Quarterly Federal Excise Tax Return

Cumulative Changes
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Instructions for Form 720

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Department of the Treasury
Internal Revenue Service

Instructions for Form 720
(Rev. January 2008)

Deleted Qualified blood
collector organizations.

Quarterly Federal Excise Tax Return
Section references are to the Internal Revenue Code unless
otherwise noted.

What’s New

Deleted prior quarter What's
New items.

Changes Effective for the First
Calendar Quarter of 2008
Domestic segment tax. For amounts paid for each
domestic segment of taxable transportation of person by air
(IRS No. 26), the domestic segment tax is $3.50 per
segment for transportation that begins in 2008.
Use of international air travel facilities. The tax on use of
international air travel facilities (IRS No. 27) has increased
for amounts paid during 2008. For flights that begin or end in
the United States, the tax is $15.40 per person. For
domestic segments that begin or end in Alaska or Hawaii
(applies only to departures), the tax is $7.70 per person.
Dyed diesel fuel used in trains. The train operator is no
longer liable for the leaking underground storage tank
(LUST) tax on dyed diesel fuel used in trains. IRS No. 71
has been removed from Form 720. The position holder of
the dyed diesel fuel generally is liable for the LUST tax
under IRS No. 105.
Arrow shafts. The tax on arrow shafts (IRS No. 106) is
$.43 per arrow shaft.
Inland waterways fuel use tax (IRS No. 64). Generally,
the inland waterways fuel use tax is $.20. However, certain
fuels must also be reported under IRS No. 125 (see below).
LUST tax on inland waterways fuel use (IRS No. 125).
The leaking underground storage tank (LUST) tax must be
paid on any liquid fuel used on inland waterways that is not
subject to LUST tax under section 4041(d) or 4081. For
example, gallons of Bunker C residual fuel oil must be
reported under both IRS Nos. 64 and 125.
Disregarded entities and qualified subchapter S
subsidiaries. After December 31, 2007, qualified
subchapter S subsidiaries (QSubs) and eligible single-owner
disregarded entities are treated as separate entities for
excise tax and reporting purposes. QSubs and eligible
single-owner disregarded entities must pay and report
excise taxes (other than IRS Nos. 31, 51, and 117), register
for excise tax activities, and claim any refunds, credits, and
payments under the entity’s employer identification number
(EIN). These actions cannot take place under the owner’s
taxpayer identification number (TIN). Some QSubs and
disregarded entities may already have an EIN. However, if
you are unsure, please call the IRS Business and Specialty
Tax line at 1-800-829-4933. For more information on
applying for an EIN, see Employer Identification Number
(EIN) on page 3.
Generally, QSubs and eligible single-owner disregarded
entities will continue to be treated as disregarded entities for
other federal tax purposes (other than employment taxes).
Thus, taxpayers filing Form 4136, Credit for Federal Tax
Paid on Fuels, with Form 1040, Individual Income Tax
Return, can use the owner’s TIN. For more information on
these new regulations, see Treasury Decision (T.D.) 9356.
You can find T.D. 9356 on page 675 of Internal Revenue
Bulletin 2007-39 at www.irs.gov/pub/irs-irbs/irb07-39.pdf.

Reminders

Moved from What's New

Electronic filing. You can now electronically file Form 720
through any electronic return originator (ERO), transmitter,
and/or intermediate service provider (ISP) participating in
the IRS e-file program for excise taxes. For more
information on e-file, visit the IRS website at
Moved under reminders instead of separate Head1.
www.irs.gov/efile.
Electronic payment. Now, more than ever before,
businesses can enjoy the benefits of paying their federal
taxes electronically. Whether you rely on a tax professional
or handle your own taxes, the IRS offers you a convenient
program to make it easier. Spend less time on taxes and
more time running your business. Use the Electronic
Federal Tax Payment System (EFTPS) to your benefit. For
information on EFTPS, visit www.eftps.gov or call the
EFTPS Customer Service at 1-800-555-4477. If you are
filing Form 720 electronically, you can choose to pay using
electronic funds withdrawal (direct debit). For more
information, see How To Make Deposits on page 7.

General Instructions
Purpose of Form
Use Form 720 and attachments to report liability by IRS No.
and pay the excise taxes listed on the form.

When To File
You must file a return for each quarter of the calendar year
as follows:
Quarter covered

Due by

Jan., Feb., Mar.

April 30

Apr., May, June

July 31

July, Aug., Sept.

October 31

Oct., Nov., Dec.

January 31

If any due date for filing a return falls on a Saturday,
Sunday, or legal holiday, you may file the return on the next
business day.
Send your return to the IRS using the U.S. Postal Service
or a designated private delivery service to meet the “timely
mailing as timely filing/paying” rule. See Private Delivery
Services on page 2.
Floor stocks tax. Report the floor stocks tax on
ozone-depleting chemicals (ODCs), IRS No. 20, on the
return due by July 31 of each year. The tax payment is due
by June 30. See Floor Stocks Tax on page 7.

Where To File
Send Form 720 to:
Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0009

Deleted "Center"

How To File
If you are not reporting a tax that you normally report, enter
a zero on the appropriate line in Part I or II (Form 720). Also,

Cat. No. 64240C

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Instructions for Form 720

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• Notice 2005-24. You can find Notice 2005-24 on page
757 of Internal Revenue Bulletin 2005-12 at
www.irs.gov/pub/irs-irbs/irb05-12.pdf.
• Notice 2005-62. You can find Notice 2005-62 on page
443 of Internal Revenue Bulletin 2005-35 at
www.irs.gov/pub/irs-irbs/irb05-35.pdf.
• Notice 2005-80. You can find Notice 2005-80 on page
953 of Internal Revenue Bulletin 2005-46 at www.irs.gov/
pub/irs-irbs/irb05-46.pdf.
• Notice 2006-50. You can find Notice 2006-50 on page
1141 of Internal Revenue Bulletin 2006-25 at
www.irs.gov/pub/irs-irbs/irb06-25.pdf.
• Notice 2006-92. You can find Notice 2006-92 on page
774 of Internal Revenue Bulletin 2006-43 at
www.irs.gov/pub/irs-irbs/irb06-43.pdf.
• Notice 2007-11. You can find Notice 2007-11 on page
405 of Internal Revenue Bulletin 2007-5 at
www.irs.gov/pub/irs-irbs/irb07-05.pdf.
• Notice 2007-37. You can find Notice 2007-37 on page
1002 of Internal Revenue Bulletin 2007-17 at
www.irs.gov/pub/irs-irbs/irb07-17.pdf.
• Notice 2007-97. You can find Notice 2007-97 on page
1092 of Internal Revenue Bulletin 2007-49 at
www.irs.gov/pub/irs-irbs/irb07-49.pdf.

if you have no tax to report, write “None” on line 3, Part III;
sign and date the return.
If you have adjustments to liabilities reported for prior
quarters, see Form 720X, Amended Quarterly Federal
Excise Tax Return. Do not enter adjustments on
Form 720.
If you attach additional sheets, write your name and EIN
on each sheet.

Final Return
File a final return if you have been filing Form 720 and you:
1. Go out of business, or
2. Will not owe excise taxes that are reportable on Form
720 in future quarters.
If you are only filing to report zero tax and you will

TIP not owe excise tax in future quarters, check the final
return box above Part I of Form 720. The IRS will
then stop sending Package 720 to you each quarter.

Recordkeeping
Keep copies of your tax return, records, and accounts of all
transactions to show that the correct tax has been paid.
Keep records to support all claims and all exemptions at
least 4 years from the latest of the date:
• The tax became due,
• You paid the tax, or
• You filed a claim.

You may also call the business and specialty tax line at
1-800-829-4933 with your excise tax questions. The hours
of operation are Monday - Friday, 7:00 a.m. to 10:00 p.m.
local time.

Private Delivery Services

Penalties and Interest

You can use certain private delivery services designated by
the IRS to meet the “timely mailing as timely filing/paying”
rule for tax returns and payments. These private delivery
services include only the following:
• DHL Express (DHL): DHL Same Day Service, DHL Next
Day 10:30 am, DHL Next Day 12:00 pm, DHL Next Day 3:00
pm, and DHL 2nd Day Service.
• Federal Express (FedEx): FedEx Priority Overnight,
FedEx Standard Overnight, FedEx 2Day, FedEx
International Priority, and FedEx International First.
• United Parcel Service (UPS): UPS Next Day Air, UPS
Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air
A.M., UPS Worldwide Express Plus, and UPS Worldwide
Express.

Avoid penalties and interest by filing returns and depositing
and paying taxes when due. The law provides penalties for
filing a return late; depositing taxes late; paying taxes late;
willfully failing to collect and pay tax or file a return;
negligence; and fraud. These penalties are in addition to the
interest charged on late payments. The penalty for filing a
return late will not be imposed if you can show that the
failure to file a timely return is due to reasonable cause.
Those filing after the due date must attach an explanation to
the return to show reasonable cause.
Trust fund recovery penalty. If communications and air
transportation taxes are collected but not paid to the United
States Treasury or are willfully not collected, the trust fund
recovery penalty may apply. The penalty is the full amount
of the unpaid tax.
The trust fund recovery penalty may be imposed on all
persons who are determined by the IRS to be responsible
for collecting, accounting for, and paying over these taxes,
and who acted willfully in not doing so.
A responsible person can be an officer or employee of a
corporation, a partner or employee of a partnership, an
employee of a sole proprietorship, an accountant, or a
volunteer director/trustee. A responsible person may also
include one who signs checks for the business or otherwise
has authority to cause the spending of business funds.
Willfully means voluntarily, consciously, and intentionally.
A responsible person acts willfully if he or she knows the
required actions are not taking place.

The private delivery service can tell you how to get
written proof of the mailing date.

!

CAUTION

Private delivery services cannot deliver items to P.O.
boxes. You must use the U.S. Postal Service to mail
any item to an IRS P.O. box address.

Photographs of Missing Children
The Internal Revenue Service is a proud partner with the
National Center for Missing and Exploited Children.
Photographs of missing children selected by the Center may
appear in instructions on pages that would otherwise be
blank. You can help bring these children home by looking at
the photographs and calling 1-800-THE-LOST
(1-800-843-5678) if you recognize a child.

Additional Information

Specific Instructions

You may find the following products helpful when preparing
Form 720 and any attachments.
• Publication 510, Excise Taxes for 2008, contains
definitions and examples that will help you prepare
Form 720. Pub. 510 also contains information on fuel tax
credits and refunds.
• Publication 509, Tax Calendars for 2008, has deposit and
payment due dates for all federal excise taxes.
• Notice 2005-4. You can find Notice 2005-4 on page 289
of Internal Revenue Bulletin 2005-2 at
www.irs.gov/pub/irs-irbs/irb05-02.pdf.

Name and Address
The first time you file Form 720, type or print your name,
address (including the suite, room, or other unit number),
and the quarter ending date (month and year). After that, the
IRS will mail you a Package 720 with a preaddressed Form
720 every quarter. If your address changes, make the
corrections on Form 720 and check the address change box
above Part I of Form 720.

