The first time you file Form 720, type or print your name, address (including the suite, room, or other unit number), and
the quarter ending date
(month and year). After that, the IRS will mail you a Package 720 with a preaddressed Form 720 every quarter. If your address
changes, make the
corrections on Form 720 and check the address change box above Part I of Form 720.
P.O. box.
If the post office does not deliver mail to the street address and you have a P.O. box, show the box number instead
of the street address.
Foreign address.
Enter the city, province or state, and country. Follow the country's practice for entering the postal code. Do not
abbreviate the country name.
Employer Identification Number (EIN)
If the EIN on the preaddressed Form 720 is wrong or you did not receive a preaddressed Form 720, enter the correct number.
If you are a one-time
filer, you may not need an EIN. See Gas guzzler tax on page 6. If you do not have an EIN, you may apply for one online. Go to the IRS
website at
www.irs.gov/businesses/small and click on the “Employer ID Numbers” link. You may also apply
for an EIN by calling 1-800-829-4933 (hours of operation are Monday - Friday, 7:00 a.m. to 10:00 p.m. local time), or you
can fax or mail Form SS-4,
Application for Employer Identification Number, to the IRS.
If you want to allow an employee of your business, a return preparer, or other third party to discuss your Form 720 with the
IRS, check the
“Yes” box in the Third Party Designee section of Form 720. Also, enter the designee's name, phone number, and any five digits that
person chooses as his or her personal identification number (PIN).
By checking the “Yes” box, you are authorizing the IRS to speak with the designee to answer any questions relating to the processing of or the
information reported on
Form 720. You are also authorizing the designee to:
-
Exchange information concerning Form 720 with the IRS, and
-
Respond to certain IRS notices that you have shared with your designee relating to Form 720. The IRS will not send notices
to your designee.
You are not authorizing the designee to receive any refund check, bind you to anything (including additional tax liability),
or otherwise represent
you before the IRS. If you want to expand the designee's authority, see Publication 947, Practice Before the IRS and Power
of Attorney.
The authorization will automatically expire 1 year from the due date (without regard to extensions) for filing your Form 720.
If you or your
designee want to revoke this authorization, send a written statement of revocation to the Department of the Treasury, Internal
Revenue Service,
Cincinnati, OH 45999. See Publication 947 for more information.
Use Form 6627, Environmental Taxes, to figure the environmental taxes on:
-
Oil spill liability, IRS Nos. 18 and 21;
-
Ozone-depleting chemicals (ODCs), IRS No. 98;
-
Imported products that used ODCs as materials in the manufacture or production of the product, IRS No. 19; and
-
The floor stocks tax on ODCs, IRS No. 20 (reported in Part II).
Attach Form 6627 to Form 720. The tax rates for these taxes are shown on Form 6627.
The person receiving the payment for communications services must collect and pay over the tax and file the return. Enter
the amount of tax
collected or considered collected for the quarter.
Communications Services (IRS No. 22)
The tax is 3% of amounts paid for local telephone service and teletypewriter exchange service.
If tax is collected and paid over for nontaxable services from the communications tax, the collector or taxpayer may request
a credit or refund as
described below and in Notices 2006-50 and 2007-11.
Collectors.
The collector may request a credit or refund only if it has repaid the tax to the person from whom the tax was collected,
or obtained the consent
of that person to the allowance of the credit or refund. These requirements also apply to nontaxable service refunds.
Collectors using the regular method for deposits.
Collectors using the regular method for deposits must use Form 720X to request a credit or refund.
Collectors using the alternative method for deposits.
Collectors using the alternative method for deposits must adjust their separate accounts for the credit or refund.
For more information, see
Alternative method on page 8.
Form 720 taxpayers.
Credits or refunds for nontaxable service that was billed after February 28, 2003, and before August 1, 2006, can
be requested by taxpayers only on
their 2006 federal income tax returns. Instructions to request the credit or refund are available with the 2006 income tax
returns. Do not use Form
8849, Form 720, or Form 843 to make claims for nontaxable service; the IRS will not process these claims.
