Instructions For Form 720 - Quarterly Federal Excise Tax Return

claim and has obtained the required certificate from the

Line 4. Nontaxable Use of Undyed Kerosene

buyer and has no reason to believe any information in the

(Other Than Kerosene Used in Aviation)

certificate is false.

Allowable sales. The fuel must have been sold during

Ultimate purchasers use line 4c to make claims

the Period of claim for the exclusive use by a state or

for kerosene used on a farm for farming

local government (including essential government use by

purposes. Line 4 cannot be used to make a claim

CAUTION

an Indian tribal government).

for kerosene sold for the exclusive use by a state or local

Claim requirements. The following requirements must

government or for sales from a blocked pump. Only

registered ultimate vendors may make these claims. See

be met:

the instructions for line 7 on below.

1. The claim must be for diesel fuel sold during a

Allowable uses. For line 4a, the kerosene must have

period that is at least 1 week.

been used during the period of claim for type of use 2, 6,

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

7, 8, or 12. For exported fuel, see line 15b. Type of use 2

meet this minimum requirement, amounts from line 6, 7,

does not include any personal use or use in a motorboat.

and line 8 may be combined.

Type of use 8 includes use as heating oil and use in a

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

motorboat.

quarter following the earliest quarter of the claimant’s

income tax year included in the claim. For example, a

Exception. Claims for kerosene used in aviation on a

calendar year income taxpayer’s claim for the first quarter

farm for farming purposes must be claimed by the

is due June 30 if filed on Form 8849. However, Form 720

ultimate vendor.

must be filed by April 30.

Line 5. Nontaxable Use of Kerosene For Use

If requirements 1-3 above are not met, see Annual

in Commercial Aviation (Other Than Foreign

Claims on page 13.

Trade)

Information to be submitted. For claims on line 6a,

attach a separate sheet with the name and TIN of each

Line 5 cannot be used to make a claim for

governmental unit to whom the diesel fuel was sold and

kerosene used in aviation on a farm for farming

the number of gallons sold to each.

purposes or used exclusively by a state or local

CAUTION

government.

Line 6b. Sales by Ultimate Vendors of

Allowable uses. The ultimate purchaser of the kerosene

Undyed Diesel Fuel for Use in Certain

used in commercial aviation (other than foreign trade) is

Intercity and Local Buses

eligible to make this claim.

Claimant. For line 6b, the registered ultimate vendor of

Claimant. Ultimate purchasers may make a claim for

the diesel fuel is eligible to make a claim only if the buyer

the gallons used in commercial aviation at the rate of

waives his or her right to make the claim by providing the

$.175 per gallon if the ultimate purchaser has provided a

registered ultimate vendor with an unexpired waiver. Only

certificate for nonexempt use in noncommercial aviation.

one claim may be filed with respect to any gallon of

See Notice 2005-80 for a model certificate and more

diesel fuel.

information. Only one claim may be filed with respect to

any gallon of kerosene sold for use in commercial

Claim requirements. The following requirements must

aviation.

be met:

1. The claim must be for diesel fuel sold during a

Information for Claims on Lines 6 – 10

period that is at least 1 week.

Registration number. To make an ultimate vendor

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

claim on lines 6-10, you are required to be registered.

meet this minimum requirement, amounts from line 6, 7,

Enter your registration number, including the prefix, on

and line 8 may be combined.

the applicable line for your claim. If you are not a

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

registered, you cannot make a claim at this time. Use

quarter following the earliest quarter of the claimant’s

Form 637, Application for Registration (For Certain

income tax year included in the claim. For example, a

Excise Tax Activities), to apply for one.

calendar year income taxpayer’s claim for the first quarter

is due June 30 if filed on Form 8849. However, Form 720

Required certificate or waiver. The certificate for

must be filed by April 30.

undyed diesel fuel or undyed kerosene must contain all

the information as shown in the Model Certificate in

If requirements 1-3 above are not met, see Annual

Regulations section 48.6427-9(e)(2).

Claims on page 13.

Model certificates or waivers for sales of undyed diesel

fuel or undyed kerosene for use in certain intercity and

Lines 7a and 7b. Sales By Registered

local buses, gasoline, and aviation gasoline can be found

Ultimate Vendors of Undyed Kerosene

in Notice 2005-4. For kerosene for use in aviation, see

(Other Than Kerosene Sold for Use in

Notice 2005-80.

Aviation)

Line 6a. Sales By Registered Ultimate

Vendors of Undyed Diesel Fuel

Line 7 cannot be used to make a claim for

kerosene sold for use on a farm for farming

purposes. Only ultimate purchasers may make

Line 6 cannot be used to make a claim for diesel

CAUTION

fuel sold for use on a farm for farming purposes.

these claims. See the instructions for line 4 earlier.

Only ultimate purchasers may make these claims.

CAUTION

Claimant. For line 7a, the registered ultimate vendor of

See the instructions for line 3 earlier.

the kerosene is the only person eligible to make this

Claimant. For line 6a, the registered ultimate vendor of

claim and has obtained the required certificate from the

the diesel fuel is the only person eligible to make this

buyer and has no reason to believe any information in the

-11-

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2005 Page 11

Related Articles

Related forms

Related Categories