Instructions for Form 720

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(Rev. June 2026)

Quarterly Federal Excise Tax Return

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 720 and its instructions, such as legislation enacted

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

What's New

Sections 4375 and 4376 patient-centered outcomes

research fee increase. The fee for policy and plan years

ending on or after October 1, 2025, but before October

1, 2026, is increased to the applicable rate of $3.84,

multiplied by the average number of lives covered under

the policy or plan. The fee for policy and plan years

ending on or after October 1, 2024, but before October

1, 2025, remains at the applicable rate of $3.47, multiplied

by the average number of lives covered under the policy

or plan. See Patient-centered outcomes research (PCOR)

fee (IRS No. 133), later, and Notice 2025-61.

Inflation Adjustments for 2026

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

arrow shafts is increased to $0.65 per arrow shaft.

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

section 4261 tax on the amount paid for each domestic

segment of taxable air transportation is increased to

$5.30.

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

The section 4261 tax on the amount paid for international

flights is increased to $23.40 per person for flights that

begin or end in the United States. The section 4261 tax

per person for domestic segments beginning or ending in

Alaska or Hawaii is increased to $11.70 (applies only to

departures).

Reminders

Direct deposits—Part III, line 11. If you have access

to U.S. banking services or electronic payment systems,

you should use direct deposit for any refunds. To directly

deposit the amount shown on line 11a to your checking or

savings account, complete lines 11c through 11f.

Electronic payments. The IRS also recommends

paying electronically whenever possible. Options to pay

electronically include using your bank account with Direct

Pay, your debit or credit card, your digital wallet, or your

IRS Online Account. See Making a Payment, later, or go to

IRS.gov/Payments to see all your payment options.

Expiration of oil spill liability taxes (IRS Nos. 18 and

21). The section 4611 tax on crude oil received (domestic

petroleum oil spill tax) or petroleum products entered

(imported petroleum oil spill tax) expired after 2025.

Jul 1, 2026

Caution: Don't enter the expired taxes on the lines for

IRS Nos. 18 and 21 unless Congress extends the taxes.

To find out if legislation extends the taxes so that you

can report them on your 2026 tax return, go to IRS.gov/

Form6627.

The One Big Beautiful Bill Act (the Act) of 2025

made the following changes for 2026.

Excise tax on remittance transfers. The Act created

new section 4475, which imposes a 1% excise tax on

certain remittance transfers that occur after 2025.See

Excise tax on remittance transfers (IRS No. 155). Limited

penalty relief related to remittance transfer tax deposits for

the first, second, and third calendar quarters of 2026 has

been provided, go to IRS.gov/RemittanceTaxPenaltyRelief

for more information.

General Instructions

Purpose of Form

Use Form 720 and attachments to report your liability by

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

report a liability in Part I or II, you may be eligible to use

Schedule C to claim a credit.

Who Must File

Caution: See Patient-centered outcomes research

(PCOR) fee (IRS No. 133), later, under Part II for special

rules about who must file to report the PCOR fee.

You must file Form 720 if:

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

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

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

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

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

for the current quarter.

See How To File, later, for more information.

When To File

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

as follows.

Quarter covered

Due by

Jan., Feb., Mar.

April 30

Apr., May, June

July 31

July, Aug., Sept.

October 31

Oct., Nov., Dec.

January 31

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

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

next business day.

Instructions for Form 720 (Rev. 6-2026) Catalog Number 64240C

Department of the Treasury Internal Revenue Service www.irs.gov

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

Service (USPS) or a designated private delivery service to

meet the “timely mailing as timely filing/paying” rule. See

Private Delivery Services (PDSs), later.

Floor stocks tax. Report the floor stocks tax on

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

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

by June 30. See Floor Stocks Tax, later.

Where To File

Send Form 720 to:

Department of the Treasury

Internal Revenue Service

Ogden, UT 84201-0009

How To File

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

a zero on the appropriate line in Form 720, Part I or II.

Also, if you have no tax to report, enter “None” on Form

720, Part III, line 3; and sign and date the return. If you file

the second-quarter Form 720 only to report the PCOR fee,

no filing is required in other quarters unless you have to

report other fees or taxes.

