Instructions For Form 720 - Quarterly Federal Excise Tax Return (Page 5 of 18) in pdf

Also see Schedule T — Two-Party Exchange Information

Fuel

Tax Rate

per Gallon

Reporting on page 10 if applicable.

Diesel-water fuel emulsion (IRS No. 104). If you are

Partially exempt —

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

.114

liable for the reduced rate (see below) of tax on a

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

.0925

diesel-water fuel emulsion removal at the terminal rack or

B-100 (100% biodiesel) . . . . . . . . . . . . . . . . . . . . . . . . . .

.244

other taxable event, report these gallons on the line for IRS

Liquefied gas derived from biomass . . . . . . . . . . . . . . . .

.184

No. 104.

Other fuels not shown . . . . . . . . . . . . . . . . . . . . . . . . . .

.184

Requirements. All of the following requirements must

be met to be eligible for the reduced rate: (a) the

Gasoline (IRS No. 62). If you are liable for the gasoline tax

diesel-water fuel emulsion must contain at least 14% water,

on removal at the terminal rack, report these gallons on line

(b) the emulsion additive must be registered by a United

62(a). If you are liable for the gasoline tax on events other

States manufacturer with the EPA under section 211 of the

than removal at the terminal rack, report these gallons on

Clean Air Act, and (c) the taxpayer must be registered by

line 62(b). If you are liable for the gasoline tax because you

the IRS. If these requirements are not met, you must report

have blended alcohol with taxed gasoline outside of the bulk

the sale, removal, or use of a diesel-water fuel emulsion as

transfer/terminal system, report these gallons of alcohol on

diesel fuel.

line 62(c). If you report gallons on line 62(c), do not report

IRS Nos. 105, 107, 119, and 111. Tax is imposed at $.001

those gallons on line 62(b).

per gallon on removals, entries, and sales of gasoline, diesel

Multiply the total number of gallons subject to tax on lines

fuel, and kerosene described as exempt transactions.

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

•

IRS No. 105, Dyed diesel fuel, LUST tax.

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

•

IRS No. 107, Dyed kerosene, LUST tax.

•

Also see Schedule T — Two-Party Exchange Information

IRS No. 119, LUST tax, other exempt removals. Report

Reporting on page 10 if applicable.

gasoline blendstocks, kerosene used for a feedstock

Aviation gasoline (IRS No. 14). Aviation gasoline is taxed

purpose, and diesel fuel or kerosene sold or used in Alaska.

•

at the rate shown on Form 720.

IRS No. 111, Kerosene for use in aviation, LUST tax on

nontaxable uses. Report gallons of kerosene removed

Alternative fuel (IRS Nos. 112, 118, and 120 – 124).

directly from a terminal into the fuel tank of an aircraft for

Alternative fuel is any liquid other than gas oil, fuel oil, or

nontaxable uses.

any product taxable under Internal Revenue Code section

4081. You are liable for tax on alternative fuel delivered into

Multiply the total number of gallons subject to tax for each

the fuel supply tank of a motor vehicle or motorboat, or on

fuel by $.001 and make the entry in the tax column.

certain bulk sales. Report the tax on the line for the IRS No.

Kerosene (IRS No. 35). If you are liable for the kerosene

listed in the following table.

tax on removal at the terminal rack, report these gallons on

line 35(a). If you are liable for the kerosene tax on events

Alternative Fuel

IRS Number

other than removal at the terminal rack, report these gallons

Liquefied petroleum gas (LPG)

112

of kerosene on line 35(b).

“P Series” fuels

118

Multiply the total number of gallons subject to tax on lines

(a) and (b) by $.244 and make one entry in the tax column.

Compressed natural gas (CNG)

120

Also see Schedule T — Two-Party Exchange Information

Liquefied hydrogen

121

Reporting on page 10 if applicable.

Any liquid fuel derived from coal (including

122

Kerosene for use in aviation (IRS Nos. 69, 77, and 111).

peat) through the Fischer-Tropsch process

Generally, kerosene is taxed at $.244 per gallon.

•

For kerosene removed directly from a terminal into the

Liquid fuel derived from biomass

123

fuel tank of an aircraft for use in noncommercial aviation, the

Liquefied natural gas (LNG)

124

tax rate is $.219 per gallon. Report these gallons on the line

for IRS No. 69.

•

LPG includes propane, butane, pentane, or mixtures of

For kerosene removed directly from a terminal into the

those gases. CNG is taxed at $.183 per gasoline gallon

fuel tank of an aircraft for use in commercial aviation (other

equivalent (126.67 cubic feet).

than foreign trade), the tax rate is generally $.044 per gallon.

Report these gallons on the line for IRS No. 77.

Retail Tax

•

For kerosene removed directly from a terminal into the

fuel tank of an aircraft for nontaxable uses, the tax rate is

Truck, trailer, and semitrailer chassis and

generally $.001 per gallon. Report these gallons on the line

bodies, and tractors (IRS No. 33)

for IRS No. 111.

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

Other fuels (IRS No. 79). You are liable for the tax on the

of each unit. The tax applies to:

fuels listed below when they are delivered into the fuel

•

Truck chassis and bodies except truck chassis and bodies

supply tank of a motor vehicle or motorboat (or trains for

suitable for use with a vehicle with a gross vehicle weight

B-100). Use the following table to determine the tax for each

(GVW) of 33,000 pounds or less,

gallon. Fill in the number of gallons and the appropriate rate

•

Trailer and semitrailer chassis and bodies except trailer

in the Rate column on the line for IRS No. 79. If more than

and semitrailer chassis and bodies suitable for use with a

one rate applies, leave the Rate column blank and attach a

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

schedule showing the rates and number of gallons taxed at

•

Tractors of the kind chiefly used for highway

each rate.

transportation in combination with a trailer or semitrailer,

except tractors that have a gross vehicle weight of 19,500

Fuel

Tax Rate

pounds or less and a gross combined weight of 33,000

per Gallon

pounds or less. Generally, gross combined weight means

Qualified —

the weight of a tractor and the weight of its trailer(s).

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

.184

The tax imposed on parts and accessories sold on or in

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

.184

connection with the units listed above and the tax imposed

-5-

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

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