Instructions For Form 720 - 2017 (Page 17 of 20) in pdf

Line 14. Other Claims

For diesel, kerosene, or kerosene for use in aviation, for

the exclusive use by a state or local government (including

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

essential government use by an Indian tribal government).

and resales of certain articles subject to manufacturer or

retailer excise taxes, claimant certifies that it sold the article

Claimant. The registered credit card issuer is the only

at a tax-excluded price, repaid the amount of tax to the

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

ultimate vendor, or has obtained the written consent of the

1. Is registered by the IRS;

ultimate vendor to make the claim; and has the required

2. Has not collected the amount of tax from the ultimate

supporting information.

purchaser or has obtained the written consent of the ultimate

purchaser to make the claim;

Lines 14b and 14c. Exported Dyed Diesel,

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

Exported Dyed Kerosene, and Exported Gasoline

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

Blendstocks Taxed at $.001

consent of the ultimate vendor to make the claim, or has

otherwise made arrangements which directly or indirectly

Claimant is required to have the name and address

provide the ultimate vendor with reimbursement of the tax;

of the person(s) who sold the fuel to the claimant, the

and

dates of purchase, and if exported, the required proof

CAUTION

4. Has in its possession an unexpired certificate from the

of export.

ultimate purchaser and has no reason to believe any of the

A claim may be made for dyed diesel or dyed kerosene

information in the certificate is false. See Model Certificate R

exported in a trade or business during the period of claim.

in Pub. 510.

Claims for exported gasoline blendstocks taxed at $.001 per

gallon are made on line 14b. See Exported taxable fuel,

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

earlier. The claim rate for each fuel is $.001 per gallon.

issuer must collect the tax from the ultimate purchaser and

only the ultimate purchaser can make the claim.

Claims for exported gasoline blendstocks taxed at

$.184 per gallon are made on line 1b.

Claim requirements. The following requirements must be

met.

CAUTION

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

Line 14d. DieselWater Emulsion

diesel, kerosene, or kerosene for use in aviation sold during a

period that is at least 1 week.

Generally, the claim rate for the nontaxable use of a

2. The amount of the claim must be at least $200 ($100

diesel-water emulsion taxed at $.198 (credit reference

for kerosene or kerosene for use in aviation).

number (CRN) 309) is $.197. The fuel must have been used

during the period of claim for type of use 1, 2, 3, 5, 6, 7, 8, or

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

12. For type of use 5, the claim rate is $.124 (CRN 309). For

following the earliest quarter of the claimant's income tax

type of use 3 (exported), the claim rate is $.198 (CRN 306)

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

and is reported on line 14d.

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

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

The claim rate for undyed diesel taxed at $.244 (CRN 310)

30.

and used to produce a diesel-water emulsion is $.046 per

4. The claimant must enter its registration number on

gallon of diesel so used (blender claims). The claimant must

line 14e, the amount of the claim, and the applicable CRN

attach a statement certifying that (a) the claimant produced a

(see Allowable sales, earlier). If the claim is for more than

diesel-water emulsion containing at least 14% water; (b) the

one fuel, use the blank lines 14i–14k, or attach a separate

emulsion additive is registered by a U.S. manufacturer with

sheet listing the fuels, amount, and CRN.

the EPA under the Clean Air Act, section 211, (as in effect on

March 31, 2003); (c) the claimant used undyed diesel taxed

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

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

Claims, later. However, annual claims cannot be made for

claimant sold or used the diesel-water emulsion in the

gasoline and aviation gasoline.

blender's trade or business. The blender claimant must be

Claim rates. The claim rates are shown below.

registered by the IRS and must enter their registration

number on line 14d and enter the applicable CRN.

CRN

Claim Rate

Claim requirements. See Claim requirements for lines 1–6

and lines 14b–14d, earlier.

324

$.193

346

.243

Line 14e. Registered Credit Card Issuers

360

.243

Allowable sales. The gasoline (CRN 362), aviation

362

.183

gasoline (CRN 324), diesel (CRN 360), kerosene (CRN 346),

369

.218

or kerosene for use in aviation (CRN 369) must have been

purchased with a credit card issued to the ultimate purchaser

during the period of claim:

For gasoline or aviation gasoline, for the exclusive use by

Annual Claims

a state or local government (including essential government

If a claim on lines 1–9 or 14b–14e was not made for any

use by an Indian tribal government) or for the exclusive use

gallons, an annual claim may be made (exception: alternative

of a nonprofit educational organization; or

fuel mixtures produced after December 31, 2011). Generally,

an annual claim is made on Form 4136 for the income tax

Instructions for Form 720 (Rev. 12017)

Instructions For Form 720 - 2017 Page 17

Related Articles

Related forms

Related Categories