If you have adjustments to liabilities reported for prior

quarters, see Form 720-X, Amended Quarterly Federal

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

If you attach additional sheets, enter your name and

employer identification number (EIN) on each sheet.

Electronic filing. You can electronically file Form 720

through any electronic return originator (ERO), transmitter,

and/or intermediate service provider (ISP) participating

in the IRS e-file program for excise taxes. For more

information on e-file, go to irs.gov/ETEC.

Making a Payment

The IRS recommends paying electronically whenever

possible. Options to pay electronically include any of the

payment options below. Go to IRS.gov/Payments to see

all your payment options.

IRS Direct Pay. For online transfers directly from your

checking or savings account at no cost to you, go to

IRS.gov/DirectPay.

Debit card, credit card, or digital wallet. To pay by

debit or credit card, or digital wallet, go to IRS.gov/

PayByCard. A fee is charged by these service providers.

You can also pay by phone with a debit or credit card.

Electronic Funds Withdrawal (EFW). EFW is an

integrated e-file/e-pay option offered when filing your

federal taxes electronically using tax return preparation

software, through a tax professional or the IRS at IRS.gov/

EFW.

Electronic Federal Tax Payment System (EFTPS).

Allows you to pay your taxes online or by phone directly

from your checking or savings account. There is no fee for

this service. You must be enrolled either online or have an

enrollment form mailed to you.

Same-day wire. You may be able to do a same-day

wire payment from your financial institution. Contact your

financial institution for availability, cost, and cut-off times.

Paying by cash. You may be able to pay your balance

due with cash at a participating retail store. Go to IRS.gov/

PayWithCash.

Final Return

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

1. Go out of business, or

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

720 in future quarters.

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

owe excise tax in future quarters, check the “Final” return

box above Part I of Form 720.

Recordkeeping

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

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

Keep records to support all claims and all exemptions at

least 4 years from the latest of the date:

• The tax became due,

• You paid the tax, or

• You filed a claim.

Penalties and Interest

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

return, reply to the notice with an explanation and we

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

include an explanation when you file your return.

Trust fund recovery penalty. If communications, air

transportation, and indoor tanning services taxes are

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

not collected, the trust fund recovery penalty may apply.

The penalty is the full amount of the unpaid tax.

The trust fund recovery penalty may be imposed on all

persons who are determined by the IRS to be responsible

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

and who acted willfully in not doing so.

A responsible person can be an officer or employee

of a corporation, a partner or employee of a partnership,

an employee of a sole proprietorship, an accountant, or

a volunteer director/trustee. A responsible person may

also include one who signs checks for the business or

otherwise has authority to cause the spending of business

funds.

“Willfully” means voluntarily, consciously, and

intentionally. A responsible person acts willfully if they

know the required actions aren't taking place.

Additional Information

You may find the following products helpful when

preparing Form 720 and any attachments.

• Pub. 510, Excise Taxes, contains definitions and

examples that will help you prepare Form 720. Pub. 510

also contains information on fuel tax credits and refunds.

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

dates for federal excise taxes listed in this publication.

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

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

Instructions for Form 720 (Rev. 06-2026)

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

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

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

• Notice 2005-62 (biodiesel and aviation-grade

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

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

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

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

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

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

2006-43 I.R.B. 774, at

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

• Notice 2007-97 (alternative fuel and alternative fuel

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

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

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

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

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

• Notice 2010-68 (Alaska dyed diesel

exemption), 2010-44 I.R.B. 576, at IRS.gov/IRB/

2010-44_IRB#NOT-2010-68.

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

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

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

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

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

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

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

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

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

2018-02_IRB#RR-2018-02.

• Rev. Proc. 2025-32 (inflation adjustments),

2025-45 I.R.B. 695, at IRS.gov/IRB/2025-45_IRB#REVPROC-2025-32.

• Notice 2025-61 (patient-centered outcomes research

(PCOR) fee), 2025-45 I.R.B. 693, at IRS.gov/

2025-45_IRB#NOT-2025-61.

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

certain aircraft management services) at IRS.gov/IRB/

2021-06_IRB#TD-9948.

• Notice 2023-52 (sales of a designated

drug during statutory period) at IRS.gov/IRB/

2023-35_IRB#NOT-2023-52.

