Table of Contents
- Name and Address
- Employer Identification Number (EIN)
- Signature
- Third Party Designee
- Part I
- Part II
- Part III
- Payment of Taxes
- Schedule A—Excise Tax Liability
- Schedule T—Two-Party Exchange Information Reporting
- Schedule C—Claims
- Type of Use Table
- Line 1. Nontaxable Use of Gasoline
- Line 2. Nontaxable Use of Aviation Gasoline
- Line 3. Nontaxable Use of Undyed Diesel Fuel
- Line 4. Nontaxable Use of Undyed Kerosene (Other Than Kerosene Used in Aviation)
- Line 5. Kerosene Used in Aviation
- Line 6. Nontaxable Use of Alternative Fuel
- Information for Claims on Lines 7–11
- Line 7a. Sales By Registered Ultimate Vendors of Undyed Diesel Fuel
- Line 7b. Sales by Registered Ultimate Vendors of Undyed Diesel Fuel for Use in Certain Intercity and Local Buses
- Lines 8a and 8b. Sales By Registered Ultimate Vendors of Undyed Kerosene (Other Than Kerosene Sold for Use in Aviation)
- Line 8c. Sales by Registered Ultimate Vendors of Undyed Kerosene for Use in Certain Intercity and Local Buses
- Lines 9a and 9b. Sales By Registered Ultimate Vendors of Kerosene For Use in Commercial Aviation (Other Than Foreign Trade)
- Lines 9c, 9d, 9e, and 9f. Sales By Registered Ultimate Vendors of Kerosene Sold For Use in Noncommercial Aviation
- Lines 10 and 11. Sales by Registered Ultimate Vendors of Gasoline and Aviation Gasoline
- Line 12. Alcohol Fuel Mixture Credit
- Line 13. Biodiesel or Renewable Diesel Mixture Credit
- Line 14. Alternative Fuel Credit and Alternative Fuel Mixture Credit
- Annual Claims
- Line 15. Other Claims
- Unresolved Tax Issues
The first time you file Form 720, type or print your name, address (including the suite, room, or other unit number), and the quarter ending date (month and year). After that, the IRS will mail you a Package 720 with a preaddressed Form 720 every quarter. If your address changes, make the corrections on Form 720 and check the address change box above Part I of Form 720.
If the EIN on the preaddressed Form 720 is wrong or you did not receive a preaddressed Form 720, enter the correct number. If you are a one-time filer, you may not need an EIN. See Gas guzzler tax on page 6. If you do not have an EIN, you may apply for one online. Go to the IRS website at www.irs.gov/businesses/small and click on the “Employer ID Numbers” link. You may also apply for an EIN by calling 1-800-829-4933 (hours of operation are Monday – Friday, 7:00 a.m. to 10:00 p.m. local time), or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS.
www.irs.gov/pub/irs-irbs/irb07-39.pdf.
If you want to allow an employee of your business, a return preparer, or other third party to discuss your Form 720 with the IRS, check the “Yes” box in the Third Party Designee section of Form 720. Also, enter the designee's name, phone number, and any five digits that person chooses as his or her personal identification number (PIN).
By checking the “Yes” box, you are authorizing the IRS to speak with the designee to answer any questions relating to the processing of or the
information reported on
Form 720. You are also authorizing the designee to:
-
Exchange information concerning Form 720 with the IRS, and
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Respond to certain IRS notices that you have shared with your designee relating to Form 720. The IRS will not send notices to your designee.
You are not authorizing the designee to receive any refund check, bind you to anything (including additional tax liability), or otherwise represent you before the IRS. If you want to expand the designee's authority, see 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 want to revoke this authorization, send a written statement of revocation to the Department of the Treasury, Internal Revenue Service, Cincinnati, OH 45999. See Pub. 947 for more information.
Use Form 6627, Environmental Taxes, to figure the environmental taxes on:
Attach Form 6627 to Form 720. The tax rates for these taxes are shown on Form 6627.
