Instructions For Form 720 - Quarterly Federal Excise Tax Return

Lines 14b and 14c. Exported Dyed Diesel Fuel

If any of these conditions is not met, the credit card

issuer must collect the tax from the ultimate purchaser

and Exported Dyed Kerosene

and only the ultimate purchaser can make the claim.

For exported dyed diesel fuel and exported dyed

kerosene, see Exported taxable fuel on page 10. The

Claim requirements. The following requirements must

claim rate for each fuel is $.001.

be met:

1. The claim must be for gasoline, aviation gasoline,

Line 14d. Diesel-Water Fuel Emulsion

diesel fuel, kerosene, or kerosene for use in aviation sold

The claim rate for the nontaxable use of a diesel-water

during a period that is at least 1 week.

fuel emulsion taxed at $.198 (CRN 309) is $.197. The

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

fuel must have been used during the period of claim for

($100 for kerosene or kerosene for use in aviation). To

type of use 1, 2, 3, 6, 7, 8, or 12. For type of use 3

meet this minimum requirement, amounts from lines 6, 7,

(exported), the claim rate is $.198 (CRN 306) and is

8, and 14e may be combined.

reported on line 14d.

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

quarter following the earliest quarter of the claimant’s

The claim rate for undyed diesel fuel taxed at $.244

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

(CRN 310) and used to produce a diesel-water fuel

calendar year income taxpayer’s claim for the first quarter

emulsion is $.046 per gallon of diesel fuel so used

is due June 30 if filed on Form 8849. However, Form 720

(blender claims). The claimant must attach a statement

must be filed by April 30.

certifying that: (a) the claimant produced a diesel-water

fuel emulsion containing at least 14% water, (b) the

4. The claimant must enter its registration number on

emulsion additive is registered by a United States

line 14e and the applicable CRN. If the claim is for more

manufacturer under section 211 of the Clean Air Act with

than one fuel, attach a separate sheet listing the fuels

the EPA, (c) the claimant used undyed diesel fuel taxed

and their CRNs.

at $.244 to produce the diesel-water emulsion, and (d)

the claimant sold or used the diesel-water fuel emulsion

in the blender’s trade or business. The blender claimant

Line 14f. Other Claims

must be registered by the IRS and must enter their

Use line 14f for claims relating to taxes listed in the table

registration number on line 14d and enter the applicable

below. See Pub. 510 for information on allowable claims

CRN.

relating to these taxes. If you need additional space,

attach other sheet(s). You must include the following

Claim requirements. See Claim requirements for lines 1

information for each claim.

through 5, line 11, lines 14b-14d on page 10.

•

A detailed description of the claim.

•

Any additional information required by the regulations.

Line 14e. Registered Credit Card Issuers

•

The amount of the claim.

Allowable sales. The gasoline (CRN 362), aviation

•

How you figured the claim amount.

gasoline (CRN 324), diesel fuel (CRN 360), kerosene

•

(CRN 346), or kerosene for use in aviation (CRN 369)

Any other information to support the claim.

must have been purchased with a credit card issued to

the ultimate purchaser during the Period of claim:

Claim requirement. Generally, the claim must be

•

For gasoline or aviation gasoline, for the exclusive use

filed within 3 years from the time the return was filed or 2

by a state or local government (including essential

years from the time the tax was paid, whichever is later.

government use by an Indian tribal government) or for

the exclusive use of a nonprofit educational organization.

Tax

CRN

•

For diesel fuel, kerosene, or kerosene for use in

Ozone-depleting chemicals (ODCs)

398

aviation, for the exclusive use by a state or local

Truck, trailer, and semitrailer chassis and bodies, and

383

government (including essential government use by an

tractors

Indian tribal government).

Passenger vehicles (luxury tax)

392

Claimant. The registered credit card issuer is the only

Taxable tires other than biasply or super single tires

396

person eligible to make this claim if the credit card issuer:

Taxable tires, biasply or super single tires (other than

304

1. Is registered by the IRS,

super single tires designed for steering)

2. Has not collected the amount of tax from the

Taxable tires, super single tires designed for steering

305

ultimate purchaser or has obtained the written consent of

Gas guzzler automobiles

340

the ultimate purchaser to make the claim, and

Vaccines

397

3. Certifies that it has repaid or agreed to repay the

amount of tax to the ultimate vendor, has obtained the

Sport fishing equipment

341

written consent of the ultimate vendor to make the claim,

Fishing rods and fishing poles

308

or has otherwise made arrangements which directly or

Fishing tackle boxes

387

indirectly provide the ultimate vendor with reimbursement

of the tax.

Electric outboard motors

342

4. Has in its possession an unexpired certificate from

Bows, quivers, broadheads, and points

344

the ultimate purchaser and has no reason to believe any

Arrow shafts

389

of the information in the certificate is false. See Model

Certificate R in Pub. 510.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2006 Page 14

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