Instructions For Form 720 - Quarterly Federal Excise Tax Return

5. The ultimate purchaser is the only person eligible to

Required certificate or waiver. Model certificates or

make the claim.

waivers for sales of undyed diesel fuel or undyed

kerosene for use in certain intercity and local buses,

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

gasoline, and aviation gasoline can be found in Notice

Claims on page 13.

2005-4. For kerosene for use in aviation, see Notice

2005-80.

Line 1. Nontaxable Use of Gasoline

The certificate for all other vendor claims for undyed

Allowable uses. The gasoline must have been used

diesel fuel or undyed kerosene must contain all the

during the period of claim for type of use 2, 4, 5, 7, or 12.

information as shown in the Model Certificate in

For exported taxable fuel, see line 14b. Type of use 2

Regulations section 48.6427-9(e)(2).

does not include any personal use or use in a motorboat.

Line 6a. Sales By Registered Ultimate

Line 2. Nontaxable Use of Aviation Gasoline

Vendors of Undyed Diesel Fuel

Allowable uses. For line 2b, the aviation gasoline must

Line 6 cannot be used to make a claim for diesel

have been used during the period of claim for type of use

fuel sold for use on a farm for farming purposes.

9, 10, or 16. For exported taxable fuel, see line 14b.

Only ultimate purchasers may make these claims.

CAUTION

Line 3. Nontaxable Use of Undyed Diesel

See the instructions for line 3 earlier.

Fuel

Claimant. For line 6a, the registered ultimate vendor of

the diesel fuel is the only person eligible to make this

Ultimate purchasers use line 3d to make claims

claim and has obtained the required certificate from the

for diesel fuel used on a farm for farming

buyer and has no reason to believe any information in the

purposes.

certificate is false.

CAUTION

Allowable sales. The fuel must have been sold during

Allowable uses. For line 3a, the diesel fuel must have

the Period of claim for the exclusive use by a state or

been used during the period of claim for type of use 2, 6,

local government (including essential government use by

7, 8, or 12. For exported taxable fuel, see line 14b. Type

an Indian tribal government).

of use 2 does not include any personal use or use in a

motorboat. Type of use 8 includes use as heating oil and

Claim requirements. The following requirements must

use in a motorboat.

be met:

1. The claim must be for diesel fuel sold during a

Line 4. Nontaxable Use of Undyed Kerosene

period that is at least 1 week.

(Other Than Kerosene Used in Aviation)

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

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

Ultimate purchasers use line 4c to make claims

8, and 14d may be combined.

for kerosene used on a farm for farming

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

purposes.

CAUTION

quarter following the earliest quarter of the claimant’s

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

Allowable uses. For line 4a, the kerosene must have

calendar year income taxpayer’s claim for the first quarter

been used during the period of claim for type of use 2, 6,

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

7, 8, or 12. For exported taxable fuel, see line 14b. Type

must be filed by April 30.

of use 2 does not include any personal use or use in a

motorboat. Type of use 8 includes use as heating oil and

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

use in a motorboat.

Claims on page 13.

Exception. Claims for kerosene used in aviation on a

Information to be submitted. For claims on line 6a,

farm for farming purposes must be claimed by the

attach a separate sheet with the name and TIN of each

ultimate vendor.

governmental unit to whom the diesel fuel was sold and

Line 5. Kerosene Used in Commercial

the number of gallons sold to each.

Aviation (Other Than Foreign Trade)

Line 6b. Sales by Registered Ultimate

Claimant. The ultimate purchaser of the kerosene used

Vendors of Undyed Diesel Fuel for Use in

in commercial aviation (other than foreign trade) is

Certain Intercity and Local Buses

eligible to make this claim.

Claimant. For line 6b, the registered ultimate vendor of

Allowable uses. For lines 5a and 5b, claimant certifies

the diesel fuel is eligible to make a claim only if the buyer

that the right to make the claim has not been waived. If

waives his or her right to make the claim by providing the

the claimant buys kerosene partly for use in commercial

registered ultimate vendor with an unexpired waiver. Only

aviation and partly for use in noncommercial aviation, see

one claim may be filed with respect to any gallon of

the rules in Notice 2005-80, section 3(e)(3). Only one

diesel fuel.

claim may be filed with respect to any gallon of kerosene

Claim requirements. The following requirements must

used in commercial aviation.

be met:

Information for Claims on Lines 6 – 10

1. The claim must be for diesel fuel sold during a

Registration number. To make an ultimate vendor

period that is at least 1 week.

claim on lines 6-10, you are required to be registered.

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

Enter your registration number, including the prefix, on

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

the applicable line for your claim. If you are not a

8, and 14d may be combined.

registered, you cannot make a claim at this time. Use

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

Form 637, Application for Registration (For Certain

quarter following the earliest quarter of the claimant’s

Excise Tax Activities), to apply for one.

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

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2006 Page 11

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