Instructions For Form 720 - Quarterly Federal Excise Tax Return (Page 15 of 18) in pdf

the required statement from the buyer, (3) used an

gallon are made on line 15b. See Exported taxable fuel on

alternative fuel (not sold at retail or in bulk as previously

page 11. The claim rate for each fuel is $.001 per gallon.

described) in a motor vehicle or motorboat, or (4) sold an

Claims for exported gasoline blendstocks taxed at

alternative fuel for use as a fuel in aviation is the only person

$.184 per gallon are made on line 1b.

eligible to make this claim.

CAUTION

For the alternative fuel mixture credit, the registered

alternative fueler that produced and sold or used the mixture

Line 15d. Diesel-Water Fuel Emulsion

as a fuel in their trade or business is the only person eligible

Generally, the claim rate for the nontaxable use of a

to make this claim. The credit is based on the gallons of

diesel-water fuel emulsion taxed at $.198 (CRN 309) is

alternative fuel in the mixture.

$.197. The fuel must have been used during the period of

How to claim the credit. Any alternative fuel credit must

claim for type of use 1, 2, 3, 5, 6, 7, 8, or 12. For type of use

first be taken on Schedule C to reduce your liability for

5, the claim rate is $.124 (CRN 309). For type of use 3

alternative fuel and CNG reported on Form 720. Any

(exported), the claim rate is $.198 (CRN 306) and is

alternative fuel mixture credit must first be taken on

reported on line 15d.

Schedule C to reduce your taxable fuel liability for gasoline,

diesel fuel, and kerosene reported on Form 720. Any excess

The claim rate for undyed diesel fuel taxed at $.244 (CRN

alternative fuel credit and alternative fuel mixture credit may

310) and used to produce a diesel-water fuel emulsion is

be taken on Schedule C (Form 720), Form 8849, or Form

$.046 per gallon of diesel fuel so used (blender claims). The

4136.

claimant must attach a statement certifying that (a) the

claimant produced a diesel-water fuel emulsion containing at

Claim requirements. The alternative fuel credit and

least 14% water, (b) the emulsion additive is registered by a

alternative fuel mixture credit may not be claimed for

United States manufacturer under section 211 of the Clean

alternative fuel produced outside the United States for use

Air Act with the EPA, (c) the claimant used undyed diesel

as a fuel outside the United States. The United States

fuel taxed at $.244 to produce the diesel-water emulsion,

includes any possession of the United States. To claim

and (d) the claimant sold or used the diesel-water fuel

either credit, you must be registered by the IRS. To claim

emulsion in the blender’s trade or business. The blender

the alternative fuel mixture credit, the following requirements

claimant must be registered by the IRS and must enter their

must be met if the credit exceeds the amount of taxable fuel

registration number on line 15d and enter the applicable

liability reported.

CRN.

1. The claim must be for an alternative fuel mixture sold

or used (as described earlier under Claimant) during a

Claim requirements. See Claim requirements for lines 1

period that is at least 1 week.

through 6 and lines 15b – 15d on page 11.

2. The amount of the claim must be at least $200. To

Line 15e. Registered Credit Card Issuers

meet the minimum, amounts from lines 12, 13, and 14 may

be combined.

Allowable sales. The gasoline (CRN 362), aviation

gasoline (CRN 324), diesel fuel (CRN 360), kerosene (CRN

If requirements 1 and 2 above are not met, see Annual

346), or kerosene for use in aviation (CRN 369) must have

Claims below.

been purchased with a credit card issued to the ultimate

Registration number. You must enter your registration

purchaser during the period of claim:

•

number in the space provided.

For gasoline or aviation gasoline, for the exclusive use by

a state or local government (including essential government

Form 720X. If you are not registered, you cannot make

use by an Indian tribal government) or for the exclusive use

a claim at this time. Use Form 637 to apply for registration.

of a nonprofit educational organization; or

After you are registered by the IRS, file Form 720X to claim

•

For diesel fuel, kerosene, or kerosene for use in aviation,

the credit for this period.

for the exclusive use by a state or local government

Annual Claims

(including essential government use by an Indian tribal

government).

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,

Claimant. The registered credit card issuer is the only

an annual claim is made on Form 4136 for the income tax

person eligible to make this claim if the credit card issuer:

year during which the fuel was used by the ultimate

1. Is registered by the IRS;

purchaser, sold by the registered ultimate vendor, used to

2. Has not collected the amount of tax from the ultimate

produce an alcohol fuel mixture and biodiesel mixture, or

purchaser or has obtained the written consent of the

used in mobile machinery. See Form 4136 for more

ultimate purchaser to make the claim;

information.

3. Certifies that it has repaid or agreed to repay the

amount of tax to the ultimate vendor, has obtained the

Line 15. Other Claims

written consent of the ultimate vendor to make the claim, or

For claims under section 6416(b)(2) relating to certain uses

has otherwise made arrangements which directly or

and resales of certain articles subject to manufacturers or

indirectly provide the ultimate vendor with reimbursement of

retailers excise taxes, claimant certifies that it sold the article

the tax; and

at a tax-excluded price, repaid the amount of tax to the

4. Has in its possession an unexpired certificate from the

ultimate vendor, or has obtained the written consent of the

ultimate purchaser and has no reason to believe any of the

ultimate vendor to make the claim; and has the required

information in the certificate is false. See Model Certificate R

supporting information.

in Pub. 510.

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

If any of these conditions is not met, the credit card issuer

Exported Dyed Kerosene, and Exported

must collect the tax from the ultimate purchaser and only the

Gasoline Blendstocks Taxed at $.001

ultimate purchaser can make the claim.

A claim may be made for dyed diesel fuel or dyed kerosene

exported in a trade or business during the period of claim.

Claim requirements. The following requirements must be

Claims for exported gasoline blendstocks taxed at $.001 per

met.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return Page 15

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