• Notice 2023-28 (reinstatement of the Superfund excise

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

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

substance be added to or removed from the list of

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

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

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

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

• T.D. 10002, Excise Tax on Repurchase of Corporate

Stock at IRS.gov/IRB/2024-29_IRB#TD-10002.

• T.D. 10003, Excise Tax on Designated

Drugs; Procedural Requirements at IRS.gov/IRB/

2024-32_IRB#TD-10003.

• Notice 2025-55 (relief from penalty for failure

to deposit remittance excise tax) at IRS.gov/IRB/

2025-43_IRB#NOT-2025-55.

• REG 114499-25 (excise tax on remittance transfers) at

IRS.gov/IRB/2026-18_IRB#REG-114499-25.

Instructions for Form 720 (Rev. 06-2026)

Private Delivery Services (PDSs)

You can use PDSs designated by the IRS to meet the

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

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

of designated services. The PDS can tell you how to

get written proof of the mail date. For the IRS mailing

address to use if you are using a PDS, go to IRS.gov/

PDSStreetAddresses.

Caution: PDSs can’t deliver items to P.O. boxes. You

must use the USPS to mail any item to an IRS P.O. box

address.

Photographs of Missing Children

The IRS is a proud partner with the National Center for

Missing & Exploited Children® (NCMEC). Photographs

of missing children selected by the Center may appear

in instructions on pages that would otherwise be

blank. You can help bring these children home by

looking at the photographs and calling 1-800-THE-LOST

(1-800-843-5678) if you recognize a child.

Specific Instructions

Name and Address

Enter your name, your address, and the quarter ending

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

“Address change” box above Form 720, Part I.

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

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

number instead of the street address.

Foreign address. Follow the country's practice for

entering the postal code. Don't abbreviate the country

name.

Employer Identification Number (EIN)

Enter the correct EIN. If you are a one-time filer, you may

not need an EIN. See Gas guzzler tax (IRS No. 40), later.

If you don't have an EIN, you may apply for one online

by going to IRS.gov/EIN. You may also apply for an EIN

by faxing or mailing Form SS-4, Application for Employer

Identification Number, to the IRS.

Disregarded entities and qualified subchapter S sub

sidiaries (QSubs). QSubs and eligible single-owner

disregarded entities are treated as separate entities

for excise tax and reporting purposes. QSubs and

eligible single-owner disregarded entities must pay and

report excise taxes (other than IRS Nos. 31, 51, and

117); register for most excise tax activities; and claim

any refunds, credits, and payments under their EINs.

These actions can't take place under the owner's

taxpayer identification number (TIN). Some QSubs and

disregarded entities may already have EINs. However,

if you are unsure, please call the IRS Business and

Specialty Tax Line at 800-829-4933.

Generally, QSubs and eligible single-owner

disregarded entities will continue to be treated as

disregarded entities for other federal tax purposes (other

than employment taxes). Thus, taxpayers filing Form

4136, Credit for Federal Tax Paid on Fuels, with Form

1040, U.S. Individual Income Tax Return, or Form

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

TIN. For more information, see Regulations section

301.7701-2(c)(2).

Signature

Form 720 must be signed by a person authorized by the

entity to sign this return.

Third Party Designee

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

preparer, or another third party to discuss your Form 720

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

Third Party Designee. Also, enter the designee's name

and phone number and any 5 digits that person chooses

as their personal identification number (PIN).

By checking the “Yes” box, you are authorizing the

IRS to speak with the designee to answer any questions

relating to the processing of, or the information reported

on,

Form 720. You are also authorizing the designee to:

• Exchange information concerning Form 720 with the

IRS, and

• Respond to certain IRS notices that you have shared

with your designee relating to Form 720. The IRS won't

send notices to your designee.

You aren't authorizing the designee to receive any

refund check, bind you to anything (including additional

tax liability), or otherwise represent you before the IRS.

If you want to expand the designee's authority, see Pub.

947, Practice Before the IRS and Power of Attorney.

The authorization will automatically expire 1 year from

the due date (without regard to extensions) for filing your

Form 720. If you or your designee wants to revoke this

authorization, send a written statement of revocation to:

Department of the Treasury

Internal Revenue Service

Cincinnati, OH 45999

See Pub. 947 for more information.

