Instructions for Form 720

(Rev. September 2024)

Quarterly Federal Excise Tax Return

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code unless 

otherwise noted.

Future Developments

For the latest information about developments related to 

Form 720 and its instructions, such as legislation enacted 

after they were published, go to IRS.gov/Form720.

What's New

Section 4501 excise tax on repurchase of corporate 

stock. Treasury Decision (T.D.) 10002, effective June 28, 

2024, has the final regulations for the section 4501 tax, which 

was enacted in the Inflation Reduction Act of 2022 (the Act) 

for repurchases after 2022. T.D. 10002 makes the first due 

date for reporting and paying the tax October 31, 2024. 

This due date applies for full 12-month calendar tax 

year 2023 stock repurchases. If you have more than 1 tax 

year ending after 2022, and on or before June 28, 2024, you 

should file a single Form 720 with two separate Forms 7208, 

Excise Tax on Repurchase of Corporate Stock, attached (one 

for each tax year). For a tax year ending on or after June 28, 

2024, the due date is the due date of the Form 720 for the 

first full quarter after that year end. The tax is reported on 

Form 7208 before entering it on the line for IRS No.150, 

Repurchase of corporate stock.

Notice 2024-37 sustainable aviation fuel (SAF) guidance. In December 2023, Notice 2024-06, sections 5 and 6, 

explained that the Greenhouse gases, Regulated Emissions, 

and Energy use in Transportation model methodology 

existing at that time didn't satisfy the requirements to 

calculate the emissions reduction percentage under section 

40B(e)(2), and that the government would work to develop a 

new model. Additional SAF guidance was issued in Notice 

2024-37, including the April 30, 2024, release of the 

40BSAF-GREET 2024 (Greenhouse gases, Regulated 

Emissions, and Energy used in Technologies) model, 

available at 40BSAF-GREET.

Reminders

Sections 4375 and 4376 patient-centered outcomes research fee increase. The fee for policy and plan years 

ending on or after October 1, 2023, but before October 1, 

2024, is increased to the applicable rate of $3.22, multiplied 

by the average number of lives covered under the policy or 

plan. The fee for policy and plan years ending on or after 

October 1, 2022, but before October 1, 2023, remains at the 

applicable rate of $3.00, multiplied by the average number of 

lives covered under the policy or plan. See Patient-centered 

outcomes research (PCOR) fee (IRS No. 133), later, and 

Notice 2023-70.

Inflation Adjustments for 2024

Arrow shafts (IRS No. 106). The section 4161 tax on arrow 

shafts is increased to $0.62 per arrow shaft.

Transportation of persons by air (IRS No. 26). The 

section 4261 tax on the amount paid for each domestic 

segment of taxable air transportation is increased to $5.00.

Use of international air travel facilities (IRS No. 27). The 

section 4261 tax on the amount paid for international flights is 

increased to $22.20 per person for flights that begin or end in 

the United States. The section 4261 tax per person for 

domestic segments beginning or ending in Alaska or Hawaii 

is increased to $11.10 (applies only to departures).

Superfund tax. The Inflation Reduction Act of 2022 (the 

Act) reinstates and increases the section 4611 Hazardous 

Substance Superfund financing rate (petroleum Superfund 

tax rate) on domestic crude oil (IRS No. 53) and imported 

petroleum products (IRS No. 16), effective January 1, 2023 

(the taxes previously expired on December 31,1995). The 

new IRS Nos. 53 and 16 are added to Form 720, Part I.

Renewable diesel and kerosene changes. The Act made 

the following changes to the definition of renewable diesel 

and the treatment of kerosene, effective for fuel sold or used 

after 2022.

• Renewable diesel no longer includes fuel derived from 

biomass that meets the requirements of a Department of 

Defense specification for military jet fuel or an American 

Society of Testing Materials (ASTM) specification for aviation 

turbine fuel.

• Kerosene is no longer treated as diesel fuel for purposes of 

the renewable diesel mixture credit.

Sustainable aviation fuel (SAF) credit. The Act created 

an SAF credit under sections 40B and 6426(k), effective 

January 1, 2023, so line 12d was added to Form 720, 

Schedule C.

Liquefied hydrogen. The Act removed liquefied hydrogen 

from the definition of alternative fuel under section 6426(d)(2) 

for purposes of the alternative fuel credit and alternative fuel 

mixture credit for fuel sold or used after 2022.

Kerosene used in aviation. Kerosene is generally taxed at 

$.244 per gallon unless a reduced rate applies. The $.244 

per gallon tax rate applies to kerosene removals unless it is 

removed from a terminal or refinery (or a qualified refueler 

truck, tanker, or tank wagon that is treated as a terminal) 

directly into the fuel tank of an aircraft. See Kerosene for use 

in aviation (IRS Nos. 69, 77, and 111), later.

Butane mixture doesn’t qualify for a credit. A mixture of 

butane (or other gasoline blendstock) and gasoline is a 

mixture of two taxable fuels. Therefore, it isn’t an alternative 

fuel mixture and doesn’t qualify for the section 6426 

alternative fuel mixture credit. See section 6426(e)(2), and 

Rev. Rul. 2018-02 at IRS.gov/IRB/

2018-02_IRB#RR-2018-02.

Reducing your excise tax liability. For federal income tax 

purposes, reduce your expense for the section 4081 excise 

tax, whether taken as a deduction or as a component of cost 

of goods sold, by the amount of excise tax credits allowable 

under sections 6426(c), (e), and (k) (biodiesel mixture, 

alternative fuel mixture, and SAF, respectively). Similarly, 

reduce your expense for the section 4041 excise tax, whether 

taken as a deduction or as a component of cost of goods 

Aug 15, 2024 Cat. No. 64240C
sold, by the amount of excise tax credit allowable under 

section 6426(d) (alternative fuel credit).

Exported gasoline blendstocks. Claims for exported 

gasoline blendstocks taxed at $.001 per gallon are made on 

Schedule C, line 14b. 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, go to Excise Tax e-File & Compliance (ETEC) 

Programs - Forms 720, 2290, and 8849.

Federal tax deposits made by electronic funds transfer 

(EFT). Generally, you must use EFT to make federal tax 

deposits, such as deposits of employment tax, excise tax (for 

exceptions, see Payment of Taxes, later), and corporate 

income tax. Generally, EFTs are made using the Electronic 

Federal Tax Payment System (EFTPS). If you don't want to 

use EFTPS, you can arrange for your tax professional, 

financial institution, payroll service, or other trusted third party 

to make deposits on your behalf. EFTPS is a free service 

provided by the Department of the Treasury.

To get more information about EFTPS or to enroll in 

EFTPS, go to EFTPS.gov or call 800-555-4477. See Pub. 

966.

General Instructions

Purpose of Form

Use Form 720 and attachments to report your liability by IRS 

No. and pay the excise taxes listed on the form. If you report a 

liability on Part I or II, you may be eligible to use Schedule C 

to claim a credit.

Who Must File

See Patient-centered outcomes research (PCOR) fee 

(IRS No. 133), later, in Part II for special rules about 

who must file to report the PCOR fee.

You must file Form 720 if:

• You were liable for, or responsible for collecting, any of the 

federal excise taxes listed on Form 720, Parts I and II, for a 

prior quarter and you haven’t filed a final return; or

• You are liable for, or responsible for collecting, any of the 

federal excise taxes listed on Form 720, Parts I and II, for the 

current quarter.

See How To File, later, for more information.

When To File

You must file a return for each quarter of the calendar year as 

follows.

Quarter covered Due by

Jan., Feb., Mar. April 30

Apr., May, June July 31

July, Aug., Sept. October 31

Oct., Nov., Dec. January 31

If any due date for filing a return falls on a Saturday, 

Sunday, or legal holiday, you may file the return on the next 

business day.

CAUTION

!

Send your return to the IRS using the U.S. Postal Service 

or a designated private delivery service to meet the “timely 

mailing as timely filing/paying” rule. See Private Delivery 

Services (PDSs), later.

Floor stocks tax. Report the floor stocks tax on 

ozone-depleting chemicals (ODCs), IRS No. 20, on the return 

due by July 31 of each year. The tax payment is due by June 

30. See Floor Stocks Tax, later.

Where To File

Send Form 720 to:

Department of the Treasury

Internal Revenue Service

Ogden, UT 84201-0009

How To File

If you aren't reporting a tax that you normally report, enter a 

zero on the appropriate line on Form 720, Part I or II. Also, if 

you have no tax to report, enter “None” on Form 720, Part III, 

line 3; and sign and date the return. If you file the second 

quarter Form 720 only to report the PCOR fee, no filing is 

required in other quarters unless you have to report other 

fees or taxes.

If you have adjustments to liabilities reported for prior 

quarters, see Form 720-X, Amended Quarterly Federal 

Excise Tax Return. Don't enter adjustments on Form 720.

If you attach additional sheets, enter your name and 

employer identification number (EIN) on each sheet.

Final Return

File a final return if you have been filing Form 720 and you:

1. Go out of business, or

2. Won't owe excise taxes that are reportable on Form 

720 in future quarters.

If you are only filing to report zero tax and you won't 

owe excise tax in future quarters, check the Final 

return box above Part I of Form 720.

Recordkeeping

Keep copies of your tax return, records, and accounts of all 

transactions to show that the correct tax has been paid. Keep 

records to support all claims and all exemptions at least 4 

years from the latest of the date:

• The tax became due,

• You paid the tax, or

• You filed a claim.

Penalties and Interest

If you receive a notice about a penalty after you file this 

return, reply to the notice with an explanation and we will 

determine if you meet reasonable-cause criteria. Don't 

include an explanation when you file your return.

Trust fund recovery penalty. If communications, air 

transportation, and indoor tanning services taxes are 

collected but not paid to the U.S. Treasury or are willfully not 

collected, the trust fund recovery penalty may apply. The 

penalty is the full amount of the unpaid tax.

The trust fund recovery penalty may be imposed on all 

persons who are determined by the IRS to be responsible for 

collecting, accounting for, and paying over these taxes, and 

who acted willfully in not doing so.

TIP

2 Instructions for Form 720 (Rev. 09-2024)
A responsible person can be an officer or employee of a 

corporation, a partner or employee of a partnership, an 

employee of a sole proprietorship, an accountant, or a 

volunteer director/trustee. A responsible person may also 

include one who signs checks for the business or otherwise 

has authority to cause the spending of business funds.

Willfully means voluntarily, consciously, and intentionally. A 

responsible person acts willfully if they know the required 

actions aren't taking place.

Additional Information

You may find the following products helpful when preparing 

Form 720 and any attachments.

• Pub. 510, Excise Taxes, contains definitions and examples 

that will help you prepare Form 720. Pub. 510 also contains 

information on fuel tax credits and refunds.

• Pub. 509, Tax Calendars, has deposit and payment due 

dates for federal excise taxes listed in this publication.

