Instructions For Form 720 - Quarterly Federal Excise Tax Return

indirectly provide the ultimate vendor with reimbursement of

Annual Claims

the tax; and

If a claim on lines 1 – 9, 12 – 14, or 15b – 15e was not made

4. Has in its possession an unexpired certificate from the

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

ultimate purchaser and has no reason to believe any of the

an annual claim is made on Form 4136 for the income tax

information in the certificate is false. See Model Certificate R

year during which the fuel was used by the ultimate

in Pub. 510.

purchaser, sold by the registered ultimate vendor, used to

produce an alcohol fuel mixture and biodiesel mixture, or

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

used in mobile machinery. See Form 4136 for more

must collect the tax from the ultimate purchaser and only the

information.

ultimate purchaser can make the claim.

Line 15. Other Claims

Claim requirements. The following requirements must be

met.

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

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

and resales of certain articles subject to manufacturers or

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

retailers excise taxes, claimant certifies that it sold the article

during a period that is at least 1 week.

at a tax-excluded price, repaid the amount of tax to the

2. The amount of the claim must be at least $200 ($100

ultimate vendor, or has obtained the written consent of the

for kerosene or kerosene for use in aviation).

ultimate vendor to make the claim; and has the required

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

supporting information.

following the earliest quarter of the claimant’s income tax

Lines 15b and 15c. Exported Dyed Diesel Fuel

year included in the claim. For example, a calendar year

and Exported Dyed Kerosene

income taxpayer’s claim for the first quarter is due June 30 if

filed on Form 8849. However, Form 720 must be filed by

For exported dyed diesel fuel and exported dyed kerosene,

April 30.

see Exported taxable fuel on page 10. The claim rate for

4. The claimant must enter its registration number on line

each fuel is $.001.

15e, the amount of the claim, and the applicable CRN (see

Line 15d. Diesel-Water Fuel Emulsion

Allowable sales above). If the claim is for more than one

fuel, use the blank lines 15f through 15i, or attach a

Generally, the claim rate for the nontaxable use of a

separate sheet listing the fuels, amount, and CRN.

diesel-water fuel emulsion taxed at $.198 (CRN 309) is

$.197. The fuel must have been used during the period of

Claim rates. The claim rates are shown below.

claim for type of use 1, 2, 3, 5, 6, 7, 8, or 12. For type of use

5, the claim rate is $.124 (CRN 309). For type of use 3

CRN

Claim Rate

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

324

$.193

reported on line 15d.

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

346

.243

310) and used to produce a diesel-water fuel emulsion is

360

.243

$.046 per gallon of diesel fuel so used (blender claims). The

362

.183

claimant must attach a statement certifying that (a) the

claimant produced a diesel-water fuel emulsion containing at

369

.218

least 14% water, (b) the emulsion additive is registered by a

United States manufacturer under section 211 of the Clean

Line 15f. Other Claims

Air Act with the EPA, (c) the claimant used undyed diesel

fuel taxed at $.244 to produce the diesel-water emulsion,

Do not use line 15f to make communication tax

and (d) the claimant sold or used the diesel-water fuel

claims for nontaxable service. See Communications

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

Taxes on page 3.

claimant must be registered by the IRS and must enter their

CAUTION

registration number on line 15d and enter the applicable

Use line 15f for claims relating to taxes listed in the table

CRN.

below. See Pub. 510 for information on allowable claims

Claim requirements. See Claim requirements for lines 1

relating to these taxes. If you need additional space, attach

through 6 and lines 15b – 15d on page 10.

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

for each claim.

Line 15e. Registered Credit Card Issuers

•

A detailed description of the claim.

•

Allowable sales. The gasoline (CRN 362), aviation

Any additional information required by the regulations.

•

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

The amount of the claim.

•

How you figured the claim amount.

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

•

Any other information to support the claim.

been purchased with a credit card issued to the ultimate

purchaser during the period of claim:

Claim requirement. Generally, the claim must be filed

•

For gasoline or aviation gasoline, for the exclusive use by

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

a state or local government (including essential government

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

use by an Indian tribal government) or for the exclusive use

of a nonprofit educational organization; or

Tax

CRN

•

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

Ozone-depleting chemicals (ODCs)

398

for the exclusive use by a state or local government

Oil spill liability

349

(including essential government use by an Indian tribal

government).

Truck, trailer, and semitrailer chassis and bodies, and

383

tractors

Claimant. The registered credit card issuer is the only

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

Passenger vehicles (luxury tax)

392

1. Is registered by the IRS;

Taxable tires other than biasply or super single tires

396

2. Has not collected the amount of tax from the ultimate

purchaser or has obtained the written consent of the

Taxable tires, biasply or super single tires (other than

304

super single tires designed for steering)

ultimate purchaser to make the claim;

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

Taxable tires, super single tires designed for steering

305

amount of tax to the ultimate vendor, has obtained the

Gas guzzler automobiles

340

written consent of the ultimate vendor to make the claim, or

has otherwise made arrangements which directly or

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2008 Page 14

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