The person receiving the payment for communications services must collect and pay over the tax and file the return. Enter the amount of tax collected or considered collected for the quarter.
The tax is 3% of amounts paid for local telephone service and teletypewriter exchange service.
If tax is collected and paid over for nontaxable services from the communications tax, the collector or taxpayer may request a credit or refund as described below and in Notices 2006-50 and 2007-11.
Collectors using the regular method for deposits must use Form 720X to request a credit or refund.
The person receiving the payment for air transportation services must collect and pay over the tax and file the return. Enter the amount of tax collected or considered collected for the quarter.
The tax on transportation of persons by air is made up of the percentage tax and the domestic segment tax. Add the percentage tax and the domestic segment tax to get the total tax on transportation of persons by air.
Example.
In January 2009, Frank Jones pays $265.20 to a commercial airline for a flight in January from Washington to Chicago with an intermediate stop in Cleveland. The flight comprises two segments. The price includes the $240 fare and $25.20 excise tax [($240 × 7.5%) + (2 × $3.60)] for which Frank is liable. The airline collects the tax from Frank and pays it over to the government.
If an aircraft is chartered, 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 2009, Tim Clark pays $1,125.40 to an air charter service to carry seven employees from Washington to Detroit with an intermediate stop in Pittsburgh. The flight comprises two segments. The price includes the $1,000 charter payment and $125.40 excise tax [($1,000 × 7.5%) + (2 × $3.60 × 7 passengers)] for which Tim is liable. The charter service collects the tax from Tim and pays it over to the government.
The tax is 6.25% of amounts paid for transportation of property by air.
For amounts paid during 2009 the tax on international flights is:
-
$16.10 per person for flights that begin or end in the United States, or
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$8.00 per person for domestic segments that begin or end in Alaska or Hawaii (applies only to departures).
A separate report is required to be filed by collecting agents of communications services (local and teletypewriter service) and air transportation taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses to pay the tax, or it is impossible for the collecting agent to collect the tax. The report must contain the name and address of the taxpayer, the type of facility provided or service rendered, the amount paid for the facility or service (the amount on which the tax is based), and the date paid.
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Give a copy of the first taxpayer's report to the buyer;
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File the first taxpayer's report with Form 720 for the quarter for which the report relates; and
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Write “EXCISE—FIRST TAXPAYER'S REPORT” across the top of a separate copy of the report, and by the due date of Form 720, send the copy to:
Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0555
All of the following requirements must be met to be eligible for the reduced rate: (a) the diesel-water fuel emulsion must contain at least 14% water, (b) the emulsion additive must be registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act, and (c) the taxpayer must be registered by the IRS. If these requirements are not met, you must report the sale, removal, or use of a diesel-water fuel emulsion as diesel fuel.
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IRS No. 105, Dyed diesel fuel, LUST tax.
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IRS No. 107, Dyed kerosene, LUST tax.
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IRS No. 119, LUST tax, other exempt removals. Report gasoline blendstocks, kerosene used for a feedstock purpose, and diesel fuel or kerosene sold or used in Alaska.
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IRS No. 111, Kerosene for use in aviation, LUST tax on nontaxable uses. Report gallons of kerosene removed directly from a terminal into the fuel tank of an aircraft for nontaxable uses.
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For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $.219 per gallon. Report these gallons on the line for IRS No. 69.
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For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in commercial aviation (other than foreign trade), the tax rate is generally $.044 per gallon. Report these gallons on the line for IRS No. 77.
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For kerosene removed directly from a terminal into the fuel tank of an aircraft for nontaxable uses, the tax rate is generally $.001 per gallon. Report these gallons on the line for IRS No. 111.
