Instructions For Form 720 - Quarterly Federal Excise Tax Return

be taken on Schedule C (Form 720), Form 8849, Form

Lines 9a, 9b, 10a, and 10b. Sales by

4136, or Form 6478. See Notice 2005-4 and Notice

Registered Ultimate Vendors of Gasoline

2005-62 for more information.

and Aviation Gasoline

Line 13. Biodiesel or Renewable Diesel

Claimant. The registered ultimate vendor of the gasoline

Mixture Credit

or aviation gasoline is eligible to make a claim on lines

9a, 9b, 10a, and 10b if the buyer waives his or her right

Claimant. The person that produced and sold or used

to make the claim by providing the registered ultimate

the mixture is the only person eligible to make this claim.

vendor with an unexpired certificate. See Model

Certificate M in Pub. 510. Only one claim may be filed

Claim requirements. The following requirements must

with respect to any gallon of gasoline or aviation

be met:

gasoline.

1. The claim must be for a biodiesel or renewable

Allowable sales. The gasoline or aviation gasoline must

diesel mixture sold or used during a period that is at least

have been sold during the period of claim for:

1 week.

•

Use by a nonprofit educational organization or

2. The amount of the claim must be at least $200. To

•

Use by a state or local government (including essential

meet this minimum, amounts from lines 12 and 13 may

government use by an Indian tribal government).

be combined.

3. The biodiesel used to produce the biodiesel mixture

Claim requirements. The following requirements must

meets ASTM D6751 and is registered with the EPA as a

be met:

fuel and fuel additive under section 211 of the Clean Air

1. The claim must be for gasoline or aviation gasoline

Act.

sold or used during a period that is at least 1 week.

4. The Certificate for Biodiesel and, if applicable,

2. The amount of the claim must be at least $200. To

Statement of Biodiesel Reseller, must be attached to the

meet this minimum, amounts from lines 9a, 9b, 10a, and

first claim filed supported by the certificate or statement.

10b may be combined.

See Model Certificate O and Model Statement S in Pub.

3. Claims must be filed by the last day of the first

510. If the certificate and statement are not attached to

quarter following the earliest quarter of the claimant’s

Form 720 because they are attached to a previously-filed

income tax year included in the claim. For example, a

claim on Schedule 3 (Form 8849) for the biodiesel, attach

calendar year income taxpayer’s claim for January and

a separate sheet with the following information.

February is due June 30 if filed on Form 8849. However,

a. Certificate identification number.

Form 720 must be filed by April 30.

b. Total gallons of biodiesel on certificate.

If requirements 1-3 above are not met, see Annual

c. Total gallons claimed on Schedule 3 (Form 8849).

Claims below.

d. Total gallons claimed on Schedule C (Form 720),

line 13.

Information to be submitted. For claims on lines 9a,

9b, 10a, and 10b, attach a separate sheet with the name

and TIN of each nonprofit educational organization or

If requirements 1 and 2 above are not met, see Annual

governmental unit to whom the gasoline or aviation

Claims below.

gasoline was sold and the number of gallons sold to

Registration number. If you are a registered blender or

each.

a taxable fuel registrant, enter your registration number,

Line 11. Nontaxable Use of Liquefied

including the prefix, on line 13.

Petroleum Gas (LPG)

How to claim the credit. Any biodiesel or renewable

diesel mixture credit must first be taken on Schedule C to

Allowable uses. For line 11(c), the taxed LPG must

reduce your taxable fuel liability reported on Form 720.

have been used during the period of claim for type of

Any excess credit may be taken on Schedule C (Form

use: 1, 2, or 4.

720), Form 8849, Form 4136, or Form 8864. See Notice

Line 12. Alcohol Fuel Mixture Credit

2005-4 and item 3 above for more information.

Claimant. The person that produced and sold or used

Annual Claims

the mixture is the only person eligible to make this claim.

If a claim on lines 1-13 or 14b-14e was not made for any

Claim requirements. The following requirements must

gallons, an annual claim may be made. Generally, an

be met:

annual claim is made on Form 4136 for the income tax

1. The claim must be for an alcohol fuel mixture sold

year during which the fuel was used by the ultimate

or used during a period that is at least 1 week.

purchaser, sold by the registered ultimate vendor, used

2. The amount of the claim must be at least $200. To

to produce an alcohol fuel mixture and biodiesel mixture,

meet this minimum, amounts from lines 12 and 13 may

or used in mobile machinery. See Form 4136 for more

be combined.

information.

If requirements 1 and 2 above are not met, see Annual

Line 14. Other Claims

Claims below.

For claims under section 6416(b)(2) relating to certain

Registration number. If you are a registered blender or

uses and resales of certain articles subject to

a taxable fuel registrant, enter your registration number,

manufacturers or retailers excise taxes, claimant certifies

including the prefix, on line 12.

that it sold the article at a tax-excluded price, repaid the

How to claim the credit. Any alcohol fuel mixture credit

amount of tax to the ultimate vendor, or has obtained the

must first be taken on Schedule C to reduce your taxable

written consent of the ultimate vendor to make the claim;

fuel liability reported on Form 720. Any excess credit may

and has the required supporting information.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2006 Page 13

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