The person receiving the payment for air transportation services must collect and pay over the tax and file the return. Enter
the amount of tax
collected or considered collected for the quarter.
Transportation of Persons by Air (IRS No. 26)
The tax on transportation of persons by air is made up of the percentage tax and the domestic segment tax. Add the percentage
tax and the domestic
segment tax to get the total tax on transportation of persons by air.
Percentage tax.
The percentage tax is 7.5% for amounts paid for taxable transportation of persons by air.
Domestic segment tax.
For amounts paid for each domestic segment of taxable transportation of persons by air, the domestic segment tax is
$3.50 per segment for
transportation that begins in 2008.
Rural airports.
If a segment is to or from a rural airport, the domestic segment tax does not apply.
Transportation of Property by Air (IRS No. 28)
The tax is 6.25% of amounts paid for transportation of property by air.
Use of International Air Travel Facilities (IRS No. 27)
For amounts paid during 2008 the tax on international flights is:
-
$15.40 per person for flights that begin or end in the United States, or
-
$7.70 per person for domestic segments that begin or end in Alaska or Hawaii (applies only to departures).
Communication and Air Transportation Taxes—Uncollected Tax Report
A separate report is required to be filed by collecting agents of communications services (local and teletypewriter service)
and air transportation
taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses
to pay the tax, or it is
impossible for the collecting agent to collect the tax. The report must contain the name and address of the taxpayer, the
type of facility provided or
service rendered, the amount paid for the facility or service (the amount on which the tax is based), and the date paid.
Regular method taxpayers.
For regular method taxpayers, the report must be filed by the due date of the Form 720 on which the tax would have
been reported.
Alternative method taxpayers.
For alternative method taxpayers, the report must be filed by the due date of the Form 720 that includes an adjustment
to the separate account for
the uncollected tax. See
Alternative method on page 8.
Where to file.
Do not file the uncollected tax report with Form 720. Instead, mail the report to:
Internal Revenue Service
Excise Tax Program
SE:S:SP:EX MS C9-109
5000 Ellin Rd.
Lanham, MD 20706
First taxpayer's report.
If you are reporting gallons of taxable fuel that may again be subject to tax, you may need to file a first taxpayer's
report. The report must
contain all the information as shown in the Model Certificate B in the Appendix of Publication 510.
The person who paid the first tax must:
-
Give a copy of the first taxpayer's report to the buyer;
-
File the first taxpayer's report with Form 720 for the quarter for which the report relates; and
-
Write “EXCISE—FIRST TAXPAYER'S REPORT” across the top of a separate copy of the report, and by the due date of Form 720, send the
copy to:
Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0555
Diesel fuel (IRS No. 60).
If you are liable for the diesel fuel tax on removal at the terminal rack, report these gallons on line 60(a). If
you are liable for the diesel
fuel tax on events other than removal at the terminal rack, report these gallons on line 60(b). If you are liable for the
diesel fuel tax because you
have produced diesel fuel by blending biodiesel with taxed diesel fuel outside of the bulk transfer/terminal system, report
these gallons of biodiesel
on line 60(c). If you report gallons on line 60(c), do not report those gallons on line 60(b).
Multiply the total number of gallons subject to tax on lines (a), (b), and (c) by $.244 and make one entry in the
tax column.
Also see
Schedule T—Two-Party Exchange Information Reporting on page 9 if applicable.
Diesel-water fuel emulsion (IRS No. 104).
If you are liable for the reduced rate (see below) of tax on a diesel-water fuel emulsion removal at the terminal
rack or other taxable event,
report these gallons on the line for IRS No. 104.
Requirements.
All of the following requirements must be met to be eligible for the reduced rate: (a) the diesel-water fuel emulsion
must contain at least 14%
water, (b) the emulsion additive must be registered by a United States manufacturer with the EPA under section 211 of the
Clean Air Act, and (c) the
taxpayer must be registered by the IRS. If these requirements are not met, you must report the sale, removal, or use of a
diesel-water fuel emulsion
as diesel fuel.
IRS Nos. 105, 107, 119, and 111.
