the separated fuels. Also, if gasoline is
purchased tax paid at the 34 ¢ rate for the
purpose of blending with alcohol, the failure
to blend the gasoline with the alcohol will
result in a 5% ¢-a-gallon exise tax.

If gasoline is used in a qualified taxicab,
you may qualify for a credit or refund of 4¢
a gallon.

For a refund or credit of the fuel tax, see
Form 4136, Computation of Credit for
Federal Tax on Gasoline and Special Fuels.

f. Alcohol sold as but not used as a
fuel.—Alcohol, either mixed or straight,
designated for use as fuel is eligible for a
credit. Form 6478, Credit for Alcohol Used
as Fuel, is used to compute the credit. If the
credit was determined and any person later
either (1) uses a mixture or straight alcohol
for a purpose other than fuel, (2) separates
the alcohol from the mixture, or (3) mixes
the straight alcohol, an excise tax is
imposed. The tax is 60¢ a gallon for each
gallon of alcohol that is at least 190 proof
and 45¢ a gallon for each gallon of alcohol
that is at least 150 proof but less than 190
proof.
g. Highway-type tires.— The tax applies
only to highway-type tires and is as follows:
(1) For tires weighing more than 40
pounds but not more than 70 pounds—15¢
a pound for each pound over 40 pounds.
(2) For tires weighing more than 70
pounds but not more than 90
pounds—$4,.50 PLUS 30¢ a pound for
each pound over 70 pounds.

(3) For tires weighing more than 90
pounds—$10.50 PLUS 50¢ a pound for
each pound over 90 pounds.

h. Fuel economy tax.—Compute the tax
on Form 6197, Fuel Economy Tax, and
report it quarterly on Form 720. File Form
6197 annually as an attachment to Form
720. See the instructions on Form 6197 for
When to File.

Retail and Use Taxes

a. Truck and trailer chassis and bodies;
tractors.—The excise tax is on the first
retail sale of truck and trailer chassis and
bodies, and tractors. The sale of a vehicle
includes related parts and accessories sold
‘on or in connection with the sale of the
vehicle. It applies to vehicles designed for
highway transportation, which have a gross
vehicle weight (GVW) over 33,000 pounds.
It also applies to truck trailer and semitrailer
chassis and bodies for use with a trailer or
semitrailer with a GVW over 26,000
pounds. Tractors of the kind chiefly used for
highway transportation with a trailer or
semitrailer are taxable.

Effective for sales before July 18, 1985,
the tax rate for “piggyback trailers” will be
6% rather than 12%. A piggyback trailer is a
trailer designed for use principally in con-
nection with a trailer-on-flatcar service. In
order to qualify for the reduced tax rate,
both the buyer and the seller must register
with IRS by filing Form 637.

b. Diesel fuel and special motor fuels.—A
15¢-a-gallon tax applies to diesel fuel sold for
use or used in a highway motor vehicle and a
9¢-a-gallon tax applies to special motor fuel
sold for use or used in a motor vehicle or
motor boat (other than a commercial fishing
boat).

Special motor fuels include benzol,
benzene, naphtha, liquid petroleum gas,
casinghead and natural gasoline, and any
other liquid fuel (except gasoline otherwise
taxable and kerosene, gas oil, and fuel oil).
Products called kerosene, gas oil, or fuel oil
that do not fall within certain specifications
are taxable as special motor fuel.

Qualified methanol or ethanol fuels and
off-highway business use of fuels are exempt
from the tax. Qualified methanol or ethanol
fuels mean any liquid 85% of which consists
of alcohol produced other than from
petroleum or natural gas. If the methanol or
ethanol fuels are at least 85% alcohol
produced from natural gas, the fuel is taxed
at 4¥2¢ a gallon.

A 9¢-a-gallon tax applies to the sale or
use of any mixture containing diesel fuel
and 10% alcohol that is at least 190 proof.
A 3¢-a-gallon tax applies to the sale or use
of any mixture containing special motor fuel
and 10% alcohol that is at least 190 proof
The proof of alcohol is determined without
regard to added denaturants. The alcohol
can be methanol or ethanol, but it cannot
be produced from petroleum, natural gas,
or coal (including peat).

If you plan to make diesel fuel or special
fuel mixed with alcohol, you must first
obtain a permit from the Bureau of Alcohol,
Tobacco, and Firearms.

Anyone who separates the fuel from the
alcohol mixture that has been taxed will be
subject to the excise tax on the separated
fuel reduced by the tax paid on the mixture.

