purpose of blending with alcohol, the failure
to blend the gasoline with the alcohol will
result in a 5%4¢ a gallon excise tax. Report
the amount of this tax on the line for IRS
No. 62.

\f 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
(IRS No. 51).—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 (IRS No. 66).—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. Gas guzzler tax (IRS No. 40).—Compute
the tax on Form 6197, Gas Guzzler 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 (IRS No. 33).—The excise tax is
on the first retail sale of truck and trailer
chassis and bodies, and tractors. The sale of
avehicle includes related parts and
accessories sold on or in connection with
the sale of the vehicle. It applies to vehicles
designed for highway transportation that
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.

The first retail sale means the first sale of
a vehicle after manufacture, production, or
importation. The sale by a manufacturer,
producer, or importer is not the first retail
sale if either (a) the buyer is not in the
business of leasing and intends to resell the
vehicle, or (b) if the buyer is in the business
of leasing, both the buyer and seller are
registered on Form 637 and the buyer
certifies on an exemption certificate that it
intends to resell the vehicle. If a vehicle is
sold tax-free but is later leased by the buyer,
the leasing of the vehicle is considered the
first retail sale. When a lease is treated as
the first retail sale, the tax is computed ona
constructive sales price established by the
Commissioner of the Internal Revenue
Service. If the first retail sale is a lease, an

installment sale, or any sale, when the
selling price is paid in installments, the
entire tax is due at the time of the lease or
installment sale.

b. Diesel fuel and special motor fuels (IRS
No. 61).—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 thana
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.

Off-highway business use of fuels is
exempt from the tax. However, a 3¢ a gallon
tax applies to qualified methanol and
ethanol. 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 41 a gallon.

A9¢ a gallon tax applies to the sale or use
of any mixture containing diesel fuel and
10% alcohol that is at least 190 proof. A3¢
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.

If you are a retailer of diesel fuel, you may
elect to have the tax on diesel fuel paid by
the seller on sales to you after March 1987.
To make this election file Form 8587,
Election by Qualified Diesel Fuel Retailer.

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

c. Inland waterways fuel use tax (IRS No.
64).—In addition to the tax on special
motor fuel used in a motorboat, there is a
tax of 10¢ 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
(IRS Nos. 62, 69, 14).— 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 2.9¢ a gallon plus
the 9¢ a gallon manufacturers tax. Also, see
the Additional Tax on Fuels, below. If the
gasoline is purchased tax paid (9¢ a gallon
manufacturers tax), only the additional 2.9¢
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 2.9¢ a gallon retailers 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) Is 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,
accredit or refund may be available. See
Publication 378, Fuel Tax Credits, for more
information about fuel tax credits or refunds.
Additional Tax on Fuels (IRS No. 15).—
Beginning January 1, 1987, there is anew
excise tax imposed on the sale of fuels,
which is in addition to other taxes on fuels
reported on this form. This new tax is
computed on the same tax base as other
taxes on fuels. The tax rate is?/io of 1¢
(.001) a gallon on gasoline, gasoline sold for
gasohol production, gasohol, diesel and
special fuels, special fuels mixed with
alcohol, fuels used in aviation, fuels used on
inland waterways, and fuels sold for use or
used in trains. The tax rate for qualified
methanol and ethanol is 1/20 of 1¢ (.0005)
a gallon.

Crude Oil Windfall Profit Taxes (IRS.
Nos. 50, 56, 52)

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 the
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 under line
10, Part Il. If tax was overwithheld, see
Form 6249, Computation of Overpaid
Windfall Profit Tax.

Environmental Taxes (IRS Nos. 53,
16, 54)

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.

Page 5


b. Transportation of persons by air (IRS
No. 26).—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 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 (IRS
No. 27).—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 (IRS
No. 28).— 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 transporta-
tion (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 (IRS
No. 30).— 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 (IRS No. 31).—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.

A registration-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 Chapters 31, 32, and 38 of the
Internal Revenue Code.

Compute the tax on the price for which
the taxable article is sold or leased. Fora
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 exclusions from
the sale price such as local advertising
charges, and the cost of transportation, see
Publication 510. There are also special
rules that apply to the lease of any article.

You may adjust the manufacturer's 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 ona later
return or file a refund claim.