Tax is imposed at $.001 per gallon on removals, entries, and sales of gasoline, diesel fuel, and kerosene described
as exempt transactions.
-
IRS No. 105, Dyed diesel fuel, LUST tax.
-
IRS No. 107, Dyed kerosene, LUST tax.
-
IRS No. 119, LUST tax, other exempt removals. Report gasoline blendstocks, kerosene used for a feedstock purpose, and diesel
fuel or
kerosene sold or used in Alaska.
-
IRS No. 111, Kerosene for use in aviation, LUST tax on nontaxable uses. Report gallons of kerosene removed directly from a
terminal into the
fuel tank of an aircraft for nontaxable uses.
Multiply the total number of gallons subject to tax for each fuel by $.001 and make the entry in the tax column.
Kerosene (IRS No. 35).
If you are liable for the kerosene tax on removal at the terminal rack, report these gallons on line 35(a). If you
are liable for the kerosene tax
on events other than removal at the terminal rack, report these gallons of kerosene on line 35(b).
Multiply the total number of gallons subject to tax on lines (a) and (b) by $.244 and make one entry in the tax column.
Also see
Schedule T—Two-Party Exchange Information Reporting on page 9 if applicable.
Kerosene for use in aviation (IRS Nos. 69, 77, and 111).
Generally, kerosene is taxed at $.244 per gallon.
-
For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax
rate is $.219
per gallon. Report these gallons on the line for IRS No. 69.
-
For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in commercial aviation (other than
foreign trade),
the tax rate is generally $.044 per gallon. Report these gallons on the line for IRS No. 77.
-
For kerosene removed directly from a terminal into the fuel tank of an aircraft for nontaxable uses, the tax rate is generally
$.001 per
gallon. Report these gallons on the line for IRS No. 111.
Other fuels (IRS No. 79).
You are liable for the tax on the fuels listed below when they are delivered into the fuel supply tank of a motor
vehicle or motorboat (or trains
for B-100). Use the following table to determine the tax for each gallon. Fill in the number of gallons and the appropriate
rate in the
Rate column on the line for IRS No. 79. If more than one rate applies, leave the
Rate column blank and attach a schedule showing
the rates and number of gallons taxed at each rate.
| Fuel |
Tax Rate
per Gallon |
| Qualified— |
|
|
|
|
Ethanol produced from coal
|
|
.1325
|
|
Methanol produced from coal
|
|
.1235
|
| Partially exempt— |
|
|
|
|
Ethanol produced from natural gas
|
|
.114
|
|
Methanol produced from natural gas
|
|
.0925
|
| B-100 (100% biodiesel) |
|
.244
|
| Other fuels not shown |
|
.184
|
Gasoline (IRS No. 62).
If you are liable for the gasoline tax on removal at the terminal rack, report these gallons on line 62(a). If you
are liable for the gasoline tax
on events other than removal at the terminal rack, report these gallons on line 62(b). If you are liable for the gasoline
tax because you have blended
alcohol with taxed gasoline outside of the bulk transfer/terminal system, report these gallons of alcohol on line 62(c). If
you report gallons on line
62(c), do not report those gallons on line 62(b).
Multiply the total number of gallons subject to tax on lines (a), (b), and (c) by $.184. Combine the tax for lines
(a), (b), and (c), and make one
entry in the tax column.
Also see
Schedule T—Two-Party Exchange Information Reporting on page 9 if applicable.
Aviation gasoline (IRS No. 14).
Aviation gasoline is taxed at the rate shown on Form 720.
Alternative fuel (IRS Nos. 112, 118, and 120-124).
Alternative fuel is any liquid other than gas oil, fuel oil, or any product taxable under Internal Revenue Code section
4081. You are liable for
tax on alternative fuel delivered into the fuel supply tank of a motor vehicle or motorboat, or on certain bulk sales. Report
the tax on the line for
the IRS No. listed in the following table.
|
Alternative Fuel
|
IRS Number
|
|
Liquefied petroleum gas (LPG)
|
112
|
| “P Series” fuels
|
118
|
|
Compressed natural gas (CNG)
|
120
|
|
Liquefied hydrogen
|
121
|
|
Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process
|
122
|
|
Liquid fuel derived from biomass
|
123
|
|
Liquefied natural gas (LNG)
|
124
|
LPG includes propane, butane, pentane, or mixtures of those gases. CNG is taxed at $.183 per gasoline gallon equivalent
(126.67 cubic feet).