For a refund or credit of the fuel tax, see
Form 4136.

c. Inland waterways fuel.—In addition to
the tax on special motor fuel used ina
motorboat, there is a tax of 8¢ a gallon
imposed on any liquid used in the
propulsion system of commercial
transportation vessels while traveling on
certain inland and intracoastal waterways.
Generally, the tax applies to all types of
vessels including ships, barges, and
tugboats. See Publication 510 for more
information.

d. Fuel used in noncommercial
aviation.— A tax is imposed on aviation
fuel sold for use or used in noncommercial
aviation. The tax rate on any liquid other
than gasoline is 14¢ a gallon. The tax rate
for gasoline is 3¢ a gallon plus the 9¢-a-
gallon manufacturers tax. Thus, the total
tax on gasoline used in noncommercial
aviation is 12¢ a gallon. If the gasoline is
purchased tax paid (9¢-a-gallon
manufacturers tax), only the additional 3¢-
a-gallon tax rate applies to the gasoline used
in noncommercial aviation. If the gasoline is
purchased tax free, the 9¢- a- gallon
manufacturers tax (IRS No. 62) applies in
addition to the 3¢-a-gallon retailer's tax.
Noncommercial aviation is the use of an
aircraft other than in the business of
transporting persons or property by air for
compensation or hire. Also, it means any
use (including the business of
transportation) of an aircraft that:

(1) Has a maximum certificated takeoff
weight of 6,000 pounds or less, except
when the aircraft is operated on an
established line; or

(2) ls owned or leased by a member of
an affiliated group and that is not available
for hire to nonmembers.

If the tax is paid and the fuel is used in
commercial aviation or other nontaxable
use, a credit or refund may be available.
See Publication 378, Fuel Tax Credits, for
more information about fuel tax credits or
refunds.

Crude Oil Windfall Profit Taxes

The tax on windfall profit is computed on
Form 6047, Windfall Profit Tax, which
must be attached to Form 720 ona
quarterly basis by the purchasers, qualified
disbursers, operators, and certain
producers having oil not subject to
withholding.

For oil subject to withholding, producers
will receive Form 6248, Annual Information
Return of Windfall Profit Tax, from their
purchasers at the end of each year. The
form shows total tax liability, tax paid by
purchaser, and the amount of any tax
underwithheld or overwithheld.

If the tax was underwithheld, the
producer must file Form 720 to report and
pay the balance due on the first quarter
return by May 31. This amount should be
entered in the space marked “‘Annual
return’’ on the line for IRS No. 52, and the
social security number of the producer.
should be entered in the space to the right
of IRS No. 52. If tax was overwithheld, see
Form 6249, Computation of Overpaid
Windfall Profit Tax.

Environmental Taxes

The tax rates for the environmental taxes
are shown on Form 6627, Environmental
Taxes. Form 6627 is used to compute the
liability for these taxes and must be
attached to Form 720 each quarter.

Part Il.—Computation of Net
Tax Liability

Line 2, Adjustments.—Generally, you may
make adjustments for taxes reported on
Form 720 to correct mathematical errors,
or to adjust payments of tax on
transactions, charges, or processings that
are entitled to be made tax free.

On line 2, enter the total of any
adjustments claimed. If an amount is
included on line 2, a statement must be
attached that includes the following:

@ Anexplanation of why you are
claiming a reduction in tax.

@ Astatement that you have the
required supporting evidence.

@ The IRS Nos. being adjusted.

@ The amount of adjustment claimed
for each.

@ The period in which the tax liability

was previously reported.

See the applicable regulations and
Publication 510 for the circumstances
under which you may make adjustments
and the evidence you need to support
adjustments. See Form 6047 for special
rules and restrictions on line 2 adjustments
for windfall profit tax.

Page 5


paid for layover or waiting time and
movement of aircraft in deadhead service.
Also, the tax applies to amounts paid
outside the United States but only for
taxable transportation that begins and ends
in the United States. Certain transportation
that takes place entirely outside the United
States (and the 225-mile zone) and that
meets specified tests, is not subject to the
tax. See Publication 510.

The person paying for taxable
transportation is liable for the tax, and
ordinarily, the person receiving the payment
must collect the tax and file Form 720.

c. International air travel facilities —The
tax is imposed on amounts paid within or
outside the United States for international
flights that begin in the United States, even
if the flight is the return part of a round trip.
to a foreign country. The tax applies
whenever a portion of a domestic-
international flight is exempt from the 8%
transportation tax.

d. Transportation of property by air.—
Amounts paid for transportation of property
by air within or outside the United States
are subject to the tax. The tax applies only
to amounts paid for transportation
(including layover time and movement of
aircraft in deadhead service) that begins
and ends in the United States. Thus,
transportation of property by air that begins
outside, but ends within, the United States
is not taxable.

e. Policies issued by foreign insurers.—
Tax rates are as follows:

(1) Casualty insurance and indemnity
bonds. —4¢ on each dollar (or fraction of a
dollar) of the premium paid on the policy or
bond.

