Instructions For Form 720 - Quarterly Federal Excise Tax Return

Line 9a and 9b. Sales by Registered Ultimate

Line 11. Nontaxable Use of Liquefied

Vendors of Gasoline

Petroleum Gas (LPG)

Claimant. The registered ultimate vendor of the gasoline

Allowable uses. For line 11(c), the taxed LPG must

is eligible to make a claim on lines 9a and 9b if the buyer

have been used during the period of claim for type of

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

use: 1, 2, or 4.

registered ultimate vendor with an unexpired certificate.

Line 12. Alcohol Fuel Mixture Credit

Only one claim may be filed with respect to any gallon of

gasoline.

Claimant. The person that produced and sold or used

Allowable sales. The gasoline must have been sold

the mixture is the only person eligible to make this claim.

during the period of claim for:

•

Claim requirements. The following requirements must

Use by a nonprofit educational organization or

•

be met:

Use by a state or local government (including essential

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

government use by an Indian tribal government).

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

Claim requirements. The following requirements must

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

be met:

meet this minimum, amounts from lines 12 and 13 may

1. The claim must be for gasoline sold or used during

be combined.

a period that is at least 1 week.

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

How to claim the credit. Any alcohol fuel mixture credit

meet this minimum, amounts from lines 9a, 9b, 10a, and

must first be taken on Schedule C against your taxable

10b may be combined.

fuel liability reported on Form 720. Any excess credit may

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

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

quarter following the earliest quarter of the claimant’s

4136, or Form 6478. See Notice 2005-4 and Notice

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

2005-62 for more information.

calendar year income taxpayer’s claim for January and

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

Line 13. Biodiesel Mixture Credit

Form 720 must be filed by April 30.

Claimant. The person that produced and sold or used

the mixture is the only person eligible to make this claim.

Information to be submitted. For claims on lines 9a

and 9b, attach a separate sheet with the name and TIN

Claim requirements. The following requirements must

of each nonprofit educational organization or

be met:

governmental unit to whom the gasoline was sold and the

1. The claim must be for a biodiesel mixture sold or

number of gallons sold to each.

used during a period that is at least 1 week.

Line 10a and 10b. Sales by Registered

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

meet this minimum, amounts from lines 12 and 13 may

Ultimate Vendors of Aviation Gasoline

be combined.

Claimant. The registered ultimate vendor of the aviation

3. For biodiesel sold or used after August 29, 2005,

gasoline is eligible to make a claim on lines 10a and 10b

the Certificate for Biodiesel and, if applicable, Statement

if the buyer waives his or her right to make the claim by

of Biodiesel Reseller, must be attached to the Form 720.

providing the registered ultimate vendor with an

See Notice 2005-62 for more information. If the certificate

unexpired certificate. Only one claim may be filed with

and statement were attached to a previously-filed claim

respect to any gallon of aviation gasoline.

on Schedule 3 (Form 8849) for the biodiesel, attach a

separate sheet with the following information.

Allowable sales. The aviation gasoline must have been

a. Certificate identification number.

sold during the period of claim for:

•

Use by a nonprofit educational organization or

b. Total gallons of biodiesel on certificate.

•

Use by a state or local government (including essential

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

government use by an Indian tribal government).

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

line 13.

Claim requirements. The following requirements must

be met:

How to claim the credit. Any biodiesel mixture credit

1. The claim must be for aviation gasoline sold or

must first be taken on Schedule C against your taxable

used during a period that is at least 1 week.

fuel liability reported on Form 720. Any excess credit may

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

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

meet this minimum, amounts from lines 9a, 9b, 10a, and

4136, or Form 8864. See Notice 2005-4 and item 3

10b may be combined.

above for more information.

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

quarter following the earliest quarter of the claimant’s

Annual Claims

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

calendar year income taxpayer’s claim for January and

If a claim on lines 1-8 or 11-13 was not made for any

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

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

Form 720 must be filed by April 30.

annual claim is made on Form 4136 for the income tax

year during which the fuel was used by the ultimate

Information to be submitted. For claims on lines 10a

purchaser, sold by the registered ultimate vendor, used

and 10b, attach a separate sheet with the name and TIN

to produce an alcohol fuel mixture and biodiesel mixture,

of each nonprofit educational organization or

or used in mobile machinery to taxable years beginning

governmental unit to whom the aviation gasoline was

after October 22, 2004. See Form 4136 for more

sold and the number of gallons sold to each.

information.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2005 Page 13

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