Instructions For Form 720 - Quarterly Federal Excise Tax Return

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

1. The claim must be for an alcohol fuel mixture sold

meet this minimum, amounts from lines 7 and 8 may be

or used during a period that is at least 1 week.

combined.

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

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

meet this minimum, amounts from lines 12 and 13 may

quarter following the earliest quarter of the claimant’s

be combined.

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

calendar year income taxpayer’s claim for the first quarter

How to claim the credit. Any alcohol fuel mixture credit

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

must first be taken on Schedule C against your taxable

must be filed by April 30.

fuel liability reported on Form 720. Any excess credit may

be taken on Schedule C (Form 720), Form 8849, Form

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

4136, or Form 6478. See Notice 2005-4 and Notice

Claims on page 13.

2005-62 for more information.

Information to be submitted. For claims on lines 8d

and 8e, attach a separate sheet with the name and TIN

Line 13. Biodiesel or Renewable Diesel

of each governmental unit to whom the kerosene was

Mixture Credit

sold and the number of gallons sold to each.

Claimant. The person that produced and sold or used

Lines 9a, 9b, 10a, and 10b. Sales by

the mixture is the only person eligible to make this claim.

Registered Ultimate Vendors of Gasoline

Claim requirements. The following requirements must

and Aviation Gasoline

be met:

Claimant. The registered ultimate vendor of the gasoline

1. The claim must be for a biodiesel or renewable

or aviation gasoline is eligible to make a claim on lines

diesel mixture sold or used during a period that is at least

9a, 9b, 10a, and 10b if the buyer waives his or her right

1 week.

to make the claim by providing the registered ultimate

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

vendor with an unexpired certificate. Only one claim may

meet this minimum, amounts from lines 12 and 13 may

be filed with respect to any gallon of gasoline or aviation

be combined.

gasoline.

3. The Certificate for Biodiesel and, if applicable,

Statement of Biodiesel Reseller, must be attached to the

Allowable sales. The gasoline or aviation gasoline must

have been sold during the period of claim for:

Form 720. See Notice 2005-62 for more information. If

•

Use by a nonprofit educational organization or

the certificate and statement were attached to a

•

Use by a state or local government (including essential

previously-filed claim on Schedule 3 (Form 8849) for the

government use by an Indian tribal government).

biodiesel, attach a separate sheet with the following

information.

Claim requirements. The following requirements must

a. Certificate identification number.

be met:

b. Total gallons of biodiesel on certificate.

1. The claim must be for gasoline or aviation gasoline

c. Total gallons claimed on Schedule 3 (Form 8849).

sold or used during a period that is at least 1 week.

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

d. Total gallons claimed on Schedule C (Form 720),

meet this minimum, amounts from lines 9a, 9b, 10a, and

line 13.

10b may be combined.

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

How to claim the credit. Any biodiesel or renewable

quarter following the earliest quarter of the claimant’s

diesel mixture credit must first be taken on Schedule C

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

against your taxable fuel liability reported on Form 720.

calendar year income taxpayer’s claim for January and

Any excess credit may be taken on Schedule C (Form

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

720), Form 8849, Form 4136, or Form 8864. See Notice

Form 720 must be filed by April 30.

2005-4 and item 3 above for more information.

Information to be submitted. For claims on lines 9a,

Annual Claims

9b, 10a, and 10b, attach a separate sheet with the name

If a claim on lines 1-8 or 11-13 was not made for any

and TIN of each nonprofit educational organization or

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

governmental unit to whom the gasoline or aviation

annual claim is made on Form 4136 for the income tax

gasoline was sold and the number of gallons sold to

each.

year during which the fuel was used by the ultimate

purchaser, sold by the registered ultimate vendor, used

Line 11. Nontaxable Use of Liquefied

to produce an alcohol fuel mixture and biodiesel mixture,

Petroleum Gas (LPG)

or used in mobile machinery. See Form 4136 for more

information.

Allowable uses. For line 11(c), the taxed LPG must

have been used during the period of claim for type of

Line 14. Other Claims

use: 1, 2, or 4.

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

uses and resales of certain articles subject to

Line 12. Alcohol Fuel Mixture Credit

manufacturers or retailers excise taxes, claimant certifies

Claimant. The person that produced and sold or used

that it sold the article at a tax-excluded price, repaid the

the mixture is the only person eligible to make this claim.

amount of tax to the ultimate vendor, or has obtained the

written consent of the ultimate vendor to make the claim;

Claim requirements. The following requirements must

and has the required supporting information.

be met:

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2006 Page 13

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