Instructions For Form 720 - Quarterly Federal Excise Tax Return

Where to file. Do not file the uncollected tax report with

Kerosene (IRS No. 35). If you are liable for the kerosene

Form 720. Instead, mail the report to:

tax on removal at the terminal rack, report these gallons on

line 35(a). If you are liable for the kerosene tax on events

Internal Revenue Service

other than removal at the terminal rack, report these gallons

Excise Tax Program

of kerosene on line 35(b).

SE:S:SP:EX MS C9 – 109

5000 Ellin Rd.

Multiply the total number of gallons subject to tax on lines

Lanham, MD 20706

(a) and (b) by $.244 and make one entry in the tax column.

Fuel Taxes

Also see Schedule T — Two-Party Exchange Information

Reporting on page 9 if applicable.

First taxpayer’s report. If you are reporting gallons of

taxable fuel that may again be subject to tax, you may need

Kerosene for use in aviation (IRS Nos. 69, 77, and 111).

to file a first taxpayer’s report. The report must contain all

Generally, kerosene is taxed at $.244 per gallon.

the information as shown in the Model Certificate B in the

•

For kerosene removed directly from a terminal into the

Appendix of Publication 510.

fuel tank of an aircraft for use in noncommercial aviation, the

tax rate is $.219 per gallon. Report these gallons on the line

The person who paid the first tax must:

•

Give a copy of the first taxpayer’s report to the buyer;

for IRS No. 69.

•

File the first taxpayer’s report with Form 720 for the

For kerosene removed directly from a terminal into the

quarter for which the report relates; and

fuel tank of an aircraft for use in commercial aviation (other

•

Write “EXCISE — FIRST TAXPAYER’S REPORT” across

than foreign trade), the tax rate is generally $.044 per gallon.

the top of a separate copy of the report, and by the due date

Report these gallons on the line for IRS No. 77.

of Form 720, send the copy to:

•

For kerosene removed directly from a terminal into the

Department of the Treasury

fuel tank of an aircraft for nontaxable uses, the tax rate is

Internal Revenue Service

generally $.001 per gallon. Report these gallons on the line

Cincinnati, OH 45999-0555

for IRS No. 111.

Diesel fuel (IRS No. 60). If you are liable for the diesel fuel

Other fuels (IRS No. 79). You are liable for the tax on the

tax on removal at the terminal rack, report these gallons on

fuels listed below when they are delivered into the fuel

line 60(a). If you are liable for the diesel fuel tax on events

supply tank of a motor vehicle or motorboat (or trains for

other than removal at the terminal rack, report these gallons

B-100). Use the following table to determine the tax for each

on line 60(b). If you are liable for the diesel fuel tax because

gallon. Fill in the number of gallons and the appropriate rate

you have produced diesel fuel by blending biodiesel with

in the Rate column on the line for IRS No. 79. If more than

taxed diesel fuel outside of the bulk transfer/terminal

one rate applies, leave the Rate column blank and attach a

system, report these gallons of biodiesel on line 60(c). If you

schedule showing the rates and number of gallons taxed at

report gallons on line 60(c), do not report those gallons on

each rate.

line 60(b).

Fuel

Tax Rate

per Gallon

Multiply the total number of gallons subject to tax on lines

(a), (b), and (c) by $.244 and make one entry in the tax

Qualified —

column.

Ethanol produced from coal . . . . . . . . . . . . . . . . . . . . . .

.1325

Methanol produced from coal . . . . . . . . . . . . . . . . . . . . .

.1235

Also see Schedule T — Two-Party Exchange Information

Partially exempt —

Reporting on page 9 if applicable.

Ethanol produced from natural gas . . . . . . . . . . . . . . . . .

.114

Methanol produced from natural gas . . . . . . . . . . . . . . . .

.0925

Diesel-water fuel emulsion (IRS No. 104). If you are

B-100 (100% biodiesel) . . . . . . . . . . . . . . . . . . . . . . . . . .

.244

Other fuels not shown . . . . . . . . . . . . . . . . . . . . . . . . . .

.184

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

Gasoline (IRS No. 62). If you are liable for the gasoline tax

No. 104.

on removal at the terminal rack, report these gallons on line

62(a). If you are liable for the gasoline tax on events other

Requirements. All of the following requirements must

than removal at the terminal rack, report these gallons on

be met to be eligible for the reduced rate: (a) the

line 62(b). If you are liable for the gasoline tax because you

diesel-water fuel emulsion must contain at least 14% water,

have blended alcohol with taxed gasoline outside of the bulk

(b) the emulsion additive must be registered by a United

transfer/terminal system, report these gallons of alcohol on

States manufacturer with the EPA under section 211 of the

line 62(c). If you report gallons on line 62(c), do not report

Clean Air Act, and (c) the taxpayer must be registered by

those gallons on line 62(b).

the IRS. If these requirements are not met, you must report

the sale, removal, or use of a diesel-water fuel emulsion as

Multiply the total number of gallons subject to tax on lines

diesel fuel.

(a), (b), and (c) by $.184. Combine the tax for lines (a), (b),

IRS Nos. 105, 107, 119, and 111. Tax is imposed at $.001

and (c), and make one entry in the tax column.

per gallon on removals, entries, and sales of gasoline, diesel

fuel, and kerosene described as exempt transactions.

Also see Schedule T — Two-Party Exchange Information

•

IRS No. 105, Dyed diesel fuel, LUST tax.

Reporting on page 9 if applicable.

•

IRS No. 107, Dyed kerosene, LUST tax.

•

Aviation gasoline (IRS No. 14). Aviation gasoline is taxed

IRS No. 119, LUST tax, other exempt removals. Report

at the rate shown on Form 720.

gasoline blendstocks, kerosene used for a feedstock

purpose, and diesel fuel or kerosene sold or used in Alaska.

•

Alternative fuel (IRS Nos. 112, 118, and 120 – 124).

IRS No. 111, Kerosene for use in aviation, LUST tax on

Alternative fuel is any liquid other than gas oil, fuel oil, or

nontaxable uses. Report gallons of kerosene removed

any product taxable under Internal Revenue Code section

directly from a terminal into the fuel tank of an aircraft for

4081. You are liable for tax on alternative fuel delivered into

nontaxable uses.

the fuel supply tank of a motor vehicle or motorboat, or on

Multiply the total number of gallons subject to tax for each

certain bulk sales. Report the tax on the line for the IRS No.

fuel by $.001 and make the entry in the tax column.

listed in the following table.

-4-

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2008 Page 4

Related Articles

Related forms

Related Categories