Paid Preparer Use Only

A paid preparer must sign Form 720 and provide the

information in the Paid Preparer Use Only section at the

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

form and isn't an employee of the filing entity. The preparer

must give you a copy of the form in addition to the copy to

be filed with the IRS. If you are a paid preparer, enter your

Preparer Tax Identification Number (PTIN) in the space

provided. Include your complete address. If you work for

a firm, you must also enter the firm’s name and the EIN

of the firm. However, you can't use the EIN of the tax

preparation firm in place of your PTIN. You can apply for a

PTIN online or by filing Form W-12, IRS Paid Preparer Tax

Identification Number (PTIN) Application and Renewal.

For more information about applying for a PTIN online, go

to IRS.gov/PTIN.

Part I

• Domestic petroleum Superfund tax, IRS No. 53.

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

• Imported chemical substances, IRS No. 17.

• Imported petroleum products Superfund tax, IRS No.

16.

• Ozone-depleting chemicals (ODCs), IRS No. 98.

• Imported products that used ODCs as materials in the

manufacture or production of the product, IRS No. 19.

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

Form 720, Part II).

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

taxes are shown on Form 6627.

Communications Taxes

Communications Services (IRS No. 22)

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

and teletypewriter exchange service.

Who Must File

The person receiving the payment for communications

services must collect and submit the tax and file the

return. Enter the amount of tax collected or considered

collected for the quarter.

Credits or Refunds

If tax is collected and paid over for nontaxable services

from the communications tax, the collector may request a

credit or refund as described below.

Collectors. The collector may request a credit or refund

only if it has repaid the tax to the person from whom

the tax was collected, or obtained the consent of that

person to the allowance of the credit or refund. These

requirements also apply to nontaxable service refunds.

Collectors using the regular method for deposits.

Collectors using the regular method for deposits must use

Form 720-X to request a credit or refund.

Collectors using the alternative method for

deposits. Collectors using the alternative method for

deposits must adjust their separate accounts for the credit

or refund. For more information, see Alternative method

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

Air Transportation Taxes

Transportation of Persons by Air (IRS No. 26)

The taxes on transportation of persons by air are the

percentage tax and the domestic segment tax. Add the

percentage tax and the domestic segment tax to get the

total tax on transportation of persons by air.

Note: The percentage and domestic segment taxes

don't apply on a flight if the surtax on fuel used in a

fractional ownership program aircraft is imposed. For more

information, see Surtax on any liquid used in a fractional

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

Environmental Taxes

Use Form 6627, Environmental Taxes, to figure the

environmental taxes on the following.

Instructions for Form 720 (Rev. 06-2026)

Who Must File

The person receiving the payment for air transportation

services must do all of the following.

• Collect the tax.

• Submit the tax.

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

or considered collected, for the quarter.

Exemption for amounts paid for aircraft manage

ment services. Effective December 23, 2017, certain

payments related to the management of private aircraft

are exempt from the excise taxes imposed on taxable

transportation by air. See Pub. 510.

Percentage tax. The percentage tax is 7.5% of amounts

paid for taxable transportation of persons by air.

Domestic segment tax. For calendar year 2026, the tax

on the amount paid for each domestic segment of taxable

transportation is $5.30.

Example. In January 2026, Frank Jones pays $268.60

to a commercial airline for a flight in January from

Washington to Chicago with a stopover in Cleveland. The

flight has two segments. The price includes the $240 fare

and $28.60 excise tax [($240 × 7.5%) + (2 × $5.30)] for

which Frank is liable. The airline collects the tax from

Frank and submits it to the government.

Charter flights. If an aircraft is chartered and the

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

ownership program aircraft is imposed, the domestic

segment tax for each segment of taxable transportation is

figured by multiplying the tax by the number of passengers

transported on the aircraft.

Example. In March 2026, Tim Clark pays $1,149.20

to an air charter service to carry seven employees from

Washington to Detroit with a stopover in Pittsburgh. The

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

charter payment and $149.20 excise tax [($1,000 × 7.5%)

+ (2 × $5.30 × 7 passengers)] for which Tim is liable. The

charter service collects the tax from Tim and submits it to

the government.