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return. Enter the amount of tax collected or considered
collected for the quarter.

P.O. box. If the post office does not deliver mail to the
street address and you have a P.O. box, show the box
number instead of the street address.
Foreign address. Enter the city, province or state, and
country. Follow the country’s practice for entering the postal
code. Do not abbreviate the country name.

Communications Services (IRS No. 22)
The tax is 3% of amounts paid for local telephone service
and teletypewriter exchange service.

Credits or Refunds

Employer Identification Number (EIN)

If tax is collected and paid over for nontaxable services from
the communications tax, the collector or taxpayer may
request a credit or refund as described below and in Notices
2006-50 and 2007-11.
Collectors. The collector may request a credit or refund
only if it has repaid the tax to the person from whom the tax
was collected, or obtained the consent of that person to the
allowance of the credit or refund. These requirements also
apply to nontaxable service refunds.
Collectors using the regular method for deposits.
Collectors using the regular method for deposits must use
Form 720X to request a credit or refund.
Collectors using the alternative method for deposits.
Collectors using the alternative method for deposits must
adjust their separate accounts for the credit or refund. For
more information, see Alternative method on page 8.
Form 720 taxpayers. Credits or refunds for nontaxable
service that was billed after February 28, 2003, and before
August 1, 2006, can be requested by taxpayers only on their
2006 federal income tax returns. Instructions to request the
credit or refund are available with the 2006 income tax
returns. Do not use Form 8849, Form 720, or Form 843 to
make claims for nontaxable service; the IRS will not process
these claims.

If the EIN on the preaddressed Form 720 is wrong or you
did not receive a preaddressed Form 720, enter the correct
number. If you are a one-time filer, you may not need an
EIN. See Gas guzzler tax on page 6. If you do not have an
EIN, you may apply for one online. Go to the IRS website at
www.irs.gov/businesses/small and click on the “Employer ID
Numbers” link. You may also apply for an EIN by calling
1-800-829-4933 (hours of operation are Monday - Friday,
7:00 a.m. to 10:00 p.m. local time), or you can fax or mail
Form SS-4, Application for Employer Identification Number,
to the IRS.

Signature
Form 720 must be signed by a person authorized by the
entity to sign this return.

Third Party Designee
If you want to allow an employee of your business, a return
preparer, or other third party to discuss your Form 720 with
the IRS, check the “Yes” box in the Third Party Designee
section of Form 720. Also, enter the designee’s name,
phone number, and any five digits that person chooses as
his or her personal identification number (PIN).
By checking the “Yes” box, you are authorizing the IRS to
speak with the designee to answer any questions relating to
the processing of or the information reported on
Form 720. You are also authorizing the designee to:
• Exchange information concerning Form 720 with the IRS,
and
• Respond to certain IRS notices that you have shared with
your designee relating to Form 720. The IRS will not send
notices to your designee.
You are not authorizing the designee to receive any
refund check, bind you to anything (including additional tax
liability), or otherwise represent you before the IRS. If you
want to expand the designee’s authority, see Publication
947, Practice Before the IRS and Power of Attorney.
The authorization will automatically expire 1 year from the
due date (without regard to extensions) for filing your Form
720. If you or your designee want to revoke this
authorization, send a written statement of revocation to the
Department of the Treasury, Internal Revenue Service,
Cincinnati, OH 45999. See Publication 947 for more
information.

Part I

Air Transportation Taxes

Deleted Caution

Who Must File
The person receiving the payment for air transportation
services must collect and pay over the tax and file the
return. Enter the amount of tax collected or considered
collected for the quarter.

Transportation of Persons by Air (IRS No. 26)
The tax on transportation of persons by air is made up of the
percentage tax and the domestic segment tax. Add the
percentage tax and the domestic segment tax to get the
total tax on transportation of persons by air.
Percentage tax. The percentage tax is 7.5% for amounts
paid for taxable transportation of persons by air.
Domestic segment tax. For amounts paid for each
domestic segment of taxable transportation of persons by
air, the domestic segment tax is $3.50 per segment for
transportation that begins in 2008
Rural airports. If a segment is to or from a rural airport,
the domestic segment tax does not apply.

Deleted "Center"

Transportation of Property by Air (IRS No. 28)
The tax is 6.25% of amounts paid for transportation of
property by air.

Environmental Taxes
Use Form 6627, Environmental Taxes, to figure the
environmental taxes on:
• Oil spill liability, IRS Nos. 18 and 21;
• Ozone-depleting chemicals (ODCs), IRS No. 98;
• Imported products that used ODCs as materials in the
manufacture or production of the product, IRS No. 19; and
• The floor stocks tax on ODCs, IRS No. 20 (reported in
Part II).
Attach Form 6627 to Form 720. The tax rates for these
taxes are shown on Form 6627.

Use of International Air Travel Facilities
(IRS No. 27)
For amounts paid during 2008 the tax on international flights
is:
• $15.40 per person for flights that begin or end in the
United States, or
• $7.70 per person for domestic segments that begin or end
in Alaska or Hawaii (applies only to departures).

Communication and Air Transportation
Taxes—Uncollected Tax Report

Communications Taxes

A separate report is required to be filed by collecting agents
of communications services (local and teletypewriter
service) and air transportation taxes if the person from
whom the facilities or services tax (the tax) is required to be

Who Must File
The person receiving the payment for communications
services must collect and pay over the tax and file the

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Deleted reference to foreign trade.

• IRS No. 107, Dyed kerosene, LUST tax.
• IRS No. 119, LUST tax, other exempt removals. Report

collected (the taxpayer) refuses to pay the tax, or it is
impossible for the collecting agent to collect the tax. The
report must contain the name and address of the taxpayer,
the type of facility provided or service rendered, the amount
paid for the facility or service (the amount on which the tax is
based), and the date paid.
Regular method taxpayers. For regular method
taxpayers, the report must be filed by the due date of the
Form 720 on which the tax would have been reported.
Alternative method taxpayers. For alternative method
taxpayers, the report must be filed by the due date of the
Form 720 that includes an adjustment to the separate
account for the uncollected tax. See Alternative method on
page 8.
Where to file. Do not file the uncollected tax report with
Form 720. Instead, mail the report to:
Internal Revenue Service
Excise Tax Program
SE:S:SP:EX MS C9 – 109
5000 Ellin Rd.
Lanham, MD 20706

Fuel Taxes

gasoline blendstocks, kerosene used for a feedstock
purpose, and diesel fuel or kerosene sold or used in Alaska.
• IRS No. 111, Kerosene for use in aviation, LUST tax on
nontaxable uses. Report gallons of kerosene removed
directly from a terminal into the fuel tank of an aircraft for
nontaxable uses.
Multiply the total number of gallons subject to tax for each
fuel by $.001 and make the entry in the tax column.
Kerosene (IRS No. 35). If you are liable for the kerosene
tax on removal at the terminal rack, report these gallons on
line 35(a). If you are liable for the kerosene tax on events
other than removal at the terminal rack, report these gallons
of kerosene on line 35(b).
Multiply the total number of gallons subject to tax on lines
(a) and (b) by $.244 and make one entry in the tax column.
Also see Schedule T — Two-Party Exchange Information
Reporting on page 9 if applicable.
Deleted second tax rate.
Kerosene for use in aviation (IRS Nos. 69, 77, and 111).
Generally, kerosene is taxed at $.244 per gallon.
• For kerosene removed directly from a terminal into the
fuel tank of an aircraft for use in noncommercial aviation, the
tax rate is $.219 per gallon. Report these gallons on the line
for IRS No. 69.
• For kerosene removed directly from a terminal into the
fuel tank of an aircraft for use in commercial aviation (other
than foreign trade), the tax rate is generally $.044 per gallon.
Report these gallons on the line for IRS No. 77.
• For kerosene removed directly from a terminal into the
fuel tank of an aircraft for nontaxable uses, the tax rate is
generally $.001 per gallon. Report these gallons on the line
for IRS No. 111.
Other fuels (IRS No. 79). You are liable for the tax on the
fuels listed below when they are delivered into the fuel
supply tank of a motor vehicle or motorboat (or trains for
B-100). Use the following table to determine the tax for each
gallon. Fill in the number of gallons and the appropriate rate
in the Rate column on the line for IRS No. 79. If more than
one rate applies, leave the Rate column blank and attach a
schedule showing the rates and number of gallons taxed at
each rate.

Deleted reference to foreign trade.

First taxpayer’s report. If you are reporting gallons of
taxable fuel that may again be subject to tax, you may need
to file a first taxpayer’s report. The report must contain all
the information as shown in the Model Certificate B in the
Appendix of Publication 510.
The person who paid the first tax must:
• Give a copy of the first taxpayer’s report to the buyer;
• File the first taxpayer’s report with Form 720 for the
quarter for which the report relates; and
• Write “EXCISE — FIRST TAXPAYER’S REPORT” across
the top of a separate copy of the report, and by the due date
of Form 720, send the copy to:
Department of the Treasury
Deleted "Center"
Internal Revenue Service
Cincinnati, OH 45999-0555
Diesel fuel (IRS No. 60). If you are liable for the diesel fuel
tax on removal at the terminal rack, report these gallons on
line 60(a). If you are liable for the diesel fuel tax on events
other than removal at the terminal rack, report these gallons
on line 60(b). If you are liable for the diesel fuel tax because
you have produced diesel fuel by blending biodiesel with
taxed diesel fuel outside of the bulk transfer/terminal
system, report these gallons of biodiesel on line 60(c). If you
report gallons on line 60(c), do not report those gallons on
line 60(b).
Multiply the total number of gallons subject to tax on lines
(a), (b), and (c) by $.244 and make one entry in the tax
column.
Also see Schedule T — Two-Party Exchange Information
Reporting on page 9 if applicable.
Diesel-water fuel emulsion (IRS No. 104). If you are
liable for the reduced rate (see below) of tax on a
diesel-water fuel emulsion removal at the terminal rack or
other taxable event, report these gallons on the line for IRS
No. 104.
Requirements. All of the following requirements must
be met to be eligible for the reduced rate: (a) the
diesel-water fuel emulsion must contain at least 14% water,
(b) the emulsion additive must be registered by a United
States manufacturer with the EPA under section 211 of the
Clean Air Act, and (c) the taxpayer must be registered by
the IRS. If these requirements are not met, you must report
the sale, removal, or use of a diesel-water fuel emulsion as
diesel fuel.
IRS Nos. 105, 107, 119, and 111. Tax is imposed at $.001
per gallon on removals, entries, and sales of gasoline, diesel
fuel, and kerosene described as exempt transactions.
• IRS No. 105, Dyed diesel fuel, LUST tax.
Deleted instructions for IRS No. 71

Fuel

Tax Rate
per Gallon

Qualified —
Ethanol produced from coal . . . . . .
Methanol produced from coal . . . . .
Partially exempt —
Ethanol produced from natural gas .
Methanol produced from natural gas
B-100 (100% biodiesel) . . . . . . . . . .
Other fuels not shown . . . . . . . . . .

. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .

.1325
.1235

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.114
.0925
.244
.184

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Gasoline (IRS No. 62). If you are liable for the gasoline tax
on removal at the terminal rack, report these gallons on line
62(a). If you are liable for the gasoline tax on events other
than removal at the terminal rack, report these gallons on
line 62(b). If you are liable for the gasoline tax because you
have blended alcohol with taxed gasoline outside of the bulk
transfer/terminal system, report these gallons of alcohol on
line 62(c). If you report gallons on line 62(c), do not report
those gallons on line 62(b).
Multiply the total number of gallons subject to tax on lines
(a), (b), and (c) by $.184. Combine the tax for lines (a), (b),
and (c), and make one entry in the tax column.
Also see Schedule T — Two-Party Exchange Information
Reporting on page 9 if applicable.
Aviation gasoline (IRS No. 14). Aviation gasoline is taxed
at the rate shown on Form 720.
Alternative fuel (IRS Nos. 112, 118, and 120 – 124).
Alternative fuel is any liquid other than gas oil, fuel oil, or
any product taxable under Internal Revenue Code section

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Deleted second tax rate.

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a taxable vehicle reported on IRS No. 33. Claim the section
4051(d) tire credit on Schedule C, line 15a.

4081. You are liable for tax on alternative fuel delivered into
the fuel supply tank of a motor vehicle or motorboat, or on
certain bulk sales. Report the tax on the line for the IRS No.
listed below.
Alternative Fuel

Ship Passenger Tax
Transportation by water (IRS No. 29). A tax is imposed
on the operator of commercial ships. The tax is $3 for each
passenger on a commercial passenger ship that has berth
or stateroom accommodations for at least 17 passengers if
the trip is over 1 or more nights. A voyage extends “over 1
or more nights” if it lasts longer than 24 hours. The tax also
applies to passengers on any commercial ship that
transports passengers engaged in gambling aboard the ship
beyond the territorial waters of the United States. Enter the
number of passengers for the quarter on the line for IRS
No. 29.

IRS Number

Liquefied petroleum gas (LPG)

112

“P Series” fuels

118

Compressed natural gas (CNG)

120

Liquefied hydrogen

121

Any liquid fuel derived from coal (including
peat) through the Fischer-Tropsch process

122

Liquid fuel derived from biomass

123

Liquefied natural gas (LNG)

124

Other Excise Tax
Obligations not in registered form (IRS No. 31). For
obligations issued during the quarter, enter the principal
amount of the obligation multiplied by the number of
calendar years (or portion thereof) during the period
beginning on the issue date and ending on the maturity date
on the line for IRS No. 31.

LPG includes propane, butane, pentane, or mixtures of
those gases. CNG is taxed at $.183 per gasoline gallon
equivalent (126.67 cubic feet).

Retail Tax
Truck, trailer, and semitrailer chassis and
bodies, and tractors (IRS No. 33)

Manufacturers Taxes

The tax is 12% (.12) of the sales price on the first retail sale
of each unit. The tax applies to:
• Truck chassis and bodies except truck chassis and bodies
suitable for use with a vehicle with a gross vehicle weight
(GVW) of 33,000 pounds or less,
• Trailer and semitrailer chassis and bodies except trailer
and semitrailer chassis and bodies suitable for use with a
vehicle with a GVW of 26,000 pounds or less, and
• Tractors of the kind chiefly used for highway
transportation in combination with a trailer or semitrailer,
except tractors that have a gross vehicle weight of 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 trailer(s).
The sales price of a vehicle includes the sales price of
certain related parts and accessories sold on or in
connection with the sale of the vehicle.
Figure the tax for each vehicle sold and enter the total for
the quarter on the line for IRS No. 33.
Gross vehicle weight. The gross vehicle weight means
the maximum total weight of a loaded vehicle. Generally,
this maximum total weight is the gross vehicle weight rating
provided by the manufacturer or determined by the seller of
the completed article. The seller’s gross vehicle weight
rating must be determined for excise tax purposes on the
basis of the strength of the chassis frame and the axle
capacity and placement. The seller may not take into
account any readily attachable components (such as tires or
rim assemblies) in determining the gross vehicle weight.
See Regulations section 145.4051-1(e)(3) for more
information.
The following four classifications of truck body types meet
the suitable for use standard and will be excluded from the
retail excise tax.
• Platform truck bodies 21 feet or less in length.
• Dry freight and refrigerated truck van bodies 24 feet or
less in length.
• Dump truck bodies with load capacities of 8 cubic yards or
less.
• Refuse packer truck bodies with load capacities of 20
cubic yards or less.
For more information, see Rev. Proc. 2005-19, which is on
page 832 of Internal Revenue Bulletin 2005-14 at
www.irs.gov/pub/irs-irbs/irb05-14.pdf.
Section 4051(d) tire credit. A tax credit may be taken
equal to the amount of tax that has been imposed on each
tire that is sold on or in connection with the first retail sale of

!

Do not include the excise tax on coal in the sales
price when determining which tax rate to use.

CAUTION

Underground mined coal (IRS Nos. 36 and 37). The tax
on underground mined coal is the lower of $1.10 per ton or
4.4% (.044) of the sales price. Enter on the line for IRS No.
36 the number of tons of underground mined coal sold at
$25 or more per ton. Enter on the line for IRS No. 37 the
total sales price for all sales of underground mined coal sold
at a selling price of less than $25 per ton.
Surface mined coal (IRS Nos. 38 and 39). The tax on
surface mined coal is the lower of $.55 per ton or 4.4%
(.044) of the sales price. Enter on the line for IRS No. 38
the number of tons of surface mined coal sold at $12.50 or
more per ton. Enter on the line for IRS No. 39 the total sales
price for all sales of surface mined coal sold at a selling
price of less than $12.50 per ton.
Taxable tires (IRS Nos. 108, 109, and 113). A tax is
imposed on taxable tires sold by the manufacturer,
producer, or importer at the rate of $.0945 ($.04725 in the
case of a biasply tire or super single tire) for each 10 pounds
of the maximum rated load capacity over 3,500 pounds.
Figure the tax for each tire sold in each category as shown
in the following chart and enter the total for the quarter on
the line for IRS No. 108, 109, or 113.
IRS No.

Taxable Tire Category

Rate (for each 10
pounds of the maximum
rated load capacity over
3,500 pounds)

108

Taxable tires other than
biasply or super single
tires

$.0945

109

Taxable tires, biasply or
super single tires (other
than super single tires
designed for steering)

$.04725

113

Taxable tires, super single
tires designed for steering

$.0945

A taxable tire is any tire of the type used on highway
vehicles if wholly or partially made of rubber and if marked
according to federal regulations for highway use. A biasply
tire is a pneumatic tire on which the ply cords that extend to
the beads are laid at alternate angles substantially less than
90 degrees to the centerline of the tread. A super single tire
is a tire greater than 13 inches in cross section width

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You may be able to use Form 8833, Treaty-Based Return
Position Disclosure Under Section 6114 or 7701(b), as a
disclosure statement.
At the top of Form 720, write “Section 6114 Treaty.” If you
have no other transactions reportable on Form 720,
complete Form 720 as follows.
1. If this is your final return, check the final return box.
2. Write “None” on lines 1 and 3.
3. Sign the return.

designed to replace 2 tires in a dual fitment, but does not
include any tire designed for steering.
Gas guzzler tax (IRS No. 40). Use Form 6197, Gas
Guzzler Tax, to figure the liability for this tax. Attach
Form 6197 to Form 720. The tax rates for the gas guzzler
tax are shown on Form 6197.
One-time filing. If you import a gas guzzling
automobile, you may be eligible to make a one-time filing of
Form 720 and Form 6197 if you meet all of the following
conditions.
• You do not import gas guzzling automobiles in the course
of your trade or business.
• You are not required to file Form 720 reporting excise
taxes for the calendar quarter, except for a one-time filing.
Follow the steps below to make a one-time filing.
1. File Form 720 for the quarter in which you incur
liability for the tax. See When To File on page 1.
2. Pay the tax with Form 720. No deposits are required.
3. If you are an individual and do not have an employer
identification number (EIN), enter your social security
number (SSN) or individual taxpayer identification number
(ITIN) on Form 720 and Form 720-V in the space for the
EIN.
4. Check the one-time filing box on the line for the gas
guzzler tax.

You need an EIN to file Form 720. If you do not have an
EIN, see Employer Identification Number (EIN) on page 3.
Where to file. All filers should mail Form 720 with the
attached Form 8833 or disclosure statement to:
Department of the Treasury
Deleted "Center"
Internal Revenue Service
Cincinnati, OH 45999-0009
Also, see the Caution under Private Delivery Services on
page 2.

Part II
Sport fishing equipment (other than fishing rods and
fishing poles) (IRS No. 41). The tax on sport fishing
equipment is 10% (.10) of the sales price. The tax is paid by
the manufacturer, producer, or importer. Taxable articles
include reels, fly fishing lines (and other lines not over 130
pounds test), fishing spears, spear guns, spear tips, terminal
tackle, fishing supplies and accessories, and any parts or
accessories sold on or in connection with these articles. See
Publication 510 for a complete list of taxable articles. Add
the tax on each sale during the quarter and enter the total
on the line for IRS No. 41.
Fishing rods and fishing poles (IRS No. 110). The tax on
fishing rods and fishing poles (and component parts) taxed
at a rate of 10% will have a maximum tax of $10 per article.
The tax is paid by the manufacturer, producer, or importer.
Add the tax on each sale during the quarter and enter the
total on the line for IRS No. 110.
Electric outboard motors (IRS No. 42). The tax on an
electric outboard motor is 3% (.03) of the sales price. The
tax is paid by the manufacturer, producer, or importer. Add
the tax on each sale during the quarter and enter the total
on the line for IRS No. 42.
Fishing tackle boxes (IRS No. 114). The tax on fishing
tackle boxes is 3% (.03) of the sales price. The tax is paid
by the manufacturer, producer, or importer. Add the tax on
each sale during the quarter and enter the total on the line
for IRS No. 114.
Bows, quivers, broadheads, and points (IRS No. 44).
The tax on bows is 11% (.11) of the sales price. The tax is
paid by the manufacturer, producer, or importer. It applies to
bows having a peak draw weight of 30 pounds or more. The
tax is also imposed on the sale of any part or accessory
suitable for inclusion in or attachment to a taxable bow and
any quiver, broadhead, or point suitable for use with arrows
described below. Add the tax on each sale during the
quarter and enter the total on the line for IRS No. 44.
Arrow shafts (IRS No. 106). The tax on arrow shafts is
$.43 per arrow shaft. The tax is paid by the manufacturer,
producer, or importer of any arrow shaft (whether sold
separately or incorporated as part of a finished or unfinished
product) of a type used in the manufacture of any arrow
which after its assembly meets either of the following
conditions.
• It measures 18 inches or more in overall length.
• It measures less than 18 inches in overall length but is
suitable for use with a taxable bow, described earlier.
Add the tax on each sale during the quarter and enter the
total on the line for IRS No. 106.
Inland waterways fuel use tax (IRS No. 64). If you are
liable for the inland waterways fuel use tax, report the
number of gallons subject to tax on the line for

Vaccine taxes (IRS No. 97). A tax is imposed on the sale
or use of a vaccine manufactured, produced, or entered into
the United States at $.75 per dose if it:
• Contains diptheria toxoid, tetanus toxoid, pertussis
bacteria, extracted or partial cell bacteria, specific pertussis
antigens, or polio virus;
• Is against measles, mumps, rubella, hepatitis A, hepatitis
B, chicken pox, rotavirus gastroenteritis, or human
papillomavirus;
• Is any HIB (haemophilus influenza type B) vaccine;
• Is any meningococcal vaccine;
• Is any conjugate vaccine against streptococcus
pneumoniae; or
• Is any trivalent vaccine against influenza.
If any taxable vaccine is combined with one or more
additional taxable vaccines, then the tax is imposed on each
vaccine included in the combination.
Example. MMR contains three taxable vaccines:
measles, mumps, and rubella. The tax per dose on MMR is
$2.25 (3 x $.75).
Add the tax for each taxable vaccine and enter the total
tax on the line for IRS No. 97.