Fuel | Tax Rate per Gallon |
||
---|---|---|---|
Qualified— | |||
Ethanol produced from coal | .1325 | ||
Methanol produced from coal | .1235 | ||
Partially exempt— | |||
Ethanol produced from natural gas | .114 | ||
Methanol produced from natural gas | .0925 | ||
B-100 (100% biodiesel) | .244 | ||
Liquefied gas derived from biomass | .184 | ||
Other fuels not shown | .184 |
Alternative Fuel | IRS Number |
---|---|
Liquefied petroleum gas (LPG) | 112 |
“P Series” fuels | 118 |
Compressed natural gas (CNG) | 120 |
Liquefied hydrogen | 121 |
Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process | 122 |
Liquid fuel derived from biomass | 123 |
Liquefied natural gas (LNG) | 124 |
The tax is 12% (.12) of the sales price on the first retail sale of each unit. The tax applies to:
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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,
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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
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Tractors of the kind chiefly used for highway transportation in combination with a trailer or semitrailer, except tractors that have a gross vehicle weight of 19,500 pounds or less and a gross combined weight of 33,000 pounds or less. Generally, gross combined weight means the weight of a tractor and the weight of its trailer(s).
The 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 do not apply to an idling reduction device or insulation that has an R value of at least R35 per inch.
Any device or system of devices that provide 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.
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Platform truck bodies 21 feet or less in length.
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Dry freight and refrigerated truck van bodies 24 feet or less in length.
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Dump truck bodies with load capacities of 8 cubic yards or less.
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Refuse packer truck bodies with load capacities of 20 cubic yards or less.
www.irs.gov/pub/irs-irbs/irb05-14.pdf.
No. 29.
Do not include the excise tax on coal in the sales price when determining which tax rate to use.
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.
IRS No. | Taxable Tire Category | Rate (for each 10 pounds of the maximum rated load capacity over 3,500 pounds) |
---|---|---|
108 | Taxable tires other than biasply or super single tires | $.0945 |
109 | Taxable tires, biasply or super single tires (other than super single tires designed for steering) | $.04725 |
113 | Taxable tires, super single tires designed for steering | $.0945 |
Form 6197 to Form 720. The tax rates for the gas guzzler tax are shown on Form 6197.
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.
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You do not import gas guzzling automobiles in the course of your trade or business.
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You are not required to file Form 720 reporting excise taxes for the calendar quarter, except for a one-time filing.
Follow the steps below to make a one-time filing.
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File Form 720 for the quarter in which you incur liability for the tax. See When To File on page 1.
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Pay the tax with Form 720. No deposits are required.
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If you are an individual and do not have an employer identification number (EIN), enter your social security number (SSN) or individual taxpayer identification number (ITIN) on Form 720 and Form 720-V in the space for the EIN.
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Check the one-time filing box on the line for the gas guzzler tax.
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Contains diptheria toxoid, tetanus toxoid, pertussis bacteria, extracted or partial cell bacteria, specific pertussis antigens, or polio virus;
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Is against measles, mumps, rubella, hepatitis A, hepatitis B, chicken pox, rotavirus gastroenteritis, or human papillomavirus;
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Is any HIB (haemophilus influenza type B) vaccine;
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Is any meningococcal vaccine;
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Is any conjugate vaccine against streptococcus pneumoniae; or
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Is any trivalent vaccine against influenza.
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.
Foreign insurers and reinsurers who take the position that a treaty of the United States overrules, or otherwise modifies, an Internal Revenue law of the United States must disclose such position. This disclosure must be made once a year on a statement which must report the payments of premiums that are exempt from the excise tax on policies issued by foreign insurers for the previous calendar year. This statement is filed with the 1st quarter Form 720, which is due before May 1 of each year.
You may be able to use Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), as a disclosure statement.
At the top of Form 720, write “Section 6114 Treaty.” If you have no other transactions reportable on Form 720, complete Form 720 as follows.
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If this is your final return, check the final return box.
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Write “None” on lines 1 and 3.
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Sign the return.
You need an EIN to file Form 720. If you do not have an EIN, see Employer Identification Number (EIN) on page 3.
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It measures 18 inches or more in overall length.