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

the domestic segment tax doesn't apply.

Transportation of Property by Air (IRS No. 28)

The tax is 6.25% of amounts paid for transportation of

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

fuel used in a fractional ownership program aircraft is

imposed. See Surtax on any liquid used in a fractional

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

Use of International Air Travel Facilities

(IRS No. 27)

For calendar year 2026, the section 4261 excise tax on

any amount paid for international air transportation, if the

transportation begins or ends in the United States, is

generally $23.40. However, a lower rate of tax applies

to a domestic segment beginning or ending in Alaska

or Hawaii, and that tax applies only to departures. For

calendar year 2026, the rate of tax is $11.70.

Instructions for Form 720 (Rev. 06-2026)

Communications and Air Transportation

Taxes—Uncollected Tax Report

A separate report is required to be filed by

collecting agents of communications services (local and

teletypewriter services) and air transportation taxes if the

person from whom the facilities or services tax (the tax) is

required to be collected (the taxpayer) refuses to pay the

tax, or it's impossible for the collecting agent to collect the

tax. The report must contain the name and address of the

taxpayer, the type of facility provided or service rendered,

the amount paid for the facility or service (the amount on

which the tax is based), and the date paid.

Regular method taxpayers. For regular method

taxpayers, the report must be filed by the due date of the

Form 720 on which the tax would have been reported.

Alternative method taxpayers. For alternative method

taxpayers, the report must be filed by the due date of

the Form 720 that includes an adjustment to the separate

account for the uncollected tax. See Alternative method

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

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

the uncollected tax report with Form 720. Instead, mail

the report to:

Department of the Treasury

Internal Revenue Service

Cincinnati, OH 45999

Fuel Taxes

First taxpayer's report. If you are reporting gallons

of taxable fuel that may again be subject to tax, you

may need to file a first taxpayer's report. The report

must contain all the information as shown in the Model

Certificate B in the Appendix of Pub. 510.

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

following.

• Give a copy of the first taxpayer's report to the buyer.

• File the first taxpayer's report with Form 720 for the

quarter for which the report relates.

• Enter “EXCISE—FIRST TAXPAYER'S REPORT” across

the top of a separate copy of the report and, by the due

date of Form 720, send the copy to:

Department of the Treasury

Internal Revenue Service

Cincinnati, OH 45999-0555

Diesel (IRS No. 60). If you are liable for the diesel

fuel tax on removal at the terminal rack, report these

gallons on line 60(a). If you are liable for the diesel fuel

tax on events other than removal at the terminal rack,

report these gallons on line 60(b). If you are liable for

the diesel fuel tax because you have produced diesel by

blending biodiesel with taxed diesel outside of the bulk

transfer/terminal system, report these gallons of biodiesel

on line 60(c). If you report gallons on line 60(c), don't

report those gallons on line 60(b).

Multiply the total number of gallons subject to tax on

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

in the “Tax” column.

See Schedule T, later, if applicable.

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

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

emulsion removal at the terminal rack or other taxable

event, report these gallons on the line for IRS No. 104.

Requirements. All of the following requirements must

be met to be eligible for the reduced rate: (a) the

diesel-water emulsion must contain at least 14% water;

(b) the emulsion additive must be registered by a U.S.

manufacturer with the Environmental Protection Agency

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

March 31, 2003); and (c) the taxpayer must be registered

by the IRS. If these requirements aren't met, you must

report the sale, removal, or use of a diesel-water emulsion

as diesel.

Note: Fuel used in a fractional ownership program aircraft

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

information, see Surtax on any liquid used in a fractional

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

Other fuels (IRS No. 79). You are liable for the tax on

the fuels listed below when they are delivered into the

fuel supply tank of a motor vehicle or motorboat. Use the

following table to determine the tax for each gallon. Fill

in the number of gallons and the appropriate rate in the

“Rate” column on the line for IRS No. 79. If more than one

rate applies, leave the “Rate” column blank and attach a

schedule showing the rates and number of gallons taxed

at each rate.

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

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

diesel, and kerosene described as exempt transactions.

Multiply the total number of gallons subject to tax for each

fuel by $.001 and enter the amount in the “Tax” column for

the following IRS Nos.