Truck, trailer, and semitrailer chassis and bodies, and tractors (IRS No. 33)
The tax is 12% (.12) of the sales price on the first retail sale of each unit. The tax applies to:
-
Truck chassis and bodies except truck chassis and bodies suitable for use with a vehicle with a gross vehicle weight (GVW)
of 33,000 pounds
or less,
-
Trailer and semitrailer chassis and bodies except trailer and semitrailer chassis and bodies suitable for use with a vehicle
with a GVW of
26,000 pounds or less, and
-
Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer, except tractors
that have a gross
vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less. Generally, gross combined weight
means the weight of a
tractor and the weight of its trailer(s).
The sales price of a vehicle includes the sales price of certain related parts and accessories sold on or in connection with
the sale of the
vehicle.
Figure the tax for each vehicle sold and enter the total for the quarter on the line for IRS No. 33.
Gross vehicle weight.
The gross vehicle weight means the maximum total weight of a loaded vehicle. Generally, this maximum total weight
is the gross vehicle weight
rating provided by the manufacturer or determined by the seller of the completed article. The seller's gross vehicle weight
rating must be determined
for excise tax purposes on the basis of the strength of the chassis frame and the axle capacity and placement. The seller
may not take into account
any readily attachable components (such as tires or rim assemblies) in determining the gross vehicle weight. See Regulations
section 145.4051-1(e)(3)
for more information.
The following four classifications of truck body types meet the suitable for use standard and will be excluded from
the retail excise tax.
-
Platform truck bodies 21 feet or less in length.
-
Dry freight and refrigerated truck van bodies 24 feet or less in length.
-
Dump truck bodies with load capacities of 8 cubic yards or less.
-
Refuse packer truck bodies with load capacities of 20 cubic yards or less.
For more information, see Rev. Proc. 2005-19, which is on page 832 of Internal Revenue Bulletin 2005-14 at
www.irs.gov/pub/irs-irbs/irb05-14.pdf.
Section 4051(d) tire credit.
A tax credit may be taken equal to the amount of tax that has been imposed on each tire that is sold on or in connection
with the first retail sale
of a taxable vehicle reported on IRS No. 33. Claim the section 4051(d) tire credit on Schedule C, line 15a.
Transportation by water (IRS No. 29).
A tax is imposed on the operator of commercial ships. The tax is $3 for each passenger on a commercial passenger ship
that has berth or stateroom
accommodations for at least 17 passengers if the trip is over 1 or more nights. A voyage extends “
over 1 or more nights” if it lasts longer than
24 hours. The tax also applies to passengers on any commercial ship that transports passengers engaged in gambling aboard
the ship beyond the
territorial waters of the United States. Enter the number of passengers for the quarter on the line for IRS
No. 29.
Obligations not in registered form (IRS No. 31).
For obligations issued during the quarter, enter the principal amount of the obligation multiplied by the number of
calendar years (or portion
thereof) during the period beginning on the issue date and ending on the maturity date on the line for IRS No. 31.
Do not include the excise tax on coal in the sales price when determining which tax rate to use.
Underground mined coal (IRS Nos. 36 and 37).
The tax on underground mined coal is the lower of $1.10 per ton or 4.4% (.044) of the sales price. Enter on the line
for IRS No. 36 the number of
tons of underground mined coal sold at $25 or more per ton. Enter on the line for IRS No. 37 the total sales price for all
sales of underground mined
coal sold at a selling price of less than $25 per ton.
Surface mined coal (IRS Nos. 38 and 39).
The tax on surface mined coal is the lower of $.55 per ton or 4.4% (.044) of the sales price. Enter on the line for
IRS No. 38
the number of tons of surface mined coal sold at $12.50 or more per ton. Enter on the line for IRS No. 39 the total sales
price for all sales of
surface mined coal sold at a selling price of less than $12.50 per ton.