(2) Life insurance, sickness and
accident policies, and annuity contracts.—
1¢ on each dollar (or fraction of a dollar) of
the premium paid on the policy or contract.

(3) Reinsurance. —1¢ on each dollar (or
fraction of a dollar) of the premium paid on
the policy of reinsurance covering any of the
contracts taxable in (1) or (2) above.

f. Obligations not issued in registered
form.— The tax is imposed on any person
who issues a registration-required obligation
that is not in registered form. The tax is 1%
of the principal amount of the obligation
multiplied by the number of calendar years
(or portions thereof) during the period
beginning on the issue date and ending on
the maturity date.

Aregistration-required obligation is any
obligation other than an obligation that:

(1) Is issued by a natural person,

(2) Is not of a type offered to the public,

(3) Has a maturity (at issue) of not more
than one year, or

(4) Is described in section 163(f)(2)(B).

Manufacturers Taxes

These taxes apply to the sale or use by the
manufacturer, producer, or importer of the
articles listed. These taxes may also apply to
one part of an otherwise nontaxable article,
such as tires on imported vehicles.

Page 4

See Publication 510 for information on
tax-free purchases of tires, and use of Form
637, Registration for Tax-Free Transactions
Under Chapter 31 and 32 of the Internal
Revenue Code.

Compute the tax on the price for which
the taxable article is sold or leased. For a
taxable article that is sold or leased under a
conditional sales contract, installment
payment contract, or chattel mortgage
arrangement, compute and pay the tax on
each payment received during the quarter
covered by the return. For exclusion from
the sale price of local advertising charges,
cost of transportation, etc., see Publication
510. There are also special rules that apply
to the lease of any article.

You may adjust the manufacturers sale
price for discounts, rebates, and similar
allowances granted to the purchaser. You
may not anticipate such discounts. The
purchaser must have taken the discount
before the return is required to be filed.

If you make adjustments or obtain the
required evidence after you file your return,
you may be able to take a credit on a later
return or file a refund claim.

You must compute the tax on a price
established by the Commissioner of Internal
Revenue if an article is sold by the
manufacturer or producer at retail, on
consignment, or in a way other than
through an arm's-length transaction at less
than the fair market price, or if an article is
used by the manufacturer or producer ina
manner subject to tax.

a. Coal.—The tax on coal per ton (2,000
Ibs.) may not be more than 4% of the price
at which a ton is sold in each category.

Coal is produced from a surface mine if
all geological matter, such as trees, earth,
rock, above the coal being mined is
removed before the coal is mined. When
coal is removed by auger and when coal is
reclaimed from coal waste refuse piles, the
coal is considered produced from a surface
mine. Coal is considered produced from an
underground mine when the coal is not
produced from a surface mine.

The tax on coal is paid by the producer at
the time of sale or use. The selling price for
applying the tax is the point of sale f.0.b.
mine or f.0.b. cleaning plant if the producer
cleans the coal before selling it.

b. Sport fishing equipment, outboard
motors and sonar devices.— The tax is on
the sale of sport fishing equipment which
includes: fishing rods, poles (and
component parts therefor), reels, fly fishing
lines, and other lines not over 130 pounds
test, fishing spears, spear guns, spear tips,
terminal tackle including—leaders,
artificial lures, baits, and flies, fishing
hooks, bobbers, sinkers, snaps, drayles, and
swivels (but not including natural bait or any
item of terminal tackle designed for use and
ordinarily used on fishing lines not subject
to the tax); and the following items of
fishing supplies and accessories— fish
stringers, creels, tackle boxes, bags,
baskets, and other containers designed to
hold fish, portable bait containers, fishing
vests, landing nets, gaff hooks, fishing hook
disgorgers, dressing for fishing lines and
artificial flies, tip-ups and tilts, rod belts,

rodholders, harnesses, fighting chairs,
fishing outriggers, fishing downriggers,
electric outboard motors, and sonar devices
suitable for finding fish. Also, the tax is on
any parts or accessories sold on or in
connection with these articles.

Asonar device suitable for finding fish
will not include any sonar device which is a
graph recorder, a digital type, a meter
readout, or a combination graph recorder
meter readout. The tax is limited to $30 for
each sonar device.

The tax on these articles may be imposed
a second time if the sale of these articles is
by any wholesale distributor or retailer who:

(1) Is a related party to the manufacturer
or importer; and

(2) Acquires the article from a party other
than the manufacturer or importer.

