Instructions For Form 720 - Quarterly Federal Excise Tax Return

Line 14b. Exported Taxable Fuel

indirectly provide the ultimate vendor with reimbursement

of the tax.

Taxpayers making a claim for exported taxable fuel must

4. Has in its possession an unexpired certificate from

attach a statement to Schedule C (Form 720). The

the ultimate purchaser and has no reason to believe any

statement should include the type of fuel, claim rate,

of the information in the certificate is false. See Notice

number of gallons, total amount of claim, and proof of

2005-80 for a model certificate.

export. Enter the total claim for all fuels on line 14b. The

claim rates for exported fuel are listed below.

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

Fuel

Rate

CRN

issuer must collect the tax from the ultimate purchaser

and only the ultimate purchaser can make the claim.

Gasoline

$.184

411

Claim requirements. The following requirements must

Aviation gasoline

$.194

412

be met:

Diesel fuel

$.244

413

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

Kerosene

$.244

414

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

during a period that is at least 1 week.

Dyed diesel fuel

$.001

415

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

Dyed kerosene

$.001

416

($100 for kerosene or kerosene for use in aviation). To

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

Line 14c. Diesel-Water Fuel Emulsion

8, and 14d may be combined.

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

The claim rate for the nontaxable use of a diesel-water

quarter following the earliest quarter of the claimant’s

fuel emulsion taxed at $.198 (CRN 309) is $.197. The

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

fuel must have been used during the period of claim for

calendar year income taxpayer’s claim for the first quarter

type of use 2, 3, 6, 7, 8, 12, 13, or 15. For type of use 3

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

(exported), the claim rate is $.198 (CRN 309) and is

must be filed by April 30.

reported on line 14c.

4. The claimant must enter its registration number on

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

line 14d and the applicable CRN. If the claim is for more

(CRN 310) and used to produce a diesel-water fuel

than one fuel, attach a separate sheet listing the fuels

emulsion is $.046 per gallon of diesel fuel so used

and their CRNs.

(blender claims). The claimant must attach a statement

certifying that: (a) the claimant produced a diesel-water

Line 14e. Other Claims

fuel emulsion containing at least 14% water, (b) the

Use line 14e for claims relating to taxes listed in the table

emulsion additive is registered by a United States

below. See Pub. 510 for information on allowable claims

manufacturer under section 211 of the Clean Air Act with

relating to these taxes. If you need additional space,

the EPA, (c) the claimant used undyed diesel fuel taxed

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

at $.244 to produce the diesel-water emulsion, and (d)

information for each claim.

the claimant sold or used the diesel-water fuel emulsion

•

A detailed description of the claim.

in it’s trade or business. The blender claimant must be

•

Any additional information required by the regulations.

registered by the IRS and must enter their registration

•

The amount of the claim.

number on the statement.

•

How you figured the claim amount.

•

Claim requirements. See Claim requirements for lines 1

Any other information to support the claim.

through 5, line 11, line 14b, and line 14c on page 10.

Claim requirement. Generally, the claim must be

Line 14d. Registered Credit Card Issuers

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

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

Allowable sales. The gasoline (CRN 362), aviation

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

Tax

CRN

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

Ozone-depleting chemicals (ODCs)

398

must have been purchased with a credit card issued to

the ultimate purchaser during the Period of claim:

Truck, trailer, and semitrailer chassis and bodies, and

383

•

tractors

For gasoline or aviation gasoline, for the exclusive use

by a state or local government (including essential

Passenger vehicles (luxury tax)

392

government use by an Indian tribal government) or for

Taxable tires other than biasply or super single tires

396

the exclusive use of a nonprofit educational organization.

•

For diesel fuel, kerosene, or kerosene for use in

Taxable tires, biasply or super single tires (other than

304

super single tires designed for steering)

aviation, for the exclusive use by a state or local

government (including essential government use by an

Taxable tires, super single tires designed for steering

305

Indian tribal government).

Gas guzzler automobiles

340

Claimant. The registered credit card issuer is the only

Vaccines

397

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

Sport fishing equipment

341

1. Is registered by the IRS,

2. Has not collected the amount of tax from the

Fishing rods and fishing poles

308

ultimate purchaser or has obtained the written consent of

Fishing tackle boxes

387

the ultimate purchaser to make the claim, and

Electric outboard motors

342

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

amount of tax to the ultimate vendor, has obtained the

Bows, quivers, broadheads, and points

344

written consent of the ultimate vendor to make the claim,

Arrow shafts

389

or has otherwise made arrangements which directly or

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2006 Page 14

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