• IRS No. 105, dyed diesel, LUST tax.

• IRS No. 107, dyed kerosene, LUST tax.

• IRS No. 119, LUST tax, other exempt removals; report

gasoline blendstocks, kerosene used for a feedstock

purpose, and diesel or kerosene sold or used in Alaska.

Fuel

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

tax on removal at the terminal rack (not located at an

airport), report these gallons on line 35(a). If you are

liable for the kerosene tax on events other than removal

at the terminal rack, report these gallons of kerosene on

line 35(b).

Multiply the total number of gallons subject to tax on

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

“Tax” column.

See Schedule T, later, if applicable.

Gasoline (IRS No. 62). If you are liable for the gasoline

tax on removal at the terminal rack, report these gallons

on line 62(a). If you are liable for the gasoline tax on

events other than removal at the terminal rack, report

these gallons on line 62(b). If you are liable for the

gasoline tax because you have blended alcohol with taxed

gasoline outside of the bulk transfer/terminal system,

report these gallons of alcohol on line 62(b).

Multiply the total number of gallons subject to tax on

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

62(a) and 62(b) and make one entry in the “Tax” column.

See Schedule T, later, if applicable.

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

111). Generally, kerosene is taxed at $.244 per gallon

unless a reduced rate applies. See Kerosene for Use in

Aviation in Pub. 510 for more details about these reduced

rates.

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

from a terminal into the fuel tank of an aircraft for use in

aviation, the tax rate is $.219 per gallon. This rate applies

to kerosene used in noncommercial aviation. This rate can

also apply to kerosene used in commercial aviation or for

nontaxable aviation uses if the requirements for a further

reduced rate aren't met. Report these gallons on the line

for IRS No. 69.

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

from a terminal into the fuel tank of an aircraft for use

in commercial aviation (other than foreign trade), the tax

rate is $.044 per gallon. Report these gallons on the line

for IRS No. 77. The line for IRS No. 77 is only applicable

to registered commercial aviation operators (Form 637 “Y”

Registrant).

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

a terminal into the fuel tank of an aircraft for nontaxable

uses, the tax rate is $.001. Report these gallons on the

line for IRS No. 111.

See Pub. 510 for foreign trade rules.

Tax rate

per gallon

Qualified—

Ethanol produced from coal . . . . . . . . . . . . . . . . .

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

Partially exempt—

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

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

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

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

Other fuels not shown . . . . . . . . . . . . . . . . . . . . . . .

$.184

.184

.114

.0925

.244

.184

Surtax on any liquid used in a fractional ownership

program aircraft as fuel (IRS No. 13). Fuel used in a

fractional ownership program aircraft, as defined below,

after March 31, 2012, is subject to a surtax of $.141

per gallon. The fractional ownership program manager is

liable for the surtax. If you are liable, report these gallons

on the line for IRS No. 13.

The surtax applies in addition to any other taxes

imposed on the removal, entry, use, or sale of the

fuel. If the surtax is imposed, the flight isn't considered

commercial aviation. Instead, the tax on the fuel used in

the flight is imposed at the noncommercial aviation rate of

$.219 per gallon (IRS No. 69).

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

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

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

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

Fractional ownership aircraft program is a program

under which:

• A single fractional ownership program manager

provides fractional ownership program management

services on behalf of the fractional owners;

Instructions for Form 720 (Rev. 06-2026)

• There are one or more fractional owners per fractional

program aircraft, with at least one fractional program

aircraft having more than one owner;

• For at least two fractional program aircraft, none of

the ownership interests in the aircraft are less than the

minimum fractional ownership interest or held by the

program manager;

• There exists a dry-lease aircraft exchange arrangement

among all of the fractional owners; and

• There are multi-year program agreements covering

the fractional ownership, fractional ownership program

management services, and dry-lease aircraft exchange

aspects of the program.

Fractional program aircraft. Any aircraft that, in

any fractional ownership aircraft program, is listed

as a fractional program aircraft in the management

specifications issued to the manager of such program

by the Federal Aviation Administration under subpart K

of part 91, title 14, Code of Federal Regulations, and is

registered in the United States.