If the tax is imposed a second time, a
credit for the prior tax is available provided
the distributor or retailer can establish the
amount of tax paid on the first sale. See
Publication 510 for more information.

cc, Bows and arrows.—The tax is on the sale
of any bow having a draw weight of 10
pounds or more, and of any arrow measuring
18 inches or more in overall length. Arrows
which measure less than 18 inches are
taxable if they are suitable for use with a bow
which has a draw weight of 10 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 or arrow, and
any quiver suitable for use with taxable
arrows. The tax on parts and accessories
does not apply to an article on which the tax
on bows and arrows has been imposed.

d, Firearms.—The tax is on the sale of
pistols, revolvers, shells, cartridges and
firearms, other than pistols and revolvers.
Parts or accessories for firearms, pistols,
etc., are not subject to the tax when sold
separately, or when sold with a complete
firearm as spare parts or accessories.
However, the tax does apply to the sale of
complete firearms, pistols, etc., sold ina
knockdown condition.

e. Gasoline.—The tax on gasoline is 9¢ a
gallon. Gasoline means all products
commonly or commercially known or sold as
gasoline that are suitable for use as a motor
fuel. This does not include casinghead and
natural gasoline unless they are blended
with other compounds to make gasoline
used in motors.

The sale of gasohol (gasoline mixed with
10% alcohol that is at least 190 proof) bya
producer of gasoline is taxable at 3¢ a
gallon. The alcohol can be methanol or
ethanol, but it cannot be produced from
petroleum, natural gas or coal. The sale of
gasoline for use in the manufacture of
gasohol is taxable at 3 % ¢ a gallon. Also,
gasohol sold for use or used in
noncommercial aviation is subject to the 3¢
a gallon tax.

If you plan to make gasohol, using
specially denatured alcohol, you must first
get a permit from the Bureau of Alcohol,
Tobacco, and Firearms.

Anyone who separates the gasoline from
an alcohol mixture that has been taxed at a
rate equivalent to 3¢-a-gallon will be subject
to the additional 5% ¢-a-gallon excise taxon


Line 4, Record of Federal Tax
Liability.— You must deposit all excise
taxes over $100 reportable on Form 720 at
an authorized depositary or the Federal
Reserve Bank (FRB) serving the area in
which you are located.

To avoid a penalty, make your deposit
timely and do not mail your deposits directly
to the IRS. Records of your deposits will be
sent to IRS for crediting to your business
accounts,

Line 5, Credit for overpaid windfall
profit tax.—The amount of credit that you
may enter on line 5 is the amount of
overpaid windfall profit tax. You may use
line 5 for the net income limitation only if
this is the first calculation of the net income
limitation and the calculation is made
within one year of the removal year.

If you recalculate your net income
limitation after claiming a credit on line 5
and the result is an additional overpayment,
you may not claim the credit on line 5.
Instead, you must file Form 843, Claim,
and attach Form 6249.

Attach Form 6249 to Form 720 when
claiming this overpayment. Be sure to
reduce the amount of overpayment by the
reduction in your deposits of windfall profit
tax due to the estimated effects of the net
income limitation that you have claimed on
line 11 (Form 6047) during your removal
year.

How to Make Deposits

Deposit Federal excise tax payments with a
Federal Tax Deposit Payment Coupon
(Form 8109). See the instructions in the
coupon book for additional information and
exceptions.

To obtain more deposit forms, use the
reorder form (Form 8109A) provided in the
coupon book. Be sure to enter the number
of books you need. There are 15 coupons to
a book for use in depositing the tax for any
tax year. If you do not have a coupon book,
please request one from your IRS district
office.

When to Make Deposits.

The following rules explain how often you
must make deposits for excise taxes other
than windfall profit taxes, sport fishing
equipment taxes or inland waterways taxes.
For special rules on deposi windfall
profit taxes, see the instructions for Form
6047. No deposits are required for the
sport fishing equipment tax and inland
waterways tax. The tax is payable with the
return.

In general, the frequency of deposits is
based on the amount of tax you owe for a
certain period. You must make deposits
monthly or semimonthly, as explained
below.

Monthly deposits. —You must make
monthly deposits if you are liable in any
month (except the last month of the
quarter) for more than $100 of taxes
reportable on Form 720, AND you are not
required to make semimonthly deposits
(see below).

Page 6

Monthly deposits are due by the last day
of the month following the month you incur
more than $100 liability.

If you owe taxes of $100 or less at the
end of the first or second month, carry them
over to the next month. At the end of the
third month, taxes of $100 or less may be
deposited or paid with the return.

If you owe taxes of more than $100 at
the end of the third month, you must
deposit them by the last day of the following
month.

For air transportation and
communications taxes, the tax that is
computed on the basis of amounts billed
(communications) or tickets sold (air
transportation) for a month is considered
collected during the next month and should
be deposited during the month following the
month it is considered collected

Semimonthly deposits.—If you are
liable for over $2,000 of excise taxes for any
month of a quarter, you must make
semimonthly deposits of taxes in the
following quarter. (A ‘‘semimonthly"” period
means the first 15 days of a month or the
16th through the last day of a month.)