Taxable tires (IRS Nos. 108, 109, and 113).
A tax is imposed on taxable tires sold by the manufacturer, producer, or importer at the rate of $.0945 ($.04725 in
the case of a biasply tire or
super single tire) for each 10 pounds of the maximum rated load capacity over 3,500 pounds. Figure the tax for each tire sold
in each category as
shown in the following chart and enter the total for the quarter on the line for IRS No. 108, 109, or 113.
|
IRS No.
|
Taxable Tire Category
|
Rate (for each 10 pounds of the maximum rated load capacity over 3,500 pounds)
|
|
108
|
Taxable tires other than biasply or super single tires
|
$.0945
|
|
109
|
Taxable tires, biasply or super single tires (other than super single tires designed for steering)
|
$.04725
|
|
113
|
Taxable tires, super single tires designed for steering
|
$.0945
|
A
taxable tire is any tire of the type used on highway vehicles if wholly or partially made of rubber and if marked according to federal
regulations for highway use. A biasply tire is a pneumatic tire on which the ply cords that extend to the beads are laid at
alternate angles
substantially less than 90 degrees to the centerline of the tread. A super single tire is a tire greater than 13 inches in
cross section width
designed to replace 2 tires in a dual fitment, but does not include any tire designed for steering.
Gas guzzler tax (IRS No. 40).
Use Form 6197,
Gas Guzzler Tax, to figure the liability for this tax. Attach
Form 6197 to Form 720. The tax rates for the gas guzzler tax are shown on Form 6197.
One-time filing.
If you import a gas guzzling automobile, you may be eligible to make a one-time filing of Form 720 and Form 6197 if
you meet all of the following
conditions.
-
You do not import gas guzzling automobiles in the course of your trade or business.
-
You are not required to file Form 720 reporting excise taxes for the calendar quarter, except for a one-time filing.
Follow the steps below to make a one-time filing.
-
File Form 720 for the quarter in which you incur liability for the tax. See When To File on page 1.
-
Pay the tax with Form 720. No deposits are required.
-
If you are an individual and do not have an employer identification number (EIN), enter your social security number (SSN)
or individual
taxpayer identification number (ITIN) on Form 720 and Form 720-V in the space for the EIN.
-
Check the one-time filing box on the line for the gas guzzler tax.
Vaccine taxes (IRS No. 97).
A tax is imposed on the sale or use of a vaccine manufactured, produced, or entered into the United States at $.75
per dose if it:
-
Contains diptheria toxoid, tetanus toxoid, pertussis bacteria, extracted or partial cell bacteria, specific pertussis antigens,
or polio
virus;
-
Is against measles, mumps, rubella, hepatitis A, hepatitis B, chicken pox, rotavirus gastroenteritis, or human papillomavirus;
-
Is any HIB (haemophilus influenza type B) vaccine;
-
Is any meningococcal vaccine;
-
Is any conjugate vaccine against streptococcus pneumoniae; or
-
Is any trivalent vaccine against influenza.
If any taxable vaccine is combined with one or more additional taxable vaccines, then the tax is imposed on each vaccine
included in the
combination.
Example.
MMR contains three taxable vaccines: measles, mumps, and rubella. The tax per dose on MMR is $2.25 (3 x $.75).
Add the tax for each taxable vaccine and enter the total tax on the line for IRS No. 97.
Policies issued by foreign insurers (IRS No. 30).
Enter the amount of premiums paid during the quarter on policies issued by foreign insurers. Multiply the premiums
paid by the rates listed on Form
720 and enter the total for the three types of insurance on the line for IRS No. 30.
Who must file.
The person who pays the premium to the foreign insurer (or to any nonresident person such as a foreign broker) must
pay the tax and file the
return. Otherwise, any person who issued or sold the policy, or who is insured under the policy, is required to pay the tax
and file the return.
Treaty-based return positions under section 6114.