You must compute the tax ona 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 (IRS Nos. 36, 37, 38, 39).—The
tax on coal per ton (2,000 Ibs.) may not be
more than 4.4% 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,
or 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.
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 (IRS Nos. 41,
42).—The tax is on the sale of sport fishing
equipment which includes: fishing rods and
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 that is a
graph recorder, a digital type, a meter
readout, or a combination graph recorder or
combination 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.

c. Bows and arrows (IRS No. 44).—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 that measure less
than 18 inches are taxable if they are
suitable for use with a bow that 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 (IRS Nos. 32, 46, 49).—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 in a knockdown condition

e. Gasoline and gasohol (IRS Nos. 62, 58,
59).—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% alcoho! that is at least 190 proof) bya
producer of gasoline is taxable at 3¢ a
Ballon. 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 344¢ a gallon.

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 574¢ a gallon excise tax on
the separated fuels. Also, if gasoline is
purchased tax paid at the 344¢ rate for the


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

@ The IRS Nos. being adjusted.

@ An explanation of why you are claiming a
reduction in tax.

 Astatement that you have the required
supporting evidence.

e 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 Form 720, line 2,
Adjustments, for windfall profit tax.

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.

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.

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.

How To Make Deposits

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

To obtain more deposit coupons, use the
reorder form (Form 8109A) provided in the
coupon book. Be sure to enter the number
of books you need. If you do not have a
coupon book, please contact 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 fuel
use taxes. For special rules on depositing
windfall profit taxes, see the instructions
for Form 6047. No deposits are required
for the sport fishing equipment tax and
inland waterways fuel use tax. The tax is
payable with the return.

Page 6

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).

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 they are
considered collected.

If the taxes are computed on any other
basis, deposit the taxes within 3 banking
days after the end of the semimonthly
period in which they are 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 government
depositary or by transfer between accounts
in the same government 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 legal holiday, the due date will
be the immediately preceding day that is
not a Saturday, Sunday, or legal holiday.

Policies Issued by Foreign Insurers.—lf
the amount of tax on these policies is for the
first semimonthly period, deposit it by the
first 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.

If you claim one of the exceptions, please
sheck the appropriate box on page 1, Form

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 on a semimonthly
basis on line 4 of the form. See Regulations
sections 46.6302(c)-1, 48.6302(c)-1,
49.6302(c)-1 and 52.6302(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 LOO

(Rev. January 1987)
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 1987

Pl te T

Pleas ente cuter ending r

address,

employer FD

identification Employer identification number FP

calendar I

quarter of T

teturn, if -

not preprinted, If address is

(trot different from

ene prior return, >
cl check here.

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

Computation of Tax Items

Computation of Net Tax Liability

Fa

Toll telephone service
Teletypewriter exchange service
Local telephone service .

Transportation of persons by air

Use of international air travel facilities
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) $1.10 per ton (or).
(b) 4.4% of ton price .
Surface mined (lower of)

(2) 55¢ perton (or)

(b) 4.4% of ton price .
Sport fishing equipment
Electric outboard motors and sonar devices
Bows and arrows

ies and Services Taxes

Pistols and revolvers. .
Firearms (ater than pistols and revelers).
Shells and cartridges

Gasoline . .
Gasoline sold for gasohol production
Gasohol .
Alcohol sold as but not used as fuel
Tires (highway type).

Gas guzzler tax—Form 6197 .
Retail and Use Taxes

Truck and trailer chassis and bodies; tractors.
Diesel and special motor fuel

Inland waterways fuel use tax .

Fuel used in Fuel other
noncommercial 4 than gasoline | »
aviation Gasoline (retailers tax)

‘Additional Tax on Fuels (See instructions on page 5.)
Crude Oil Windfall Profit Taxes
Quarterly (production—Form 6047) .
Quarterly (withholding—Form 6047),
Annual return

Environmental Taxes

Petroleum (domestic)—Form 6627 .
Petroleum (imported)—Form 6627 .
Chemicals—Form 6627