• Notice 2005-4 (fuel tax guidance), 2005-2 I.R.B. 289, at 

IRS.gov/IRB/2005-02_IRB#NOT-2005-4.

• Notice 2005-24 (sales of gasoline on oil company credit 

cards), 2005-12 I.R.B. 757, at

IRS.gov/IRB/2005-12_IRB#NOT-2005-24.

• Notice 2005-62 (biodiesel and aviation-grade kerosene), 

2005-35 I.R.B. 443, at

IRS.gov/IRB/2005-35_IRB#NOT-2005-62.

• Notice 2005-80 (LUST, kerosene, claims by credit card 

issuers, and mechanical dye injection), 2005-46 I.R.B. 953, 

at IRS.gov/IRB/2005-46_IRB#NOT-2005-80.

• Notice 2006-92 (alternative fuels and mixtures), 2006-43 

I.R.B. 774, at

IRS.gov/IRB/2006-43_IRB#NOT-2006-92.

• Notice 2007-97 (alternative fuel and alternative fuel 

mixtures), 2007-49 I.R.B. 1092, at

IRS.gov/IRB/2007-49_IRB#NOT-2007-97.

• Notice 2008-110 (biodiesel and cellulosic biofuel), 

2008-51 I.R.B. 1298, at

IRS.gov/IRB/2008-51_IRB#NOT-2008-110.

• Notice 2010-68 (Alaska dyed diesel exemption), 2010-44 

I.R.B. 576, at IRS.gov/IRB/2010-44_IRB#NOT-2010-68.

• Notice 2012-27 (fractional aircraft), 2012-17 I.R.B. 849, at 

IRS.gov/IRB/2012-17_IRB#NOT-2012-27.

• T.D. 9670 (tanning tax), 2014-29 I.R.B. 121, at 

IRS.gov/IRB/2014-29_IRB#TD-9670.

• T.D. 9621 (indoor tanning), 2013-28 I.R.B. 49, at 

IRS.gov/IRB/2013-28_IRB#TD-9621.

• Rev. Rul. 2016-03 (foreign reinsurance), 2016-3 I.R.B. 282, 

at IRS.gov/IRB/2016-03_IRB#RR-2016-03.

• Rev. Rul. 2018-02 (butane mixture) at IRS.gov/IRB/

2006-92_IRB#RR-2018-02.

• Rev. Proc. 2023-34 (inflation adjustments), 2023-48 I.R.B., 

at IRS.gov/IRB/2023-48_IRB#REV-PROC-2023-34.

• Notice 2023-70 (patient-centered outcomes research 

(PCOR) fee), 2023-45 I.R.B. 12288, at IRS.gov/IRB/

2023-45_IRB#NOT-2023-70.

• T.D. 9948 (exemption for amounts paid for certain aircraft 

management services) at IRS.gov/IRB/

2021-06_IRB#TD-9948.

• Notice 2023-6 (sustainable aviation fuel credit) at 

IRS.gov/IRB/2023-02_IRB#NOT-2023-6.

• Announcement 2023-18 (stock buybacks) at IRS.gov/IRB/

2023-30_IRB#ANN-2023-18.

• Notice 2023-52 (sales of a designated drug during 

statutory period) at IRS.gov/IRB/

2023-35_IRB#NOT-2023-52.

• Notice 2023-28 (reinstatement of the Superfund excise 

taxes) at IRS.gov/IRB/2023-15_IRB#NOT-2023-28.

• Rev. Proc. 2022-26 (request a determination that a 

substance be added to or removed from the list of taxable 

substances) at IRS.gov/IRB/2022-29_IRB#REVPROC-2022-26.

• Rev. Proc. 2023-20 (modifies the effective date of 

additions to the list of taxable substances) at IRS.gov/IRB/

2023-15_IRB#REV-PROC-2023-20.

• Notice 2024-6 (sustainable aviation fuel credit safe 

harbors) at IRS.gov/IRB/2024-02_IRB#NOT-2024-6.

• Reg-115710-22, page 1070 (Excise Tax on Repurchase of 

Corporate Stock) atIRS.gov/IRB/

2024-20_IRB#REG-115710-22.

• T.D. 10002, (SAF GREET Model) at IRS.gov/IRB/

2024-29_IRB#TD-10002.

Private Delivery Services (PDSs)

You can use PDSs designated by the IRS to meet the “timely 

mailing as timely filing/paying” rule for tax returns and 

payments. Go to IRS.gov/PDS for the current list of 

designated services. The PDS can tell you how to get written 

proof of the mail date. For the IRS mailing address to use if 

you are using a PDS, go to IRS.gov/PDSStreetAddresses.

PDSs can’t deliver items to P.O. boxes. You must use 

the U.S. Postal Service to mail any item to an IRS 

P.O. box address.

Photographs of Missing Children

The IRS is a proud partner with the National Center for 

Missing & Exploited Children® (NCMEC). Photographs of 

missing children selected by the Center may appear in 

instructions on pages that would otherwise be blank. You can 

help bring these children home by looking at the photographs 

and calling 1-800-THE-LOST (1-800-843-5678) if you 

recognize a child.

Specific Instructions

Name and Address

Enter your name, your address, and the quarter ending date 

(month and year). If your address changes, check the 

address change box above Form 720, Part I.

P.O. box. If the post office doesn't deliver mail to the street 

address and you have a P.O. box, show the box number 

instead of the street address.

Foreign address. Follow the country's practice for entering 

the postal code. Don't abbreviate the country name.

Employer Identification Number (EIN)

Enter the correct EIN. If you are a one-time filer, you may not 

need an EIN. See Gas guzzler tax (IRS No. 40), later. If you 

don't have an EIN, you may apply for one online by going to 

IRS.gov/EIN. You may also apply for an EIN by faxing or 

mailing Form SS-4, Application for Employer Identification 

Number, to the IRS.

Disregarded entities and qualified subchapter S subsidiaries (QSubs). QSubs and eligible single-owner 

disregarded entities are treated as separate entities for 

excise tax and reporting purposes. QSubs and eligible 

single-owner disregarded entities must pay and report excise 

taxes (other than IRS Nos. 31, 51, and 117), register for most 

excise tax activities, and claim any refunds, credits, and 

CAUTION

!

Instructions for Form 720 (Rev. 09-2024) 3
payments under their EINs. These actions can't take place 

under the owner's taxpayer identification number (TIN). 

Some QSubs and disregarded entities may already have 

EINs. However, if you are unsure, please call the IRS 

Business and Specialty Tax Line at 800-829-4933.

Generally, QSubs and eligible single-owner disregarded 

entities will continue to be treated as disregarded entities for 

other federal tax purposes (other than employment taxes). 

Thus, taxpayers filing Form 4136, Credit for Federal Tax Paid 

on Fuels, with Form 1040, U.S. Individual Income Tax Return, 

or 1040-SR, U.S Tax Return for Seniors, can use the owner's 

TIN. For more information, see Regulations section 

301.7701-2(c)(2).

Signature

Form 720 must be signed by a person authorized by the 

entity to sign this return.

Third Party Designee

If you want to allow an employee of your business, a return 

preparer, or another third party to discuss your Form 720 with 

the IRS, check the “Yes” box on Form 720 under Third Party 

Designee. Also, enter the designee's name and phone 

number, and any five digits that person chooses as their 

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 won't send 

notices to your designee.

You aren't 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 Pub. 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 wants to revoke this 

authorization, send a written statement of revocation to:

Department of the Treasury

Internal Revenue Service

Cincinnati, OH 45999

See Pub. 947 for more information.

Paid Preparer Use Only

A paid preparer must sign Form 720 and provide the 

information in the Paid Preparer Use Only section at the end 

of the form if the preparer was paid to prepare the form and 

isn't an employee of the filing entity. The preparer must give 

you a copy of the form in addition to the copy to be filed with 

the IRS. If you are a paid preparer, enter your Preparer Tax 

Identification Number (PTIN) in the space provided. Include 

your complete address. If you work for a firm, you must also 

enter the firm’s name and the EIN of the firm. However, you 

can't use the EIN of the tax preparation firm in place of your 

PTIN. You can apply for a PTIN online or by filing Form W-12, 

IRS Paid Preparer Tax Identification Number (PTIN) 

Application and Renewal. For more information about 

applying for a PTIN online, go to IRS.gov/PTIN.

Part I

Environmental Taxes

Use Form 6627, Environmental Taxes, to figure the 

environmental taxes on the following.

• Domestic petroleum superfund tax, IRS No. 53.

• Chemicals (other than ODCs), IRS No. 54.

• Imported chemical substances, IRS No. 17.

• Imported petroleum products superfund tax, IRS No. 16.

• 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.

• The floor stocks tax on ODCs, IRS No. 20 (reported on 

Form 720, Part II).

Attach Form 6627 to Form 720. The tax rates for these 

taxes are shown on Form 6627.

Communications Taxes

Communications Services (IRS No. 22)

The tax is 3% of amounts paid for local telephone service 

and teletypewriter exchange service.

Who Must File

The person receiving the payment for communications 

services must collect and submit the tax and file the return. 

Enter the amount of tax collected or considered collected for 

the quarter.

Credits or Refunds

If tax is collected and paid over for nontaxable services from 

the communications tax, the collector may request a credit or 

refund as described below.

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 720-X 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 (IRS Nos. 22, 26, 

27, and 28), later.

Air Transportation Taxes

Transportation of Persons by Air (IRS No. 26)

The taxes on transportation of persons by air are 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.

Note. The percentage and domestic segment taxes don't 

apply on a flight if the surtax on fuel used in a fractional 

ownership program aircraft is imposed. For more information, 

4 Instructions for Form 720 (Rev. 09-2024)
see Surtax on any liquid used in a fractional ownership 

program aircraft as fuel (IRS No. 13), later.

Who Must File

The person receiving the payment for air transportation 

services must do all of the following.

• Collect the tax.

• Submit the tax.

• File Form 720 to report the amount of the tax collected, or 

considered collected, for the quarter.

Exemption for amounts paid for aircraft management 

services. Effective December 23, 2017, certain payments 

related to the management of private aircraft are exempt from 

the excise taxes imposed on taxable transportation by air. 

See Pub. 510.

Percentage tax. The percentage tax is 7.5% of amounts 

paid for taxable transportation of persons by air.

Domestic segment tax. For calendar year 2024, the tax on 

the amount paid for each domestic segment of taxable 

transportation is $5.00.

Example. In January 2024, Frank Jones pays $268.00 to 

a commercial airline for a flight in January from Washington 

to Chicago with a stopover in Cleveland. The flight has two 

segments. The price includes the $240 fare and $28.00 

excise tax [($240 × 7.5%) + (2 × $5.00)] for which Frank is 

liable. The airline collects the tax from Frank and submits it to 

the government.