Foreign insurers and reinsurers who take the position that a treaty of the United States overrules, or otherwise modifies,
an Internal Revenue law
of the United States must disclose such position. This disclosure must be made once a year on a statement which must report
the payments of premiums
that are exempt from the excise tax on policies issued by foreign insurers for the previous calendar year. This statement
is filed with the 1st
quarter Form 720, which is due before May 1 of each year.
You may be able to use Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), as a disclosure
statement.
At the top of Form 720, write “
Section 6114 Treaty.” If you have no other transactions reportable on Form 720, complete Form 720 as follows.
-
If this is your final return, check the final return box.
-
Write “None” on lines 1 and 3.
-
Sign the return.
You need an EIN to file Form 720. If you do not have an EIN, see
Employer Identification Number (EIN) on page 3.
Where to file.
All filers should mail Form 720 with the attached Form 8833 or disclosure statement to:
Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0009
Also, see the
Caution under
Private Delivery Services on page 2.
Sport fishing equipment (other than fishing rods and fishing poles) (IRS No. 41).
The tax on sport fishing equipment is 10% (.10) of the sales price. The tax is paid by the manufacturer, producer,
or importer. Taxable articles
include reels, fly fishing lines (and other lines not over 130 pounds test), fishing spears, spear guns, spear tips, terminal
tackle, fishing supplies
and accessories, and any parts or accessories sold on or in connection with these articles. See Publication 510 for a complete
list of taxable
articles. Add the tax on each sale during the quarter and enter the total on the line for IRS No. 41.
Fishing rods and fishing poles (IRS No. 110).
The tax on fishing rods and fishing poles (and component parts) taxed at a rate of 10% will have a maximum tax of
$10 per article. The tax is paid
by the manufacturer, producer, or importer. Add the tax on each sale during the quarter and enter the total on the line for
IRS No. 110.
Electric outboard motors (IRS No. 42).
The tax on an electric outboard motor is 3% (.03) of the sales price. The tax is paid by the manufacturer, producer,
or importer. Add the tax on
each sale during the quarter and enter the total on the line for IRS No. 42.
Fishing tackle boxes (IRS No. 114).
The tax on fishing tackle boxes is 3% (.03) of the sales price. The tax is paid by the manufacturer, producer, or
importer. Add the tax on each
sale during the quarter and enter the total on the line for IRS No. 114.
Bows, quivers, broadheads, and points (IRS No. 44).
The tax on bows is 11% (.11) of the sales price. The tax is paid by the manufacturer, producer, or importer. It applies
to bows having a peak draw
weight of 30 pounds or more. The tax is also imposed on the sale of any part or accessory suitable for inclusion in or attachment
to a taxable bow and
any quiver, broadhead, or point suitable for use with arrows described below. Add the tax on each sale during the quarter
and enter the total on the
line for IRS No. 44.
Arrow shafts (IRS No. 106).
The tax on arrow shafts is $.43 per arrow shaft. The tax is paid by the manufacturer, producer, or importer of any
arrow shaft (whether sold
separately or incorporated as part of a finished or unfinished product) of a type used in the manufacture of any arrow which
after its assembly meets
either of the following conditions.
-
It measures 18 inches or more in overall length.
-
It measures less than 18 inches in overall length but is suitable for use with a taxable bow, described earlier.
Add the tax on each sale during the quarter and enter the total on the line for IRS No. 106.
Inland waterways fuel use tax (IRS No. 64).
If you are liable for the inland waterways fuel use tax, report the number of gallons subject to tax on the line for
IRS No. 64. Certain fuels must also be reported under IRS No. 125 (see below).
The inland waterways fuel use tax applies at the rate listed on Form 720. This is in addition to all other taxes imposed on
the sale or use of the
fuel.
LUST tax on inland waterways fuel use (IRS No. 125).
The leaking underground storage tank (LUST) tax must be paid on any liquid fuel used on inland waterways that is not
subject to LUST tax under
section 4041(d) or 4081. For example, gallons of Bunker C residual fuel oil must be reported under both IRS Nos. 64 and 125.
Alcohol sold as but not used as fuel (IRS No. 51).