Foreign Insurance Taxes
Policies issued by foreign insurers (IRS No. 30). Enter
the amount of premiums paid during the quarter on policies
issued by foreign insurers. Multiply the premiums paid by
the rates listed on Form 720 and enter the total for the three
types of insurance on the line for IRS No. 30.
Who must file. The person who pays the premium to
the foreign insurer (or to any nonresident person such as a
foreign broker) must pay the tax and file the return.
Otherwise, any person who issued or sold the policy, or who
is insured under the policy, is required to pay the tax and file
the return.
Treaty-based return positions under section 6114.
Foreign insurers and reinsurers who take the position that a
treaty of the United States overrules, or otherwise modifies,
an Internal Revenue law of the United States must disclose
such position. This disclosure must be made once a year on
a statement which must report the payments of premiums
that are exempt from the excise tax on policies issued by
foreign insurers for the previous calendar year. This
statement is filed with the 1st quarter Form 720, which is
due before May 1 of each year.

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Instructions for Form 720

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IRS No. 64. Certain fuels must also be reported under IRS
No. 125 (see below).

!

CAUTION

!

CAUTION

The inland waterways fuel use tax applies at the rate
listed on Form 720. This is in addition to all other
taxes imposed on the sale or use of the fuel.

Line 10. If line 3 is more than line 9, enter the difference in
line 10. You do not have to pay if line 10 is under $1.00.
You may pay the amount shown on line 10 by EFTPS,
check or money order, or, if filing electronically, electronic
funds withdrawal (direct debit). If you pay by EFTPS or
direct debit, do not file Form 720-V, Payment Voucher.

LUST tax on inland waterways fuel use (IRS No. 125).
The leaking underground storage tank (LUST) tax must be
paid on any liquid fuel used on inland waterways that is not
subject to LUST tax under section 4041(d) or 4081. For
example, gallons of Bunker C residual fuel oil must be
reported under both IRS Nos. 64 and 125.
Alcohol sold as but not used as fuel (IRS No. 51). An
excise tax is imposed if the alcohol fuel mixture credit or
alcohol credit was claimed and any person later (a) uses a
mixture or straight alcohol for a purpose other than fuel, (b)
separates the alcohol from the mixture, or (c) mixes the
straight alcohol.
Use the following table to determine the tax for each
gallon of alcohol. Fill in the number of gallons and the
appropriate rate in the Rate column on the line for IRS No.
51. If more than one rate applies, leave the Rate column
blank and attach a schedule showing the rates and number
of gallons taxed at each rate.

!

CAUTION

AND...

at least 190 proof

• is ethanol
• is methanol
• benefited from the

$ .51
.60
.61

Payment of Taxes

• is ethanol
• is methanol
• benefited from the

$ .3778
.45
.4778

How To Make Deposits

small ethanol
producer credit

at least 150 proof but
less than 190 proof

If you do not deposit as required and, instead, pay
the taxes with Form 720, you may be subject to a
penalty.

Generally, semimonthly deposits of excise taxes are
required. A semimonthly period is the first 15 days of a
month (the first semimonthly period) or the 16th through the
last day of a month (the second semimonthly period).
However, no deposit is required for the situations listed
below. The taxes are payable with the return.
• The net liability for taxes listed in Part I (Form 720) does
not exceed $2,500 for the quarter.
• The gas guzzler tax is being paid on a one-time filing. See
Gas guzzler tax on page 6.
• The liability is for taxes listed in Part II (Form 720), except
for the floor stocks tax that generally requires a single
deposit. See Floor Stocks Tax above.

THEN the tax rate
per gallon is...

IF the alcohol is...

If you owe other federal tax, interest, or penalty, the
overpayment on line 11 and line 7 will first be applied
to the unpaid amounts.

To avoid a penalty, make your deposits timely and do not
mail your deposits directly to the IRS. Records of your
deposits will be sent to the IRS for crediting to your
accounts.
Electronic deposit requirement. You must make
electronic deposits of all depository taxes (such as deposits
for employment tax, excise tax, and corporate income tax)
using the Electronic Federal Tax Payment System (EFTPS)
in 2008 if:
• The total deposits of such taxes in 2006 exceeded
$200,000 or
• You were required to use EFTPS in 2007 or any prior
year.
If you are required to use EFTPS and use Form 8109,
Federal Tax Deposit Coupon, instead, you may be subject
to a 10% penalty. If you are not required to use EFTPS, you
may participate voluntarily. To get more information or to
enroll in EFTPS, visit the EFTPS website at www.eftps.gov
or call 1-800-555-4477. Also see Publication 966, The
Secure Way to Pay Your Federal Taxes.
Depositing on time. For EFTPS deposits to be on time,
you must initiate the transaction at least 1 day before the
date the deposit is due (before 8:00 p.m. Eastern time).
Federal tax deposit coupons. If you are not making
deposits by EFTPS, use Form 8109 to make the deposits at
an authorized financial institution. See the instructions in the
coupon book for additional information. If you do not have a
coupon book, call 1-800-829-4933.

small ethanol
producer credit

Biodiesel sold as but not used as fuel (IRS No. 117). An
excise tax is imposed if the (a) biodiesel or renewable diesel
mixture credit or (b) biodiesel or renewable diesel credit was
claimed and any person later (a) uses a mixture or straight
biodiesel or renewable diesel for a purpose other than as
fuel, (b) separates the biodiesel or renewable diesel from
the mixture, or (c) mixes the straight biodiesel or renewable
diesel.
The tax is $.50 per gallon of biodiesel, $1.00 per gallon of
agri-biodiesel, and $1.00 per gallon of renewable diesel. An
additional $.10 is added if the agri-biodiesel benefited from
the small agri-biodiesel producer credit. Fill in the number of
gallons and the appropriate rate in the Rate column on the
line for IRS No. 117. If more than one rate applies, leave the
Rate column blank and attach a schedule showing the rates
and number of gallons taxed at each rate.

Floor Stocks Tax
Ozone-depleting chemicals floor stocks tax (IRS No. 20).
Use Form 6627 to figure the liability for this tax. Enter the
amount from Form 6627, Part IV, line 4, column (d) on the
line for IRS No. 20. Attach Form 6627 to Form 720 that is
due July 31 of each year. Deposit the payment by June 30
at an authorized financial institution. See How To Make
Deposits below.

You will automatically be enrolled in EFTPS when

TIP you apply for an EIN. You will receive a separate

mailing containing instructions for activating your
EFTPS enrollment after you receive your EIN. You will still
have the option to use FTD coupons, but see Electronic
deposit requirement above.

Part III
Line 4. Report on Form 720, line 4, the total claims from
Schedule C, line 16. See the instructions for Schedule
C – Claims on page 9.
Line 6. Include on line 6 the amount from line 11 of your
previous return that you applied to this return and the
amount from Form 720X, line 5b.
Note. Include on line 6 of your next return the amount from
line 11 you want to have applied to that return.

When To Make Deposits
There are two methods for determining deposits: the regular
method and the alternative method.
The regular method applies to all taxes in Part I of Form
720 except for communications and air transportation taxes
if deposits are based on amounts billed or tickets sold,

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Instructions for Form 720

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rather than on amounts actually collected. See Alternative
method below.

Additional deposit of taxes in September 2008
Type of Tax

If you are depositing more than one tax under a method,
combine all the taxes under the method and make one
deposit for the semimonthly period.
Regular method. The deposit of tax for a semimonthly
period is due by the 14th day following that period.
Generally, this is the 29th day of a month for the first
semimonthly period and the 14th day of the following month
for the second semimonthly period. If the 14th or the 29th
day falls on a Saturday, Sunday, or legal holiday, you must
make the deposit by the immediately preceding day that is
not a Saturday, Sunday, or legal holiday.

For the Period
Beginning on
Ending on Due Date

Regular method taxes
EFTPS1
Non-EFTPS

Sept. 16
Sept. 16

Sept. 26
Sept. 25

Sept. 29
Sept. 29

Alternative method taxes (IRS
Nos. 22, 26, 27, and 28) (based
on amounts billed)
EFTPS1
Non-EFTPS

Sept. 1
Sept. 1

Sept. 11
Sept. 10

Sept. 29
Sept. 29

1See

Electronic deposit requirement above.

!

For the remaining days in September, be sure to
make your deposits by the regular due date.

CAUTION

Alternative method (IRS Nos. 22, 26, 27, and 28).
Deposits of communications and air transportation taxes
may be based on taxes included in amounts billed or tickets
sold during a semimonthly period instead of on taxes
actually collected during the period. Under the alternative
method, the tax included in amounts billed or tickets sold
during a semimonthly period is considered collected during
the first 7 days of the second following semimonthly period.
The deposit of tax is due by the 3rd banking day after the
7th day of that period.

Amount To Deposit
Deposits of taxes for a semimonthly period must be at least
95% of the amount of net tax liability for that period, unless
the safe harbor rule applies. See Safe Harbor Rule below.
The net tax liability for a semimonthly period is the total
liability for the period minus any claims allowed on Schedule
C for the period. Net tax liability for a semimonthly period
may be figured by dividing the net tax liability for the month
by 2, provided this method of computation is used for all
semimonthly periods in the calendar quarter.

Example. The tax included in amounts billed or tickets
sold for the period June 16-30, 2008, is considered collected
from July 16-22, 2008, and must be deposited by
July 25, 2008.

!

The net tax liability for a semimonthly period is not
reduced by any amounts from Form 720X.

CAUTION

To use the alternative method, you must keep separate
accounts of the tax included in amounts billed or tickets sold
during the month and report on Form 720 the tax included in
amounts billed or tickets sold and not the amount of tax that
is actually collected. For example, amounts billed in
December, January, and February are considered collected
during January, February, and March and are reported on
Form 720 as the tax for the 1st quarter of the calendar year.