Fractional program aircraft aren't considered used

for transportation of a qualified fractional owner, or on

account of such qualified fractional owner, when they

are used for flight demonstration, maintenance, or crew

training. In such situations, the flight isn't commercial

aviation. Instead, the tax on the fuel used in the flight is

imposed at the noncommercial aviation rate.

Fractional owner. Any person owning any interest

(including the entire interest) in a fractional program

aircraft.

Dry-lease aircraft exchange. An agreement,

documented by the written program agreements, under

which the fractional program aircraft are available, on an

as-needed basis without crew, to each fractional owner.

Special rule relating to deadhead service. A

fractional program aircraft won't be considered to be used

on account of a qualified fractional owner when it's used

in deadhead service and a person other than a qualified

fractional owner is separately charged for such service.

More information. See section 4043 for more

information on the surtax.

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

taxed at the rate shown on Form 720.

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

used in an aircraft which is part of a fractional ownership

program.

For further information on fractional ownership program

aircraft, see Surtax on any liquid used in a fractional

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

Alternative fuel (IRS Nos. 112, 118, and 120–124).

Alternative fuel is any liquid other than gas oil, fuel oil, or

any product taxable under section 4081. You are liable for

tax on alternative fuel delivered into the fuel supply tank

of a motor vehicle or motorboat, or on certain bulk sales.

Report the tax on the line for the IRS No. listed in the

following table.

Instructions for Form 720 (Rev. 06-2026)

Alternative fuel

IRS No.

Liquefied petroleum gas (LPG)

112

“P Series” fuels

118

Compressed natural gas (CNG)

120

Liquefied hydrogen

121

Fischer-Tropsch process liquid fuel from coal

(including peat)

122

Liquid fuel derived from biomass

123

Liquefied natural gas (LNG)

124

For sales or uses after 2015, the following gasoline

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

applies.

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

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

pounds or 1.353 gallons of LPG.

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

pounds or 1.71 gallons of LNG.

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

pounds or 123.57 cubic feet of CNG.

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

x $.243 = $1,421.06 tax.

Retail Tax

Truck, Trailer, and Semitrailer Chassis and Bodies,

and Tractors (IRS No. 33)

The tax is 12% of the sales price on the first retail sale of

each unit. The tax applies to:

• Truck chassis and bodies, except truck chassis and

bodies suitable for use with a vehicle with a gross vehicle

weight (GVW) of 33,000 pounds or less;

• Trailer and semitrailer chassis and bodies, except trailer

and semitrailer chassis and bodies suitable for use with a

vehicle with a GVW of 26,000 pounds or less; and

• Tractors of the kind chiefly used for highway

transportation in combination with a trailer or semitrailer,

except tractors that have a GVW of 19,500 pounds or less

and a gross combined weight of 33,000 pounds or less.

Generally, “gross combined weight” means the weight

of a tractor and the weight of its trailer(s).

The tax imposed on parts and accessories sold on

or in connection with the units listed above and the

tax imposed on the separate purchase of parts and

accessories for the units listed above don't apply to an

idling reduction device, described next, or to insulation

that has an R value of at least R35 per inch.

Idling reduction device. Any device or system of

devices that provides the tractor with services, such as

heat, air conditioning, and electricity, without the use of

the main drive engine while the tractor is temporarily

parked or stationary. The device must be affixed to the

tractor and determined by the Administrator of the EPA,

in consultation with the Secretary of Energy and the

Secretary of Transportation, to reduce idling while parked

or stationary.

Figure the tax for each vehicle sold and enter the total

for the quarter on the line for IRS No. 33.

Gross vehicle weight (GVW). “GVW” means the

maximum total weight of a loaded vehicle. Generally,

this maximum total weight is the GVW rating provided

by the manufacturer or determined by the seller of

the completed article. The seller's GVW rating must be

determined for excise tax purposes on the basis of the

strength of the chassis frame and the axle capacity

and placement. The seller may not take into account

any readily attachable components (such as tires or rim

assemblies) in determining the GVW. See Regulations

section 145.4051-1(e)(3) for more information.

The following four classifications of truck body types

meet the suitable-for-use standard and will be excluded

from the retail excise tax.

• Platform truck bodies 21 feet or less in length.