Rate Tax Rs 1 Total tax. Add all amounts from Part |
“] 2 Adjustments. (See instructions. Attach
3% 22 statement identifying IRS No.)
3° Taxas adjusted
oh, 26 | Note: Do not complete lines 4 through § 9 if you are only reporting tax
SS per 27 for inland waterways fuel use or sport fishing equipment.
5% 28 | 4 (a) Record of Tax Liability (See instructions on page 6.)
(*) 30 Period Amount of Liability
(*) 31] __ [1st-l5thday
Yi wat 16th-last day
YY) Total for month .
C) 36 Ist-15th day
C) 37 | Second | Téti-last day
YY Total for month .
. 3g | ___ [1st-15thday
% 30 | wtitd, [Teth-last day
10% 41 Total for month .
3% (*) 42 (b) Total liability for quarter .
11% 44 (c) Total deposits for quarter. .
10% 32 | 5 Credit for overpaid windfall profit tax
11% 46 (Seeinstructions) . 2. 6.
11% 49 | 6 Overpayment from previous quarter . >
9¢ gal. (*) 62 | 7 Total deposits (line 4(c) plus lines 5
3440 gal. 58 and6). . . >
3e so] ® ret ec eesiats
o) 51 Internal Revenue Service
>) 66 Note: /f undeposited taxes due at the end of the quarter are more
(*) 40 than $100, the entire balance must be deposited.
MMM exteptions explained on page ® plosee ndleate Re cremation
12% 33 10 20 30 40
@) 61 Gasoline producers or refiners who are eligible for the 14-day
10¢ gal. 64 |___ depositary due date, please check this box. _
14¢ gal 69 | 9 Ifline7ismorethanline3,enterexcesshere  & $ _
[2.9¢ gal. (*) 14 and check if you want it: [1] applied to your next return, or
* 15 refunded to you.
T7/ 10 If you will not be liable for returns in succeeding quarters, write “FINAL”
© 50 here >
(o) 56 and return this form to your Internal Revenue Service Center.
(o) 52 | Social security number for IRS No. 52 >
YW See instructions on pages 2 and 4 through 6
@) 53
@) 16
(o) 54

Under penalties of perry, | 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 and
sign the return.) For more information obtain
Publication 510, Excise Taxes for 1987.

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, 10% 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 ona return and to any part of
additional tax shown on a bill if itis not paid
within 10 days from the date of the bill.

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

© Filing false or fraudulent returns, 75% 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 ina full
explanation with the return.

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

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

Page 2

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

Allexcisetaxes | ir trans.,
other than air comm., and
Quarter trans., comm., indtall
covered and windfal
; , profit
windfall profit | due by
due by
January, February,

March April 30 May 31
April, May, June July 32 August 31
July, August, November

‘September October 31 ‘SO
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.—

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

File with the Internal
Revenue Service
Center at

Vv

Alabama, Florida, Georgia,

Mississipp1, South Carolina Atlanta, GA 31101

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

Holtsville, NY 00501

New York (all other counties),
Connecticut, Maine,
Massachusetts, Minnesota,
New Hampshire, Rhode Island,
Vermont

Andover, MA.05501

Wlinors, lowa, Missouri,

Wisconsin Kansas City, MO 64999

Delaware, District of
Columbia, Maryland,

Philadelphia, PA 19255,
Pennsylvania

Kentucky, Michigan, Ohio,

West Virginia Cincinnati, OH 45999

Kansas, Louisiana, New

Mexico, Oklahoma, Texas Austin, TX 73301

Alaska, Arizona, Calitornia
(counties of Alpine, Amador,
Butte, Calaveras, Colusa,
Contra Costa, Del Norte, El
Dorado, Glenn, Humboldt,
Lake, Lassen, Marin,
Mendocino, Modoc, Napa,
Nevada, Placer, Plumas,
Sacramento, San Joaquin,
Shasta, Sierra, Siskiyou,
Solano, Sonoma, Sutter,
Tehama, Trinity, Yolo, and
Yuba), Colorado, Idatio,
Montana, Nebraska,
Nevada, North Dakota,
Oregon, South Dakota,
Utah, Washington, Wyoming

Ogden, UT 84201

California (all other

counties), Hawaii Fresno, CA 93888

Arkansas, Indiana, North
Carolina, Tennessee,
Virginia

Memphis, TN 37501

if you 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.