Safe Harbor Rule
The safe harbor rule applies separately to deposits under
the regular method and the alternative method. Persons
who filed Form 720 for the look-back quarter (the 2nd
calendar quarter preceding the current quarter) are
considered to meet the semimonthly deposit requirement if
the deposit for each semimonthly period in the current
quarter is at least 1/6 (16.67%) of the net tax liability reported
for the look-back quarter.

The separate account for each month must reflect:
1. All items of tax included in amounts billed or tickets
sold during the month, and
2. Other items of adjustment relating to tax for prior
months (within the statute of limitations on credits or
refunds).

For the semimonthly period for which the additional
deposit is required (September 1-11 and 16-26 for EFTPS,
or September 1-10 and 16-25 for non-EFTPS), the
additional deposit must be at least 11/90 (12.23%), 10/90
(11.12%) for non-EFTPS, of the net tax liability reported for
the look-back quarter. Also, the total deposit for that
semimonthly period must be at least 1/6 (16.67%) of the net
tax liability reported for the look-back quarter.
Exceptions. The safe harbor rule does not apply to:
• The 1st and 2nd quarters beginning on or after the
effective date of an increase in the rate of tax unless the
deposit of taxes for each semimonthly period in the calendar
quarter is at least 1/6 (16.67%) of the tax liability you would
have had for the look-back quarter if the increased rate of
tax had been in effect for that look-back quarter;
• Any quarter if liability includes any tax not in effect
throughout the look-back quarter; or
• For deposits under the alternative method, any quarter if
liability includes any tax not in effect throughout the
look-back quarter and the month preceding the look-back
quarter.
Requirements to be met. For the safe harbor rule to
apply, you must:
• Make each deposit timely at an authorized financial
institution, and
• Pay any underpayment for the current quarter by the due
date of the return.

The separate account for any month cannot include an
adjustment resulting from a refusal to pay or inability to
collect unless the refusal has been reported to the IRS. See
Communications and Air Transportation Taxes —
Uncollected Tax Report on page 3.
The net tax liability that is considered collected during
the semimonthly period must be either:
• The net amount of tax reflected in the separate account
for the corresponding semimonthly period of the preceding
month, or
• One-half of the net amount of tax reflected in the separate
account for the preceding month.
Special rule for deposits of taxes in September 2008. If
you are required to make deposits, see the chart below. The
special rule does not apply to taxes not required to be
deposited (see Payment of Taxes on page 7). See
Regulations sections 40.6302(c)-2 and 40.6302(c)-3 for
rules to figure the net tax liability for the deposits due in
September.

If you meet the requirements and use the safe harbor
rule, check the box on line 5 of Form 720.

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Instructions for Form 720

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!

CAUTION

The IRS may withdraw the right to make deposits of
tax using the safe harbor rule from any person not
complying with these rules.

a sale) where the delivering person and receiving person
are both taxable fuel registrants and all of the following
occur.
• The transaction includes a transfer from the delivering
person, who holds the inventory position for the taxable fuel
in the terminal as reflected in the records of the terminal
operator.
• The exchange transaction occurs before or at the same
time as completion of removal across the rack by the
receiving person.
• The terminal operator in its records treats the receiving
person as the person that removes the product across the
terminal rack for purposes of reporting the transaction on
Form 720-TO, Terminal Operator Report.
• The transaction is the subject of a written contract.

Schedule A—Excise Tax Liability
How to complete. Complete Schedule A to record net tax
liabilities for Part I taxes for each semimonthly period in a
quarter even if your net liability is under $2,500.
The following table will help you determine which boxes
to complete on Schedule A.
IF you are reporting under
the...
Regular method
Alternative method

THEN you report on
line...
1
2

AND enter the net
tax liability in
boxes...

Information reporting. Schedule T — Two-Party Exchange
Information Reporting is used to report gallons of taxable
fuel:
• Received in a two-party exchange within a terminal.
These gallons must also be included on the appropriate line
on page 1 of Form 720, or
• Delivered in a two-party exchange contemporaneous with
a removal across the rack.

A–G
M–S

If you are reporting more than one type of tax on
lines 1 and 2:
1. Add the net tax liability for each tax for each
semimonthly period, and
2. Enter the total in the applicable box.

Enter all gallons of fuel received or delivered in a
two-party exchange within a terminal for the applicable fuel.

Additional rules. Report communications and air
transportation taxes based on:
• Actual collections on line 1, or
• Amounts billed or tickets sold on line 2. The amount of tax
to report for a semimonthly period is the net amount that is
considered collected during that period.
Example. The amounts billed for communications
services from June 1 – 15, 2008, are considered collected
during the period July 1 – 7, 2008, and are reported for the
3rd quarter of 2008 on Schedule A in box M, not the 2nd
quarter of 2008.
Reporting tax liability under the special September rule.
An additional reporting is required under the special
September rule (for the period shown in the chart above) as
follows:
Regular method taxes

Enter the tax liability for the period beginning
September 16 and ending September 25/26
in box G, Special rule for September.

Alternative method taxes

Enter the tax included in amounts billed or
tickets sold during the period beginning
September 1 and ending September 10/11 in
box S, Special rule for September box on the
4th quarter return.

Schedule C—Claims
Complete all information requested for each line, including
month income tax year ends and period of claim. Enter the
month as “MM.” Enter the period of claim as “MM/DD/YYYY
– MM/DD/YYYY.” Your claim will be disallowed if you do not
follow the required procedures or do not provide all the
required information. Also, you are certifying to the
applicable statement(s) on Schedule C when you make a
claim. See Pub. 510 for more information.
You must include in gross income (income tax
return) the amount from line 4 of Form 720 if you
CAUTION took a deduction on the income tax return that
included the amount of the taxes and that deduction
reduced the income tax liability. See Publication 510 for
more information.

!

Do not use Schedule C:

• If you are not reporting a liability on Form 720, in Part I or

Part II;
• To claim amounts that you took or will take as a credit on
Form 4136, Credit for Federal Tax Paid on Fuels, or as a
refund on Form 8849, Claim for Refund of Excise Taxes,
and its separate schedules (see the Caution later);
• To make adjustments to liability reported on Forms 720
filed for prior quarters, use Form 720X; or
• To request an abatement or refund of interest under
section 6404(e) (due to IRS errors or delays) or an
abatement or refund of a penalty or addition to tax under
section 6404(f) (due to erroneous IRS written advice).
Instead, use Form 843, Claim for Refund and Request for
Abatement. Also use Form 843 to request refund of the
penalty under section 6715 for misuse of dyed fuel.

For the remaining days in the September period, report
the liability as follows:
Regular method taxes

Enter the liability for the period beginning
September 26/27 and ending September 30
in box F.

Alternative method taxes

Enter the tax included in the amounts billed or
tickets sold for the period beginning
September 11/12 and ending September 15
in box M of the 4th quarter return. Enter the
tax included in amounts billed or tickets sold
during the period beginning September 16
and ending September 30 in box N of the 4th
quarter return.

If you make a claim for alcohol, biodiesel or
renewable diesel, or alternative fuel used to produce
CAUTION a mixture, a claim for refund or credit on Form 8849,
Form 4136, Form 6478, or Form 8864 can only be made
after the sum of the alcohol fuel mixture credit, biodiesel or
renewable diesel mixture credit, and alternative fuel mixture
credit is first applied to reduce your taxable fuel liability
reported on Form 720 for any particular quarter. See Pub.
510, Notice 2005-4, and Notice 2005-62 for more
information.

!

Schedule T—Two-Party Exchange
Information Reporting
In a two-party exchange, the receiving person, not the
delivering person, is liable for the tax imposed on the
removal of taxable fuel from the terminal at the terminal
rack. A two-party exchange means a transaction (other than

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Type of Use Table

Line 1. Nontaxable Use of Gasoline

The following table lists the nontaxable uses of fuels. You
must enter the number from the table in the Type of use
column as required.

Allowable uses. The gasoline must have been used
during the period of claim for type of use 2, 4, 5, 7, or 12.
For exported gasoline, see Exported taxable fuel above.
Type of use 2 does not include any personal use or use in a
motorboat.

No.

Type of Use

1

On a farm for farming purposes

2

Off-highway business use (for business use other than in
a highway vehicle registered or required to be registered
for highway use) (other than use in mobile machinery)

3

Export

4

In a boat engaged in commercial fishing

5

In certain intercity and local buses

6

In a qualified local bus

7

In a bus transporting students and employees of schools
(school buses)

8

For diesel fuel and kerosene (other than kerosene used in
aviation) used other than as a fuel in the propulsion engine
of a train or diesel-powered highway vehicle (but not
off-highway business use)

9

In foreign trade

10

Certain helicopter and fixed-wing aircraft uses

11

Exclusive use by a qualified blood collector organization

12

In a highway vehicle owned by the United States that is
not used on a highway

13

Exclusive use by a nonprofit educational organization

14

Exclusive use by a state, political subdivision of a state, or
the District of Columbia

15

In an aircraft or vehicle owned by an aircraft museum

16

In military aircraft

Line 2. Nontaxable Use of Aviation Gasoline
Allowable uses. For line 2b, the aviation gasoline must
have been used during the period of claim for type of use 9,
10, or 16. For exported aviation gasoline, see Exported
taxable fuel above.
For line 2d, the aviation gasoline must have been used
during the period of claim for type of use 9. This claim is
made in addition to the claim made on line 2b for type of
use 9.
Deleted "Claim rate."

Line 3. Nontaxable Use of Undyed Diesel
Fuel

!

Ultimate purchasers use line 3d to make claims for
diesel fuel used on a farm for farming purposes.

CAUTION

Allowable uses. For line 3a, the diesel fuel must have
been used during the period of claim for type of use 2, 6, 7,
8, or 12. For exported undyed diesel fuel, see Exported
taxable fuel above. Type of use 2 does not include any
personal use or use in a motorboat. Type of use 8 includes
use as heating oil and use in a motorboat.

Line 4. Nontaxable Use of Undyed Kerosene
(Other Than Kerosene Used in Aviation)
Allowable uses. For line 4a, the kerosene must have been
used during the period of claim for type of use 2, 6, 7, 8, or
12. For exported undyed kerosene, see Exported taxable
fuel above. Type of use 2 does not include any personal use
or use in a motorboat. Type of use 8 includes use as heating
oil and use in a motorboat.
For lines 4e and 4f, the kerosene must have been used
during the period of claim for type of use 2.

Claim requirements for lines 1 through 6 and lines
15b – 15d. The following requirements must be met.
1. The amount of the claim must be at least $750
(combining amounts on lines 1, 2, 3, 4, 5, 6, 15b, 15c, and
15d). This amount may be met by:
a. Making a claim for fuel used during any quarter of a
claimant’s income tax year, or
b. Aggregating amounts from any quarters of the
claimant’s income tax year for which no other claim has
been made.
2. Claims must be filed during the first quarter following
the last quarter of the claimant’s income tax year included in
the claim. For example, a calendar year income taxpayer’s
claim for the first quarter is due June 30 if filed on Form
8849. However, Form 720 must be filed by April 30.
3. Only one claim may be filed for any quarter.
4. The fuel must have been used for a nontaxable use
during the period of claim.
5. The ultimate purchaser is the only person eligible to
make the claim.

