Instructions For Form 720 - Quarterly Federal Excise Tax Return

Multiply the total number of gallons subject to tax on lines

The following four classifications of truck body types meet

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

the suitable for use standard and will be excluded from the

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

retail excise tax.

•

Platform truck bodies 21 feet or less in length.

Also see Schedule T, Two-Party Exchange Information

•

Dry freight and refrigerated truck van bodies 24 feet or

Reporting on page 9 if applicable.

less in length.

•

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

Dump truck bodies with load capacities of eight cubic

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

yards or less.

•

any product taxable under Internal Revenue Code section

Refuse packer truck bodies with load capacities of 20

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

cubic yards or less.

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

For more information, see Rev. Proc. 2005-19, which is on

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

page 832 of Internal Revenue Bulletin 2005-14 at

listed below.

gov/pub/irs-irbs/irb05-14.pdf.

Section 4051(d) tire credit. A tax credit may be taken

Alternative Fuel

IRS Number

equal to the amount of tax that has been imposed on each

Liquefied petroleum gas (LPG)

112

tire that is sold on or in connection with the first retail sale of

a taxable vehicle reported on IRS No. 33. Claim the section

“P Series” fuels

118

4051(d) tire credit on Schedule C, line 15a.

Compressed natural gas (CNG)

120

Ship Passenger Tax

Liquefied hydrogen

121

Transportation by water (IRS No. 29). A tax is imposed on

Any liquid fuel derived from coal

122

the operator of commercial ships. The tax is $3 for each

(including peat) through the

passenger on a commercial passenger ship that has berth

Fischer-Tropsch process

or stateroom accommodations for at least 17 passengers if

Liquid hydrocarbons derived from

123

the trip is over 1 or more nights. A voyage extends “over 1

biomass

or more nights” if it lasts longer than 24 hours. The tax also

applies to passengers on any commercial ship that

Liquefied natural gas (LNG)

124

transports passengers engaged in gambling aboard the ship

beyond the territorial waters of the United States. Enter the

LPG includes propane, butane, pentane, or mixtures of

number of passengers for the quarter on the line for IRS

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

No. 29.

equivalent (126.67 cubic feet).

Other Excise Tax

Retail Tax

Obligations not in registered form (IRS No. 31). For

Truck, trailer, and semitrailer chassis and

obligations issued during the quarter, enter the principal

amount of the obligation multiplied by the number of

bodies, and tractors (IRS No. 33)

calendar years (or portion thereof) during the period

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

beginning on the issue date and ending on the maturity date

of each unit. The tax applies to:

on the line for IRS No. 31.

•

Truck chassis and bodies except truck chassis and bodies

suitable for use with a vehicle with a gross vehicle weight

Manufacturers Taxes

(GVW) of 33,000 pounds or less,

•

Trailer and semitrailer chassis and bodies except trailer

Do not include the excise tax on coal in the sales

and semitrailer chassis and bodies suitable for use with a

price when determining which tax rate to use.

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

•

CAUTION

Tractors of the kind chiefly used for highway

transportation in combination with a trailer or semitrailer,

Underground mined coal (IRS Nos. 36 and 37). The tax

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

on underground mined coal is the lower of $1.10 per ton or

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

4.4% (.044) of the sales price. Enter on the line for IRS No.

pounds or less. Generally, gross combined weight means

36 the number of tons of underground mined coal sold at

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

$25 or more per ton. Enter on the line for IRS No. 37 the

total sales price for all sales of underground mined coal sold

The sales price of a vehicle includes the sales price of

at a selling price of less than $25 per ton.

certain related parts and accessories sold on or in

connection with the sale of the vehicle.

Surface mined coal (IRS Nos. 38 and 39). The tax on

surface mined coal is the lower of $.55 per ton or 4.4%

Figure the tax for each vehicle sold and enter the total for

(.044) of the sales price. Enter on the line for IRS No. 38

the quarter on the line for IRS No. 33.

the number of tons of surface mined coal sold at $12.50 or

Gross vehicle weight. The gross vehicle weight means the

more per ton. Enter on the line for IRS No. 39 the total sales

maximum total weight of a loaded vehicle. Generally, this

price for all sales of surface mined coal sold at a selling

maximum total weight is the gross vehicle weight rating

price of less than $12.50 per ton.

provided by the manufacturer or determined by the seller of

the completed article. The seller’s gross vehicle weight

Taxable tires (IRS Nos. 108, 109, and 113). A tax is

rating must be determined for excise tax purposes on the

imposed on taxable tires sold by the manufacturer,

basis of the strength of the chassis frame and the axle

producer, or importer at the rate of $.0945 ($.04725 in the

capacity and placement. The seller may not take into

case of a biasply tire or super single tire) for each 10 pounds

account any readily attachable components (such as tires or

of the maximum rated load capacity over 3,500 pounds.

rim assemblies) in determining the gross vehicle weight.

Figure the tax for each tire sold in each category as shown

See Regulations section 145.4051-1(e)(3) for more

in the chart below and enter the total for the quarter on the

information.

line for IRS No. 108, 109, or 113.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2006 Page 5

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