An excise tax is imposed if the alcohol fuel mixture credit or alcohol credit was claimed and
any person later (a) uses a mixture or
straight alcohol for a purpose other than fuel, (b) separates the alcohol from the mixture, or (c) mixes the straight alcohol.
Use the following table to determine the tax for each gallon of alcohol. Fill in the number of gallons and the appropriate
rate in the
Rate column on the line for IRS No. 51. If more than one rate applies, leave the
Rate column blank and attach a schedule showing
the rates and number of gallons taxed at each rate.
| IF the alcohol is... |
AND... |
THEN the tax rate per gallon is... |
|
at least 190 proof
|
• is ethanol
|
$
|
.51
|
|
| |
• is methanol
|
|
.60
|
|
| |
• benefited from the
small ethanol
producer credit
|
|
.61
|
|
|
at least 150 proof but
|
• is ethanol
|
$
|
.3778
|
|
|
less than 190 proof
|
• is methanol
|
|
.45
|
|
| |
• benefited from the
small ethanol
producer credit
|
|
.4778
|
|
Biodiesel sold as but not used as fuel (IRS No. 117).
An excise tax is imposed if the (a) biodiesel or renewable diesel mixture credit or (b) biodiesel or renewable diesel
credit was claimed and
any person later (a) uses a mixture or straight biodiesel or renewable diesel for a purpose other than as fuel, (b) separates the biodiesel
or renewable diesel from the mixture, or (c) mixes the straight biodiesel or renewable diesel.
The tax is $.50 per gallon of biodiesel, $1.00 per gallon of agri-biodiesel, and $1.00 per gallon of renewable diesel.
An additional $.10 is added
if the agri-biodiesel benefited from the small agri-biodiesel producer credit. Fill in the number of gallons and the appropriate
rate in the
Rate column on the line for IRS No. 117. If more than one rate applies, leave the
Rate column blank and attach a schedule
showing the rates and number of gallons taxed at each rate.
Ozone-depleting chemicals floor stocks tax (IRS No. 20).
Use Form 6627 to figure the liability for this tax. Enter the amount from Form 6627, Part IV, line 4, column (d) on
the line for IRS No. 20. Attach
Form 6627 to Form 720 that is due July 31 of each year. Deposit the payment by June 30 at an authorized financial institution.
See
How To Make
Deposits below.
Line 4.
Report on Form 720, line 4, the total claims from Schedule C, line 16. See the instructions for
Schedule C-Claims on page 9.
Line 6.
Include on line 6 the amount from line 11 of your previous return that you applied to this return and the amount from
Form 720X, line 5b.
Note.
Include on line 6 of your next return the amount from line 11 you want to have applied to that return.
If you owe other federal tax, interest, or penalty, the overpayment on line 11 and line 7 will first be applied to the unpaid
amounts.
Line 10.
If line 3 is more than line 9, enter the difference in line 10. You do not have to pay if line 10 is under $1.00.
You may pay the amount shown on line 10 by EFTPS, check or money order, or, if filing electronically, electronic funds
withdrawal (direct debit).
If you pay by EFTPS or direct debit, do not file Form 720-V, Payment Voucher.
If you do not deposit as required and, instead, pay the taxes with Form 720, you may be subject to a penalty.
Generally, semimonthly deposits of excise taxes are required. A semimonthly period is the first 15 days of a month (the first
semimonthly period) or the 16th through the last day of a month (the second semimonthly period).
However, no deposit is required for the situations listed below. The taxes are payable with the return.
-
The net liability for taxes listed in Part I (Form 720) does not exceed $2,500 for the quarter.
-
The gas guzzler tax is being paid on a one-time filing. See Gas guzzler tax on page 6.
-
The liability is for taxes listed in Part II (Form 720), except for the floor stocks tax that generally requires a single
deposit. See
Floor Stocks Tax above.
To avoid a penalty, make your deposits timely and do not mail your deposits directly to the IRS. Records of your deposits
will be sent to the IRS
for crediting to your accounts.
Electronic deposit requirement.
