Instructions For Form 720 - Quarterly Federal Excise Tax Return

on line (a) of IRS No. 62. If you are liable for the gasoline

Gross vehicle weight. The gross vehicle weight means

tax on events other than removal at the terminal rack,

the maximum total weight of a loaded vehicle. Generally,

report these gallons on line (b) of IRS No. 62. If you are

this maximum total weight is the gross vehicle weight

liable for the gasoline tax because you have blended

rating provided by the manufacturer or determined by the

alcohol with taxed gasoline outside of the bulk transfer/

seller of the completed article. The seller’s gross vehicle

terminal system, report these gallons of alcohol on line

weight rating must be determined for excise tax purposes

on the basis of the strength of the chassis frame and the

not report those gallons on line 62(b).

axle capacity and placement. The seller may not take into

account any readily attachable components (such as tires

Multiply the total number of gallons subject to tax on

or rim assemblies) in determining the gross vehicle

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

weight. See Regulations section 145.4051-1(e)(3) for

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

more information.

Also see Schedule T, Two-Party Exchange Information

Reporting on page 9 if applicable.

The following four classifications of truck body types

meet the suitable for use standard and will be excluded

Other fuels (IRS No. 79). Use the following table to

from the retail excise tax.

determine the tax for each gallon. Fill in the number of

•

Platform truck bodies 21 feet or less in length.

gallons and the appropriate rate in the Rate column on

•

the line for IRS No. 79. If more than one rate applies,

Dry freight and refrigerated truck van bodies 24 feet or

leave the Rate column blank and attach a schedule

less in length.

•

showing the rates and number of gallons taxed at each

Dump truck bodies with load capacities of eight cubic

rate.

yards or less.

•

Refuse packer truck bodies with load capacities of 20

Fuel

Tax Rate

cubic yards or less.

per Gallon

These four classifications are effective for sales on or

Liquefied natural gas

.119

after April 4, 2005. For more information, see Rev. Proc.

Qualified —

2005-19, which is on page 832 of Internal Revenue

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

.1325

Bulletin 2005-14 at

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

.1235

Partially exempt —

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

.114

Section 4051(d) tire credit. A tax credit may be taken

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

.0925

equal to the amount of tax that has been imposed on

each tire that is sold on or in connection with the first

Other fuels not shown

.184

retail sale of a taxable vehicle reported on IRS No. 33.

Claim the section 4051(d) tire credit on Schedule C,

Compressed natural gas (IRS No. 101). Tax is

line 15a.

imposed on compressed natural gas (CNG) that is sold

for use or used as fuel in a motor vehicle or motorboat.

Luxury Tax

The rate of tax is $.4854 per thousand cubic feet

(determined at standard temperature and pressure).

The tax on sales of luxury passenger vehicles

(IRS No. 92) expired after December 31, 2002.

Retail Tax

However, the tax continues to apply to payments

CAUTION

taxpayers receive for long-term leases of luxury

Truck, trailer, and semitrailer chassis and

passenger vehicles entered into before January 1, 2003.

bodies, and tractors (IRS No. 33)

Until the end of the lease, taxpayers must continue to pay

the tax at the rate in effect when the lease was entered

Tractors that have a gross vehicle weight of

into on each lease payment and report the tax each

19,500 pounds or less and a gross combined

quarter on Form 720.

weight of 33,000 pounds or less are excluded

CAUTION

from the 12% tax.

Ship Passenger Tax

The tax is 12% (.12) of the sales price on the first retail

Transportation by water (IRS No. 29). A tax is imposed

sale of each unit. The tax applies to:

•

Truck chassis and bodies except truck chassis and

on the operator of commercial ships. The tax is $3 for

each passenger on a commercial passenger ship that

bodies suitable for use with a vehicle with a gross vehicle

weight (GVW) of 33,000 pounds or less,

has berth or stateroom accommodations for at least 17

•

Trailer and semitrailer chassis and bodies except

passengers if the trip is over 1 or more nights. A voyage

extends “over 1 or more nights” if it lasts longer than 24

trailer and semitrailer chassis and bodies suitable for use

with a vehicle with a GVW of 26,000 pounds or less, and

hours. The tax also applies to passengers on any

•

commercial ship that transports passengers engaged in

Tractors of the kind chiefly used for highway

gambling aboard the ship beyond the territorial waters of

transportation in combination with a trailer or semitrailer,

except tractors that have a gross vehicle weight of

the United States. Enter the number of passengers for

the quarter on the line for IRS No. 29.

19,500 pounds or less and a gross combined weight of

33,000 pounds or less. Generally, gross combined weight

means the weight of a tractor and the weight of its

Other Excise Tax

trailer(s).

Obligations not in registered form (IRS No. 31). For

The sales price of a unit includes the sales price of

obligations issued during the quarter, enter the principal

certain related parts and accessories sold on or in

amount of the obligation multiplied by the number of

connection with the sale of the unit.

calendar years (or portion thereof) during the period

beginning on the issue date and ending on the maturity

Figure the tax for each unit sold and enter the total for

date on the line for IRS No. 31.

the quarter on the line for IRS No. 33.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2005 Page 5

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