Charter flights. If an aircraft is chartered, and the flight 

isn't one where the tax on fuel used in a fractional ownership 

program aircraft is imposed, the domestic segment tax for 

each segment of taxable transportation is figured by 

multiplying the tax by the number of passengers transported 

on the aircraft.

Example. In March 2024, Tim Clark pays $1,145.00 to an 

air charter service to carry seven employees from 

Washington to Detroit with a stopover in Pittsburgh. The flight 

has two segments. The price includes the $1,000 charter 

payment and $145.00 excise tax [($1,000 × 7.5%) + (2 × 

$5.00 × 7 passengers)] for which Tim is liable. The charter 

service collects the tax from Tim and submits it to the 

government.

Rural airports. If a segment is to or from a rural airport, 

the domestic segment tax doesn't apply.

Transportation of Property by Air (IRS No. 28)

The tax is 6.25% of amounts paid for transportation of 

property by air. The tax doesn't apply if the surtax on fuel 

used in a fractional ownership program aircraft is imposed. 

See Surtax on any liquid used in a fractional ownership 

program aircraft as fuel (IRS No. 13), later.

Use of International Air Travel Facilities

(IRS No. 27)

For calendar year 2024, the section 4261 excise tax on any 

amount paid for international air transportation, if the 

transportation begins or ends in the United States, is 

generally $22.20. However, a lower rate of tax applies to a 

domestic segment beginning or ending in Alaska or Hawaii, 

and the tax applies only to departures. For calendar year 

2024, the rate of tax is $11.10.

Communications and Air Transportation 

Taxes—Uncollected Tax Report

A separate report is required to be filed by collecting agents 

of communications services (local and teletypewriter 

services) 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's 

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 (IRS 

Nos. 22, 26, 27, and 28), later.

Where to file your uncollected tax report. Don't file the 

uncollected tax report with Form 720. Instead, mail the 

report to:

Department of the Treasury

Internal Revenue Service

Cincinnati, OH 45999

Fuel Taxes

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 Pub. 510.

The person who paid the first tax must do all of the 

following.

• 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.

• Enter “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 (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 by blending biodiesel with taxed 

diesel outside of the bulk transfer/terminal system, report 

these gallons of biodiesel on line 60(c). If you report gallons 

on line 60(c), don't report those gallons on line 60(b).

Multiply the total number of gallons subject to tax on lines 

60(a), 60(b), and 60(c) by $.244 and make one entry in the 

tax column.

See Schedule T. Two-Party Exchange Information 

Reporting, later, if applicable.

Diesel-water emulsion (IRS No. 104). If you are liable for 

the reduced rate (see below) of tax on a diesel-water 

Instructions for Form 720 (Rev. 09-2024) 5
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 

emulsion must contain at least 14% water; (b) the emulsion 

additive must be registered by a U.S. manufacturer with the 

Environmental Protection Agency (EPA) under the Clean Air 

Act, section 211 (as in effect on March 31, 2003); and (c) the 

taxpayer must be registered by the IRS. If these requirements 

aren't met, you must report the sale, removal, or use of a 

diesel-water emulsion as diesel.

IRS Nos. 105, 107, and 119. Tax is imposed at $.001 per 

gallon on removals, entries, and sales of gasoline, diesel, and 

kerosene described as exempt transactions. Multiply the total 

number of gallons subject to tax for each fuel by $.001 and 

enter the amount in the tax column for the following IRS Nos.

• IRS No. 105, dyed diesel, 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 or kerosene sold or used in Alaska.

Kerosene (IRS No. 35). If you are liable for the kerosene tax 

on removal at the terminal rack (not located at an airport), 

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 

35(a) and 35(b) by $.244 and make one entry in the tax 

column.

See Schedule T. Two-Party Exchange Information 

Reporting, later, if applicable.

Kerosene for use in aviation (IRS Nos. 69, 77, and 111). 

Generally, kerosene is taxed at $.244 per gallon unless a 

reduced rate applies. See Kerosene for Use in Aviation in 

Pub. 510 for more details about these reduced rates.

• If you're liable for kerosene tax on removal directly from a 

terminal into the fuel tank of an aircraft for use in aviation, the 

tax rate is $.219 per gallon. This rate applies to kerosene 

used in noncommercial aviation. This rate can also apply to 

kerosene used in commercial aviation or for nontaxable 

aviation uses if the requirements for a further reduced rate 

aren't met. Report these gallons on the line for IRS No. 69.

• If you're liable for kerosene tax on removal directly from a 

terminal into the fuel tank of an aircraft for use in commercial 

aviation (other than foreign trade), the tax rate is $.044 per 

gallon. Report these gallons on the line for IRS No. 77. The 

line for IRS No. 77 is only applicable to registered 

commercial aviation operators (Form 637 "Y" Registrant).

• If you’re liable for kerosene tax on removal directly from a 

terminal into the fuel tank of an aircraft for nontaxable uses, 

the tax rate is $.001. Report these gallons on the line for IRS 

No. 111.

See Pub. 510 for foreign trade rules.

Note. Fuel used in a fractional ownership program aircraft is 

also subject to a surtax of $.141 per gallon. For more 

information, see Surtax on any liquid used in a fractional 

ownership program aircraft as fuel (IRS No. 13), later.

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. 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 ................. $.184

Methanol produced from coal ................ .184

Partially exempt—

Ethanol produced from natural gas ............. .114

Methanol produced from natural gas ............ .0925

B-100 (100% biodiesel) ...................... .244

Liquefied gas derived from biomass .............. .184

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(b).

Multiply the total number of gallons subject to tax on lines 

62(a) and 62(b) by $.184. Combine the tax for lines 62(a) and 

62(b) and make one entry in the tax column.

See Schedule T. Two-Party Exchange Information 

Reporting, later, if applicable.

Surtax on any liquid used in a fractional ownership program aircraft as fuel (IRS No. 13). Fuel used in a fractional 

ownership program aircraft, as defined below, after March 31, 

2012, is subject to a surtax of $.141 per gallon. The fractional 

ownership program manager is liable for the surtax. If you are 

liable, report these gallons on the line for IRS No. 13.

The surtax applies in addition to any other taxes imposed 

on the removal, entry, use, or sale of the fuel. If the surtax is 

imposed, the flight isn't considered commercial aviation. 

Instead, the tax on the fuel used in the flight is imposed at the 

noncommercial aviation rate of $.219 per gallon (IRS No. 69).

If the surtax is imposed, the following taxes don't apply.

• Transportation of persons by air (IRS No. 26).

• Transportation of property by air (IRS No. 28).

• Use of international air travel facilities (IRS No. 27).

Fractional ownership aircraft program is a program 

under which:

• A single fractional ownership program manager provides 

fractional ownership program management services on 

behalf of the fractional owners;

• There are one or more fractional owners per fractional 

program aircraft, with at least one fractional program aircraft 

having more than one owner;

• For at least two fractional program aircraft, none of the 

ownership interests in the aircraft are less than the minimum 

fractional ownership interest or held by the program 

manager;

• There exists a dry-lease aircraft exchange arrangement 

among all of the fractional owners; and

• There are multi-year program agreements covering the 

fractional ownership, fractional ownership program 

management services, and dry-lease aircraft exchange 

aspects of the program.

6 Instructions for Form 720 (Rev. 09-2024)
Fractional program aircraft. Any aircraft that, in any 

fractional ownership aircraft program, is listed as a fractional 

program aircraft in the management specifications issued to 

the manager of such program by the Federal Aviation 

Administration under subpart K of part 91, title 14, Code of 

Federal Regulations, and is registered in the United States.

Fractional program aircraft aren't considered used for 

transportation of a qualified fractional owner, or on account of 

such qualified fractional owner, when they are used for flight 

demonstration, maintenance, or crew training. In such 

situations, the flight isn't commercial aviation. Instead, the tax 

on the fuel used in the flight is imposed at the noncommercial 

aviation rate.

Fractional owner. Any person owning any interest 

(including the entire interest) in a fractional program aircraft.

Dry-lease aircraft exchange. An agreement, documented 

by the written program agreements, under which the 

fractional program aircraft are available, on an as-needed 

basis without crew, to each fractional owner.

Special rule relating to deadhead service. A fractional 

program aircraft won't be considered to be used on account 

of a qualified fractional owner when it's used in deadhead 

service and a person other than a qualified fractional owner is 

separately charged for such service.

More information. See section 4043 for more information 

on the surtax.

Aviation gasoline (IRS No. 14). Aviation gasoline is taxed 

at the rate shown on Form 720.

Also, a surtax of $.141 per gallon applies on fuel used in 

an aircraft which is part of a fractional ownership program.

For further information on fractional ownership program 

aircraft, see Surtax on any liquid used in a fractional 

ownership program aircraft as fuel (IRS No. 13), earlier.

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 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 No.

Liquefied petroleum gas (LPG) 112

“P Series” fuels 118

Compressed natural gas (CNG) 120

Liquefied hydrogen 121

Fischer-Tropsch process liquid fuel from coal 

(including peat)

122

Liquid fuel derived from biomass 123

Liquefied natural gas (LNG) 124

For sales or uses after 2015, the following gasoline gallon 

equivalent (GGE) or diesel gallon equivalent (DGE) applies.

• LPG (includes propane, pentane, or mixtures of those 

gases), taxed at $.183 per GGE, has a GGE of 5.75 pounds 

or 1.353 gallons of LPG.

• LNG, taxed at $.243 per DGE, has a DGE of 6.06 pounds 

or 1.71 gallons of LNG.

• CNG, taxed at $.183 per GGE, has a GGE of 5.66 pounds 

or 123.57 cubic feet of CNG.

Example. 10,000 gallons of LNG ÷ 1.71 = 5,848 DGE x 

$.243 = $1,421.06 tax.

Retail Tax

Truck, Trailer, and Semitrailer Chassis and Bodies, 

and Tractors (IRS No. 33)

The tax is 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 GVW 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 tax imposed on parts and accessories sold on or in 

connection with the units listed above and the tax imposed 

on the separate purchase of parts and accessories for the 

units listed above don't apply to an idling reduction device, 

described next, or to insulation that has an R value of at least 

R35 per inch.

Idling reduction device. Any device or system of devices 

that provides the tractor with services, such as heat, air 

conditioning, and electricity, without the use of the main drive 

engine while the tractor is temporarily parked or stationary. 

The device must be affixed to the tractor and determined by 

the Administrator of the EPA, in consultation with the 

Secretary of Energy and Secretary of Transportation, to 

reduce idling while parked or stationary.

Figure the tax for each vehicle sold and enter the total for 

the quarter on the line for IRS No. 33.

Gross vehicle weight (GVW). The GVW means the 

maximum total weight of a loaded vehicle. Generally, this 

maximum total weight is the GVW rating provided by the 

manufacturer or determined by the seller of the completed 

article. The seller's GVW 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 GVW. 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.

Instructions for Form 720 (Rev. 09-2024) 7
Section 4051(d) tire credit. A tax credit may be claimed 

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 14a.