Line 5. Kerosene Used in Aviation
Claimant. For lines 5a and 5b, the ultimate purchaser of
kerosene used in commercial aviation (other than foreign
trade) is eligible to make this claim. For lines 5c, 5d, and 5e,
the ultimate purchaser of kerosene used in noncommercial
aviation (except for nonexempt, noncommercial aviation and
exclusive use by a state, political subdivision of a state, or
the District of Columbia) is eligible to make this claim.
Claimant certifies that the right to make the claim has not
been waived.
Allowable uses. For lines 5a and 5b, the kerosene must
have been used during the period of claim in commercial
aviation. If the claimant buys kerosene partly for use in
commercial aviation and partly for use in noncommercial
aviation, see the rules in Notice 2005-80, section 3(e)(3).
For lines 5c and 5d, the kerosene must have been used
during the period of claim for type of use 1, 9, 10, 11, 13, 15,
or 16.
For line 5e, the kerosene must have been used during
the period of claim for type of use 9. This claim is made in
addition to the claim made on lines 5c and 5d for type of
use 9.
Deleted "Claim rate."

If requirements 1 – 3 above are not met, see Annual
Claims on page 13.
Exported taxable fuel. The claim rates for exported
taxable fuel are listed on lines 1b, 2c, 3e, and 4d, and in the
instructions for lines 15b and 15c. Taxpayers making a claim
for exported taxable fuel must include with their records
proof of exportation. Proof of exportation includes:
• A copy of the export bill of lading issued by the delivering
carrier,
• A certificate by the agent or representative of the export
carrier showing actual exportation of the fuel,
• A certificate of lading signed by a customs officer of the
foreign country to which the fuel is exported, or
• A statement of the foreign consignee showing receipt of
the fuel.

Line 6. Nontaxable Use of Alternative Fuel
Claimant. The ultimate purchaser of the taxed alternative
fuel is the only person eligible to make this claim.
Allowable uses. The alternative fuel must have been used
during the period of claim for type of use 1, 2, 4, 5, 6, 7, 11,
13, 14, or 15.

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Type of use 5. Write “Bus” in the space to the left of the
Type of use column. Enter the correct claim rate in the Rate
column. The claim rates for type of use 5 are listed below.
Line number

Claim rate

6a

$.109

6b

.110

6c

.109*

6d

.110

6e

.17

6f

.17

6g

.169

Model Waiver N in Pub. 510. Only one claim may be filed
with respect to any gallon of diesel fuel.
Claim requirements. The following requirements must be
met.
1. The claim must be for diesel fuel sold during a period
that is at least 1 week.
2. The amount of the claim must be at least $200. To
meet this minimum requirement, amounts from lines 7, 8,
and 9 may be combined.
3. Claims must be filed by the last day of the first quarter
following the earliest quarter of the claimant’s income tax
year included in the claim. For example, a calendar year
income taxpayer’s claim for the first quarter is due June 30 if
filed on Form 8849. However, Form 720 must be filed by
April 30.

* This is the claim rate per gasoline gallon equivalent (126.67 cubic feet of CNG).

If requirements 1 – 3 above are not met, see Annual
Claims on page 13.
Registration number. Enter your UB registration number
in the space provided.

Information for Claims on Lines 7–11
Registration number. To make an ultimate vendor claim
on lines 7 – 11, you must be registered. Enter your
registration number, including the prefix, on the applicable
line for your claim. If you are not registered, use Form 637,
Application for Registration (For Certain Excise Tax
Activities), to apply for a registration number.
Required certificates or waivers. The required
certificates or waivers for lines 7 – 11 are listed in the line
instructions and are available in Pub. 510.

Lines 8a and 8b. Sales By Registered
Ultimate Vendors of Undyed Kerosene
(Other Than Kerosene Sold for Use in
Aviation)

Claimant. For line 7a, the registered ultimate vendor of the
diesel fuel is the only person eligible to make this claim and
has obtained the required certificate from the buyer and has
no reason to believe any information in the certificate is
false. See Model Certificate P in Pub. 510. Only one claim
may be filed with respect to any gallon of diesel fuel.
Allowable sales. The fuel must have been sold during the
period of claim for the exclusive use by a state or local
government (including essential government use by an
Indian tribal government).
Claim requirements. The following requirements must be
met.
1. The claim must be for diesel fuel sold during a period
that is at least 1 week.
2. The amount of the claim must be at least $200. To
meet this minimum requirement, amounts from lines 7, 8,
and 9 may be combined.
3. Claims must be filed by the last day of the first quarter
following the earliest quarter of the claimant’s income tax
year included in the claim. For example, a calendar year
income taxpayer’s claim for the first quarter is due June 30 if
filed on Form 8849. However, Form 720 must be filed by
April 30.

Claimant. For line 8a, the registered ultimate vendor of the
kerosene is the only person eligible to make this claim and
has obtained the required certificate from the buyer and has
no reason to believe any information in the certificate is
false. See Model Certificate P in Pub. 510. For line 8b,
claimant has a statement, if required, that contains the date
of sale, name and address of the buyer, and the number of
gallons of kerosene sold to the buyer. For lines 8a and 8b,
only one claim may be filed with respect to any gallon of
kerosene.
Allowable sales. The fuel must have been sold during the
period of claim:
• For line 8a, use by a state or local government (including
essential government use by an Indian tribal government),
or
• For line 8b, from a blocked pump.
Claim requirements. The following requirements must be
met.
1. The claim must be for kerosene sold during a period
that is at least 1 week.
2. The amount of the claim must be at least $100. To
meet this minimum, amounts from lines 8 and 9 may be
combined.
3. Claims must be filed by the last day of the first quarter
following the earliest quarter of the claimant’s income tax
year included in the claim. For example, a calendar year
income taxpayer’s claim for the first quarter is due June 30 if
filed on Form 8849. However, Form 720 must be filed by
April 30.

If requirements 1 – 3 above are not met, see Annual
Claims on page 13.
Registration number. Enter your UV registration number
in the space provided.
Information to be submitted. For claims on line 7a, attach
a separate sheet with the name and TIN of each
governmental unit to whom the diesel fuel was sold and the
number of gallons sold to each.

If requirements 1 – 3 earlier are not met, see Annual
Claims on page 13.
Registration number. Enter your UV or UP registration
number in the space provided.
Information to be submitted. For claims on line 8a, attach
a separate sheet with the name and TIN of each
governmental unit to whom the kerosene was sold and the
number of gallons sold to each.

Line 7b. Sales by Registered Ultimate
Vendors of Undyed Diesel Fuel for Use in
Certain Intercity and Local Buses

Line 8c. Sales by Registered Ultimate
Vendors of Undyed Kerosene for Use in
Certain Intercity and Local Buses

Claimant. For line 7b, the registered ultimate vendor of the
diesel fuel is eligible to make a claim only if the buyer
waives his or her right to make the claim by providing the
registered ultimate vendor with an unexpired waiver. See

Claimant. For line 8c, the registered ultimate vendor of the
kerosene is eligible to make a claim only if the buyer waives
his or her right to make the claim by providing the registered
ultimate vendor with an unexpired waiver. See Model

Line 7a. Sales By Registered Ultimate
Vendors of Undyed Diesel Fuel

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Allowable sales. For line 9c, the kerosene must have
been sold for a nonexempt use in noncommercial aviation.
For lines 9d and 9e, the kerosene sold for use in
noncommercial aviation must have been sold during the
period of claim for type of use 1, 9, 10, 11, 13, 14, 15, or 16.

Waiver N in Pub. 510. Only one claim may be filed with
respect to any gallon of kerosene.
Claim requirements. The following requirements must be
met.
1. The claim must be for kerosene sold during a period
that is at least 1 week.
2. The amount of the claim must be at least $100. To
meet this minimum, amounts from lines 8 and 9 may be
combined.
3. Claims must be filed by the last day of the first quarter
following the earliest quarter of the claimant’s income tax
year included in the claim. For example, a calendar year
income taxpayer’s claim for the first quarter is due June 30 if
filed on Form 8849. However, Form 720 must be filed by
April 30.

For line 9f, the kerosene sold for use in noncommercial
aviation must have been sold during the period of claim for
type of use 9. This claim is made in addition to the claim
made on lines 9d and 9e for type of use 9. Deleted "Claim rate."
Claim requirements. The following requirements must be
met.
1. The claim must be for kerosene sold for use in
noncommercial aviation during a period that is at least 1
week.
2. The amount of the claim must be at least $100. To
meet this minimum, amounts from lines 8 and 9 may be
combined.
3. Claims must be filed by the last day of the first quarter
following the earliest quarter of the claimant’s income tax
year included in the claim. For example, a calendar year
income taxpayer’s claim for the first quarter is due June 30 if
filed on Form 8849. However, Form 720 must be filed by
April 30.

If requirements 1 – 3 above are not met, see Annual
Claims on page 13.
Registration number. Enter your UB registration number
in the space provided.

Lines 9a and 9b. Sales By Registered
Ultimate Vendors of Kerosene For Use in
Commercial Aviation (Other Than Foreign
Trade)

Deleted
"Claim
rate."

If requirements 1 – 3 above are not met, see Annual
Claims on page 13.

Claimant. The registered ultimate vendor of the kerosene
sold for use in commercial aviation is eligible to make this
claim only if the buyer waives his or her right by providing
the registered ultimate vendor with an unexpired waiver.
See Model Waiver L in Pub. 510. Only one claim may be
filed with respect to any gallon of kerosene sold for use in
commercial aviation.
Allowable sales. The kerosene sold for use in commercial
aviation must have been sold during the period of claim for
use in commercial aviation (other than foreign trade).
Claim requirements. The following requirements must be
met.
1. The claim must be for kerosene sold for use in
commercial aviation during a period that is at least 1 week.
2. The amount of the claim must be at least $100. To
meet this minimum, amounts from lines 8 and 9 may be
combined.
3. Claims must be filed by the last day of the first quarter
following the earliest quarter of the claimant’s income tax
year included in the claim. For example, a calendar year
income taxpayer’s claim for the first quarter is due June 30 if
filed on Form 8849. However, Form 720 must be filed by
April 30.

Registration number. Enter your UA (UV if type of use 14)
registration number in the space provided.
Information to be submitted. For claims on lines 9d and
9e (type of use 14), attach a separate sheet with the name
and TIN of each governmental unit to whom the kerosene
was sold and the number of gallons sold to each.

