Instructions For Form 720 - 2017 (Page 13 of 20) in pdf

terminal rack for purposes of reporting the transaction on

No.

Type of Use

Form 720-TO, Terminal Operator Report.

The transaction is the subject of a written contract.

On a farm for farming purposes

Off-highway business use (for business use other than in

Information reporting. Schedule T is used to report gallons

a highway vehicle registered or required to be registered

of taxable fuel:

for highway use) (other than use in mobile machinery)

Received in a two-party exchange within a terminal; these

gallons must also be included on the appropriate line on

Export

Form 720, page 1; or

In a boat engaged in commercial fishing

Delivered in a two-party exchange with a removal across

In certain intercity and local buses

the rack.

In a qualified local bus

Enter all gallons of fuel received or delivered in a two-party

In a bus transporting students and employees of schools

exchange within a terminal for the applicable fuel.

(school buses)

Schedule C. Claims

For diesel and kerosene (other than kerosene used in

aviation) used other than as a fuel in the propulsion engine

Complete all information requested for each line, including

of a train or diesel-powered highway vehicle (but not

month income tax year ends and period of claim. Enter the

off-highway business use)

month as “MM.” Enter the period of claim as “MM/DD/YYYY –

In foreign trade

MM/DD/YYYY.” Your claim will be disallowed if you do not

Certain helicopter and fixed-wing aircraft uses

follow the required procedures or do not provide all the

required information. Also, you are certifying to the applicable

Exclusive use by a qualified blood collector organization

statement(s) on Schedule C when you make a claim. See

In a highway vehicle owned by the United States that is

Pub. 510 for more information.

not used on a highway

You must include in gross income (income tax return)

Exclusive use by a nonprofit educational organization

the amount from line 4 of Form 720 if you took a

Exclusive use by a state, political subdivision of a state, or

deduction on the income tax return that included the

the District of Columbia

CAUTION

amount of the taxes and that deduction reduced the income

In an aircraft or vehicle owned by an aircraft museum

tax liability. See Pub. 510 for more information.

In military aircraft

Do not use Schedule C:

If you are not reporting a liability on Form 720, Part I or Part

II;

Claim requirements for lines 1–6 and lines 14b–14d.

For amounts you will claim or have claimed on Form 4136,

The following requirements must be met.

Credit for Federal Tax Paid on Fuels, or as a refund on Form

8849, Claim for Refund of Excise Taxes, and its separate

1. The amount of the claim must be at least $750

schedules;

(combining amounts on lines 1, 2, 3, 4, 5, 6, 14b, 14c, and

To make adjustments to liability reported on Forms 720

14d). This amount may be met by:

filed for prior quarters (instead use Form 720X);

a. Making a claim for fuel used during any quarter of a

If you are seeking a refund of the surtax on any liquid used

claimant's income tax year, or

in a fractional ownership program aircraft as fuel (IRS No.

b. Aggregating amounts from any quarters of the

13), use Form 720X; or

claimant's income tax year for which no other claim has been

To request an abatement or refund of interest under

made.

section 6404(e) (due to IRS errors or delays) or an

2. Claims must be filed during the first quarter following

abatement or refund of a penalty or addition to tax under

the last quarter of the claimant's income tax year included in

section 6404(f) (due to erroneous IRS written advice).

the claim. For example, a calendar year income taxpayer's

Instead, use Form 843, Claim for Refund and Request for

claim for the first quarter is due June 30 if filed on Form 8849.

Abatement. Also, use Form 843 to request refund of the

However, Form 720 must be filed by April 30.

penalty under section 6715 for misuse of dyed fuel.

3. Only one claim may be filed for any quarter.

Type of Use Table

4. The fuel must have been used for a nontaxable use

The following table lists the nontaxable uses of fuels. You

during the period of claim.

must enter the number from the table in the Type of use

5. The ultimate purchaser is the only person eligible to

column as required.

make the claim.

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

Claims, later.

Exported taxable fuel. The claim rates for exported

taxable fuel are listed on lines 1b, 2c, 3e, and 4d, and in the

instructions for lines 14b and 14c. Taxpayers making a claim

for exported taxable fuel must include with their records proof

of exportation. Proof of exportation includes:

A copy of the export bill of lading issued by the delivering

carrier,

A certificate by the agent or representative of the export

carrier showing actual exportation of the fuel,

Instructions for Form 720 (Rev. 12017)

Instructions For Form 720 - 2017 Page 13

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