Instructions For Form 720 - Quarterly Federal Excise Tax Return (Page 14 of 20) in pdf

use in a motorboat. Type of use 8 includes use as heating oil

Type of use 5 example. 10,000 gallons of LPG ÷ 1.353

and use in a motorboat.

= 7,391 GGE x $.109 = $805.62 claim amount.

Line 4. Nontaxable Use of Undyed Kerosene

Information for Claims on Lines 7–11

(Other Than Kerosene Used in Aviation)

Registration number. To make an ultimate vendor claim on

lines 7–11, you must be registered. Enter your registration

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

number, including the prefix (for prefixes, see the Instructions

used during the period of claim for type of use 2, 6, 7, 8, or

for Form 637, Application for Registration), on the applicable

12. For exported undyed kerosene, see Exported taxable

line for your claim. If you are not registered, use Form 637 to

fuel, earlier. Type of use 2 does not include any personal use

apply for a registration number.

or use in a motorboat. Type of use 8 includes use as heating

oil and use in a motorboat.

Required certificates or waivers. The required certificates

or waivers for lines 7–11 are listed in the line instructions and

For lines 4e and 4f, the kerosene must have been used

are available in Pub. 510.

during the period of claim for type of use 2.

Line 5. Kerosene Used in Aviation

Line 7a. Sales by Registered Ultimate Vendors

of Undyed Diesel

Claimant. For lines 5a and 5b, the ultimate purchaser of

kerosene used in commercial aviation (other than foreign

Claimant. For line 7a, the registered ultimate vendor of the

trade) is eligible to make this claim. For lines 5c, 5d, and 5e,

diesel is the only person eligible to make this claim and has

the ultimate purchaser of kerosene used in noncommercial

obtained the required certificate from the buyer and has no

aviation (except for nonexempt, noncommercial aviation and

reason to believe any information in the certificate is false.

exclusive use by a state, political subdivision of a state, or the

See Model Certificate P in Pub. 510. Only one claim may be

District of Columbia) is eligible to make this claim. Claimant

filed for any gallon of diesel.

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

Allowable sales. The fuel must have been sold during the

Allowable uses. For lines 5a and 5b, the kerosene must

period of claim for the exclusive use by a state or local

have been used during the period of claim in commercial

government (including essential government use by an

aviation. If the claimant buys kerosene partly for use in

Indian tribal government).

commercial aviation and partly for use in noncommercial

Claim requirements. The following requirements must be

aviation, see the rules in Notice 2005-80, section 3(e)(3).

met.

For lines 5c and 5d, the kerosene must have been used

1. The claim must be for diesel sold during a period that

during the period of claim for type of use 1, 9, 10, 11, 13, 15,

is at least 1 week.

or 16.

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

For line 5e, the kerosene must have been used during the

meet this minimum requirement, amounts from lines 7, 8, and

period of claim for type of use 9. This claim is made in

9 may be combined.

addition to the claim made on lines 5c and 5d for type of

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

use 9.

following the earliest quarter of the claimant's income tax

Line 6. Nontaxable Use of Alternative Fuel

year included in the claim. For example, a calendar year

income taxpayer's claim for the first quarter is due June 30 if

Claimant. The ultimate purchaser of the taxed alternative

filed on Form 8849. However, Form 720 must be filed by April

fuel is the only person eligible to make this claim.

30.

Allowable uses. The alternative fuel must have been used

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

during the period of claim for type of use 1, 2, 4, 5, 6, 7, 11,

Claims, later.

13, 14, or 15.

Registration number. Enter your UV registration number in

Type of use 5. Write “Bus” in the space to the left of the

the space provided.

Type of use column. Enter the correct claim rate in the Rate

column. The claim rates for type of use 5 are listed below.

Information to be submitted. For claims on line 7a, attach

a separate sheet with the name and TIN of each

Line number

Claim rate: Type of use 5

governmental unit to whom the diesel was sold and the

number of gallons sold to each.

$.109*

Line 7b. Sales by Registered Ultimate Vendors

.110

of Undyed Diesel for Use in Certain Intercity and

.109**

Local Buses

.110

.17

Claimant. For line 7b, the registered ultimate vendor of the

diesel is eligible to make a claim only if the buyer waives his

.17

or her right to make the claim by providing the registered

.169***

ultimate vendor with an unexpired waiver. See Model Waiver

.110

N in Pub. 510. Only one claim may be filed for any gallon of

diesel.

(*) This is the claim rate per GGE (5.75 pounds or 1.353 gallons of LPG); (**) This

is the claim rate per GGE (5.66 pounds or 123.57 cubic ft. of CNG); (***) This is the

Claim requirements. The following requirements must be

claim rate per DGE (6.06 pounds or 1.71 gallons of LNG)

met.

-14-

Instructions for Form 720 (Rev. 4-2017)

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

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