Instructions For Form 720 - Quarterly Federal Excise Tax Return

Line 15d. Diesel-Water Fuel Emulsion

fuel, use the blank lines 15f through 15i, or attach a

separate sheet listing the fuels, amount, and CRN.

The claim rate for the nontaxable use of a diesel-water fuel

emulsion taxed at $.198 (CRN 309) is $.197. The fuel must

Claim rates. The claim rates are shown below.

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

CRN

Claim Rate

$.124 (CRN 309). For type of use 3 (exported), the claim

324

$.193

rate is $.198 (CRN 306) and is reported on line 15d.

346

.243

The claim rate for undyed diesel fuel taxed at $.244 (CRN

310) and used to produce a diesel-water fuel emulsion is

360

.243

$.046 per gallon of diesel fuel so used (blender claims). The

362

.183

claimant must attach a statement certifying that (a) the

claimant produced a diesel-water fuel emulsion containing at

369

.218

least 14% water, (b) the emulsion additive is registered by a

United States manufacturer under section 211 of the Clean

Line 15f. Other Claims

Air Act with the EPA, (c) the claimant used undyed diesel

fuel taxed at $.244 to produce the diesel-water emulsion,

Do not use line 15f to make communication tax

and (d) the claimant sold or used the diesel-water fuel

claims for nontaxable service. See Communications

emulsion in the blender’s trade or business. The blender

Taxes on page 3.

CAUTION

claimant must be registered by the IRS and must enter their

registration number on line 15d and enter the applicable

Use line 15f for claims relating to taxes listed in the table

CRN.

below. See Pub. 510 for information on allowable claims

relating to these taxes. If you need additional space, attach

Claim requirements. See Claim requirements for lines 1

other sheet(s). You must include the following information

through 6 and lines 15b – 15d on page 10.

for each claim.

•

Line 15e. Registered Credit Card Issuers

A detailed description of the claim.

•

Any additional information required by the regulations.

Allowable sales. The gasoline (CRN 362), aviation

•

The amount of the claim.

gasoline (CRN 324), diesel fuel (CRN 360), kerosene (CRN

•

How you figured the claim amount.

346), or kerosene for use in aviation (CRN 369) must have

•

Any other information to support the claim.

been purchased with a credit card issued to the ultimate

Claim requirement. Generally, the claim must be filed

purchaser during the period of claim:

•

within 3 years from the time the return was filed or 2 years

For gasoline or aviation gasoline, for the exclusive use by

from the time the tax was paid, whichever is later.

a state or local government (including essential government

use by an Indian tribal government) or for the exclusive use

Tax

CRN

of a nonprofit educational organization; or

•

For diesel fuel, kerosene, or kerosene for use in aviation,

Ozone-depleting chemicals (ODCs)

398

for the exclusive use by a state or local government

Oil spill liability

349

(including essential government use by an Indian tribal

government).

Truck, trailer, and semitrailer chassis and bodies, and

383

tractors

Claimant. The registered credit card issuer is the only

person eligible to make this claim if the credit card issuer:

Passenger vehicles (luxury tax)

392

1. Is registered by the IRS;

Taxable tires other than biasply or super single tires

396

2. Has not collected the amount of tax from the ultimate

Taxable tires, biasply or super single tires (other than

304

purchaser or has obtained the written consent of the

super single tires designed for steering)

ultimate purchaser to make the claim;

3. Certifies that it has repaid or agreed to repay the

Taxable tires, super single tires designed for steering

305

amount of tax to the ultimate vendor, has obtained the

Gas guzzler automobiles

340

written consent of the ultimate vendor to make the claim, or

Vaccines

397

has otherwise made arrangements which directly or

indirectly provide the ultimate vendor with reimbursement of

Sport fishing equipment

341

the tax; and

Fishing rods and fishing poles

308

4. Has in its possession an unexpired certificate from the

ultimate purchaser and has no reason to believe any of the

Fishing tackle boxes

387

information in the certificate is false. See Model Certificate R

Electric outboard motors

342

in Pub. 510.

Bows, quivers, broadheads, and points

344

If any of these conditions is not met, the credit card issuer

Arrow shafts

389

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.

Unresolved Tax Issues

1. The claim must be for gasoline, aviation gasoline,

If you have attempted to deal with an IRS problem

diesel fuel, kerosene, or kerosene for use in aviation sold

unsuccessfully, you should contact the Taxpayer Advocate.

during a period that is at least 1 week.

The Taxpayer Advocate independently represents your

2. The amount of the claim must be at least $200 ($100

interests and concerns within the IRS by protecting your

for kerosene or kerosene for use in aviation).

rights and resolving problems that have not been fixed

3. Claims must be filed by the last day of the first quarter

through normal channels.

following the earliest quarter of the claimant’s income tax

While Taxpayer Advocates cannot change the tax law or

year included in the claim. For example, a calendar year

make a technical tax decision, they can clear up problems

income taxpayer’s claim for the first quarter is due June 30 if

that resulted from previous contacts and ensure that your

filed on Form 8849. However, Form 720 must be filed by

case is given a complete and impartial review.

April 30.

4. The claimant must enter its registration number on line

Your assigned personal advocate will listen to your point

15e, the amount of the claim, and the applicable CRN (see

of view and will work with you to address your concerns.

Allowable sales above). If the claim is for more than one

You can expect the advocate to provide you with:

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2008 Page 14

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