Ship Passenger Tax

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.

Other Excise Tax

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.

Foreign Insurance Taxes

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.

Section 4371(3) tax on foreign reinsurance premiums 

no longer applies. The 1% tax doesn’t apply to premiums 

paid on a policy of reinsurance issued by one foreign 

reinsurer to another foreign insurer or reinsurer, under the 

situations described in Rev. Rul. 2008-15, 2008-12 I.R.B. 

633. See Rev. Rul. 2016-03, 2016-3 I.R.B. 282, available at 

IRS.gov/IRB/2016-03_IRB#RR-2016-03.

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 first 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, enter “Section 6114 Treaty.” If you 

have no other transactions reportable on Form 720, complete 

Form 720 as follows.

1. If this is your final return, check the Final return box.

2. Enter “None” on lines 1 and 3.

3. Sign the return.

You need an EIN to file Form 720. If you don't have an EIN, 

see Employer Identification Number (EIN), earlier.

Where to file your treaty-based return positions under 

section 6114. All filers should mail Form 720 with the 

attached Form 8833 or disclosure statement to the address 

listed under Where To File, earlier. See the Caution under 

Private Delivery Services (PDSs), earlier.

Manufacturers Taxes

Don't include the excise tax on coal in the sales price 

when determining which tax rate to use for IRS Nos. 

36, 37, 38, and 39.

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% 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% 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 

bias ply 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. Enter the number of tires for 

each IRS No.

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 

bias ply or super single 

tires

$.0945

109

Taxable tires, bias ply 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 bias ply 

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 two tires in a dual fitment, but doesn't include any 

tire designed for steering.

CAUTION

!

8 Instructions for Form 720 (Rev. 09-2024)
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 don't import gas guzzling automobiles in the course of 

your trade or business.

• You aren't 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.

1. File Form 720 for the quarter in which you incur liability 

for the tax. See When To File, earlier.

2. Pay the tax with Form 720. No deposits are required.

3. If you are an individual and don't have an EIN, enter 

your social security number (SSN) or individual taxpayer 

identification number (ITIN) on Form 720 and Form 720-V, 

Payment Voucher, in the space for the EIN.

4. 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 

pneumonia; or

• Any trivalent vaccine against seasonal influenza or any 

other vaccine against seasonal influenza.

The effective date for the tax on any other vaccine against 

seasonal influenza is the later of August 1, 2013, or the date 

the Secretary of the Department of Health and Human 

Services lists a vaccine against seasonal influenza for 

purposes of compensation for any vaccine-related injury or 

death through the Vaccine Injury Compensation Trust Fund.

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.

Part II

Patient-centered outcomes research (PCOR) fee (IRS 

No. 133). The PCOR fee is imposed on issuers of specified 

health insurance policies (section 4375) and plan sponsors of 

applicable self-insured health plans (section 4376) for policy 

and plan years ending on or after October 1, 2012. Generally, 

references to taxes on Form 720 include this fee.

Specified health insurance policies. For issuers of 

specified health insurance policies, the fee for a policy year 

ending on or after October 1, 2023, but before October 1, 

2024, is $3.22 (line 133(b)) ($3.00 for a policy year ending on 

or after October 1, 2022, but before October 1, 2023 

(line 133(a)), multiplied by the average number of lives 

covered under the policy for that policy year. Generally, 

issuers of specified health insurance policies must use one of 

the following four alternative methods to determine the 

average number of lives covered under a policy for the policy 

year.

1. The actual count method.

2. The snapshot method.

3. The member months method.

4. The state form method.

Applicable self-insured health plans. For plan sponsors 

of applicable self-insured health plans, the fee for a plan year 

ending on or after October 1, 2023, but before October 1, 

2024, is $3.22 (line 133(d)) ($3.00 for a policy year ending on 

or after October 1, 2022, but before October 1, 2023 

(line 133(c)), multiplied by the average number of lives 

covered under the plan for that plan year. Generally, plan 

sponsors of applicable self-insured health plans must use 

one of the following three alternative methods to determine 

the average number of lives covered under a plan for the plan 

year.

1. Actual count method.

2. Snapshot method.

3. Form 5500 method.

Reporting and paying the fee. File Form 720 annually to 

report and pay the fee on the second quarter Form 720 no 

later than July 31 of the calendar year immediately following 

the last day of the policy year or plan year to which the fee 

applies. Because the rate used to determine the fee varies 

from year to year, you should determine the fee using the 

instructions for the second quarter Form 720. If you file Form 

720 only to report the fee, don't file Form 720 for the first, 

third, or fourth quarter of the year. If you file Form 720 to 

report quarterly excise tax liability for the first, third, or fourth 

quarter of the year (for example, filers reporting the foreign 

insurance tax (IRS No. 30), don't make an entry on the line for 

IRS No. 133 on those filings).

Deposits aren't required for this fee, so issuers and plan 

sponsors aren't required to pay the fee using EFTPS. 

However, if the fee is paid using EFTPS, the payment should 

be applied to the second quarter. See Electronic deposit 

requirement under Payment of Taxes, later.

Report the average number of lives covered in column (a). 

Apply the applicable rate ((b) Rate for avg. covered life) and 

enter the fee in column (c).

Combine the fees for specified health insurance policies 

and applicable self-insured health plans and enter the total in 

the tax column on the line for IRS No. 133.

More information. For more information, including 

methods for calculating the average number of lives covered, 

see sections 4375, 4376, and 4377.

Sport fishing equipment (other than fishing rods and 

fishing poles) (IRS No. 41). The tax on sport fishing 

equipment is 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 

Pub. 510 for a complete list of taxable articles. Add the tax on 

Instructions for Form 720 (Rev. 09-2024) 9
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% 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% 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% 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 

increased to $0.62 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.

Exemption for certain wooden arrows. The tax doesn't 

apply to any shaft made of all natural wood with no 

laminations or artificial means of enhancing the spine of such 

shaft (whether sold separately or incorporated as part of a 

finished or unfinished product) and used in the manufacture 

of any arrow which after its assembly meets both of the 

following conditions.

• It measures 5/16 of an inch or less in diameter.

• It isn't 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.

Indoor Tanning Services Tax

Indoor tanning services (IRS No. 140). The tax on indoor 

tanning service is 10% of the amount paid for that service. 

The tax is paid by the person paying for the indoor tanning 

service and is collected by the person receiving payment for 

the indoor tanning services.

Who must file. The person receiving the payment for indoor 

tanning services (collector) must collect and remit the tax and 

file the return. If the tax isn't collected for any reason, the 

collector is liable for the tax.

Definition of indoor tanning services. Indoor tanning 

service means a service employing any electronic product 

designed to incorporate one or more ultraviolet lamps and 

intended for the irradiation of an individual by ultraviolet 

radiation, with wavelengths in air between 200 and 400 

nanometers, to induce skin tanning. The term doesn't include 

phototherapy service performed by, and on the premises of, a 

licensed medical professional (such as a dermatologist, 

psychologist, or registered nurse). See Regulations section 

49.5000B-1 for more information and special rules for 

qualified physical fitness facilities, undesignated payment 

cards, and bundled payments.

Enter the amount of indoor tanning services tax collected 

(or due for failing to collect the tax) for the quarter on the line 

for IRS No. 140.

Other Part II Taxes

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 (discussed 

next).

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.

Leaking underground storage tank (LUST) tax on inland 

waterways fuel use (IRS No. 125). The LUST tax must be 

paid on any liquid fuel used on inland waterways that isn't 

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.

Section 40 fuels (IRS No. 51). An excise tax is imposed 

(recaptured) if you claim the second generation biofuel 

producer credit and you don't use the fuel for the purposes 

described under Qualified Second Generation Biofuel 

Production in the Instructions for Form 6478, Biofuel 

Producer Credit. When recapturing, you must pay a tax on 

each gallon of second generation biofuel at the rate you used 

to figure the credit.

The tax rate for second generation biofuel is $1.01 per 

gallon. Fill in the number of gallons and the appropriate rate 

in the Rate column on the line for IRS No. 51.

Biodiesel sold as, but not used as, fuel (IRS No. 117). 

You must pay a tax (recapture) on each gallon of biodiesel or 

renewable diesel on which a credit was claimed at the rate 

used to figure the credit if you:

• Use it (including a mixture) other than as a fuel;

• Buy it at retail and use it to create a mixture;

• Separate it from a mixture; or

• Use agri-biodiesel on which the small agri-biodiesel 

producer credit was claimed for a use not described under 

Qualified Agri-Biodiesel Production in the Instructions for 

Form 8864, Biodiesel, Renewable Diesel, or Sustainable 

Aviation Fuels Credit.

The tax is $1.00 per gallon of biodiesel, agri-biodiesel, and 

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.

CAUTION

!

10 Instructions for Form 720 (Rev. 09-2024)
Floor Stocks Tax

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 the Form 720 

that is due July 31 of each year.

Excise Tax on Repurchase of Corporate Stock

IRS No. 150. Use Form 7208 to figure the liability for this tax. 

Enter the amount from Form 7208, Part V, line 11. Attach your 

Form 7208 to your Form 720, due for the first full quarter after 

the close of your tax year.

T.D. 10002 makes the first due date for reporting and 

paying the tax October 31, 2024. This due date 

applies for full 12-month calendar tax year 2023 

stock repurchases. If you have more than 1 tax year ending 

after 2022, and on or before June 28, 2024, you should file a 

single Form 720 with two separate Forms 7208 attached (one 

for each tax year). For a tax year ending on or after June 28, 

2024, the due date is the due date of the Form 720 for the 

first full quarter after that year end.

Sales of Designated Drugs During Statutory 

Periods

IRS No. 142. Section 5000D imposes an excise tax on the 

sale by the manufacturer, producer, or importer of any 

designated drug during a day that falls within a period 

described in section 5000D(b). Under proposed regulations, 

REG-11669-23 (also see Notice 2023-52), you’ll be required 

to report any section 5000D drug tax liability on your Form 

720.

These proposed regulations, once adopted as final 

regulations in a T.D. published in the Federal Register, will 

apply to calendar quarters beginning on or after October 1, 

2023. You may rely on these proposed regulations for your 

returns beginning on October 1, 2023 (4th quarter), and 

before the date the T.D. is published.

Because the T.D. may not be published timely by the due 

date of your Form 720 return, you may be required to file 

Form 720-X, Amended Quarterly Federal Excise Tax Return, 

once the TD is published to report revisions to your originally 

reported section 5000D liability.

Part III

Line 4. Report on Form 720, line 4, the total claims from 

Schedule C, line 15. See Schedule C. Claims, later.

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 720-X, 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 on 

line 10. You don't 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, don't file Form 720-V.

CAUTION

!

CAUTION

!

If you don't deposit as required and instead pay the 

taxes with Form 720, you may be subject to a penalty.

