Instructions For Form 720 - Quarterly Federal Excise Tax Return printable pdf download

Department of the Treasury

Instructions for Form 720

Internal Revenue Service

(Rev. April 2009)

For use with Form 720 (Rev. January 2009)

Quarterly Federal Excise Tax Return

from biomass and liquefied gas derived from biomass. For

Section references are to the Internal Revenue Code unless

more information, see Line 14. Alternative Fuel Credit and

otherwise noted.

Alternative Fuel Mixture Credit on page 14.

Alternative fuel used in aviation. You can claim the

What’s New

alternative fuel credit for alternative fuel sold for use as a

fuel in aviation.

Oil spill liability tax. The oil spill liability tax (IRS Nos. 18

Credits for fuel provide incentive for United States

and 21) is $.08 per barrel. Previously, the oil spill liability tax

production. The alcohol fuel mixture credit, biodiesel

was $.05 per barrel.

mixture credit, alternative fuel credit, and alternative fuel

Domestic segment tax. For amounts paid for each

mixture credit may not be claimed for alcohol, biodiesel, and

domestic segment of taxable transportation of a person by

alternative fuel that is produced outside the United States for

air (IRS No. 26), the domestic segment tax is $3.60 per

use as a fuel outside the United States. The United States

segment for transportation that begins in 2009.

includes any possession of the United States.

Use of international air travel facilities. The tax on use of

Electronic filing. You can electronically file Form 720

international air travel facilities (IRS No. 27) has increased

through any electronic return originator (ERO), transmitter,

for amounts paid during 2009. For flights that begin or end in

and/or intermediate service provider (ISP) participating in

the United States, the tax is $16.10 per person. For

the IRS e-file program for excise taxes. For more

domestic segments that begin or end in Alaska or Hawaii

information on e-file, visit the IRS website at

(applies only to departures), the tax is $8.00 per person.

Arrow shafts. The tax on arrow shafts (IRS No. 106) is

Electronic payment. Now, more than ever before,

$.45 per arrow shaft.

businesses can enjoy the benefits of paying their federal

Alcohol fuel mixture credit. The claim rate for alcohol fuel

taxes electronically. Whether you rely on a tax professional

mixtures containing ethanol is $.45 per gallon. Previously,

or handle your own taxes, the IRS offers you a convenient

the claim rate was $.51 per gallon.

program to make it easier. Spend less time on taxes and

Biodiesel mixture credit. The claim rate for biodiesel

more time running your business. Use the Electronic

mixtures is $1.00 per gallon. Previously, the claim rate was

Federal Tax Payment System (EFTPS) to your benefit. For

$.50 per gallon.

information on EFTPS, visit or call the

EFTPS Customer Service at 1-800-555-4477. If you are

Renewable diesel. The definition and requirements of

filing Form 720 electronically, you can choose to pay using

renewable diesel are modified. For more information, see

electronic funds withdrawal (direct debit). For more

Line 13. Biodiesel or Renewable Diesel Mixture Credit.

information, see How To Make Deposits on page 8.

Exported gasoline blendstocks. Claims for exported

gasoline blendstocks taxed at $.001 per gallon are made on

line 15b of Schedule C. Continue to use line 1b to make

General Instructions

claims for exported gasoline blendstocks taxed at $.184 per

gallon.

Purpose of Form

Reminders

Use Form 720 and attachments to report liability by IRS No.

Liquefied gas derived from biomass. Liquefied gas

and pay the excise taxes listed on the form.

derived from biomass is taxable at $.184 per gallon. You are

Who Must File

liable for tax on liquefied gas derived from biomass that is

delivered into the fuel supply tank of a motor vehicle or

You must file Form 720 if you were previously liable for any

motorboat and on certain bulk sales. Report this tax under

of the federal excise taxes listed in Parts I and II of Form

IRS No. 79.

720 and you have not filed a final return. See How To File

A claim for nontaxable use of liquefied gas derived from

for more information.

biomass can be made on line 6h (credit reference number

435) at $.183 per gallon.

When To File

Retail tax (IRS No. 33). Exclude the cost of certain idling

You must file a return for each quarter of the calendar year

reduction devices and insulation sold or installed after

as follows:

October 3, 2008, from the sales price of the taxable vehicle.

See Retail Tax on page 5 for more information.

Quarter covered

Due by

Arrow shafts (IRS No. 106). Certain wooden arrows are

Jan., Feb., Mar.

April 30

not taxable. See Arrow shafts (IRS No. 106) on page 7 for

Apr., May, June

July 31

more information.

Alternative fuel credit and alternative fuel mixture credit.

July, Aug., Sept.

October 31

You may be eligible to claim the alternative fuel credit and

Oct., Nov., Dec.

January 31

alternative fuel mixture credit for compressed gas derived

Cat. No. 64240C

Instructions For Form 720 - Quarterly Federal Excise Tax Return

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