Lines 10 and 11. Sales by Registered
Ultimate Vendors of Gasoline and Aviation
Gasoline
Claimant. The registered ultimate vendor of the gasoline or
aviation gasoline is eligible to make a claim on lines 10 and
11 if the buyer waives his or her right to make the claim by
providing the registered ultimate vendor with an unexpired
certificate. See Model Certificate M in Pub. 510. Only one
claim may be filed with respect to any gallon of gasoline or
aviation gasoline.
Allowable sales. The gasoline or aviation gasoline must
have been sold during the period of claim for:
• Use by a nonprofit educational organization, or
• Use by a state or local government (including essential
government use by an Indian tribal government).

Deleted
"Claim
Claim requirements. The following requirements must be rate."

If requirements 1 – 3 above are not met, see Annual
Claims on page 13.
Registration number. Enter your UA registration number
in the space provided.

met.
1. The claim must be for gasoline or aviation gasoline
sold or used during a period that is at least 1 week.
2. The amount of the claim must be at least $200. To
meet this minimum, amounts from lines 10 and 11 may be
combined.
3. Claims must be filed by the last day of the first quarter
following the earliest quarter of the claimant’s income tax
year included in the claim. For example, a calendar year
income taxpayer’s claim for January and February is due
June 30 if filed on Form 8849. However, Form 720 must be
filed by April 30.

Lines 9c, 9d, 9e, and 9f. Sales By Registered
Ultimate Vendors of Kerosene Sold For Use
in Noncommercial Aviation
Claimant. For line 9c, the registered ultimate vendor of the
kerosene sold for use in nonexempt, noncommercial
aviation is the only person eligible to make this claim and
has obtained the required certificate from the ultimate
purchaser. See Model Certificate Q in Pub. 510. For lines
9d, 9e, and 9f, the registered ultimate vendor of the
kerosene sold for nontaxable use in noncommercial aviation
(foreign trade for line 9f) is eligible to make this claim only if
the buyer waives his or her right to make the claim by
providing the registered ultimate vendor with an unexpired
waiver. See Model Waiver L in Pub. 510. For type of use 14,
see Model Certificate P in Pub. 510. Only one claim may be
filed with respect to any gallon of kerosene sold for use in
noncommercial aviation.

Registration number. Enter your UV registration number
in the space provided.
Information to be submitted. For claims on lines 10 and
11, attach a separate sheet with the name and TIN of each
nonprofit educational organization or governmental unit to
whom the gasoline or aviation gasoline was sold and the
number of gallons sold to each.

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b. Total gallons of biodiesel or renewable diesel on
certificate.
c. Total gallons claimed on Schedule 3 (Form 8849).
d. Total gallons claimed on Schedule C (Form 720),
line 13.

Line 12. Alcohol Fuel Mixture Credit
Claimant. The person that produced and sold or used the
mixture in their trade or business is the only person eligible
to make this claim. The credit is based on the gallons of
alcohol in the mixture.

If requirements 1 and 2 above are not met, see Annual
Claims below.
Registration number. If you are a registered blender or a
taxable fuel registrant, enter your registration number on line
13.

How to claim the credit. Any alcohol fuel mixture credit
must first be taken on Schedule C to reduce your taxable
fuel liability reported on Form 720. Any excess credit may be
taken on Schedule C (Form 720), Form 8849, Form 4136, or
Form 6478. See Notice 2005-4 and Notice 2005-62 for more
information.

Line 14. Alternative Fuel Credit and
Alternative Fuel Mixture Credit

Claim requirements. The following requirements must be
met if the credit exceeds the amount of taxable fuel liability
reported.
1. The claim must be for an alcohol fuel mixture sold or
used during a period that is at least 1 week.
2. The amount of the claim must be at least $200. To
meet this minimum, amounts from lines 12, 13, and 14 may
be combined.

Claimant. For the alternative fuel credit, the registered
alternative fueler who (1) sold an alternative fuel at retail and
delivered it into the fuel supply tank of a motor vehicle or
motorboat, (2) sold an alternative fuel, delivered it in bulk for
taxable use in a motor vehicle or motorboat, and received
the required statement from the buyer, or (3) used an
alternative fuel (not sold at retail or in bulk as previously
described) in a motor vehicle or motorboat is the only
person eligible to make this claim.
Deleted "Alternative fuel credit."
For the alternative fuel mixture credit, the registered
alternative fueler that produced and sold or used the mixture
as a fuel in their trade or business is the only person eligible
to make this claim. The credit is based on the gallons of
alternative fuel in the mixture.
How to claim the credit. Any alternative fuel credit and
any alternative fuel mixture credit must first be taken on
Schedule C to reduce your taxable fuel liability reported on
Form 720. Any excess credit may be taken on Schedule C
(Form 720), Form 8849, or Form 4136.
Claim requirements. To claim either credit, you must be
registered by the IRS. To claim the alternative fuel mixture
credit, the following requirements must be met if the credit
exceeds the amount of taxable fuel liability reported.
1. The claim must be for an alternative fuel mixture sold
or used (as described earlier under Claimant) during a
period that is at least 1 week.
2. The amount of the claim must be at least $200. To
meet the minimum, amounts from lines 12, 13, and 14 may
be combined.

If requirements 1 and 2 above are not met, see Annual
Claims below.
Registration number. If you are a registered blender or a
taxable fuel registrant, enter your registration number on line
12.

Line 13. Biodiesel or Renewable Diesel
Mixture Credit
Claimant. The person that produced and sold or used the
mixture in their trade or business is the only person eligible
to make this claim. The credit is based on the gallons of
biodiesel or renewable diesel in the mixture.
How to claim the credit. Any biodiesel or renewable
diesel mixture credit must first be taken on Schedule C to
reduce your taxable fuel liability reported on Form 720. Any
excess credit may be taken on Schedule C (Form 720),
Form 8849, Form 4136, or Form 8864. See Notice 2005-4
and item 4 below for more information.
Claim requirements. Requirements 1 and 2 must be met
only if the credit exceeds the amount of taxable fuel liability
reported. Requirements 3 and 4 must be met for all claims.
1. The claim must be for a biodiesel or renewable diesel
mixture sold or used during a period that is at least 1 week.
2. The amount of the claim must be at least $200. To
meet this minimum, amounts from lines 12, 13, and 14 may
be combined.
3. The biodiesel used to produce the biodiesel mixture
must meet ASTM D6751 and meet the Environmental
Protection Agency’s (EPA) registration requirements for
fuels and fuel additives under section 211 of the Clean Air
Act. The renewable diesel used to produce the renewable
diesel mixture must be derived from biomass (as defined in
section 45K(c)(3)) using a thermal depolymerization
process, meet ASTM D975 or D396, and meet EPA’s
registration requirements for fuels and fuel additives under
section 211 of the Clean Air Act.
4. The Certificate for Biodiesel and, if applicable,
Statement of Biodiesel Reseller must be attached to the first
claim filed that is supported by the certificate or statement.
For the renewable diesel mixture credit, you must edit the
certificate and, if applicable, statement to indicate that the
fuel to which the certificate and statement relate is
renewable diesel and state that the renewable diesel meets
the requirements discussed above under requirement 3.
See Model Certificate O and Model Statement S in Pub.
510. If the certificate and statement are not attached to
Form 720 because they are attached to a previously-filed
claim on Schedule 3 (Form 8849), attach a separate sheet
with the following information.
a. Certificate identification number.

If requirements 1 and 2 above are not met, see Annual
Claims below.
Registration number. You must enter your registration
number in the space provided.
Form 720X. If you are not registered, you cannot make
a claim at this time. Use Form 637 to apply for registration.
After you are registered by the IRS, file Form 720X to claim
the credit for this period.

Annual Claims
If a claim on lines 1 – 9, 12 – 14, or 15b – 15e was not made
for any gallons, an annual claim may be made. Generally,
an annual claim is made on Form 4136 for the income tax
year during which the fuel was used by the ultimate
purchaser, sold by the registered ultimate vendor, used to
produce an alcohol fuel mixture and biodiesel mixture, or
used in mobile machinery. See Form 4136 for more
information.

Line 15. Other Claims
For claims under section 6416(b)(2) relating to certain uses
and resales of certain articles subject to manufacturers or
retailers excise taxes, claimant certifies that it sold the article
at a tax-excluded price, repaid the amount of tax to the
ultimate vendor, or has obtained the written consent of the
ultimate vendor to make the claim; and has the required
supporting information.

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Deleted special claim rate for
trains.

Lines 15b and 15c. Exported Dyed Diesel Fuel
and Exported Dyed Kerosene

year included in the claim. For example, a calendar year
income taxpayer’s claim for the first quarter is due June 30 if
filed on Form 8849. However, Form 720 must be filed by
April 30.
4. The claimant must enter its registration number on line
15e, the amount of the claim, and the applicable CRN (see
Allowable sales above). If the claim is for more than one
fuel, use the blank lines 15f through 15i, or attach a
separate sheet listing the fuels, amount, and CRN.

For exported dyed diesel fuel and exported dyed kerosene,
see Exported taxable fuel on page 10. The claim rate for
each fuel is $.001.

Line 15d. Diesel-Water Fuel Emulsion
The claim rate for the nontaxable use of a diesel-water fuel
emulsion taxed at $.198 (CRN 309) is $.197. The fuel must
have been used during the period of claim for type of use 1,
2, 3, 5, 6, 7, 8, or 12. For type of use 5, the claim rate is
$.124 (CRN 309). For type of use 3 (exported), the claim
rate is $.198 (CRN 306) and is reported on line 15d.
The claim rate for undyed diesel fuel taxed at $.244 (CRN
310) and used to produce a diesel-water fuel emulsion is
$.046 per gallon of diesel fuel so used (blender claims). The
claimant must attach a statement certifying that (a) the
claimant produced a diesel-water fuel emulsion containing at
least 14% water, (b) the emulsion additive is registered by a
United States manufacturer under section 211 of the Clean
Air Act with the EPA, (c) the claimant used undyed diesel
fuel taxed at $.244 to produce the diesel-water emulsion,
and (d) the claimant sold or used the diesel-water fuel
emulsion in the blender’s trade or business. The blender
claimant must be registered by the IRS and must enter their
registration number on line 15d and enter the applicable
CRN.
Claim requirements. See Claim requirements for lines 1
through 6 and lines 15b – 15d on page 10.

Claim rates. The claim rates are shown below.
CRN

Claim Rate

324

$.193

346

.243

360

.243

362

.183

369

.218

Line 15f. Other Claims

!

CAUTION

Deleted dual rates and
footnote.

Do not use line 15f to make communication tax
claims for nontaxable service. See Communications
Taxes on page 3.

Use line 15f for claims relating to taxes listed in the table
below. See Pub. 510 for information on allowable claims
relating to these taxes. If you need additional space, attach
other sheet(s). You must include the following information
for each claim.
• A detailed description of the claim.
• Any additional information required by the regulations.
• The amount of the claim.
• How you figured the claim amount.
• Any other information to support the claim.