The rules for making semimonthly
deposits are as follows:

In general.—Deposit the amount you owe
by the 9th day following the semimonthly
period for which it is reported.

Air transportation and communications
taxes.—If the amount for these taxes is
computed on the basis of the amount billed
(communications) or tickets sold (air
transportation), the tax computed for a
semimonthly period is considered as
collected during the second following
semimonthly period. Deposit these taxes
within 3 banking days after the end of the
semimonthly period for which it is
considered collected.

If the tax is computed on any other
basis, deposit the taxes within 3 banking
days after the end of the semimonthly
period in which it was collected. In
determining banking days, do not count
local banking holidays observed by
depositaries or Saturdays, Sundays, and
legal holidays.

Gasoline taxes.— Qualified persons whose
liability for the manufacturers excise tax on
gasoline is payable semimonthly may pay
the tax by the 14th day after the close of the
semimonthly period if the payment is made
by wire transfer to any governmental
depositary.

A “qualified person’’ is any person
whose average daily production of crude oil
for the preceding calendar quarter is 1,000
barrels or less and any independent refiner
as defined in section 4995(b)(4).

If the due date falls on a Saturday,
Sunday, or a holiday in the District of
Columbia, the due date will be the
immediately preceding day which is nota
Saturday, Sunday, or such a holiday.

Policies issued by foreign insurers.—If
the amount of tax on these policies is for the
first semimonthly period, deposit it by the

1st day of the next month. If the amount is
for the second semimonthly period, deposit
it by the 15th day of the next month.

Exceptions.—You are considered to meet
the semimonthly deposit requirements if the
amount you deposit for the semimonthly
period is one of the following:

(1) At least 90% of the total tax

collected during (or reportable for)
the semimonthly period.

(2) At least 45% of the total tax
collected during (or reportable for)
the month.

(3) At least 50% of the total tax.
collected during (or reportable for)
the second preceding month (first
preceding month for air
transportation and communications).

(4) Manufacturers, retailers and
environmental taxes: An amount
deposited for the second
semimonthly period in a month that,
when added to the deposit for the
first semimonthly period, is at least
90% of the total taxes reportable for
the month.

\f you claim one of the exceptions,
please check the appropriate box on page 1.

In addition, if the semimonthly period is
in either of the first 2 months of the quarter,
you must deposit the underpayment for the
month by the following dates:

© Tax on foreign insurance policies—The
first day of the second month following
the month involved.

© Manufacturers, retailers and
environmental taxes—The ninth day of
the second month following the month
involved.

@ Air transportation and communications
taxes—The last day of the month
following the month involved.

The above provisions do not extend the
time for depositing taxes for the last month
of the quarter. Nor do they remove
penalties for failure to make other required
deposits on time.

Notes.—

If you meet the semimonthly deposit
exception under (2), (3), or (4) above, you
may be exempt from certain recordkeeping
requirements. You may not have to:

@ Keep books and records ona
semimonthly basis (except for deposits),
or

@ Record your tax liability ona
semimonthly basis on line 4 of the form.
See Regulations sections 48.6302(c)-1
and 49,6302(c)-1.

You do not meet the requirements
under (2) or (3) above if you collect more
than 75% of air transportation or
communications taxes (or incur more than
75% of the monthly liability for other taxes)
in the first semimonthly period in each
month.

Lines 6 and 9, Overpayment.—if you
deposited more than the amount you owed
for a quarter, you may have the overpayment
applied to your next return or refunded to
you. Enter the appropriate amount in the
space on line 9. Enter on line 6 of your next
return any amount you want to have applied
to that return.


rom 120

(Rev, January 1985)

Department of the Treasury—Internal Revenue Service

Quarterly Federal Excise Tax Return

> For Paperwork Reduction Act Notice, see instructions.

OMB No. 1545-0023

Use to Report Excise
Taxes for 1985

Please enter
your name,
address,
employer
identification
number, and
calendar
quarter of
return, if

not preprinted.
(if not

correctly
printed,
please change.)

Quarter ending

Employer identification number

Note: Be sure to enter the tax on the correct line to ensure proper credit.