Payment of Taxes

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 on Form 720, Part I, doesn't 

exceed $2,500 for the quarter.

• The gas guzzler tax is being paid on a one-time filing. See 

Gas guzzler tax (IRS No. 40), earlier.

• The PCOR fee is being paid with a second quarter Form 

720. See Patient-centered outcomes research (PCOR) fee 

(IRS No. 133), earlier.

• The liability is for taxes listed on Form 720, Part II, except 

the floor stocks tax, which generally requires a single deposit.

Special rule for deposits of taxes in September 2024. If 

you are required to make deposits, see the chart below. The 

special rule doesn't apply to taxes not required to be 

deposited (see Payment of Taxes, earlier). 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 2024

Type of tax 

For the period 

Beginning on Ending on Due date 

Regular 

method taxes 

Sept. 16 Sept. 26 Sept. 27

Alternative 

method taxes 

(IRS Nos. 22, 

26, 27, and 28) 

(based on 

amounts billed)

Sept. 1 Sept. 11 Sept. 27

Using the regular method: For the remaining days in 

September (27–30), make your deposits by the 11th 

day of October. Using the alternative method: For the 

remaining days in September (12–30), see Pub. 509 for 

deposit dates.

How To Make Deposits

To avoid a penalty, make your deposits timely and don't 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 deposit all 

depository taxes (such as excise tax, employment tax, or 

corporate income tax) by EFT.

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).

If a deposit is due on a day that isn't a business day or that 

is a legal holiday, see When To Make Deposits, later. The 

term “legal holiday” means any legal holiday in the District of 

Columbia.

Same-day wire payment option. If you fail to submit a 

deposit transaction on EFTPS by 8:00 p.m. Eastern time the 

day before the date a deposit is due, you can still make your 

CAUTION

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CAUTION

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Instructions for Form 720 (Rev. 09-2024) 11
deposit on time by using the Federal Tax Collection Service 

(FTCS). To use the same-day wire payment method, you will 

need to make arrangements with your financial institution 

ahead of time. Please check with your financial institution 

regarding availability, deadlines, and costs. Your financial 

institution may charge you a fee for payments made this way. 

To learn more about the information you will need to provide 

your financial institution to make a same-day wire payment, 

go to IRS.gov/SameDayWire.

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.

When To Make Deposits

There are two methods for determining deposits: the regular 

method and the alternative method.

The regular method applies to all taxes on Form 720, Part 

I, 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 

(IRS Nos. 22, 26, 27, and 28) 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 isn't 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 third business day after the 

seventh day of that period.

Example. The tax included in amounts billed or tickets 

sold for the period June 16–30, 2024, is considered collected 

from July 16–22, 2024, and must be deposited by July 25, 

2024.

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 first quarter of the calendar year.

The separate account for each month must reflect:

1. All items of tax included in amounts billed or tickets 

sold during the month, and

2. 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 can't include an 

adjustment resulting from a refusal to pay or inability to 

TIP

collect unless the refusal has been reported to the IRS. See 

Communications and Air Transportation Taxes—Uncollected 

Tax Report, earlier.

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.

Amount To Deposit

Deposits of taxes for a semimonthly period must be at least 

95% of the amount of net tax liability for that period, unless 

the safe harbor rule applies. See Safe Harbor Rule, later.

The net tax liability for a semimonthly period is the total 

liability for the period minus any claims allowed on 

Schedule C for the period. Net tax liability for a semimonthly 

period may be figured by dividing the net tax liability for the 

month by 2, provided this method of computation is used for 

all semimonthly periods in the calendar quarter.

The net tax liability for a semimonthly period isn't 

reduced by any amounts from Form 720-X.

Safe Harbor Rule

The safe harbor rule applies separately to deposits under the 

regular method and the alternative method. Persons who 

filed Form 720 for the lookback quarter (the second calendar 

quarter preceding the current quarter) are considered to 

meet the semimonthly deposit requirement if the deposit for 

each semimonthly period in the current quarter is at least 1/6 

(16.67%) of the net tax liability reported for the lookback 

quarter.

For the semimonthly period for which the additional 

deposit is required (September 1–11 and 16–26), the 

additional deposit must be at least 11/90 (12.23%) of the net 

tax liability reported for the lookback quarter. Also, the total 

deposit for that semimonthly period must be at least 1/6 

(16.67%) of the net tax liability reported for the lookback 

quarter.

Exceptions. The safe harbor rule doesn't apply to the 

following quarters.

• The first and second quarters beginning on or after the 

effective date of an increase in the rate of tax unless the 

deposit of taxes for each semimonthly period in the calendar 

quarter is at least 1/6 (16.67%) of the tax liability you would 

have had for the lookback quarter if the increased rate of tax 

had been in effect for that lookback quarter.

• Any quarter if liability includes any tax not in effect 

throughout the lookback quarter.

• For deposits under the alternative method, any quarter if 

liability includes any tax not in effect throughout the lookback 

quarter and the month preceding the lookback quarter.

Requirements to be met. For the safe harbor rule to apply, 

you must pay any underpayment for the current quarter by 

the due date of the return and check the box on line 5 of Form 

720.

The IRS may withdraw the right to make deposits of 

tax using the safe harbor rule from any person not 

complying with these rules.

CAUTION

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CAUTION

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12 Instructions for Form 720 (Rev. 09-2024)
Online Payment Agreement

If you can't pay the full amount of tax owed, you can apply for 

an installment agreement online. You can apply for an 

installment agreement online if the total amount you owe in 

combined tax, penalties, and interest is $25,000 ($50,000 for 

individuals) or less, and you've filed all required returns. To 

apply using the Online Payment Agreement Application, go to 

IRS.gov/OPA.

Schedule A. Excise Tax Liability

How to complete. Complete Schedule A to record net tax 

liabilities for Form 720, Part I, taxes for each semimonthly 

period in a quarter even if your net liability is under $2,500.

The following table will help you determine which boxes to 

complete on Schedule A.

IF you are reporting 

under the...

THEN you report 

on line...

AND enter the net 

tax liability in 

boxes...

regular method 1 A–G.

alternative method 2 M–S.

If you are reporting more than one type of tax on

lines 1 and 2:

1. Add the net tax liability for each tax for each 

semimonthly period, and

2. Enter the total in the applicable box.

Additional rules. Report communications and air 

transportation taxes based on:

• Actual collections on line 1, or

• Amounts billed or tickets sold on line 2. The amount of tax 

to report for a semimonthly period is the net amount that is 

considered collected during that period.

Example. Under the alternative method, the amounts 

billed for communications services from June 1–15, 2024, 

are considered collected during the period July 1–7, 2024, 

and are reported for the third quarter of 2024 on Schedule A 

in box M, not the first quarter of 2024.

Reporting tax liability under the special September rule. 

An additional reporting is required under the special 

September rule as follows.

Regular method taxes Enter the liability for the period beginning 

September 26/27 and ending September 30 

in box F.

Alternative method taxes Enter the tax included in the amounts billed 

or tickets sold for the period beginning 

September 11/12 and ending September 15 

in box M of the fourth quarter return. Enter 

the tax included in amounts billed or tickets 

sold during the period beginning September 

16 and ending September 30 in box N of the 

fourth quarter return.

Schedule T. Two-Party Exchange 

Information Reporting

In a two-party exchange, the receiving person, not the 

delivering person, is liable for the tax imposed on the removal 

of taxable fuel from the terminal at the terminal rack. A 

two-party exchange means a transaction (other than a sale) 

where the delivering person and receiving person are both 

taxable fuel registrants and all of the following occur.

• The transaction includes a transfer from the delivering 

person, who holds the inventory position for the taxable fuel 

in the terminal as reflected in the records of the terminal 

operator.

• The exchange transaction occurs before or at the same 

time as completion of removal across the rack by the 

receiving person.

• The terminal operator in its records treats the receiving 

person as the person that removes the product across the 

terminal rack for purposes of reporting the transaction on 

Form 720-TO, Terminal Operator Report.

• The transaction is the subject of a written contract.

Information reporting. Schedule T is used to report gallons 

of taxable fuel:

• Received in a two-party exchange within a terminal—these 

gallons must also be included on the appropriate line on 

Form 720, page 1; or

• Delivered in a two-party exchange with a removal across 

the rack.

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

exchange within a terminal for the applicable fuel.

Schedule C. Claims

Complete all information requested for each line, including 

Month your income tax year ends and Period of claim. Enter 

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

YYYY – MM/DD/YYYY.” Your claim will be disallowed if you 

don't follow the required procedures or don't provide all the 

required information. Also, you are certifying the applicable 

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

Pub. 510 for more information.

You must include in gross income (income tax return) 

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

deduction on the income tax return that included the 

amount of the taxes and that deduction reduced the income 

tax liability. See Pub. 510 for more information.

Don't use Schedule C:

• If you aren't reporting a liability on Form 720, Part I or II;

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

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

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

schedules;

• To make adjustments to liability reported on Forms 720 

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

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

in a fractional ownership program aircraft as fuel (IRS No. 13) 

(instead, use Form 720-X); or

• To request an abatement or a refund of interest under 

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

abatement or a refund of a penalty or addition to tax under 

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

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

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

penalty under section 6715 for misuse of dyed fuel.

Type of Use Table

The following table lists the nontaxable uses of fuels. You 

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

column as required.

CAUTION

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Instructions for Form 720 (Rev. 09-2024) 13
 No. Type of use

1 On a farm for farming purposes

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

highway vehicle registered or required to be registered for 

highway use) (other than use in mobile machinery)

3 Export 

4 In a boat engaged in commercial fishing

5 In certain intercity and local buses

6 In a qualified local bus

7 In a bus transporting students and employees of schools 

(school buses)

8 For diesel and kerosene (other than kerosene used in 

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

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

off-highway business use)

9 In foreign trade

10 Certain helicopter and fixed-wing aircraft uses

11 Exclusive use by a qualified blood collector organization 

12 In a highway vehicle owned by the United States that isn't 

used on a highway

13 Exclusive use by a nonprofit educational organization

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

or the District of Columbia

15 In an aircraft or a vehicle owned by an aircraft museum

16 In military aircraft

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

The following requirements must be met.

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

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

14d). This amount may be met by:

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

claimant's income tax year, or

b. Aggregating amounts from any quarters of the 

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

made.

2. Claims must be filed during the first quarter following 

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

the claim. For example, a calendar year 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 30.

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

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

during the period of claim.

5. The ultimate purchaser is the only person eligible to 

make the claim.

If requirements 1–3 above aren't 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,

• A certificate of lading signed by a customs officer of the 

foreign country to which the fuel is exported, or

• A statement of the foreign consignee showing receipt of 

the fuel.

Line 1. Nontaxable Use of Gasoline

Allowable uses. The gasoline must have been used during 

the period of claim for type of use 2, 4, 5, 7, or 12. For 

exported gasoline, see Exported taxable fuel, earlier. Type of 

use 2 doesn't include any personal use or use in a motorboat.