Line 15e. Registered Credit Card Issuers
Allowable sales. The gasoline (CRN 362), aviation
gasoline (CRN 324), diesel fuel (CRN 360), kerosene (CRN
346), or kerosene for use in aviation (CRN 369) must have
been purchased with a credit card issued to the ultimate
purchaser during the period of claim:
• For gasoline or aviation gasoline, for the exclusive use by
a state or local government (including essential government
use by an Indian tribal government) or for the exclusive use
of a nonprofit educational organization; or
• For diesel fuel, kerosene, or kerosene for use in aviation,
for the exclusive use by a state or local government
(including essential government use by an Indian tribal
government).
Claimant. The registered credit card issuer is the only
person eligible to make this claim if the credit card issuer:
1. Is registered by the IRS;
2. Has not collected the amount of tax from the ultimate
purchaser or has obtained the written consent of the
ultimate purchaser to make the claim;
3. Certifies that it has repaid or agreed to repay the
amount of tax to the ultimate vendor, has obtained the
written consent of the ultimate vendor to make the claim, or
has otherwise made arrangements which directly or
indirectly provide the ultimate vendor with reimbursement of
the tax; and
4. Has in its possession an unexpired certificate from the
ultimate purchaser and has no reason to believe any of the
information in the certificate is false. See Model Certificate R
in Pub. 510.

Claim requirement. Generally, the claim must be filed
within 3 years from the time the return was filed or 2 years
from the time the tax was paid, whichever is later.
Tax

If any of these conditions is not met, the credit card issuer
must collect the tax from the ultimate purchaser and only the
ultimate purchaser can make the claim.
Claim requirements. The following requirements must be
met.
1. The claim must be for gasoline, aviation gasoline,
diesel fuel, kerosene, or kerosene for use in aviation sold
during a period that is at least 1 week.
2. The amount of the claim must be at least $200 ($100
for kerosene or kerosene for use in aviation).
3. Claims must be filed by the last day of the first quarter
following the earliest quarter of the claimant’s income tax

CRN

Ozone-depleting chemicals (ODCs)

398

Oil spill liability

349

Truck, trailer, and semitrailer chassis and bodies, and
tractors

383

Passenger vehicles (luxury tax)

392

Taxable tires other than biasply or super single tires

396

Taxable tires, biasply or super single tires (other than
super single tires designed for steering)

304

Taxable tires, super single tires designed for steering

305

Gas guzzler automobiles

340

Vaccines

397

Sport fishing equipment

341

Fishing rods and fishing poles

308

Fishing tackle boxes

387

Electric outboard motors

342

Bows, quivers, broadheads, and points

344

Arrow shafts

389

Unresolved Tax Issues
If you have attempted to deal with an IRS problem
unsuccessfully, you should contact the Taxpayer Advocate.
The Taxpayer Advocate independently represents your
interests and concerns within the IRS by protecting your

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rights and resolving problems that have not been fixed
through normal channels.
While Taxpayer Advocates cannot change the tax law or
make a technical tax decision, they can clear up problems
that resulted from previous contacts and ensure that your
case is given a complete and impartial review.
Your assigned personal advocate will listen to your point
of view and will work with you to address your concerns.
You can expect the advocate to provide you with:
• A ‘‘fresh look’’ at your new or ongoing problem,
• Timely acknowledgment,
• The name and phone number of the individual assigned
to your case,
• Updates on progress,
• Timeframes for action,
• Speedy resolution, and
• Courteous service.
When contacting the Taxpayer Advocate, you should
provide the following information.
• Your name, address, and taxpayer identification number
(TIN).
• The name and telephone number of an authorized contact
person and the hours he or she can be reached.
• The type of tax return and year(s) or period(s) (for
quarterly returns) involved.
• A detailed description of the problem.
• Previous attempts to solve the problem and the office you
contacted.
• A description of the hardship you are facing (if applicable).
You may contact a Taxpayer Advocate by calling a
toll-free number, 1-877-777-4778. Persons who have
access to TTY/TDD equipment may call 1-800-829-4059
and ask for Taxpayer Advocate assistance. If you prefer,
you may call, write, or fax the Taxpayer Advocate office in
your area. See Pub. 1546, Taxpayer Advocate Service —
Your Voice at the IRS, for a list of addresses and numbers.

provide the requested information. Section 6109 requires
you to provide your TIN. Routine uses of this information
include giving it to the Department of Justice for civil and
criminal litigation, and cities, states, and the District of
Columbia for use in administering their tax laws. We may
also disclose this information to other countries under a tax
treaty, to federal and state agencies to enforce federal
nontax criminal laws, or to federal law enforcement and
intelligence agencies to combat terrorism. If you fail to
provide this information in a timely manner, you may be
liable for penalties and interest.
You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books
or records relating to a form or its instructions must be
retained as long as their contents may become material in
the administration of any Internal Revenue law. Generally,
tax returns and return information are confidential, as
required by section 6103.
The time needed to complete and file these forms and
related schedules will vary depending on individual
circumstances. The estimated average times are:
Form

Recordkeeping

Learning about
the law or
the form

Preparing and
sending the
form to the IRS

720

22 hr., 58 min.

1 hr., 43 min.

5 hr., 46 min.

720-V
Sch. A
Sch. T
Sch. C
720X
6197
6627

1 hr., 11 min.
3 hr., 49 min.
2 hr., 23 min.
34 hr., 55 min.
6 hr., 13 min.
4 hr., 18 min.
9 hr., 3 min.

— —
— —
— —
42 min.
18 min.
12 min.
6 min.

1 min.
3 min.
2 min.
1hr., 18 min.
24 min.
16 min.
14 min.

If you have comments concerning the accuracy of these
time estimates or suggestions for making these forms and
related schedules simpler, we would be happy to hear from
you. You can write to the Internal Revenue Service, Tax
Products Coordinating Committee, SE:W:CAR:MP:T:T:SP,
1111 Constitution Ave. NW, IR-6526, Washington, DC
20224. Do not send the tax forms to this office. Instead, see
Where To File on page 1.

Privacy Act and Paperwork Reduction Act Notice. We
ask for the information on these forms in order to carry out
the Internal Revenue laws of the United States. We need it
to figure and collect the right amount of tax. Miscellaneous
excise taxes are imposed under Subtitle D of the Internal
Revenue Code. These forms are used to determine the
amount of tax that you owe. Section 6011 requires you to

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Index

A
Address, Name and . . . . . . . . . . . . . . . . 2
Air transportation:
Uncollected tax report . . . . . . . . . . . 3
Air transportation taxes . . . . . . . . . . . . 3
Alcohol fuel mixture credit . . . . . . . . . 13
Alcohol sold as but not used as
fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Alternative fuel . . . . . . . . . . . . . . . . . . . . . 4
Alternative fuel credit . . . . . . . . . . . . . . 13
Alternative fuel mixture credit . . . . . 13
Amount to deposit . . . . . . . . . . . . . . . . . . 8
Arrow shafts . . . . . . . . . . . . . . . . . . . . . . . 6
B
Biodiesel mixture credit . . . . . . . . . . . 13
Biodiesel sold as but not used as
fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Bows, quivers, broadheads, and
points . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
C
Claims (Schedule C) . . . . . . . . . . . . . . .
Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Communications:
Uncollected tax report . . . . . . . . . . .
Communications taxes . . . . . . . . . . . . .

9
5
3
3

D
Deposits, How to make . . . . . . . . . . . . 7
Diesel fuel . . . . . . . . . . . . . . . . . . . . . . . . . 4
Diesel-water fuel emulsion . . . . . . . . . 4
E
Electric outboard motors . . . . . . . . . . . 6
Employer identification number . . . . 3
Environmental taxes . . . . . . . . . . . . . . . 3
Exported taxable fuel . . . . . . . . . . . . . 10
F
Final return . . . . . . . . . . . . . . . . . . . . . . . . .
Fishing rods and fishing poles . . . . .
Fishing tackle boxes . . . . . . . . . . . . . . .
Floor stocks . . . . . . . . . . . . . . . . . . . . . . . .

2
6
6
7

Foreign insurance policies . . . . . . . . .
Form 6197 . . . . . . . . . . . . . . . . . . . . . . . . .
Form 6627 . . . . . . . . . . . . . . . . . . . . . . . . .
Form 720-V . . . . . . . . . . . . . . . . . . . . . . . .
Fuel taxes . . . . . . . . . . . . . . . . . . . . . . . . . .

6
6
3
7
4

R
Recordkeeping . . . . . . . . . . . . . . . . . . . . . 2
Renewable diesel mixture
credit . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Retail tax . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

G
Gas guzzler automobiles:
One-time filing . . . . . . . . . . . . . . . . . . . 6
Gasoline . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

S
Schedule A (Excise Tax
Liability) . . . . . . . . . . . . . . . . . . . . . . . . . 9
Schedule C (Claims) . . . . . . . . . . . . 9-14
Schedule T (Two-Party Exchange
Information Reporting) . . . . . . . . . . . 9
Ship passenger tax . . . . . . . . . . . . . . . . 5
Special September rule, When to
deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Sport fishing equipment . . . . . . . . . . . . 6

H
Help, additional . . . . . . . . . . . . . . . . . . . . 2
How to file:
Zero tax . . . . . . . . . . . . . . . . . . . . . . . . . 1
I
Inland waterways fuel use tax . . . . . . 6
Interest, Penalties and . . . . . . . . . . . . . 2
K
Kerosene . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Kerosene for use in aviation . . . . . . . 4
M
Manufacturers taxes . . . . . . . . . . . . . . . 5
N
Name and address . . . . . . . . . . . . . . . . . 2
O
Obligations not in registered
form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ODCs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 7
Oil spill liability tax . . . . . . . . . . . . . . . . . 3
One-time filing . . . . . . . . . . . . . . . . . . . . . 6
Other fuels, tax rates . . . . . . . . . . . . . . . 4
Ozone-depleting chemicals
(ODCs) . . . . . . . . . . . . . . . . . . . . . . . . 3, 7
P
Payment of taxes . . . . . . . . . . . . . . . . . . 7
Payment voucher . . . . . . . . . . . . . . . . . . 7
Penalties and interest . . . . . . . . . . . . . . 2

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T
Taxable tires . . . . . . . . . . . . . . . . . . . . . . . 5
Taxes, Payment of . . . . . . . . . . . . . . . . . 7
Taxpayer Advocate . . . . . . . . . . . . . . . 14
Third Party Designee . . . . . . . . . . . . . . 3
Tire credit, Section 4051(d) . . . . . . . . 5
Tires, taxable . . . . . . . . . . . . . . . . . . . . . . 5
Transportation by water . . . . . . . . . . . . 5
Trucks, trailers, tractors . . . . . . . . . . . . 5
Two-Party Exchange Information
Reporting . . . . . . . . . . . . . . . . . . . . . . . . 9
U
Uncollected tax report . . . . . . . . . . . . . . 3
Unresolved tax issues . . . . . . . . . . . . . 14
V
Vaccines . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
W
When to deposit . . . . . . . . . . . . . . . . . . . 7
When to file . . . . . . . . . . . . . . . . . . . . . . . . 1
Where to file . . . . . . . . . . . . . . . . . . . . . . . 1

■