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It measures less than 18 inches in overall length but is suitable for use with a taxable bow, described earlier.
The tax does not 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.
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It measures of an inch or less in diameter.
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It is not suitable for use with a taxable bow, described earlier.
IRS No. 64. Certain fuels must also be reported under IRS No. 125 (see below). The inland waterways fuel use tax applies at the rate listed on Form 720. This is in addition to all other taxes imposed on the sale or use of the fuel.
IF the alcohol is... | AND... | THEN the tax rate per gallon is... | ||
at least 190 proof | • is ethanol | $ | .45 | |
• is methanol | .60 | |||
• benefited from the small ethanol producer credit |
.55 | |||
at least 150 proof but | • is ethanol | $ | .3333 | |
less than 190 proof | • is methanol | .45 | ||
• benefited from the small ethanol producer credit |
.4333 |
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.
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.
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The net liability for taxes listed in Part I (Form 720) does not exceed $2,500 for the quarter.
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The gas guzzler tax is being paid on a one-time filing. See Gas guzzler tax on page 6.
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The liability is for taxes listed in Part II (Form 720), except for the floor stocks tax that generally requires a single deposit. See Floor Stocks Tax above.
To avoid a penalty, make your deposits timely and do not mail your deposits directly to the IRS. Records of your deposits will be sent to the IRS for crediting to your accounts.
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The total deposits of such taxes in 2007 exceeded $200,000 or
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You were required to use EFTPS in 2008 or any prior year.
You will automatically be enrolled in EFTPS when you apply for an EIN. You will receive a separate mailing containing instructions for activating your EFTPS enrollment after you receive your EIN. You will still have the option to use FTD coupons, but see above.
There are two methods for determining deposits: the regular method and the alternative method.
The regular method applies to all taxes in Part I of Form 720 except for communications and air transportation taxes if deposits are based on amounts billed or tickets sold, rather than on amounts actually collected. See Alternative method on page 9.
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.
The tax included in amounts billed or tickets sold for the period June 16–30, 2009, is considered collected from July 16–22,
2009, and must be deposited by
July 27, 2009.
To use the alternative method, you must keep separate accounts of the tax included in amounts billed or tickets sold during the month and report on Form 720 the tax included in amounts billed or tickets sold and not the amount of tax that is actually collected. For example, amounts billed in December, January, and February are considered collected during January, February, and March and are reported on Form 720 as the tax for the 1st quarter of the calendar year.
The separate account for each month must reflect:
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All items of tax included in amounts billed or tickets sold during the month, and
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Other items of adjustment relating to tax for prior months (within the statute of limitations on credits or refunds).
The separate account for any month cannot include an adjustment resulting from a refusal to pay or inability to collect unless the refusal has been reported to the IRS. See Communications and Air Transportation Taxes—Uncollected Tax Report on page 4.
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
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One-half of the net amount of tax reflected in the separate account for the preceding month.
Additional deposit of taxes in September 2009
For thePeriod | ||||
Type of Tax | Beginning on | Ending on | Due Date | |
Regular method taxes | ||||
EFTPS1 | Sept. 16 | Sept. 26 | Sept. 29 | |
Non-EFTPS | Sept. 16 | Sept. 25 | Sept. 28 | |
Alternative method taxes (IRS Nos. 22, 26, 27, and 28) (based on amounts billed) | ||||
EFTPS1 | Sept. 1 | Sept. 11 | Sept. 29 | |
Non-EFTPS | Sept. 1 | Sept. 10 | Sept. 28 | |
1See Electronic deposit requirement above. |
For the remaining days in September, be sure to make your deposits by the regular due date.
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 below.
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 is not reduced by any amounts from Form 720X.
The safe harbor rule applies separately to deposits under the regular method and the alternative method. Persons who filed Form 720 for the look-back quarter (the 2nd 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 (16.67%) of the net tax liability reported for the look-back quarter.