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 in Part Il, on line 1. Do
not enter adjustments in the tax column.
Enter all adjustments on line 2, Part Il.

Facilities and Services Taxes

a. Communications services (IRS No.
22).—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
communications services do not include
state or local taxes paid if the amount is
separately stated in the bill to the customer.

Toll 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 nota 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.

(instructions continued on page 4)


om 120

(Rev. January 1987)
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 1987

Type or print in this space your name, address, and employer identification number as shown on original.

Return for calendar quarter ending
(Enter month and year as on original)

YOUR COPY

Computation of Tax It

Facilities and Services Taxes

Teletypewriter exchange service .
Local telephone service .

Transportation of persons by air

Use of international air travel facilities
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) $1.10 per ton (or).
(b) 4.4% of ton price .
Surface mined (lower of)

(2) 55¢ perton (or)

(b) 4.4% of ton price .
Sport fishing equipment
Electric outboard motors and sonar devices
Bows and arrows.

Tolltelephoneservice . . . . :

Pistols and revolvers.

Firearms (other than pistols and revohvers)
Shells and cartridges

Gasoline . .
Gasoline sold fr gasohol production
Gasohol wee
Alcohol sold as but not used as fuel
Tires (highwaytype). . . .
Gas guzzler tax—Form 6197 .
Retail and Use Taxes

Truck and trailer chassis and bodies; tractors .
Diesel and special motor fuel .
Inland waterways fuel use tax .

Fuel used in Fuelother |
Roncommercial { than gasoline | «
aviation Gasoline (retailers tax).

Additional Tax on Fuels (See instructions on page 5.)|
Crude Oil Windfall Profit Taxes
Quarterly (production—Form 6047) .
Quarterly (withholding—Form 6047).
Annualretun 2... we
Environmental Taxes

Petroleum (domestic)—Form 6627 .
Petroleum (imported)—Form 6627 .
Chemicals—Form 6627

lems Part 1! | Computation of Net Tax Liability
Rate Tax Rs 1 Total tax. Add all amounts from Part |
“| 2 Adjustments. (See instructions. Attach
3% 22 statement identifying IRS No.)
3 Taxas adjusted
8%, 26 | Note: Do not complete lines 4 through 6 9 if you are only reporting tax
peer 27 for inland waterways fuel use or sport fishing equipment.
5% 28 | 4 (a) Record of Tax Liability (See instructions on page 6.)
(*) 30 Period Amount of Liability
(*) 31] ___ [ist-l5thday
7 7 Ast [Teth-last day
Total for month .
() 36 Ist-15th day
« 37 | Second [Teth-last day
YY) Totalformonth. .. . .
. 3g] ___ | Ist-15thday Y
° 39 | yni4 [Teth-last day
10% 41 Total for month .
3% (*) 42 (b) Total liability for quarter .
11% 44 (c) Total deposits for quarter.
10% 32 15 Credit for overpaid windfall profit tax
11% 46 (ee instructions)... . 2
11% 49 | 6 Overpayment from previous quarter . >
9¢ gal. (*) 62 | 7 Total deposits (line 4(c) plus lines 5
3440 gal. 58 and6). . . . >
3¢ a. so sere nes ts
(*) 51 Internal Revenue Service
*) 66 Note: /f undeposited taxes due at the end of the quarter are more
(*) 40 than $100, the entire balance must be deposited.
If you make semimonthly deposits and claim one of the deposit
MMMM exceptions explained on page 6, please indicate the exception:
12% 33 10 20 30 40
© 61 Gasoline producers or refiners who are eligible for the 14-day
10¢ gal. 64 depositary due date, please check this box.
14¢ gal. 69 | 9 Ifline7ismorethaniine 3, enterexcesshere P $ _._._. Le.
i2.9¢ gal. (*) 14 and check if you want it: [J appliedto your next return, or
Yj) 15 1 refunded to you,
MMMM 10 if you will not be liable for returns in succeeding quarters, write “FINAL”
© 50 here >
(o) 56 and return this form to your Internal Revenue Service Center.
(o) 52 | Social security number for IRS No. 52 >
YY *See instructions on pages 2 and 4 through 6.
@) 53
@) 16
@) 54

Under penalties of perry, | 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 >