Instructions For Form 720 - Quarterly Federal Excise Tax Return

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

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

April 30.

Claims on page 14.

Registration number. If you are a registered blender or a

If requirements 1-3 above are not met, see Annual

taxable fuel registrant, enter your registration number on line

Claims on page 14.

12.

Registration number. Enter your UA (UV if type of use 14)

registration number in the space provided.

Line 13. Biodiesel or Renewable Diesel

Information to be submitted. For claims on lines 9d and

Mixture Credit

9e, attach a separate sheet with the name and TIN of each

Claimant. The person that produced and sold or used the

governmental unit to whom the kerosene was sold and the

mixture in their trade or business is the only person eligible

number of gallons sold to each.

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

Lines 10 and 11. Sales by Registered

biodiesel or renewable diesel in the mixture.

Ultimate Vendors of Gasoline and Aviation

How to claim the credit. Any biodiesel or renewable diesel

mixture credit must first be taken on Schedule C to reduce

Gasoline

your taxable fuel liability reported on Form 720. Any excess

Claimant. The registered ultimate vendor of the gasoline or

credit may be taken on Schedule C (Form 720), Form 8849,

aviation gasoline is eligible to make a claim on lines 10 and

Form 4136, or Form 8864. See Notice 2005-4 and item 4

11 if the buyer waives his or her right to make the claim by

below for more information.

providing the registered ultimate vendor with an unexpired

Claim requirements. Requirements 1 and 2 must be met

certificate. See Model Certificate M in Pub. 510. Only one

only if the credit exceeds the amount of taxable fuel liability

claim may be filed with respect to any gallon of gasoline or

reported. Requirements 3 and 4 must be met for all claims.

aviation gasoline.

1. The claim must be for a biodiesel or renewable diesel

Allowable sales. The gasoline or aviation gasoline must

mixture sold or used during a period that is at least 1 week.

have been sold during the period of claim for:

•

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

Use by a nonprofit educational organization, or

•

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

Use by a state or local government (including essential

be combined.

government use by an Indian tribal government).

3. The biodiesel used to produce the biodiesel mixture

Claim requirements. The following requirements must be

meets ASTM D6751 and is registered with the EPA as a fuel

met.

and fuel additive under section 211 of the Clean Air Act.

1. The claim must be for gasoline or aviation gasoline

4. The Certificate for Biodiesel and, if applicable,

sold or used during a period that is at least 1 week.

Statement of Biodiesel Reseller must be attached to the first

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

claim filed that is supported by the certificate or statement.

meet this minimum, amounts from lines 10 and 11 may be

See Model Certificate O and Model Statement S in Pub.

combined.

510. If the certificate and statement are not attached to

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

Form 720 because they are attached to a previously-filed

following the earliest quarter of the claimant’s income tax

claim on Schedule 3 (Form 8849) for the biodiesel, attach a

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

separate sheet with the following information.

income taxpayer’s claim for January and February is due

a. Certificate identification number.

June 30 if filed on Form 8849. However, Form 720 must be

b. Total gallons of biodiesel on certificate.

filed by April 30.

c. Total gallons claimed on Schedule 3 (Form 8849).

d. Total gallons claimed on Schedule C (Form 720),

Registration number. Enter your UV registration number in

line 13.

the space provided.

Information to be submitted. For claims on lines 10 and

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

11, attach a separate sheet with the name and TIN of each

Claims on page 14.

nonprofit educational organization or governmental unit to

Registration number. If you are a registered blender or a

whom the gasoline or aviation gasoline was sold and the

taxable fuel registrant, enter your registration number on line

number of gallons sold to each.

13.

Line 12. Alcohol Fuel Mixture Credit

Line 14. Alternative Fuel Credit and

Claimant. The person that produced and sold or used the

Alternative Fuel Mixture Credit

mixture in their trade or business is the only person eligible

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

Claimant. For the alternative fuel credit, the registered

alcohol in the mixture.

alternative fueler who (1) sold an alternative fuel at retail and

delivered it into the fuel supply tank of a motor vehicle or

How to claim the credit. Any alcohol fuel mixture credit

motorboat, (2) sold an alternative fuel, delivered it in bulk for

must first be taken on Schedule C to reduce your taxable

taxable use in a motor vehicle or motorboat, and received

fuel liability reported on Form 720. Any excess credit may be

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

taken on Schedule C (Form 720), Form 8849, Form 4136, or

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

Form 6478. See Notice 2005-4 and Notice 2005-62 for more

described) in a motor vehicle or motorboat, is the only

information.

person eligible to make this claim.

Claim requirements. The following requirements must be

For the alternative fuel mixture credit, the registered

met if the credit exceeds the amount of taxable fuel liability

alternative fueler that produced and sold or used the mixture

reported.

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

1. The claim must be for an alcohol fuel mixture sold or

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

used during a period that is at least 1 week.

alternative fuel in the mixture.

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

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

How to claim the credit. Any alternative fuel credit and

be combined.

alternative fuel mixture credit must first be taken on

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2006 Page 13

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