For the semimonthly period for which the additional deposit is required (September 1–11 and 16–26 for EFTPS, or September 1–10 and 16–25 for non-EFTPS), the additional deposit must be at least (12.23%), (11.12%) for non-EFTPS, of the net tax liability reported for the look-back quarter. Also, the total deposit for that semimonthly period must be at least (16.67%) of the net tax liability reported for the look-back quarter.
The safe harbor rule does not apply to:
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The 1st and 2nd 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 (16.67%) of the tax liability you would have had for the look-back quarter if the increased rate of tax had been in effect for that look-back quarter;
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Any quarter if liability includes any tax not in effect throughout the look-back quarter; or
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For deposits under the alternative method, any quarter if liability includes any tax not in effect throughout the look-back quarter and the month preceding the look-back quarter.
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Make each deposit timely at an authorized financial institution, and
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Pay any underpayment for the current quarter by the due date of the return.
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 |
lines 1 and 2:
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Add the net tax liability for each tax for each semimonthly period, and
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Enter the total in the applicable box.
Report communications and air transportation taxes based on:
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Actual collections on line 1, or
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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.
The amounts billed for communications services from June 1–15, 2009, are considered collected during the period July 1–7, 2009, and are reported for the 3rd quarter of 2009 on Schedule A in box M, not the 2nd quarter of 2009.
Regular method taxes | Enter the tax liability for the period beginning September 16 and ending September 25/26 in box G, Special rule for September. |
Alternative method taxes | Enter the tax included in amounts billed or tickets sold during the period beginning September 1 and ending September 10/11 in box S, Special rule for September box on the 4th quarter return. |
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 4th 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 4th quarter return. |
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.
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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.
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The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person.
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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.
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The transaction is the subject of a written contract.
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Received in a two-party exchange within a terminal. These gallons must also be included on the appropriate line on page 1 of Form 720, or
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Delivered in a two-party exchange contemporaneous with a removal across the rack.
Complete all information requested for each line, including month 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 do not follow the required procedures or do not provide all the required information. Also, you are certifying to 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.
Do not use Schedule C:
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If you are not reporting a liability on Form 720, in Part I or Part II;
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To claim amounts that you took or will take as a credit 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 (see the Caution below);
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To make adjustments to liability reported on Forms 720 filed for prior quarters, use Form 720X; or
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To request an abatement or refund of interest under section 6404(e) (due to IRS errors or delays) or an abatement or 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 refund of the penalty under section 6715 for misuse of dyed fuel.
If you make a claim for alcohol, biodiesel or renewable diesel, or alternative fuel, a claim for refund or credit on Form 8849, Form 4136, Form 6478, or Form 8864 can only be made after the sum of the alcohol fuel mixture credit, biodiesel or renewable diesel mixture credit, alternative fuel credit, and alternative fuel mixture credit is first applied to reduce your taxable fuel liability reported on Form 720 for any particular quarter. See Pub. 510, Notice 2005-4, and Notice 2005-62 for more information.
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.
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 fuel 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 is not used on a highway |
13 | Exclusive use by a nonprofit educational organization |
14 | Exclusive use by a state, political subdivision of a state, or the District of Columbia |
15 | In an aircraft or vehicle owned by an aircraft museum |
16 | In military aircraft |
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The amount of the claim must be at least $750 (combining amounts on lines 1, 2, 3, 4, 5, 6, 15b, 15c, and 15d). This amount may be met by:
-
Making a claim for fuel used during any quarter of a claimant's income tax year, or
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Aggregating amounts from any quarters of the claimant's income tax year for which no other claim has been made.
-
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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.
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Only one claim may be filed for any quarter.
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The fuel must have been used for a nontaxable use during the period of claim.
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The ultimate purchaser is the only person eligible to make the claim.
