Instructions For Form 720 - Quarterly Federal Excise Tax Return

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

(including essential government use by an Indian tribal

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

government).

be combined.

Claimant. The registered credit card issuer is the only

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

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

Claims below.

1. Is registered by the IRS;

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

Registration number. You must enter your registration

purchaser or has obtained the written consent of the

number in the space provided.

ultimate purchaser to make the claim;

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

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

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

amount of tax to the ultimate vendor, has obtained the

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

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

the credit for this period.

has otherwise made arrangements which directly or

indirectly provide the ultimate vendor with reimbursement of

Annual Claims

the tax; and

If a claim on lines 1 – 9, 12 – 14, or 15b – 15e was not made

4. Has in its possession an unexpired certificate from the

for any gallons, an annual claim may be made. Generally,

ultimate purchaser and has no reason to believe any of the

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

information in the certificate is false. See Model Certificate R

year during which the fuel was used by the ultimate

in Pub. 510.

purchaser, sold by the registered ultimate vendor, used to

produce an alcohol fuel mixture and biodiesel mixture, or

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

used in mobile machinery. See Form 4136 for more

must collect the tax from the ultimate purchaser and only the

information.

ultimate purchaser can make the claim.

Line 15. Other Claims

Claim requirements. The following requirements must be

met.

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

and resales of certain articles subject to manufacturers or

1. The claim must be for gasoline, aviation gasoline,

retailers excise taxes, claimant certifies that it sold the article

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

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

during a period that is at least 1 week.

ultimate vendor, or has obtained the written consent of the

2. The amount of the claim must be at least $200 ($100

ultimate vendor to make the claim; and has the required

for kerosene or kerosene for use in aviation).

supporting information.

3. Claims must be filed by the last day of the first quarter

following the earliest quarter of the claimant’s income tax

Lines 15b and 15c. Exported Dyed Diesel Fuel

year included in the claim. For example, a calendar year

and Exported Dyed Kerosene

income taxpayer’s claim for the first quarter is due June 30 if

For exported dyed diesel fuel and exported dyed kerosene,

filed on Form 8849. However, Form 720 must be filed by

see Exported taxable fuel on page 10. The claim rate for

April 30.

each fuel is $.001.

4. The claimant must enter its registration number on line

15e, the amount of the claim, and the applicable CRN (see

Line 15d. Diesel-Water Fuel Emulsion

Allowable sales above). If the claim is for more than one

The claim rate for the nontaxable use of a diesel-water fuel

fuel, use the blank lines 15f through 15i, or attach a

emulsion taxed at $.198 (CRN 309) is $.197. The fuel must

separate sheet listing the fuels, amount, and CRN.

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

Claim rates. The claim rates are shown below.

$.124 (CRN 309). For use in trains, the claim rate is $.174

(CRN 309). For type of use 3 (exported), the claim rate is

CRN

Claim Rate

$.198 (CRN 306) and is reported on line 15d.

324

$.193/.043*

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

346

.243

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

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

360

.243

claimant must attach a statement certifying that (a) the

362

.183

claimant produced a diesel-water fuel emulsion containing at

369

.218/.043*

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

United States manufacturer under section 211 of the Clean

* The second rate shown in the Claim Rate column applies after December 14, 2007,

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

only if the current claim rate (listed first in the Claim Rate column) is not extended.

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

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

Line 15f. Other Claims

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

claimant must be registered by the IRS and must enter their

Do not use line 15f to make communication tax

registration number on line 15d and enter the applicable

claims for nontaxable service. See Communications

CRN.

Taxes on page 3.

CAUTION

Claim requirements. See Claim requirements for lines 1

through 6 and lines 15b – 15d on page 10.

Use line 15f for claims relating to taxes listed in the table

below. See Pub. 510 for information on allowable claims

Line 15e. Registered Credit Card Issuers

relating to these taxes. If you need additional space, attach

Allowable sales. The gasoline (CRN 362), aviation

other sheet(s). You must include the following information

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

for each claim.

•

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

A detailed description of the claim.

•

been purchased with a credit card issued to the ultimate

Any additional information required by the regulations.

•

purchaser during the period of claim:

The amount of the claim.

•

For gasoline or aviation gasoline, for the exclusive use by

How you figured the claim amount.

•

a state or local government (including essential government

Any other information to support the claim.

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

of a nonprofit educational organization; or

Claim requirement. Generally, the claim must be filed

•

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

within 3 years from the time the return was filed or 2 years

for the exclusive use by a state or local government

from the time the tax was paid, whichever is later.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2007 Page 14

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