 4 below for more

exceeds the amount of taxable fuel liability reported.

information.

1. The claim must be for an alternative fuel mixture sold

Claim requirements. Requirements 1 and 2 must be met

or used (as described earlier under Claimant) during a

only if the credit exceeds the amount of taxable fuel liability

period that is at least 1 week.

reported. Requirements 3 and 4 must be met for all claims.

2. The amount of the claim must be at least $200. To

1. The claim must be for a biodiesel or renewable diesel

meet the minimum, amounts from lines 12, 13, and 14 may

mixture sold or used during a period that is at least 1 week.

be combined.

2. The amount of the claim must be at least $200. To

meet this minimum, amounts from lines 12, 13, and 14 may

If requirements 1 and 2 above are not met, see Annual

be combined.

Claims below.

3. The biodiesel used to produce the biodiesel mixture

Registration number. You must enter your registration

must meet ASTM D6751 and meet the Environmental

number in the space provided.

Protection Agency’s (EPA) registration requirements for

Form 720X. If you are not registered, you cannot make

fuels and fuel additives under section 211 of the Clean Air

a claim at this time. Use Form 637 to apply for registration.

Act. The renewable diesel used to produce the renewable

After you are registered by the IRS, file Form 720X to claim

diesel mixture must be derived from biomass (as defined in

the credit for this period.

section 45K(c)(3)) using a thermal depolymerization

process, meet ASTM D975 or D396, and meet EPA’s

Annual Claims

registration requirements for fuels and fuel additives under

If a claim on lines 1 – 9, 12 – 14, or 15b – 15e was not made

section 211 of the Clean Air Act.

for any gallons, an annual claim may be made. Generally,

4. The Certificate for Biodiesel and, if applicable,

an annual claim is made on Form 4136 for the income tax

Statement of Biodiesel Reseller must be attached to the first

year during which the fuel was used by the ultimate

claim filed that is supported by the certificate or statement.

purchaser, sold by the registered ultimate vendor, used to

For the renewable diesel mixture credit, you must edit the

produce an alcohol fuel mixture and biodiesel mixture, or

certificate and, if applicable, statement to indicate that the

used in mobile machinery. See Form 4136 for more

fuel to which the certificate and statement relate is

information.

renewable diesel and state that the renewable diesel meets

the requirements discussed above under requirement 3.

Line 15. Other Claims

See Model Certificate O and Model Statement S in Pub.

510. If the certificate and statement are not attached to

For claims under section 6416(b)(2) relating to certain uses

Form 720 because they are attached to a previously-filed

and resales of certain articles subject to manufacturers or

claim on Schedule 3 (Form 8849), attach a separate sheet

retailers excise taxes, claimant certifies that it sold the article

with the following information.

at a tax-excluded price, repaid the amount of tax to the

ultimate vendor, or has obtained the written consent of the

a. Certificate identification number.

ultimate vendor to make the claim; and has the required

b. Total gallons of biodiesel or renewable diesel on

supporting information.

certificate.

c. Total gallons claimed on Schedule 3 (Form 8849).

Lines 15b and 15c. Exported Dyed Diesel Fuel

d. Total gallons claimed on Schedule C (Form 720),

and Exported Dyed Kerosene

line 13.

For exported dyed diesel fuel and exported dyed kerosene,

If requirements 1 and 2 above are not met, see Annual

see Exported taxable fuel on page 10. The claim rate for

Claims below.

each fuel is $.001.

-13-

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2008 Page 13

Related Articles

Related forms

Related Categories