The claim rates for exported taxable fuel are listed on lines 1b, 2c, 3e, and 4d, and in the instructions for lines 15b and 15c. Taxpayers making a claim for exported taxable fuel must include with their records proof of exportation. Proof of exportation includes:
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A copy of the export bill of lading issued by the delivering carrier,
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A certificate by the agent or representative of the export carrier showing actual exportation of the fuel,
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A certificate of lading signed by a customs officer of the foreign country to which the fuel is exported, or
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A statement of the foreign consignee showing receipt of the fuel.
use 9.
Ultimate purchasers use line 3d to make claims for diesel fuel used on a farm for farming purposes.
use 9.
Write “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 |
---|---|
6a | $.109 |
6b | .110 |
6c | .109* |
6d | .110 |
6e | .17 |
6f | .17 |
6g | .169 |
6h | .110 |
* This is the claim rate per gasoline gallon equivalent (126.67 cubic feet of CNG). |
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The claim must be for diesel fuel sold during a period that is at least 1 week.
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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.
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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.
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The claim must be for diesel fuel sold during a period that is at least 1 week.
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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.
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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.
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For line 8a, use by a state or local government (including essential government use by an Indian tribal government), or
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For line 8b, from a blocked pump.
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The claim must be for kerosene sold during a period that is at least 1 week.
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The amount of the claim must be at least $100. To meet this minimum, amounts from lines 8 and 9 may be combined.
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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.
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The claim must be for kerosene sold during a period that is at least 1 week.
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The amount of the claim must be at least $100. To meet this minimum, amounts from lines 8 and 9 may be combined.
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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.
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The claim must be for kerosene sold for use in commercial aviation during a period that is at least 1 week.
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The amount of the claim must be at least $100. To meet this minimum, amounts from lines 8 and 9 may be combined.
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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.
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The claim must be for kerosene sold for use in noncommercial aviation during a period that is at least 1 week.
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The amount of the claim must be at least $100. To meet this minimum, amounts from lines 8 and 9 may be combined.
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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.
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Use by a nonprofit educational organization, or
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Use by a state or local government (including essential government use by an Indian tribal government).
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The claim must be for gasoline or aviation gasoline sold or used during a period that is at least 1 week.
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The amount of the claim must be at least $200. To meet this minimum, amounts from lines 10 and 11 may be combined.
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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.
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The claim must be for an alcohol fuel mixture sold or used during a period that is at least 1 week.
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The amount of the claim must be at least $200. To meet this minimum, amounts from lines 12, 13, and 14 may be combined.
Renewable diesel does not include any fuel derived from coprocessing biomass (as defined in section 45K(c)(3)) with a feedstock that is not biomass.
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The claim must be for a biodiesel or renewable diesel mixture sold or used during a period that is at least 1 week.
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The amount of the claim must be at least $200. To meet this minimum, amounts from lines 12, 13, and 14 may be combined.
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The biodiesel used to produce the biodiesel mixture must meet ASTM D6751 and meet the Environmental Protection Agency's (EPA) 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, D396, or other equivalent standard approved by the IRS, and meet EPA's registration requirements for fuels and fuel additives under section 211 of the Clean Air Act. Renewable diesel also includes fuel derived from biomass that meets a Department of Defense specification for military jet fuel or an ASTM specification for aviation turbine fuel. For a renewable diesel mixture used in aviation, kerosene is treated as if it is diesel fuel.
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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 are not attached to Form 720 because they are attached to a previously-filed claim on Schedule 3 (Form 8849), attach a separate sheet with the following information.
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Certificate identification number.
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Total gallons of biodiesel or renewable diesel on certificate.
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Total gallons claimed on Schedule 3 (Form 8849).
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Total gallons claimed on Schedule C (Form 720),
line 13.
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The claim must be for an alternative fuel mixture sold or used (as described earlier under Claimant) during a period that is at least 1 week.
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The amount of the claim must be at least $200. To meet the minimum, amounts from lines 12, 13, and 14 may be combined.
If a claim on lines 1–9, 12–14, or 15b–15e was not made for any gallons, an annual claim may be made. 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 an alcohol fuel mixture and biodiesel mixture, or used in mobile machinery. See Form 4136 for more information.