Line 2. Nontaxable Use of Aviation Gasoline

Allowable uses. For line 2b, the aviation gasoline must have 

been used during the period of claim for type of use 9, 10, or 

16. For exported aviation gasoline, see Exported taxable fuel, 

earlier.

For line 2d, the aviation gasoline must have been used 

during the period of claim for type of use 9. This claim is 

made in addition to the claim made on line 2b for type of

use 9.

Line 3. Nontaxable Use of Undyed Diesel

Ultimate purchasers use line 3d to make claims for 

diesel used on a farm for farming purposes.

Allowable uses. For line 3a, the diesel must have been 

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

12. For exported undyed diesel, see Exported taxable fuel, 

earlier. Type of use 2 doesn't include any personal use or use 

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

use in a motorboat.

Line 4. Nontaxable Use of Undyed Kerosene 

(Other Than Kerosene Used in Aviation)

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

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

12. For exported undyed kerosene, see Exported taxable 

fuel, earlier. Type of use 2 doesn't include any personal use 

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

oil and use in a motorboat.

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

during the period of claim for type of use 2.

Line 5. Kerosene Used in Aviation

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

kerosene used in commercial aviation (other than foreign 

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

the ultimate purchaser of kerosene used in noncommercial 

aviation (except for nonexempt, noncommercial aviation and 

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

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

Claimant certifies that the right to make the claim hasn't been 

waived.

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

have been used during the period of claim in commercial 

aviation. If the claimant buys kerosene partly for use in 

commercial aviation and partly for use in noncommercial 

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

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

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

or 16.

CAUTION

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14 Instructions for Form 720 (Rev. 09-2024)
For line 5e, the kerosene must have been used during the 

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

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

9.

Line 6. Nontaxable Use of Alternative Fuel

Claimant. The ultimate purchaser of the taxed alternative 

fuel is the only person eligible to make this claim.

Allowable uses. The alternative fuel must have been used 

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

13, 14, or 15.

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

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

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

Line number Claim rate: Type of use 5

6a $.109*

6b .110

6c .109**

6d .110

6e .17

6f .17

6g .169***

6h .110

* 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 feet of CNG). 

*** This is the claim rate per DGE (6.06 pounds or 1.71 gallons of LNG).

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

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

Information for Claims on Lines 7–11

Registration number. To make an ultimate vendor claim on 

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

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

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

line for your claim. If you aren't registered, use Form 637 to 

apply for a registration number.

Required certificates or waivers. The required certificates 

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

are available in Pub. 510.

Line 7a. Sales by Registered Ultimate Vendors 

of Undyed Diesel

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

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

obtained the required certificate from the buyer and has no 

reason to believe any information in the certificate is false. 

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

filed for any gallon of diesel.

Allowable sales. The fuel must have been sold during the 

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

government (including essential government use by an Indian 

tribal government).

Claim requirements. The following requirements must be 

met.

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

is at least 1 week. This requirement will generally be met for 

quarterly claims filed on Form 720.

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

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

9 may be combined.

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

following the earliest quarter of the claimant's income tax 

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

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 

30.

If requirements 1–3 above aren't met, see Annual Claims, 

later.

Registration number. Enter your UV registration number in 

the space provided.

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

a separate sheet with the name and TIN of each 

governmental unit to whom the diesel was sold and the 

number of gallons sold to each.

Line 7b. Sales by Registered Ultimate Vendors 

of Undyed Diesel for Use in Certain Intercity and 

Local Buses

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

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

right to make the claim by providing the registered ultimate 

vendor with an unexpired waiver. See Model Waiver N in Pub. 

510. Only one claim may be filed for any gallon of diesel.

Claim requirements. The following requirements must be 

met.

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

is at least 1 week. This requirement will generally be met for 

quarterly claims filed on Form 720.

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

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

9 may be combined.

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

following the earliest quarter of the claimant's income tax 

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

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 

30.

If requirements 1–3 above aren't met, see Annual Claims, 

later.

Registration number. Enter your UB registration number in 

the space provided.

Lines 8a and 8b. Sales by Registered Ultimate 

Vendors of Undyed Kerosene (Other Than 

Kerosene Sold for Use in Aviation)

Claimant. For line 8a, the registered ultimate vendor of the 

kerosene is the only person eligible to make this claim and 

has obtained the required certificate from the buyer and has 

no reason to believe any information in the certificate is false. 

See Model Certificate P in Pub. 510. For line 8b, claimant has 

a statement, if required, that contains the date of sale, the 

name and address of the buyer, and the number of gallons of 

kerosene sold to the buyer. For lines 8a and 8b, only one 

claim may be filed for any gallon of kerosene.

Instructions for Form 720 (Rev. 09-2024) 15
Allowable sales. The fuel must have been sold during the 

period of claim:

• For line 8a, use by a state or local government (including 

essential government use by an Indian tribal government); or

• For line 8b, from a blocked pump.

Claim requirements. The following requirements must be 

met.

1. The claim must be for kerosene sold during a period 

that is at least 1 week. This requirement will generally be met 

for quarterly claims filed on Form 720.

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

meet this minimum, amounts from lines 8 and 9 may be 

combined.

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

following the earliest quarter of the claimant's income tax 

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

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 

30.

If requirements 1–3 above aren't met, see Annual Claims, 

later.

Registration number. Enter your UV or UP registration 

number in the space provided.

Information to be submitted. For claims on line 8a, attach 

a separate sheet with the name and TIN of each 

governmental unit to whom the kerosene was sold and the 

number of gallons sold to each.

Line 8c. Sales by Registered Ultimate Vendors 

of Undyed Kerosene for Use in Certain Intercity 

and Local Buses

Claimant. For line 8c, the registered ultimate vendor of the 

kerosene is eligible to make a claim only if the buyer waives 

their right to make the claim by providing the registered 

ultimate vendor with an unexpired waiver. See Model Waiver 

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

kerosene.

Claim requirements. The following requirements must be 

met.

1. The claim must be for kerosene sold during a period 

that is at least 1 week. This requirement will generally be met 

for quarterly claims filed on Form 720.

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

meet this minimum, amounts from lines 8 and 9 may be 

combined.

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

following the earliest quarter of the claimant's income tax 

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

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 

30.

If requirements 1–3 above aren't met, see Annual Claims, 

later.

Registration number. Enter your UB registration number in 

the space provided.

Lines 9a and 9b. Sales by Registered Ultimate 

Vendors of Kerosene for Use in Commercial 

Aviation (Other Than Foreign Trade)

Claimant. The registered ultimate vendor of the kerosene 

sold for use in commercial aviation is eligible to make this 

claim only if the buyer waives their right by providing the 

registered ultimate vendor with an unexpired waiver. See 

Model Waiver L in Pub. 510. Only one claim may be filed for 

any gallon of kerosene sold for use in commercial aviation.

Allowable sales. The kerosene sold for use in commercial 

aviation must have been sold during the period of claim for 

use in commercial aviation (other than foreign trade).

Claim requirements. The following requirements must be 

met.

1. The claim must be for kerosene sold for use in 

commercial aviation during a period that is at least 1 week. 

This requirement will generally be met for quarterly claims 

filed on Form 720.

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

meet this minimum, amounts from lines 8 and 9 may be 

combined.

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

following the earliest quarter of the claimant's income tax 

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

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 

30.

If requirements 1–3 above aren't met, see Annual Claims, 

later.

Registration number. Enter your UA registration number in 

the space provided.

Lines 9c, 9d, 9e, and 9f. Sales by Registered 

Ultimate Vendors of Kerosene Sold for Use in 

Noncommercial Aviation

Claimant. For line 9c, the registered ultimate vendor of the 

kerosene sold for use in nonexempt, noncommercial aviation 

is the only person eligible to make this claim, and the 

registered ultimate vendor has obtained the required 

certificate from the ultimate purchaser. See Model Certificate 

Q in Pub. 510. For lines 9d, 9e, and 9f, the registered ultimate 

vendor of the kerosene sold for nontaxable use in 

noncommercial aviation (foreign trade for line 9f) is eligible to 

make this claim only if the buyer waives their right to make 

the claim by providing the registered ultimate vendor with an 

unexpired waiver. See Model Waiver L in Pub. 510. For type 

of use 14, see Model Certificate P in Pub. 510. Only one 

claim may be filed for any gallon of kerosene sold for use in 

noncommercial aviation.

Allowable sales. For line 9c, the kerosene must have been 

sold for a nonexempt use in noncommercial aviation. For 

lines 9d and 9e, the kerosene sold for use in noncommercial 

aviation must have been sold during the period of claim for 

type of use 1, 9, 10, 11, 13, 14, 15, or 16.

For line 9f, the kerosene sold for use in noncommercial 

aviation must have been sold during the period of claim for 

type of use 9. This claim is made in addition to the claim 

made on lines 9d and 9e for type of use 9.

Claim requirements. The following requirements must be 

met.

16 Instructions for Form 720 (Rev. 09-2024)
1. The claim must be for kerosene sold for use in 

noncommercial aviation during a period that is at least 1 

week. This requirement will generally be met for quarterly 

claims filed on Form 720.

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

meet this minimum, amounts from lines 8 and 9 may be 

combined.

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

following the earliest quarter of the claimant's income tax 

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

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 

30.

If requirements 1–3 above aren't met, see Annual Claims, 

later.

Registration number. Enter your UA (UV if type of use 14) 

registration number in the space provided.

Information to be submitted. For claims on lines 9d and 

9e (type of use 14), attach a separate sheet with the name 

and TIN of each governmental unit to whom the kerosene 

was sold and the number of gallons sold to each.

Lines 10 and 11. Sales by Registered Ultimate 

Vendors of Gasoline and Aviation Gasoline

Claimant. The registered ultimate vendor of the gasoline or 

aviation gasoline is eligible to make a claim on lines 10 and 

11 if the buyer waives their right to make the claim by 

providing the registered ultimate vendor with an unexpired 

certificate. See Model Certificate M in Pub. 510. Only one 

claim may be filed for any gallon of gasoline or aviation 

gasoline.

Allowable sales. The gasoline or aviation gasoline must 

have been sold during the period of claim for:

• Use by a nonprofit educational organization, or

• Use by a state or local government (including essential 

government use by an Indian tribal government).

Claim requirements. The following requirements must be 

met.

1. The claim must be for gasoline or aviation gasoline 

sold or used during a period that is at least 1 week. This 

requirement will generally be met for quarterly claims filed on 

Form 720.

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

meet this minimum, amounts from lines 10 and 11 may be 

combined.

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

following the earliest quarter of the claimant's income tax 

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

income taxpayer's claim for January and February is due 

June 30 if filed on Form 8849. However, Form 720 must be 

filed by April 30.

Registration number. Enter your UV registration number in 

the space provided.

