Instructions For Form 720 - Quarterly Federal Excise Tax Return


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
Purpose of Form
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


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