T

FF
FD

FP

1

T

If address is
different from

prior return,
checkhere. >

Computation of Tax Items

Computation of Net Tax Lial

Facilities and Services Taxes
Toll telephone service :
Teletypewriter exchange service .
Local telephone service .
Transportation of persons by air
Use of international air travel facil-
ities, .
Transportation of property byai air .
Policies issued by foreign insurers .
Obligations not in registered form .
Manufacturers Taxes
Coal (1 ton = 2,000 Ibs.):
Underground mined (lower of)
(a) $1 per ton (or),
(b) 4% of ton price.
‘Surface mined (lower of)
(a) 50¢ per ton (or)
(b) 4% ofton price.
Sport fishing equipment
Electric outboard motors and sonar devices
Bows and arrows.
Pistols and revolvers .
Firearms (other than pistols and revolvers).
Shells and cartridges
Gasoline .
Alcohol sold as but not used as ‘uel
Tires (highway type).
Fuel economy tax (Form 6197).
Retail and Use Taxes
Truck and trailer chassis and bodies; tractors .
Diesel fuel and special motor fuels.
Inland waterways fuel.

Fuel other
Fuel used in .
noncommercial _) than gasoline
aviation Gasoline (retailers tax).

Crude Oil Windfall Profit Taxes
Quarterly (production—Form 6047)
Quarterly (withholding—Form 6047)
Annual return

Environmental Taxes

Petroleum (attach Form 6627)

Chemicals (attach Form 6627) .
Hazardous wastes (attach Form 6627)

IRS.

Rate Tax No. | 1 Total tax. Add all amounts from Part | _
2 Adjustments. (See instructions. Attach
3% 22 statement.)
3 Taxasadjusted . LT
8% 26 | 4 (a) Record of Tax Liability (See instructions on page 5.)
Period Amount of Liability
$3 per 27 Ist-15th day
595 28 | must, [déth-ast day

30 Total for month .

Second
Month

“)
* 31 Ast-15th day
[ Ist-15th day
“(*) Third

16th-last day
36 | Month 16th-last day

Total for month .
37 Total for month .

ie

o 39 | 5 Credit for overpaid windfall profit tax
10% 41 (See instructions.) .

3%(*) 42 | 6 Overpayment from previous quarter.»
11% 44 | 7 Total deposits (item 4(c) plus items 5
10% 32 and 6)

1% ag | 8  Undeposited taxes due (item 3 less item

(b) Total liability for quarter
38 (c) Total deposits for quarter

7; this should be $100 or less). Payto

>

>

11% 49 Internal Revenue Service .
O) 62 Note: /f undeposited taxes due at the end of the quarter are more
’) 51 than $100, the entire balance must be deposited.
7 If you make semimonthly deposits and claim one of the deposit
*) 66 exceptions, please indicate the exception:
yy) 40 10 20 30 40
TLL, Gasoline producers or refiners who are eligible for the 14-day
12% (*) 33 depositary due date, please check this box. P
) 61 ] 9 Ifitem7ismorethanitem 3, enterexcesshere Pm $ ___..
8¢ gal. 64 and check if you want it: [7] applied to your next return, or
14¢ gal. 69 1 refunded to you.
3¢ gal. (*) 14 | 10 Ifyou will notbe liable for returns in succeeding quarters, write “FINAL”
TLL, ne
*) 50 and return this form to your internal Revenue Service Center.
(*) 56
(*) 52. |_Social security number for IRS No. 52 >
“) 53
@) 54
@) 55

*See instructions on pages 2 and 4 through 6.

Under penalties of perjury, I declare that | have examined this return, and accompanying schedules and statements, and, to the best of my knowledge and belief, they are true, correct, and complete

Signature >

Title (Owner, etc.) >

Date >



General Instructions

(Section references are to the Internal
Revenue Code, unless otherwise noted.)

Paperwork Reduction Act Notice.— We
ask for this information to carry out the
Internal Revenue laws of the United States.
We need it to ensure that taxpayers are
complying with these laws and to allow us to
figure and collect the right amount of tax.
You are required to give us this information.

Purpose of Form.—Use this form to report
and pay the excise taxes listed on page 1.
You must file a return for each quarter even
if you do not owe any tax. (If you have no tax
to report, write ‘‘None’”’ on lines 1 and 3.)
For more information obtain Publication
510, Excise Taxes for 1985.

Exemptions.—Some transactions are
exempt from tax. For example, export
transactions and transactions involving
states, political subdivisions, certain
nonprofit educational organizations, certain
aircraft museums, certain items used on a
farm for farming purposes, and certain
helicopter usage, are exempt. Indian tribes,
when exercising an essential tribal
government function, are considered states
and are exempt.

Records.—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 adjustments
claimed and all exemptions at least 4 years
from the latest of the following dates: (1)
when the tax became due, (2) when you
paid the tax, (3) when you claimed an
adjustment, or (4) when you filed a claim
for a refund. Your records must be available
at all times for IRS inspection.

Penalties and Interest.— Avoid penalties
and interest by filing returns and depositing
and paying taxes when due. The law provides
penalties for:

© Filing a return late, 5% of the tax per
month, or part of a month, the return
is late (maximum 25%).

