Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2002 Page 9
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12abatement or refund of a penalty or addition to tax under
3. Only one claim may be filed for any quarter.
section 6404(f) (due to erroneous IRS written advice).
4. The fuel must have been used for a nontaxable use
Instead, use Form 843, Claim for Refund and Request
during the Period of claim.
for Abatement. Also use Form 843 to request refund of
5. The ultimate purchaser is the only person eligible to
the penalty under section 6715 for misuse of dyed fuel.
make the claim.
•
To make adjustments to liability reported on Forms 720
If requirements 1-3 above are not met, see Annual
filed for prior quarters, use Form 720X.
Claims on page 10.
Type of Use Table
Line 1. Nontaxable Use of Gasoline and
The following table lists the nontaxable uses of fuels. You
Gasohol
must enter the number from the table in the Type of use
column as required for lines 1-5 and 10.
Allowable uses. The gasoline or gasohol must have
been used during the period of claim for type of use 2, 3,
No.
Type of Use
4, 5, 7, or 12. Type of use 2 does not include any
personal use or use in a motorboat.
1
On a farm for farming purposes
2
Off-highway business (for business use other
Line 2. Nontaxable Use of Aviation Gasoline
than in a highway vehicle registered or required
Allowable uses. For line 2b, the aviation gasoline must
to be registered for highway use)
have been used during the period of claim for type of use
3
Export
3, 9, 10, or 16.
4
In a boat engaged in commercial fishing
Line 3. Nontaxable Use of Undyed Diesel
5
In certain intercity and local buses
Fuel
6
For diesel fuel in a qualified local bus
Line 3 cannot be used to make a claim for diesel
!
7
In a bus transporting students and employees of
fuel used on a farm for farming purposes or for
schools (school buses)
exclusive use by a state or local government.
CAUTION
Only registered ultimate vendors may make these claims.
8
For diesel fuel and kerosene used other than as
See the instructions for line 6 on page 10.
a fuel in the propulsion engine of a train or
diesel-powered highway vehicle (but not
Allowable uses. For line 3a, the diesel fuel must have
off-highway business use)
been used during the period of claim for type of use 2, 3,
6, 7, 8, or 12. Type of use 2 does not include any
9
In foreign trade
personal use or use in a motorboat. Type of use 8
10
Certain helicopter and fixed-wing air ambulance
includes use as heating oil and use in a motorboat.
uses
Line 4. Nontaxable Use of Undyed Kerosene
11
For aviation fuel used other than as a fuel in the
propulsion engine of an aircraft
Line 4 cannot be used to make a claim for
!
12
In a highway vehicle owned by the United
kerosene used on a farm for farming purposes,
States that is not used on a highway
for exclusive use by a state or local government,
CAUTION
or for sales from a blocked pump. Only registered
13
Exclusive use by a nonprofit educational
ultimate vendors may make these claims. See the
organization
instructions for line 7 on page 10.
14
Exclusive use by a state, political subdivision of
Allowable uses. For line 4, the kerosene must have
a state, or the District of Columbia
been used during the period of claim for type of use 2, 3,
7, 8, or 12. Type of use 2 does not include any personal
15
In an aircraft or vehicle owned by an aircraft
use or use in a motorboat. Type of use 8 includes use as
museum
heating oil and use in a motorboat.
16
In military aircraft
Line 5. Nontaxable Use of Aviation Fuel
17
For use in the production of special fuels
Allowable uses. For line 5b (aviation fuel taxed at a rate
Claim requirements for lines 1 through 5 and line 8.
of 21.9 cents a gallon) or line 5c (aviation fuel taxed at a
The following requirements must be met:
rate of 4.4 cents a gallon), the aviation fuel must have
been used during the period of claim for type of use 1, 3,
1. The amount of the claim must be at least $750
9, 10, 11, or 16.
(combining amounts on lines 1, 2, 3, 4, 5, and 8). This
amount may be met by:
Line 6. Sales By Registered Ultimate
a. Making a claim for fuel used during any quarter of a
Vendors of Undyed Diesel Fuel
claimant’s income tax year or
b. Aggregating amounts from any quarters of the
To make an ultimate vendor claim on line 6, you
claimant’s income tax year for which no other claim has
!
are required to have a UV registration number. If
been made.
you do not have a registration number, you
CAUTION
2. Claims must be filed during the first quarter
cannot make a claim at this time. Use Form 637,
following the last quarter of the claimant’s income tax
Application for Registration (For Certain Excise Tax
year included in the claim. For example, a calendar year
Activities), to apply for one.
income taxpayer’s claim for the first quarter is due June
30 if filed on Form 8849. However, Form 720 must be
Claimant. The registered ultimate vendor of the diesel
filed by April 30.
fuel is the only person eligible to make this claim. Write
-9-
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