Information to be submitted. For claims on lines 10 and 

11, attach a separate sheet with the name and TIN of each 

nonprofit educational organization or governmental unit to 

whom the gasoline or aviation gasoline was sold and the 

number of gallons sold to each.

Line 12a–c. Biodiesel or Renewable Diesel 

Mixtures

Claimant. The person who produced and sold or used the 

mixture in their trade or business is the only person eligible to 

make this claim. The credit is based on the gallons of 

biodiesel or renewable diesel in the mixture.

How to claim the credit. Any biodiesel or renewable diesel 

mixture credit must first be claimed on Form 720, 

Schedule C, to reduce your taxable fuel liability reported on 

Form 720. Any excess credit may be claimed on Form 720, 

Schedule C; Schedule 3 (Form 8849); Form 4136; or Form 

8864. See Notice 2005-4 and item 4 below for more 

information. Only one credit may be taken for each amount of 

biodiesel or renewable diesel. If you claimed (or will claim) an 

amount of biodiesel or renewable diesel on Form 8864, 8849, 

or 4136 for a credit or payment, then you can't make a claim 

on Form 720 for that same amount of biodiesel or renewable 

diesel.

The biodiesel mixture credit may not be claimed for 

biodiesel produced outside the United States for use as a 

fuel outside the United States. The United States includes 

any territory of the United States. Requirements 1 and 2 must 

be met only if the credit exceeds the amount of taxable fuel 

liability reported. If requirements 1 and 2 below are not met, 

see Annual Claims, later. Requirements 3 and 4 below must 

be met for all claims.

1. The claim must be for a biodiesel or renewable diesel 

mixture sold or used during a period that is at least 1 week. 

This requirement will generally be met for quarterly claims 

filed on Form 720.

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

meet this minimum, amounts from lines 12 and 13 may be 

combined.

3. The biodiesel used to produce the biodiesel mixture 

must meet ASTM D6751 and meet the EPA’s registration 

requirements for fuels and fuel additives under section 211 of 

the Clean Air Act. The renewable diesel used to produce the 

renewable diesel mixture must be derived from biomass; 

meet ASTM D975 or D396, or other equivalent standard 

approved by the IRS; and meet the EPA’s registration 

requirements for fuels and fuel additives under section 211 of 

the Clean Air Act.

4. The Certificate for Biodiesel and, if applicable, 

Statement of Biodiesel Reseller must be attached to the first 

claim filed that is supported by the certificate or statement. 

For the renewable diesel mixture credit, you must edit the 

certificate and, if applicable, statement to indicate that the 

fuel to which the certificate and statement relate is renewable 

diesel and state that the renewable diesel meets the 

requirements discussed above under requirement 3. See 

Model Certificate O and Model Statement S in Pub. 510. If 

the certificate and statement aren’t attached to Form 720 

because they’re attached to a previously filed claim on 

Schedule 3 (Form 8849), attach a separate statement with 

the following information.

a. Certificate identification number.

b. Total gallons of biodiesel or renewable diesel on 

certificate.

c. Total gallons claimed on Schedule 3 (Form 8849).

d. Total gallons claimed on Form 720, Schedule C, 

line 12.

e. Total gallons claimed on Form 8864.

Instructions for Form 720 (Rev. 09-2024) 17
Registration number. If you are a registered blender or a 

taxable fuel registrant, enter your registration number on 

line 12.

Line 12d. Sustainable Aviation Fuel (SAF) Credit

Claimant. The person that produced and sold or used a 

qualified mixture (a mixture of SAF and kerosene) is the only 

person eligible to make this claim. The credit is based on the 

gallons of SAF in the qualified mixture. Any SAF mixture 

credit must first be claimed on Form 720, Schedule C, to 

reduce your taxable fuel liability reported on Form 720. Any 

excess credit must be claimed on Form 720, Schedule C; 

Schedule 3 (Form 8849); Form 4136; or Form 8864. See item 

4 below for more information.

How to claim the credit. Only one credit may be taken for 

each amount of SAF. If a person claimed (or will claim) an 

amount of SAF on Form 8864, 8849, or 4136 for a credit or 

payment, then a claim can't be made on Form 720 for that 

same amount of SAF. The qualified mixture must be used (or 

sold, in the ordinary course of a trade or business, for use) in 

an aircraft.

The SAF credit can't be claimed for qualified mixtures 

produced outside the United States or if the transfer of such 

mixture to the fuel tank of an aircraft occurs outside the 

United States. Requirements 1 and 2 below must be met only 

if the credit exceeds the amount of taxable fuel liability 

reported. If requirements 1 and 2 below are not met, see 

Annual Claims, later. Requirements 3 and 4 below must be 

met for all claims.

1. The claim must be for a qualified mixture sold or used 

during a period that is at least 1 week. This requirement will 

generally be met for quarterly claims filed on Form 720.

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

meet this minimum, amounts from lines 12 and 13 may be 

combined.

3. The SAF used to produce the qualified mixture is the 

portion of liquid fuel that is not kerosene that (i) either (A) 

meets the specifications of one of the ASTM D7566 Annexes, 

or (B) meets the specifications of ASTM D1655 Annex A1; (ii) 

is not derived from coprocessing an applicable material (or 

materials derived from an applicable material) with a 

feedstock that is not biomass; (iii) is not derived from palm 

fatty acid distillates or petroleum; and (iv) has been certified 

in accordance with section 40B(e) as having a lifecycle 

greenhouse gas emissions reduction percentage of at least 

50%. Applicable material means monoglycerides, 

diglycerides, and triglycerides; free fatty acids; and fatty acid 

esters. Lifecycle greenhouse gas emissions reduction 

percentage means the percentage reduction in lifecycle 

greenhouse gas emissions achieved by such fuel as 

compared with petroleum-based jet fuel, as defined in 

accordance with the most recent Carbon Offsetting and 

Reduction Scheme for International Aviation which has been 

adopted by the International Civil Aviation Organization with 

the agreement of the United States, or any similar 

methodology which satisfies the criteria under section 211(o)

(1)(H) of the Clean Air Act.

4. For qualified mixtures produced with an SAF synthetic 

blending component (SAF that meets the qualifications of an 

ASTM D7566 Annex), the Certificate for SAF Synthetic 

Blending Component, Certificate for SAF Synthetic Blending 

Component Using 40BSAF-GREET 2024 model (if 

applicable), or Certificate for SAF Synthetic Blending 

Component Using 40BSAF-GREET 2024 model and USDA 

CSA Pilot Program for Corn and Soy (if applicable), 

Statement of SAF Synthetic Blending Component Reseller (if 

applicable), and Declaration for SAF Qualified Mixture must 

be attached to the first claim filed that is supported by the 

certificate or statement. If the certificate, statement, and 

declaration aren't attached to Form 720 because they're 

attached to a previously filed claim on a Form 4136, a Form 

8864, or a Schedule 3 (Form 8849), attach a separate 

statement with the following information.

a. Certificate identification number.

b. Total gallons of SAF synthetic blending component, on 

the certificate.

c. Total gallons claimed on Schedule 3 (Form 8849).

d. Total gallons claimed on Form 4136.

e. Total gallons claimed on Form 8864.

5. Enter the number of gallons and the appropriate rate in 

the Rate column on line 12d. If more than one rate applies, 

leave the Rate column blank and attach a schedule showing 

the rates and number of gallons claimed at each rate. Enter 

the claim amount on line 12d.

Registration number. If you're a registered blender or a 

taxable fuel registrant, enter your registration number on 

line 12.

Line 13. Alternative Fuel Credit and Alternative 

Fuel Mixture Credit

Claimant. For the alternative fuel credit, the registered 

alternative fueler who (1) sold an alternative fuel at retail and 

delivered it into the fuel supply tank of a motor vehicle or 

motorboat; (2) sold an alternative fuel, delivered it in bulk for 

taxable use in a motor vehicle or motorboat, and received the 

required statement from the buyer; (3) used an alternative 

fuel (not sold at retail or in bulk as previously described) in a 

motor vehicle or motorboat; or (4) sold an alternative fuel for 

use as a fuel in aviation, or used the alternative fuel in 

aviation, is the only person eligible to make this claim.

For the alternative fuel mixture credit, the registered 

alternative fueler that produced and sold or used the mixture 

as a fuel in their trade or business is the only person eligible 

to make this claim. The credit is based on the gallons of 

alternative fuel in the mixture.

Carbon capture requirement. A credit for Fischer-Tropsch 

process liquid fuel from coal (including peat) can be claimed 

only if the fuel is from coal produced at a gasification facility 

that separates and sequesters at least 75% of the facility's 

total carbon dioxide emissions.

How to claim the credit. Any alternative fuel credit must 

first be claimed on Form 720, Schedule C, to reduce your 

section 4041 taxable fuel liability for alternative fuel and CNG 

reported on Form 720. Any excess credit may be claimed on 

Form 720, Schedule C; Schedule 3 (Form 8849); or Form 

4136.

The alternative fuel mixture credit can be claimed only on 

Form 720, Schedule C, not on Form 4136, or Schedule 3 

(Form 8849), and only to the extent of your section 4081 

taxable fuel liability for gasoline, diesel, and kerosene. 

Calculate the limitation for alternative fuel mixtures separately 

and enter on line 13 only the gallons of mixtures that don’t 

exceed your section 4081 taxable fuel liability for gasoline, 

diesel, and kerosene.

18 Instructions for Form 720 (Rev. 09-2024)
Claim requirements. The alternative fuel credit and 

alternative fuel mixture credit may not be claimed for 

alternative fuel produced outside the United States for use as 

a fuel outside the United States. The United States includes 

any territory of the United States. To claim either credit, you 

must be registered by the IRS.

Registration number. You must enter your registration 

number in the space provided.

Form 720-X. If you are not registered, you cannot make a 

claim at this time. Use Form 637 to apply for registration. 

After you are registered by the IRS, file Form 720-X to claim 

the credit for this period.

Line 14. Other Claims

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

and resales of certain articles subject to manufacturer or 

retailer excise taxes, claimant certifies that it sold the article 

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

ultimate vendor, or has obtained the written consent of the 

ultimate vendor to make the claim; and has the required 

supporting information.

Lines 14b and 14c. Exported Dyed Diesel, 

Exported Dyed Kerosene, and Exported Gasoline 

Blendstocks Taxed at $.001

Claimant is required to have the name and address 

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

dates of purchase, and, if exported, the required 

proof of export.

A claim may be made for dyed diesel or dyed kerosene 

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

Claims for exported gasoline blendstocks taxed at $.001 per 

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

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

Claims for exported gasoline blendstocks taxed at 

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

Line 14d. Diesel-Water Emulsion

Generally, the claim rate for the nontaxable use of a 

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

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 

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

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

and is reported on line 14d.

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

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

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

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

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

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

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

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

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

claimant sold or used the diesel-water emulsion in the 

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

registered by the IRS and must enter their registration 

number on line 14d and enter the applicable CRN.

