Instructions For Form 720 - Quarterly Federal Excise Tax Return

air, the domestic segment tax is $3.20 per segment for

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

transportation that begins in 2005.

fuel tax on removal at the terminal rack, report these

gallons on line (a) of IRS No. 60. If you are liable for the

Rural airports. If a segment is to or from a rural

diesel fuel tax on events other than removal at the

airport, the domestic segment tax does not apply.

terminal rack, report these gallons on line (b) of IRS

No. 60. If you are liable for the diesel fuel tax because

Transportation of Property by Air (IRS No. 28)

you have produced diesel fuel by blending biodiesel with

The tax is 6.25% of amounts paid for transportation of

taxed diesel fuel outside of the bulk transfer/terminal

property by air.

system, report these gallons of biodiesel on line (c) of

Use of International Air Travel Facilities

IRS No. 60. If you report gallons on line 60(c), do not

report those gallons on line 60(b).

(IRS No. 27)

For amounts paid during 2005, the tax on international

Multiply the total number of gallons subject to tax on

flights is:

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

•

$14.10 per person for flights that begin or end in the

tax column.

United States or

Also see Schedule T, Two-Party Exchange Information

•

$7.00 per person for domestic segments that begin or

Reporting on page 9 if applicable.

end in Alaska or Hawaii (applies only to departures).

IRS Nos. 105, 107, 111, and 119.

Communication and Air Transportation Taxes—

Tax is imposed at $.001 per gallon on removals, entries,

Uncollected Tax Report

and sales of gasoline, diesel fuel, and kerosene

A separate report is required to be filed by collecting

described as exempt transactions.

•

agents of communications services and air transportation

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

•

taxes if the person from whom the facilities or services

IRS No. 107, Dyed kerosene, LUST tax.

•

tax (the tax) is required to be collected (the taxpayer)

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

refuses to pay the tax, or it is impossible for the collecting

on nontaxable uses, including foreign trade. Report

agent to collect the tax. The report must contain the

gallons of kerosene removed directly from a terminal into

following information: the name and address of the

the fuel tank of an aircraft for nontaxable uses or use in

taxpayer, the type of facility provided or service rendered,

foreign trade.

•

the amount paid for the facility or service (the amount on

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

which the tax is based), and the date paid.

Report gasoline blendstocks, kerosene used for a

feedstock purpose, and diesel fuel or kerosene used in

Regular method taxpayers. For regular method

Alaska. Multiply the total number of gallons subject to tax

taxpayers, the report must be filed by the due date of the

for each fuel by $.001 and make one entry in the tax

Form 720 on which the tax would have been reported.

column.

Alternative method taxpayers. For alternative method

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

taxpayers, the report must be filed by the due date of the

kerosene tax on removal at the terminal rack, report

Form 720 that includes an adjustment to the separate

these gallons on line (a) of IRS No. 35. If you are liable

account for the uncollected tax. See Alternative method

for the kerosene tax on events other than removal at the

on page 8.

terminal rack, report these gallons of kerosene on line (b)

Where to file. Do not file the uncollected tax report

of IRS No. 35.

with Form 720. Instead, mail the report to:

Multiply the total number of gallons subject to tax on

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

Internal Revenue Service

column.

Collected Excise Tax Coordinator

Also see Schedule T, Two-Party Exchange Information

S:C:CP:RC:Ex

Reporting on page 9 if applicable.

1111 Constitution Avenue NW, IR-2016

Washington, DC 20224

Kerosene for use in aviation. Generally, kerosene is

taxed at $.244 per gallon. Aviation-grade kerosene is

Fuel Taxes

eliminated as a type of fuel effective after September 30,

2005.

•

Two-party exchange information reporting is

For kerosene removed directly from a terminal into the

required for taxable fuel. See Schedule T,

fuel tank of an aircraft for use in noncommercial aviation,

Two-Party Exchange Information Reporting on

CAUTION

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

page 9.

the line for IRS No. 69.

•

For kerosene removed directly from a terminal into the

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

fuel tank of an aircraft for use in commercial aviation

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

(other than foreign trade), the tax rate is generally $.044

need to file a first taxpayer’s report. The report must

per gallon. Report these gallons on the line for

contain all the information as shown in the Model

IRS No. 77.

Certificate A, Appendix B of

•

For kerosene removed directly from a terminal into the

Publication 510.

fuel tank of an aircraft for nontaxable uses or for use in

The person who paid the first tax must:

foreign trade, the tax rate is generally $.001 per gallon.

•

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

Report these gallons on the line for IRS No. 111.

•

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

Liquefied petroleum gas (LPG) (IRS No. 61). Only

quarter for which the report relates; and

•

LPG (such as propane and butane) is reported on the

Write “EXCISE —FIRST TAXPAYER’S REPORT”

line for IRS No. 61. LPG is taxed at $.136 per gallon.

across the top of a separate copy of the report, and by

the due date of Form 720, send the copy to: Internal

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

Revenue Service Center, Cincinnati, OH 45999-0555.

tax on removal at the terminal rack, report these gallons

-4-

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2005 Page 4

Related Articles

Related forms

Related Categories