Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2005 Page 10
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16You must include in gross income (income tax
No.
Type of Use
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return) the amount from line 4 of Form 720 if you
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Exclusive use by a nonprofit educational
took a deduction on the income tax return that
CAUTION
organization
included the amount of the taxes and that deduction
reduced the income tax liability. See Publication 378 for
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Exclusive use by a state, political subdivision of
more information.
a state, or the District of Columbia
Do not use Schedule C:
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In an aircraft or vehicle owned by an aircraft
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If you are not reporting a liability in Part I or Part II of
museum
Form 720.
•
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In military aircraft
To claim amounts that you took or will take as a credit
on Form 4136, Credit for Federal Tax Paid on Fuels, or
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For use in the production of special fuels
as a refund on Form 8849, Claim for Refund of Excise
Taxes, and its separate schedules.
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To request an abatement or refund of interest under
Claim requirements for lines 1 through 5 and line 11.
section 6404(e) (due to IRS errors or delays) or an
The following requirements must be met:
abatement or refund of a penalty or addition to tax under
1. The amount of the claim must be at least $750
section 6404(f) (due to erroneous IRS written advice).
(combining amounts on lines 1, 2, 3, 4, 5, and 11). This
Instead, use Form 843, Claim for Refund and Request for
amount may be met by:
Abatement. Also use Form 843 to request refund of the
a. Making a claim for fuel used during any quarter of a
penalty under section 6715 for misuse of dyed fuel.
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claimant’s income tax year or
To make adjustments to liability reported on Forms 720
b. Aggregating amounts from any quarters of the
filed for prior quarters, use Form 720X.
claimant’s income tax year for which no other claim has
If you make a claim for alcohol or biodiesel used
been made.
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to produce an alcohol fuel mixture or biodiesel
2. Claims must be filed during the first quarter
mixture, a claim for refund or credit on Form
following the last quarter of the claimant’s income tax
CAUTION
8849, Form 4136, Form 6478, or Form 8864 can only be
year included in the claim. For example, a calendar year
made after the sum of the alcohol fuel mixture credit and
income taxpayer’s claim for the first quarter is due June
biodiesel mixture credit is first applied to your taxable fuel
30 if filed on Form 8849. However, Form 720 must be
liability reported on Form 720 for any particular quarter.
filed by April 30.
See Notice 2005-4 and Notice 2005-62 for more
3. Only one claim may be filed for any quarter.
information.
4. The fuel must have been used for a nontaxable use
during the Period of claim.
Type of Use Table
5. The ultimate purchaser is the only person eligible to
The following table lists the nontaxable uses of fuels. You
make the claim.
must enter the number from the table in the Type of use
column as required.
If requirements 1-3 above are not met, see Annual
Claims on page 13.
No.
Type of Use
1
On a farm for farming purposes
Line 1. Nontaxable Use of Gasoline
2
Off-highway business (for business use other
Allowable uses. The gasoline must have been used
than in a highway vehicle registered or required
during the period of claim for type of use 2, 4, 5, 7, or 12.
to be registered for highway use) (other than
For exported fuel, see line 15b. Type of use 2 does not
use in mobile machinery)
include any personal use or use in a motorboat.
3
Export (see line 15b of Schedule C)
Line 2. Nontaxable Use of Aviation Gasoline
4
In a boat engaged in commercial fishing
Allowable uses. For line 2b, the aviation gasoline must
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In certain intercity and local buses
have been used during the period of claim for type of use
6
For diesel fuel or kerosene in a qualified local
9, 10, or 16. For exported fuel, see line 15b.
bus
Line 3. Nontaxable Use of Undyed Diesel
7
In a bus transporting students and employees of
Fuel
schools (school buses)
8
For diesel fuel and kerosene (other than
Ultimate purchasers use line 3d to make claims
kerosene used in aviation) used other than as a
!
for diesel fuel used on a farm for farming
fuel in the propulsion engine of a train or
purposes. Line 3 cannot be used to make a claim
CAUTION
diesel-powered highway vehicle (but not
for diesel fuel sold for the exclusive use by a state or
off-highway business use)
local government. Only registered ultimate vendors may
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In foreign trade
make these claims. See the instructions for line 6 on
page 11.
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Certain helicopter and fixed-wing air ambulance
uses
Allowable uses. For line 3a, the diesel fuel must have
been used during the period of claim for type of use 2, 6,
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Not applicable
7, 8, or 12. For exported fuel, see line 15b. Type of use 2
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In a highway vehicle owned by the United
does not include any personal use or use in a motorboat.
States that is not used on a highway
Type of use 8 includes use as heating oil and use in a
motorboat.
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