Instructions For Form 720 - Quarterly Federal Excise Tax Return

Where to file. Mail the Form 720 with the attached

6478, Credit for Alcohol Used as Fuel, and any person

statement to: Internal Revenue Service Center, P.O. Box

later:

21086, Philadelphia, PA 19114. Also, see the Caution

1. Uses a mixture or straight alcohol for a purpose

under Private Delivery Services on page 2.

other than fuel,

Exception. If you are reporting liabilities in Parts I or II

2. Separates the alcohol from the mixture, or

(Form 720), follow the instructions above for How to file,

3. Mixes the straight alcohol.

except mail the Form 720 to: Internal Revenue Service

Use the following table to determine the tax for each

Center, Cincinnati, OH 45999-0009.

gallon of alcohol. Fill in the number of gallons and the

Part II

appropriate rate in the Rate column on the line for IRS

No. 51. If more than one rate applies, leave the Rate

Sport fishing equipment (IRS No. 41). The tax on sport

column blank and attach a schedule showing the rates

fishing equipment is 10% (.10) of the sales price. The tax

and number of gallons taxed at each rate.

is paid by the manufacturer, producer, or importer.

Taxable articles include fishing rods and poles (and

THEN the tax rate

IF the alcohol is...

AND...

per gallon is...

component parts), reels, fly fishing lines (and other lines

not over 130 pounds test), fishing spears, spear guns,

•

at least 190 proof

is ethanol

$ .52

spear tips, terminal tackle, fishing supplies and

•

is methanol

.60

accessories, and any parts or accessories sold on or in

•

benefited from the

.62

connection with these articles. See Pub. 510 for a

small ethanol

complete list of taxable articles. Add the tax on each sale

producer credit

during the quarter and enter the total on the line for IRS

•

at least 150 proof but

is ethanol

$ .3852

No. 41.

•

less than 190 proof

is methanol

.45

Electric outboard motors and sonar devices (IRS No.

•

benefited from the

.4852

42). The tax on an outboard motor or a sonar device for

small ethanol

finding fish is 3% (.03) of the sales price. The tax is paid

producer credit

by the manufacturer, producer, or importer. The tax is

limited to $30 for each sonar device. Sonar devices for

finding fish do not include graph recorders, digital types,

Floor Stocks Tax

meter readouts, or combination graph recorders or

combination meter readouts. Add the tax on each sale

Ozone-depleting chemicals floor stocks tax (IRS No.

during the quarter and enter the total on the line for IRS

20). Use Form 6627 to figure the liability for this tax.

No. 42.

Enter the amount from Form 6627, Part III, line 4, column

(d) on the line for IRS No. 20. Attach Form 6627 to Form

Bows (IRS No. 44). The tax on bows is 11% (.11) of the

720 that is due July 31 of each year. Deposit the

sales price. The tax is paid by the manufacturer,

payment by June 30 at an authorized financial institution.

producer, or importer. It applies to bows having a draw

See How To Make Deposits on page 7.

weight of 10 pounds or more. The tax is also imposed on

the sale of any part or accessory suitable for inclusion in

or attachment to a taxable bow and any quiver suitable

Part III

for use with arrows described below. Add the tax on each

sale during the quarter and enter the total on the line for

Line 4. Report on line 4 of Form 720 the total claims

IRS No. 44.

from line 12 of Schedule C. See the instructions on

page 8.

Arrow components (IRS No. 102). The tax on any

shaft, point, nock, or vane is 12.4% (.124) of the sales

Lines 6 and 7. Include on line 6 the amount from line 11

price for which the component is sold. The tax is paid by

of your previous return that you applied to this return and

the manufacturer, producer, or importer of any

the amount from line 7. Use line 7 to report the amount

component used in the manufacture of any arrow that

from line 5b of Form 720X.

after assembly measures 18 inches or more in overall

length or is less than 18 inches long but is suitable for

Note: Include on line 6 of your next return the amount

use with a bow that has a draw weight of 10 pounds or

from line 11 you want to have applied to that return.

more. Add the tax on each sale during the quarter and

enter the total on the line for IRS No. 102.

If you owe other Federal tax, interest, or penalty,

the overpayment on line 11 and line 7 will first be

Alcohol sold as but not used as fuel (IRS No. 51). An

applied to the unpaid amounts.

CAUTION

excise tax is imposed if the credit was claimed on Form

-6-

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2003 Page 6

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