For claims under section 6416(b)(2) relating to certain uses and resales of certain articles subject to manufacturers or retailers 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.
A claim may be made for dyed diesel fuel 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 15b. See Exported taxable fuel on page 11. 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.
Generally, the claim rate for the nontaxable use of a diesel-water fuel emulsion taxed at $.198 (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 15d.
The claim rate for undyed diesel fuel taxed at $.244 (CRN 310) and used to produce a diesel-water fuel emulsion is $.046 per gallon of diesel fuel so used (blender claims). The claimant must attach a statement certifying that (a) the claimant produced a diesel-water fuel emulsion containing at least 14% water, (b) the emulsion additive is registered by a United States manufacturer under section 211 of the Clean Air Act with the EPA, (c) the claimant used undyed diesel fuel taxed at $.244 to produce the diesel-water emulsion, and (d) the claimant sold or used the diesel-water fuel 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 15d and enter the applicable CRN.
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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
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For diesel fuel, 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).
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Is registered by the IRS;
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Has not collected the amount of tax from the ultimate purchaser or has obtained the written consent of the ultimate purchaser to make the claim;
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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
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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.
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The claim must be for gasoline, aviation gasoline, diesel fuel, kerosene, or kerosene for use in aviation sold during a period that is at least 1 week.
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The amount of the claim must be at least $200 ($100 for kerosene or kerosene for use in aviation).
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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.
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The claimant must enter its registration number on line 15e, the amount of the claim, and the applicable CRN (see Allowable sales above). If the claim is for more than one fuel, use the blank lines 15i through 15k, or attach a separate sheet listing the fuels, amount, and CRN.
A credit or refund (without interest) is allowable on tax-paid tires if the tires have been:
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Exported;
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Sold to a state or local government for its exclusive use;
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Sold to a nonprofit educational organization for its exclusive use;
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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;
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Used or sold for use as supplies for vessels; or
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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:
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A detailed description of the claim,
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Any additional information required by the regulations,
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How you figured the claim amount,
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Any other information to support the claim, and
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The number of tires claimed for each credit reference number.
Do not use lines 15i–15k to make communication tax claims for nontaxable service. See on page 3.
Use lines 15i–15k for claims relating to taxes listed in the table below. See Pub. 510 for information on allowable claims relating to these taxes. If you need additional space, attach other sheet(s). You must include the following information for each claim.
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A detailed description of the claim.
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Any additional information required by the regulations.
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The amount of the claim.
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How you figured the claim amount.
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Any other information to support the claim.
Tax | CRN |
---|---|
Ozone-depleting chemicals (ODCs) | 398 |
Oil spill liability | 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 |
If you have attempted to deal with an IRS problem unsuccessfully, you should contact the Taxpayer Advocate. The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels.
While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review.
Your assigned personal advocate will listen to your point of view and will work with you to address your concerns. You can expect the advocate to provide you with:
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A "fresh look" at your new or ongoing problem,
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Timely acknowledgment,
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The name and phone number of the individual assigned to your case,
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Updates on progress,
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Timeframes for action,
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Speedy resolution, and
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Courteous service.
When contacting the Taxpayer Advocate, you should provide the following information.
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Your name, address, and taxpayer identification number (TIN).
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The name and telephone number of an authorized contact person and the hours he or she can be reached.
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The type of tax return and year(s) or period(s) (for quarterly returns) involved.
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A detailed description of the problem.
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Previous attempts to solve the problem and the office you contacted.
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A description of the hardship you are facing (if applicable).
You may contact a Taxpayer Advocate by calling a toll-free number, 1-877-777-4778. Persons who have access to TTY/TDD equipment may call 1-800-829-4059 and ask for Taxpayer Advocate assistance. If you prefer, you may call, write, or fax the Taxpayer Advocate office in your area. See Pub. 1546, Taxpayer Advocate Service—Your Voice at the IRS, for a list of addresses and numbers.
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