You must make electronic deposits of all depository taxes (such as deposits for employment tax, excise tax, and corporate
income tax) using the
Electronic Federal Tax Payment System (EFTPS) in 2008 if:
-
The total deposits of such taxes in 2006 exceeded $200,000 or
-
You were required to use EFTPS in 2007 or any prior year.
If you are required to use EFTPS and use Form 8109, Federal Tax Deposit Coupon, instead, you may be subject to a 10%
penalty. If you are not
required to use EFTPS, you may participate voluntarily. To get more information or to enroll in EFTPS, visit the EFTPS website
at
www.eftps.gov or call 1-800-555-4477. Also see Publication 966, The Secure Way to Pay Your Federal Taxes.
Depositing on time.
For EFTPS deposits to be on time, you must initiate the transaction at least 1 day before the date the deposit is
due (before 8:00 p.m. Eastern
time).
Federal tax deposit coupons.
If you are not making deposits by EFTPS, use Form 8109 to make the deposits at an authorized financial institution.
See the instructions in the
coupon book for additional information. If you do not have a coupon book, call 1-800-829-4933.
You will automatically be enrolled in EFTPS when you apply for an EIN. You will receive a separate mailing containing instructions
for activating
your EFTPS enrollment after you receive your EIN. You will still have the option to use FTD coupons, but see Electronic deposit
requirement
above.
There are two methods for determining deposits: the regular method and the alternative method.
The regular method applies to all taxes in Part I of Form 720 except for communications and air transportation taxes if deposits
are based on
amounts billed or tickets sold, rather than on amounts actually collected. See Alternative method below.
If you are depositing more than one tax under a method, combine all the taxes under the method and make one deposit for the
semimonthly period.
Regular method.
The deposit of tax for a semimonthly period is due by the 14th day following that period. Generally, this is the 29th
day of a month for the first
semimonthly period and the 14th day of the following month for the second semimonthly period. If the 14th or the 29th day
falls on a Saturday, Sunday,
or legal holiday, you
must make the deposit by the immediately
preceding day that is not a Saturday, Sunday, or legal holiday.
Alternative method (IRS Nos. 22, 26, 27, and 28).
Deposits of communications and air transportation taxes may be based on taxes included in amounts billed or tickets
sold during a semimonthly
period instead of on taxes actually collected during the period. Under the alternative method, the tax included in amounts
billed or tickets sold
during a semimonthly period is considered collected during the first 7 days of the second following semimonthly period. The
deposit of tax is due by
the 3rd banking day after the 7th day of that period.
Example.
The tax included in amounts billed or tickets sold for the period June 16-30, 2008, is considered collected from July
16-22, 2008, and must be
deposited by
July 25, 2008.
To use the alternative method, you must keep separate accounts of the tax included in amounts billed or tickets sold
during the month and report on
Form 720 the tax included in amounts billed or tickets sold and not the amount of tax that is actually collected. For example,
amounts billed in
December, January, and February are considered collected during January, February, and March and are reported on Form 720
as the tax for the 1st
quarter of the calendar year.
The separate account for each month must reflect:
-
All items of tax included in amounts billed or tickets sold during the month, and
-
Other items of adjustment relating to tax for prior months (within the statute of limitations on credits or refunds).
The separate account for any month cannot include an adjustment resulting from a refusal to pay or inability to collect
unless the refusal has been
reported to the IRS. See
Communications and Air Transportation Taxes—Uncollected Tax Report on page 3.
The net tax liability that is considered collected during the semimonthly period must be either:
-
The net amount of tax reflected in the separate account for the corresponding semimonthly period of the preceding month, or
-
One-half of the net amount of tax reflected in the separate account for the preceding month.
Special rule for deposits of taxes in September 2008.
If you are required to make deposits, see the chart below. The special rule does not apply to taxes not required to
be deposited (see
Payment
of Taxes on page 7). See Regulations sections 40.6302(c)-2 and 40.6302(c)-3 for rules to figure the net tax liability for the deposits
due in
September.
Additional deposit of taxes in September 2008
| |
For thePeriod |
|
| Type of Tax |
Beginning on |
|
Ending on |
Due Date |
|
Regular method taxes
|
|
|
|
|
