Instructions For Form 720 - Quarterly Federal Excise Tax Return

•

Give a copy of the first taxpayer’s report to the buyer;

58, 73, and 74. For gasohol that does not contain

•

File the first taxpayer’s report with Form 720 for the

ethanol, use the line for IRS No. 79.

quarter for which the report relates; and

•

Gasohol (IRS Nos. 59, 75, and 76). Only gasohol

Write “EXCISE —FIRST TAXPAYER’S REPORT”

containing ethanol is reported on the line for IRS Nos. 59,

across the top of a separate copy of the report, and by

75, and 76. For gasohol that does not contain ethanol,

the due date of Form 720, send the copy to: Internal

use the line for IRS No. 79.

Revenue Service Center, Cincinnati, OH 45999-0555.

Diesel Fuel (IRS No. 60). If you are liable for the diesel

Other fuels (IRS No. 79). Use the following table to

fuel tax on removal at the terminal rack, report these

determine the tax for each gallon. Fill in the number of

gallons on line (a) of IRS No. 60. If you are liable for the

gallons and the appropriate rate in the Rate column on

diesel fuel tax on events other than removal at the

the line for IRS No. 79. If more than one rate applies,

terminal rack, report these gallons on line (b) of IRS

leave the Rate column blank and attach a schedule

No. 60.

showing the rates and number of gallons taxed at each

rate.

Multiply the total number of gallons subject to tax on

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

Tax Rate

column.

Fuel

per Gallon

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

kerosene tax on removal at the terminal rack, report

Liquefied natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

.1190

these gallons on line (a) of IRS No. 35. If you are liable

for the kerosene tax on events other than removal at the

Qualified —

terminal rack, report these gallons on line (b) of

Ethanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.1305

IRS No. 35.

Methanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.1235

Multiply the total number of gallons subject to tax on

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

Partially exempt —

column.

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

.1140

Liquefied petroleum gas (LPG) (IRS No. 61). Only

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

.0925

LPG (such as propane and butane) is reported on the

line for IRS No. 61. LPG is taxed at $.136 per gallon.

Gasoline removed or entered for the production of —

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

10% gasohol (methanol) . . . . . . . . . . . . . . . . . . . . . . . .

.13777

tax on removal at the terminal rack, report these gallons

7.7% gasohol (methanol) . . . . . . . . . . . . . . . . . . . . . . .

.14929

on line (a) of IRS No. 62. If you are liable for the gasoline

5.7% gasohol (methanol) . . . . . . . . . . . . . . . . . . . . . . .

.15885

tax on events other than removal at the terminal rack,

report these gallons on line (b) of IRS No. 62. If you are

Types of gasohol —

liable for the additional tax on failure to blend or later

10% gasohol (methanol) . . . . . . . . . . . . . . . . . . . . . . . .

.1240

separation, report these gallons on line (c) of IRS No. 62.

7.7% gasohol (methanol) . . . . . . . . . . . . . . . . . . . . . . .

.1378

Multiply the total number of gallons subject to tax on

5.7% gasohol (methanol) . . . . . . . . . . . . . . . . . . . . . . .

.1498

lines (a) and (b) by $.184. Multiply the total number of

gallons subject to tax on line (c) by the appropriate rate

Special motor fuels/alcohol mixture containing —

below. Combine the tax for lines (a), (b), and (c), and

Ethanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.1310

make one entry in the tax column.

Methanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.1240

Additional tax on failure to blend or later separation.

Anyone who purchases gasoline for gasohol production

Diesel/alcohol mixture containing —

at one of the reduced rates (IRS Nos. 58, 73, and 74)

Ethanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.1910

and fails to blend the gasoline with alcohol is subject to

Methanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.1840

an additional tax. Anyone who purchases gasohol at one

of the reduced rates (IRS Nos. 59, 75, and 76) and later

Diesel sold for diesel/alcohol mixture containing —

separates the gasoline from the mixture is subject to an

Ethanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.21222

additional tax. The additional tax rates per gallon of

gasoline are:

Methanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.2044

Type of Gasohol

Rate of Tax

Aviation fuel/alcohol mixture containing —

Ethanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.0860

10% gasohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$.03845

Methanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.0790

7.7% gasohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.02887

Aviation fuel sold for aviation/alcohol mixture containing —

5.7% gasohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.02092

Ethanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.09555

Methanol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.08777

Report the number of gallons on line (c) of IRS No. 62

and enter the appropriate rate in the Rate column of that

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

.1840

line. If more than one rate applies, leave the Rate column

blank and attach a schedule showing the rates and

number of gallons taxed at each rate.

Compressed natural gas (IRS No. 101). Tax is

Gasoline removed or entered for the production of

imposed on compressed natural gas (CNG) that is sold

gasohol (IRS Nos. 58, 73, and 74). Only gasoline

for use or used as fuel in a motor vehicle or motorboat.

removed or entered for the production of gasohol

The rate of tax is $.4854 per thousand cubic feet

containing ethanol is reported on the lines for IRS Nos.

(determined at standard temperature and pressure).

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2002 Page 4

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