Instructions For Form 720 - Quarterly Federal Excise Tax Return

Also see Schedule T — Two-Party Exchange Information

Alternative Fuel

IRS Number

Reporting on page 10 if applicable.

Any liquid fuel derived from coal (including

122

Kerosene for use in aviation (IRS Nos. 69, 77, and 111).

peat) through the Fischer-Tropsch process

Generally, kerosene is taxed at $.244 per gallon.

Liquid fuel derived from biomass

123

•

For kerosene removed directly from a terminal into the

Liquefied natural gas (LNG)

124

fuel tank of an aircraft for use in noncommercial aviation, the

tax rate is $.219 per gallon. Report these gallons on the line

for IRS No. 69.

LPG includes propane, butane, pentane, or mixtures of

•

For kerosene removed directly from a terminal into the

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

fuel tank of an aircraft for use in commercial aviation (other

equivalent (126.67 cubic feet).

than foreign trade), the tax rate is generally $.044 per gallon.

Report these gallons on the line for IRS No. 77.

Retail Tax

•

For kerosene removed directly from a terminal into the

fuel tank of an aircraft for nontaxable uses, the tax rate is

Truck, trailer, and semitrailer chassis and

generally $.001 per gallon. Report these gallons on the line

bodies, and tractors (IRS No. 33)

for IRS No. 111.

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

Other fuels (IRS No. 79). You are liable for the tax on the

of each unit. The tax applies to:

fuels listed below when they are delivered into the fuel

•

Truck chassis and bodies except truck chassis and bodies

supply tank of a motor vehicle or motorboat (or trains for

suitable for use with a vehicle with a gross vehicle weight

B-100). Use the following table to determine the tax for each

(GVW) of 33,000 pounds or less,

gallon. Fill in the number of gallons and the appropriate rate

•

Trailer and semitrailer chassis and bodies except trailer

in the Rate column on the line for IRS No. 79. If more than

and semitrailer chassis and bodies suitable for use with a

one rate applies, leave the Rate column blank and attach a

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

schedule showing the rates and number of gallons taxed at

•

Tractors of the kind chiefly used for highway

each rate.

transportation in combination with a trailer or semitrailer,

except tractors that have a GVW of 19,500 pounds or less

Fuel

Tax Rate

per Gallon

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

Generally, gross combined weight means the weight of a

Qualified —

tractor and the weight of its trailer(s).

Ethanol produced from coal . . . . . . . . . . . . . . . . . . . . . .

.184

Methanol produced from coal . . . . . . . . . . . . . . . . . . . . .

.184

The tax imposed on parts and accessories sold on or in

Partially exempt —

connection with the units listed above and the tax imposed

Ethanol produced from natural gas . . . . . . . . . . . . . . . . .

.114

on the separate purchase of parts and accessories for the

Methanol produced from natural gas . . . . . . . . . . . . . . . .

.0925

units listed above do not apply to an EPA approved idling

B-100 (100% biodiesel) . . . . . . . . . . . . . . . . . . . . . . . . . .

.244

reduction device installed on a tractor or insulation that has

Liquefied gas derived from biomass . . . . . . . . . . . . . . . .

.184

an R value of at least R35 per inch.

Other fuels not shown . . . . . . . . . . . . . . . . . . . . . . . . . .

.184

Idling reduction device. Any device or system of

Gasoline (IRS No. 62). If you are liable for the gasoline tax

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

on removal at the terminal rack, report these gallons on line

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

62(a). If you are liable for the gasoline tax on events other

drive engine while the tractor is temporarily parked or

than removal at the terminal rack, report these gallons on

stationary. The device must be affixed to the tractor and

line 62(b). If you are liable for the gasoline tax because you

determined by the Administrator of the EPA, in consultation

have blended alcohol with taxed gasoline outside of the bulk

with the Secretary of Energy and Secretary of

transfer/terminal system, report these gallons of alcohol on

Transportation, to reduce idling while parked or stationary.

line 62(c). If you report gallons on line 62(c), do not report

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

those gallons on line 62(b).

the quarter on the line for IRS No. 33.

Multiply the total number of gallons subject to tax on lines

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

Gross vehicle weight. The gross vehicle weight means

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

the maximum total weight of a loaded vehicle. Generally,

this maximum total weight is the gross vehicle weight rating

Also see Schedule T — Two-Party Exchange Information

provided by the manufacturer or determined by the seller of

Reporting on page 10 if applicable.

the completed article. The seller’s gross vehicle weight

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

rating must be determined for excise tax purposes on the

at the rate shown on Form 720.

basis of the strength of the chassis frame and the axle

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

capacity and placement. The seller may not take into

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

account any readily attachable components (such as tires or

any product taxable under Internal Revenue Code section

rim assemblies) in determining the gross vehicle weight.

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

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

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

information.

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

listed in the following table.

The following four classifications of truck body types meet

the suitable for use standard and will be excluded from the

Alternative Fuel

IRS Number

retail excise tax.

•

Platform truck bodies 21 feet or less in length.

Liquefied petroleum gas (LPG)

112

•

Dry freight and refrigerated truck van bodies 24 feet or

“P Series” fuels

118

less in length.

•

Dump truck bodies with load capacities of 8 cubic yards or

Compressed natural gas (CNG)

120

less.

Liquefied hydrogen

121

•

Refuse packer truck bodies with load capacities of 20

cubic yards or less.

-5-

Instructions for Form 720 (Rev. 7-2010)

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2010 Page 5

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