CAUTION

!

CAUTION

!

Claim requirements. See Claim requirements for lines 1–6 

and lines 14b–14d, earlier.

Line 14e. Registered Credit Card Issuers

Allowable sales. The gasoline (CRN 362), aviation gasoline 

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

state or local government (including essential government 

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

a nonprofit educational organization; or

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

the exclusive use by a state or local government (including 

essential government use by an Indian tribal government).

Claimant. The registered credit card issuer is the only 

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

1. Is registered by the IRS;

2. Hasn't collected the amount of tax from the ultimate 

purchaser or has obtained the written consent of the ultimate 

purchaser to make the claim;

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

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

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

otherwise made arrangements which directly or indirectly 

provide the ultimate vendor with reimbursement of the tax; 

and

4. Has in its possession an unexpired certificate from the 

ultimate purchaser and has no reason to believe any of the 

information in the certificate is false. See Model Certificate R 

in Pub. 510.

If any one of these conditions isn't met, the credit card 

issuer must collect the tax from the ultimate purchaser and 

only the ultimate purchaser can make the claim.

Claim requirements. The following requirements must be 

met.

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

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

period that is at least 1 week. This requirement will generally 

be met for quarterly claims filed on Form 720.

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

for kerosene or kerosene for use in aviation).

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

following the earliest quarter of the claimant's income tax 

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

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 

30.

4. The claimant must enter its registration number on 

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

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

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

listing the fuels, amounts, and CRNs.

If requirements 1–3 above aren't met, see Annual Claims, 

later. However, annual claims can't be made for gasoline and 

aviation gasoline.

Claim rates. The claim rates are shown below.

Instructions for Form 720 (Rev. 09-2024) 19
CRN Claim rate

324 $.193

346 .243

360 .243

362 .183

369 .218

Annual Claims

If a claim on lines 1–9 or 14b–14e wasn’t made for any 

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

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

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

year during which the fuel was used by the ultimate 

purchaser, sold by the registered ultimate vendor, used to 

produce a mixture, or used in mobile machinery. See Form 

4136 for more information.

Lines 14f–14h. Tire Credits

A credit or refund (without interest) is allowable on tax-paid 

tires if the tires have been:

• Exported;

• Sold to a state or local government for its exclusive use;

• Sold to a nonprofit educational organization for its 

exclusive use;

• Sold to a qualified blood collector organization for its 

exclusive use in connection with a vehicle the organization 

certifies will be primarily used in the collection, storage, or 

transportation of blood;

• Used or sold for use as supplies for vessels; or

• Sold in connection with qualified intercity, local, or school 

buses.

Also, a credit or refund (without interest) is allowable on 

tax-paid tires sold by any person on, or in connection with, 

any other article that is sold or used in an activity listed 

above.

The person who paid the tax is eligible to make the claim 

and must include:

• A detailed description of the claim,

• Any additional information required by the regulations,

• How the claim amount was figured,

• Any other information to support the claim, and

• The number of tires claimed for each CRN.

Claim requirement. Generally, the claim must be filed 

within 3 years from the time the return was filed or 2 years 

from the time the tax was paid, whichever is later.

Lines 14i–14k. Other Claims

Don't use lines 14i–14k to make communications tax 

claims for nontaxable services. See Communications 

Taxes, earlier.

Use lines 14i–14k for claims relating to taxes listed in the 

table under Claim requirement below. See Pub. 510 for 

information on allowable claims relating to these taxes. If you 

need additional space, attach another sheet(s). You must 

include the following information for each claim.

• A detailed description of the claim.

CAUTION

!

• Any additional information required by the regulations.

• The amount of the claim.

• How you figured the claim amount.

• Any other information to support the claim.

Claim requirement. Generally, the claim must be filed 

within 3 years from the time the return was filed or 2 years 

from the time the tax was paid, whichever is later.

Tax CRN

Ozone-depleting chemicals (ODCs) 398

Chemicals (other than ODCs) 454

Imported chemical substances 317

ODC tax on imported products 349

Truck, trailer, and semitrailer chassis and bodies, and 

tractors

383

Passenger vehicles (luxury tax) 392

Gas guzzler automobiles 340

Vaccines 397

Sport fishing equipment 341

Fishing rods and fishing poles 308

Fishing tackle boxes 387

Electric outboard motors 342

Bows, quivers, broadheads, and points 344

Arrow shafts 389

The Taxpayer Advocate Service (TAS) 

Is Here To Help You

What is TAS? TAS is an independent organization within 

the IRS that helps taxpayers and protects taxpayer rights. 

Their job is to ensure that every taxpayer is treated fairly and 

that you know and understand your rights under the Taxpayer 

Bill of Rights.

How can you learn about your taxpayer rights? The 

Taxpayer Bill of Rights describes 10 basic rights that all 

taxpayers have when dealing with the IRS. Go to 

TaxpayerAdvocate.IRS.gov to help you understand what 

these rights mean to you and how they apply. These are your 

rights. Know them. Use them.

What can TAS do for you? TAS can help you resolve 

problems that you can't resolve with the IRS. And their 

service is free. If you qualify for their assistance, you will be 

assigned to one advocate who will work with you throughout 

the process and will do everything possible to resolve your 

issue. TAS can help you if:

• Your problem is causing financial difficulty for you, your 

family, or your business;

• You face (or your business is facing) an immediate threat 

of adverse action; or

• You've tried repeatedly to contact the IRS but no one has 

responded, or the IRS hasn't responded by the date 

promised.

How can you reach TAS? TAS has offices in every state, 

the District of Columbia, and Puerto Rico. To find your 

advocate’s number:

• Go to TaxpayerAdvocate.IRS.gov/Contact-US;

20 Instructions for Form 720 (Rev. 09-2024)
• Download Pub. 1546, The Taxpayer Advocate Service Is 

your Voice at the IRS, available at https://www.irs.gov/pub/irspdf/p1546.pdf;

• Call the IRS toll free at 800-TAX-FORM (800-829-3676) to 

order a copy of Pub. 1546;

• Check your local directory; or

• Call TAS toll free at 877-777-4778.

How else does TAS help taxpayers? TAS works to resolve 

large-scale problems that affect many taxpayers. If you know 

of one of these broad issues, please report it to them at 

IRS.gov/SAMS.

Privacy Act and Paperwork Reduction Act Notice. We 

ask for the information on these forms in order to carry out 

the Internal Revenue laws of the United States. We need it to 

figure and collect the right amount of tax. Miscellaneous 

excise taxes are imposed under subtitle D of the Internal 

Revenue Code. These forms are used to determine the 

amount of tax that you owe. Section 6011 requires you to 

provide the requested information. Section 6109 requires you 

to provide your identifying number. Routine uses of this 

information include giving it to the Department of Justice for 

civil and criminal litigation, and to cities, states, the District of 

Columbia, and U.S. commonwealths and territories for use in 

administering their tax laws. We may also disclose this 

information to other countries under a tax treaty, to federal 

and state agencies to enforce federal nontax criminal laws, or 

to federal law enforcement and intelligence agencies to 

combat terrorism. Failure to provide this information in a 

timely manner or providing false or fraudulent information 

may subject you to penalties.

You aren't required to provide the information requested 

on a form that is subject to the Paperwork Reduction Act 

unless the form displays a valid OMB control number. Books 

or records relating to a form or its instructions must be 

retained as long as their contents may become material in the 

administration of any Internal Revenue law. Generally, tax 

returns and return information are confidential, as required by 

section 6103.

The time needed to complete and file these forms and 

related schedules will vary depending on individual 

circumstances. The estimated average times are:

Form Recordkeeping

Learning about

the law or

the form

Preparing, 

copying, 

assembling, and

sending the

form to the IRS

720 8 hr., 59 min. 1 hr., 5 min. 2 hr., 3 min.

720-X 6 hr., 13 min. 0 hr., 18 min. 0 hr., 24 min.

Comments and suggestions. We welcome your comments 

about this publication and your suggestions for future 

editions. You can send us comments through IRS.gov/

FormComments. Or you can write to:

Internal Revenue Service

Tax Forms and Publications

1111 Constitution Ave. NW

IR-6526

Washington, DC 20224

Although we can’t respond individually to each comment 

received, we do appreciate your feedback and will consider 

your comments and suggestions as we revise our tax forms, 

instructions, and publications. Do not send tax questions, tax 

returns, or payments to the above address.

Ordering forms and publications. Go to IRS.gov/Forms 

to download forms and publications. Otherwise, you can go 

to IRS.gov/OrderForms to order forms. Call 800-829-3676 to 

order prior-year forms and instructions. The IRS will process 

your order for forms and publications as soon as possible. Do 

not resubmit requests you’ve already sent us. You can get 

forms and publications faster online.

Instructions for Form 720 (Rev. 09-2024) 21
Index

A

Address, Name and 3

Air transportation:

Uncollected tax report 5

Air transportation taxes 4

Alternative fuel 7

Amount to deposit 12

Arrow shafts 10

B

Biodiesel sold as but not used as 

fuel 10

Bows, quivers, broadheads, and 

points 10

C

Claims (Schedule C) 13

Coal 8

Communications:

Uncollected tax report 5

Communications taxes 4

D

Deposits, How to make 11

Diesel 5

Diesel-water emulsion 5

E

Electric outboard motors 10

Employer identification number 3

Environmental taxes 4

Exported taxable fuel 14

F

Final return 2

Fishing rods and fishing poles 10

Fishing tackle boxes 10

Floor stocks 11

Foreign insurance policies 8

Form 6197 9

Form 6627 4

Form 720-V 11

Fuel taxes 5

G

Gas guzzler automobiles:

One-time filing 9

Gasoline 6

H

Help, additional 3

How to file:

Zero tax 2

I

Indoor tanning services 10

Inland waterways fuel use tax 10

Interest, Penalties and 2

K

Kerosene 6

Kerosene for use in aviation 6

M

Manufacturers taxes 8

N

Name and address 3

O

Obligations not in registered 

form 8

ODCs 11

One-time filing 9

Other fuels, tax rates 6

P

Patient-centered outcomes 

research fee 9

Payment of taxes 11

Payment voucher 11

Penalties and interest 2

R

Recordkeeping 2

Retail tax 7

S

Schedule A (Excise Tax 

Liability) 13

Schedule C (Claims) 13-20

Schedule T (Two-Party Exchange 

Information Reporting) 13

Section 40 fuels 10

Ship passenger tax 8

Sport fishing equipment 9

T

Tanning services, Indoor 10

Taxable tires 8

Taxes, Payment of 11

Third Party Designee 4

Tire credit, Section 4051(d) 8

Tires, taxable 8

Transportation by water 8

Trucks, trailers, tractors 7

Two-Party Exchange Information 

Reporting 13

U

Uncollected tax report 5

V

Vaccines 9

W

When to deposit 12

When to file 2

Where to file 2

22