Instructions For Form 720 - Quarterly Federal Excise Tax Return

Multiply the total number of gallons subject to tax on lines

account any readily attachable components (such as tires or

(a), (b), and (c) by $.184. Combine the tax for lines (a), (b),

rim assemblies) in determining the gross vehicle weight.

and (c), and make one entry in the tax column.

See Regulations section 145.4051-1(e)(3) for more

information.

Also see Schedule T — Two-Party Exchange Information

Reporting on page 9 if applicable.

The following four classifications of truck body types meet

the suitable for use standard and will be excluded from the

Aviation gasoline (IRS No. 14). Aviation gasoline is taxed

retail excise tax.

at the rate shown on Form 720.

•

Platform truck bodies 21 feet or less in length.

Alternative fuel (IRS Nos. 112, 118, and 120 – 124).

•

Dry freight and refrigerated truck van bodies 24 feet or

Alternative fuel is any liquid other than gas oil, fuel oil, or

less in length.

any product taxable under Internal Revenue Code section

•

Dump truck bodies with load capacities of 8 cubic yards or

4081. You are liable for tax on alternative fuel delivered into

less.

the fuel supply tank of a motor vehicle or motorboat, or on

•

Refuse packer truck bodies with load capacities of 20

certain bulk sales. Report the tax on the line for the IRS No.

cubic yards or less.

listed in the following table.

For more information, see Rev. Proc. 2005-19, which is on

page 832 of Internal Revenue Bulletin 2005-14 at

Alternative Fuel

IRS Number

Liquefied petroleum gas (LPG)

112

Section 4051(d) tire credit. A tax credit may be taken

“P Series” fuels

118

equal to the amount of tax that has been imposed on each

Compressed natural gas (CNG)

120

tire that is sold on or in connection with the first retail sale of

a taxable vehicle reported on IRS No. 33. Claim the section

Liquefied hydrogen

121

4051(d) tire credit on Schedule C, line 15a.

Any liquid fuel derived from coal (including

122

peat) through the Fischer-Tropsch process

Ship Passenger Tax

Liquid fuel derived from biomass

123

Transportation by water (IRS No. 29). A tax is imposed

Liquefied natural gas (LNG)

124

on the operator of commercial ships. The tax is $3 for each

passenger on a commercial passenger ship that has berth

or stateroom accommodations for at least 17 passengers if

LPG includes propane, butane, pentane, or mixtures of

the trip is over 1 or more nights. A voyage extends “over 1

those gases. CNG is taxed at $.183 per gasoline gallon

or more nights” if it lasts longer than 24 hours. The tax also

equivalent (126.67 cubic feet).

applies to passengers on any commercial ship that

Retail Tax

transports passengers engaged in gambling aboard the ship

beyond the territorial waters of the United States. Enter the

Truck, trailer, and semitrailer chassis and

number of passengers for the quarter on the line for IRS

bodies, and tractors (IRS No. 33)

No. 29.

The tax is 12% (.12) of the sales price on the first retail sale

Other Excise Tax

of each unit. The tax applies to:

•

Truck chassis and bodies except truck chassis and bodies

Obligations not in registered form (IRS No. 31). For

suitable for use with a vehicle with a gross vehicle weight

obligations issued during the quarter, enter the principal

(GVW) of 33,000 pounds or less,

amount of the obligation multiplied by the number of

•

Trailer and semitrailer chassis and bodies except trailer

calendar years (or portion thereof) during the period

and semitrailer chassis and bodies suitable for use with a

beginning on the issue date and ending on the maturity date

vehicle with a GVW of 26,000 pounds or less, and

on the line for IRS No. 31.

•

Tractors of the kind chiefly used for highway

transportation in combination with a trailer or semitrailer,

Manufacturers Taxes

except tractors that have a gross vehicle weight of 19,500

pounds or less and a gross combined weight of 33,000

Do not include the excise tax on coal in the sales

pounds or less. Generally, gross combined weight means

price when determining which tax rate to use.

the weight of a tractor and the weight of its trailer(s).

CAUTION

The tax imposed on parts and accessories sold on or in

Underground mined coal (IRS Nos. 36 and 37). The tax

connection with the units listed above and the tax imposed

on underground mined coal is the lower of $1.10 per ton or

on the separate purchase of parts and accessories for the

4.4% (.044) of the sales price. Enter on the line for IRS No.

units listed above do not apply to an idling reduction device

36 the number of tons of underground mined coal sold at

or insulation that has an R value of at least R35 per inch.

$25 or more per ton. Enter on the line for IRS No. 37 the

Idling reduction device. Any device or system of

total sales price for all sales of underground mined coal sold

devices that provide the tractor with services, such as heat,

at a selling price of less than $25 per ton.

air conditioning, and electricity, without the use of the main

drive engine while the tractor is temporarily parked or

Surface mined coal (IRS Nos. 38 and 39). The tax on

stationary. The device must be affixed to the tractor and

surface mined coal is the lower of $.55 per ton or 4.4%

determined by the Administrator of the EPA, in consultation

(.044) of the sales price. Enter on the line for IRS No. 38

with the Secretary of Energy and Secretary of

the number of tons of surface mined coal sold at $12.50 or

Transportation, to reduce idling while parked or stationary.

more per ton. Enter on the line for IRS No. 39 the total sales

price for all sales of surface mined coal sold at a selling

Figure the tax for each vehicle sold and enter the total for

price of less than $12.50 per ton.

the quarter on the line for IRS No. 33.

Gross vehicle weight. The gross vehicle weight means

Taxable tires (IRS Nos. 108, 109, and 113). A tax is

the maximum total weight of a loaded vehicle. Generally,

imposed on taxable tires sold by the manufacturer,

this maximum total weight is the gross vehicle weight rating

producer, or importer at the rate of $.0945 ($.04725 in the

provided by the manufacturer or determined by the seller of

case of a biasply tire or super single tire) for each 10 pounds

the completed article. The seller’s gross vehicle weight

of the maximum rated load capacity over 3,500 pounds.

rating must be determined for excise tax purposes on the

Figure the tax for each tire sold in each category as shown

basis of the strength of the chassis frame and the axle

in the following chart and enter the total for the quarter on

capacity and placement. The seller may not take into

the line for IRS No. 108, 109, or 113.

-5-

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2008 Page 5

Related Articles

Related forms

Related Categories