© Depositing taxes late, 5% of the
underpayment.

Overstating deposits, 25% of the
overstatement.

Paying taxes late, 2 of 1% of the
unpaid amount for each month or part
of a month it remains unpaid—up to
25% of the unpaid amount. The
penalty applies to unpaid tax shown on
a return and to any part of additional
tax shown on a bill if it is not paid
within 10 days from the date of the
bill.

© Willfully failing to collect and pay tax,
keep records, or file return, 100%.

© Filing false or fraudulent returns, 50%
of the underpayment plus 50% of the
interest attributable to the
underpayment.

If you can show reasonable cause for
late filing, late payment, or not depositing
the proper amount of tax when due, the
penalty does not apply. If you are late filing
a return or depositing taxes, send in a full
explanation with the return.

These penalties are in addition to the
interest charge on late payments.

Page 2

Also, be sure to sign the return. An
unsigned return is not considered filed.

When to File.—Except as otherwise
provided in the instructions, you must file a
return for each quarter of the calendar year
as follows:

All excise taxes

otherthan air | (Alrtrans.
Quarter | trans.,comm., | Om. an
covered ‘and

profit
windfall profit | yeh,
due by
January, February,

March April 30 May 31
April, May, June | July31 August 31
July, August, November

September October 31 30
October, November, February

December January 31 28

If any due date for filing a return falls on
a Saturday, Sunday, or legal holiday, the
due date is extended to the next succeeding
day that is not a Saturday, Sunday, or legal
holiday.

For excise taxes other than those on air
transportation, communications, or windfall
profits you may have an additional 10 days
to file your return if you have made deposits
of the taxes due for the quarter on time and
in full.

If you are reporting two or more excise
taxes, and they are due on different dates,
the later filing date will be acceptable
provided timely deposits were made. Only
one return should be filed each quarter.

Where to File.—

If your principal business,
office or agency, or legal
residence in the case of an
individual, is located in

Vv

File with the Internal
Revenue Service
Center at

Vv

New Jersey, New York City and
counties of Nassau, Rockland,
Suffolk, and Westchester

New York (all other counties),
Connecticut, Maine,
Massachusetts, New
Hampshire,

Rhode Island, Vermont

Holtsville, NY 00501

Andover, MA 05501

Delaware, District of Columbia,
Maryland, Pennsylvania

Alabama, Florida, Georgia,
Mississippi, South Carolina

Michigan, Ohio

Arkansas, Kansas, Louisiana,
New Mexico, Oklahoma, Texas

‘Alaska, Arizona, Colorado,
Idaho, Minnesota, Montana,
Nebraska, Nevada, North
Dakota, Oregon,

South Dakota, Utah,
Washington, Wyoming

Mlinois, lowa, Missouri,
Wisconsin

California, Hawaii

Indiana, Kentucky, North
Carolina, Tennessee,
Virginia, West Virginia

" Philadelphia, PA 19255

Atlanta, GA 31101

Cincinnati, OH 45999

Austin, TX 73301

Ogden, UT 84201

Kansas City, MO 64999

Fresno, CA 93888

Memphis, TN 37501

Ifyou have no legal residence, principal place
of business or principal office or agency in any
Internal Revenue district, file your return with
the Internal Revenue Service Center,
Philadelphia, PA 19255.

Specific Instructions

Name, Address, and Employer
Identification Number.—The first time
you file Form 720, enter the required
information. After that, IRS will mail you a
preaddressed return every 3 months.
Please use the preaddressed form.

If you are not using a preaddressed
form, type or print your name and employer
identification number (EIN) exactly as
shown on earlier returns. Do not use an EIN
of a former owner of a business. For
information on applying for an EIN, or filing
a return if the EIN has not been received,
see Publication 583, Information for
Business Taxpayers—Business Taxes,
Identification Numbers, Recordkeeping.

Part |.—Computation of
Tax Items

Tax Computation Columns.—Figure the
taxes that apply by using the appropriate
figures in the ‘‘rate” columns. Add the
amounts of tax in the ‘‘tax” columns and
enter the total tax on line 1.

Facilities and Services Taxes

a. Communications services.—The tax is
on amounts paid for toll telephone service,
teletypewriter exchange service, and local
telephone service. The person paying for
the service or facility is liable for the tax,
and the person receiving the payment is
required to collect the tax and file Form
720. Amounts paid for communication
services do not include state or local taxes
paid if the amount is separately stated in
the bill to the customer.

Toil telephone service means a telephonic
quality communication for which a toll
charge is made that varies in amount with
the distance and the elapsed transmission
time to each individual communication, but
only if the charge is paid within the United
States. It also includes WATS (wide area
telephone service). Microwave relay service
used for the transmission of television
programs and not for telephonic
communication is not a toll telephone
service and is not subject to the
communication tax.

