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Instructions for Form 720 - Introductory Material


Table of Contents

What's New

The biodiesel mixture credit, renewable diesel mixture credit, alternative fuel credit, and alternative fuel mixture credit (except for liquefied hydrogen) expired on December 31, 2009. Claims cannot be made on lines 13a-13c, 14a-14c, and 14e-14i for periods beginning after December 31, 2009. Congress may take additional legislative action that impacts some of these credits. To find out if additional legislation was enacted, monitor the news media or go to www.irs.gov, click on More Forms and Publications, and then click on What's Hot in Forms and Publications.

Domestic segment tax.   For amounts paid for each domestic segment of taxable transportation of a person by air (IRS No. 26), the domestic segment tax is $3.70 per segment for transportation that begins in 2010.

Use of international air travel facilities (IRS No. 27).   For amounts paid during 2010, the tax on international flights is $16.10 per person for flights that begin or end in the United States, or $8.10 per person for domestic segments that begin or end in Alaska or Hawaii (applies only to departures).

Reminders

Exported gasoline blendstocks.   Claims for exported gasoline blendstocks taxed at $.001 per gallon are made on line 15b of Schedule C. Continue to use line 1b to make claims for exported gasoline blendstocks taxed at $.184 per gallon.

Electronic filing.   You can electronically file Form 720 through any electronic return originator (ERO), transmitter, and/or intermediate service provider (ISP) participating in the IRS e-file program for excise taxes. For more information on e-file, visit the IRS website at
www.irs.gov/efile.

Electronic payment.   Now, more than ever before, businesses can enjoy the benefits of paying their federal taxes electronically. Whether you rely on a tax professional or handle your own taxes, the IRS offers you a convenient program to make it easier. Spend less time on taxes and more time running your business. Use the Electronic Federal Tax Payment System (EFTPS) to your benefit. For information on EFTPS, visit www.eftps.gov or call the EFTPS Customer Service at 1-800-555-4477. If you are filing Form 720 electronically, you can choose to pay using electronic funds withdrawal (direct debit). For more information, see How To Make Deposits on page 8.


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