Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2006 Page 10
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16Do not use Schedule C:
No.
Type of Use
•
If you are not reporting a liability on Form 720, in Part I
14
Exclusive use by a state, political subdivision of
or Part II.
a state, or the District of Columbia
•
To claim amounts that you took or will take as a credit
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In an aircraft or vehicle owned by an aircraft
on Form 4136, Credit for Federal Tax Paid on Fuels, or
museum
as a refund on Form 8849, Claim for Refund of Excise
Taxes, and its separate schedules (see the Caution
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In military aircraft
below).
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For use in the production of special fuels
•
To request an abatement or refund of interest under
section 6404(e) (due to IRS errors or delays) or an
abatement or refund of a penalty or addition to tax under
Claim requirements for lines 1 through 5, line 11, and
section 6404(f) (due to erroneous IRS written advice).
lines 14b-14d. The following requirements must be met:
Instead, use Form 843, Claim for Refund and Request for
1. The amount of the claim must be at least $750
Abatement. Also use Form 843 to request refund of the
(combining amounts on lines 1, 2, 3, 4, 5, 11, 14b, 14c,
penalty under section 6715 for misuse of dyed fuel.
•
and 14d. This amount may be met by:
To make adjustments to liability reported on Forms 720
a. Making a claim for fuel used during any quarter of a
filed for prior quarters, use Form 720X.
claimant’s income tax year or
b. Aggregating amounts from any quarters of the
If you make a claim for alcohol or biodiesel or
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claimant’s income tax year for which no other claim has
renewable diesel used to produce an alcohol fuel
been made.
mixture or biodiesel or renewable diesel mixture,
CAUTION
2. Claims must be filed during the first quarter
a claim for refund or credit on Form 8849, Form 4136,
Form 6478, or Form 8864 can only be made after the
following the last quarter of the claimant’s income tax
sum of the alcohol fuel mixture credit and biodiesel or
year included in the claim. For example, a calendar year
renewable diesel mixture credit is first applied to reduce
income taxpayer’s claim for the first quarter is due June
30 if filed on Form 8849. However, Form 720 must be
your taxable fuel liability reported on Form 720 for any
particular quarter. See Pub. 510, Notice 2005-4, and
filed by April 30.
Notice 2005-62 for more information.
3. Only one claim may be filed for any quarter.
4. The fuel must have been used for a nontaxable use
Type of Use Table
during the Period of claim.
5. The ultimate purchaser is the only person eligible to
The following table lists the nontaxable uses of fuels. You
make the claim.
must enter the number from the table in the Type of use
column as required.
If requirements 1-3 above are not met, see Annual
No.
Type of Use
Claims on page 13.
1
On a farm for farming purposes
Exported taxable fuel. The claim rates for exported
2
Off-highway business use (for business use
taxable fuel are listed on lines 1b, 2c, 3e, and 4d, and in
other than in a highway vehicle registered or
the instructions for lines 14b and 14c. Taxpayers making
required to be registered for highway use) (other
a claim for exported taxable fuel must include with their
than use in mobile machinery)
records proof of exportation. Proof of exportation
3
Export
includes:
•
4
In a boat engaged in commercial fishing
A copy of the export bill of lading issued by the
delivering carrier,
5
In certain intercity and local buses
•
A certificate by the agent or representative of the
6
For diesel fuel or kerosene in a qualified local
export carrier showing actual exportation of the fuel,
•
bus
A certificate of lading signed by a customs officer of
the foreign country to which the fuel is exported, or
7
In a bus transporting students and employees of
•
A statement of the foreign consignee showing receipt
schools (school buses)
of the fuel.
8
For diesel fuel and kerosene (other than
kerosene used in aviation) used other than as a
fuel in the propulsion engine of a train or
Line 1. Nontaxable Use of Gasoline
diesel-powered highway vehicle (but not
Allowable uses. The gasoline must have been used
off-highway business use)
during the period of claim for type of use 2, 4, 5, 7, or 12.
9
In foreign trade
For exported gasoline, see Exported taxable fuel above.
Type of use 2 does not include any personal use or use
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Certain helicopter and fixed-wing aircraft uses
in a motorboat.
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Not applicable
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In a highway vehicle owned by the United
Line 2. Nontaxable Use of Aviation Gasoline
States that is not used on a highway
Allowable uses. For line 2b, the aviation gasoline must
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Exclusive use by a nonprofit educational
have been used during the period of claim for type of use
organization
9, 10, or 16. For exported aviation gasoline, see Exported
taxable fuel above.
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