Teletypewriter exchange service means
access from a teletypewriter or other data
station to a teletypewriter exchange system,
and the privilege of intercommunication by
that station with substantially all persons
having teletypewriter or other data stations
in the same exchange system, to which the
subscriber is entitled upon payment of a
charge or charges.

Local telephone service means the
access to a local telephone system and the
privilege of telephonic quality
communication together with facilities or
services provided with this service.

b. Transportation of persons by air.—The
tax applies to amounts paid for taxable
transportation of persons by air, including
amounts paid for related seating or sleeping
accommodations. This includes amounts

(instructions continued on page 4)


rom 120

(Rey. January 1985)

Department of the Treasury—internal Revenue Service

Quarterly Federal Excise Tax Return

> For Paperwork Reduction Act Notice, see instructions.

OMB No. 1545-0023

Use to Report Excise
Taxes for 1985

(Enter month and year as on original)

Type or print in this space your name, address, and employer identification number as shown on original. | Return for calendar quarter ending

en QUR COPY

TEE Computation of Tax items

FEZ Computation of Net Tax Liability

Facilities and Services Taxes
Toll telephone service
Teletypewriter exchange service
Local telephone service .
Transportation of persons by air
Use of international air travel facil-
ities. .
Transportation of property by air .
Policies issued by foreign insurers .
Obligations not in registered form .
Manufacturers Taxes
Coal (1 ton = 2,000 Ibs.):
Underground mined (lower of)
(a) $1 per ton (or),
(b) 4% of ton price.
Surface mined (lower of)
(a) 50¢ perton (or)
(b) 4% of ton price.
Sport fishing equipment
Electric outboard motors and sonar devices
Bows and arrows.
Pistols and revolvers. :
Firearms (other than pistols and revolvers).
Shells and cartridges
Gasoline .
Alcohol sold as but not used as fuel
Tires (highway type). .
Fuel economy tax (Form 6197).
Retall and Use Taxes
Truck and trailer chassis and bodies; tractors.
Diesel fuel and special motor fuels.
Inland waterways fuel.

Fuel used in Fuelother
noncommercial) than gasoline
aviation Gasoline (retailers tax)

Crude Oil Windfall Profit Taxes
Quarterly (production—Form 6047)
Quarterly (withholding—Form 6047)
Annual return

Environmental Taxes

Petroleum (attach Form 6627)

Chemicals (attach Form 6627).
Hazardous wastes (attach Form 6627)

Rate Tax Rs 1 Total tax. Add all amounts from Part | —
2 > Adjustments. (See instructions. Attach
3% 22 statement.)
3. Taxas adjusted
8% 26 |4__(@) Record of Tax Liability (See ‘instructions ‘on page 5.)
Period Amount of Liability
$3 per Ast-15th day
person 27] 5
5% 28 | mut, [déth-last day
«) 30 Total for month .
* 31 Ist-15th day
Second | éth-last day
Total for month .
__ [Ast-15th day
«) 36 | anit, [Deth-ast day
* 37 Total for month .
V7 (b) Total liability for quarter
“ 38 (c) Total deposits for quarter
ie] 39 | 5 Credit for overpaid windfall profit tax
10% 41 (Seeinstructions.) . . . . 1. 1h
3% (*) 42 | 6 Overpayment from previous quarter. >
11% 44 | 7 Total deposits (item 4(c) plus items 5
10% 32 and6) . . . >
11% 46 8 Undeposited taxes due! (item 3 less item
7; this should be $100 or less). Payto
11% 49 Internal Revenue Service... >
*) 62 Note: /f undeposited taxes due at the end of the quarter are more
fo) 51 than $100, the entire balance must be deposited.
. If you make semimonthly deposits and claim one of the deposit
i) 66 exceptions, please indicate the exception:
y) 40 1O 20 30 40
MM Gasoline producers or refiners who are eligible for the 14-day
12% (*) 33 depositary due date, please check this box. >
) 61 ] 9 Ifitem7 is more than item 3, enterexcesshere B® $ ____.._-..---
8¢ gal. 64 and check if you want it: [1] applied to your next return, or
14¢ gal. 69 C retunded to you.
W777) 14 | 10 Ityouwill not be liable for returns in succeeding quarters, write “FINAL”
here >
(*) 50 and return this form to your internal Revenue Service Center.
@) 56
(*) 52 | Social security number for IRS No. 52>
@) 53
“) 54
@) 55

*See instructions on pages 2 and 4 through 6.

Under penalties of perjury, I declare that | have examined this return, and accompanying schedules and statements, and, to the best of my knowledge and belief, they are true, correct, and complete.

Signature >

Title (Owner, etc.) >

Date >