• Dry freight and refrigerated truck van bodies 24 feet or

less in length.

• Dump truck bodies with load capacities of 8 cubic yards

or less.

• Refuse packer truck bodies with load capacities of 20

cubic yards or less.

Section 4051(d) tire credit. A tax credit may be claimed

equal to the amount of tax that has been imposed on each

tire that is sold on or in connection with the first retail sale

of a taxable vehicle reported on IRS No. 33. Claim the

section 4051(d) tire credit on Schedule C, line 14a.

Ship Passenger Tax

Transportation by water (IRS No. 29). A tax is imposed

on the operator of commercial ships. The tax is $3 for

each passenger on a commercial passenger ship that

has berth or stateroom accommodations for at least 17

passengers if the trip is over 1 or more nights. A voyage

extends “over 1 or more nights” if it lasts longer than

24 hours. The tax also applies to passengers on any

commercial ship that transports passengers engaged in

gambling aboard the ship beyond the territorial waters of

the United States. Enter the number of passengers for the

quarter on the line for IRS No. 29.

Other Excise Tax

Obligations not in registered form (IRS No. 31). For

obligations issued during the quarter, enter the principal

amount of the obligation multiplied by the number of

calendar years (or portion thereof) during the period

beginning on the issue date and ending on the maturity

date on the line for IRS No. 31.

Excise tax on remittance transfers (IRS No. 155). An

excise tax on remittance transfers under section 4475

imposes a 1% tax on the amount of certain remittance

transfers that occur after 2025. Remittance transfer

providers are required to collect the remittance transfer

tax from certain senders, make semimonthly deposits,

and file quarterly returns. The first semimonthly deposit

is due January 29, 2026. The 1% remittance transfer tax

applies to certain remittances when the sender makes the

transaction with cash, a money order, a cashier’s check,

or a similar physical instrument.

Limited penalty relief related to remittance transfer

tax deposits for the first, second, and third calendar

quarters of 2026 has been provided; go to IRS.gov/

RemittanceTaxPenaltyRelief for more information.

Foreign Insurance Taxes

Policies issued by foreign insurers (IRS No. 30).

Enter the amount of premiums paid during the quarter on

policies issued by foreign insurers. Multiply the premiums

paid by the rates listed on Form 720 and enter the total for

the three types of insurance on the line for IRS No. 30.

Section 4371(3) tax on foreign reinsurance premi

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

premiums paid on a policy of reinsurance issued by one

foreign reinsurer to another foreign insurer or reinsurer,

under the situations described in Rev. Rul. 2008-15,

2008-12 I.R.B. 633. See Rev. Rul. 2016-03, 2016-3 I.R.B.

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

Who must file. The person who pays the premium to

the foreign insurer (or to any nonresident person such

as a foreign broker) must pay the tax and file the return.

Otherwise, any person who issued or sold the policy, or

who is insured under the policy, is required to pay the tax

and file the return.

Treaty-based return positions under section 6114.

Foreign insurers and reinsurers who take the position

that a treaty of the United States overrules, or otherwise

modifies, an Internal Revenue law of the United States

must disclose such position. This disclosure must be

made once a year on a statement which must report the

payments of premiums that are exempt from the excise

tax on policies issued by foreign insurers for the previous

calendar year. This statement is filed with the first-quarter

Form 720, which is due before May 1 of each year.

You may be able to use Form 8833, Treaty-Based

Return Position Disclosure Under Section 6114 or

7701(b), as a disclosure statement.

At the top of Form 720, enter “Section 6114 Treaty.” If

you have no other transactions reportable on Form 720,

complete Form 720 as follows.

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

box.

2. Enter “None” on lines 1 and 3.

3. Sign the return.

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

EIN, see Employer Identification Number (EIN), earlier.

Where to file your treaty-based return positions

under section 6114. All filers should mail Form 720

with the attached Form 8833 or disclosure statement to

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

Caution under Private Delivery Services (PDSs), earlier.

Manufacturers Taxes

Caution: Don't include the excise tax on coal in the sales

price when determining which tax rate to use for IRS Nos.

36, 37, 38, and 39.

Instructions for Form 720 (Rev. 06-2026)

Underground mined coal (IRS Nos. 36 and 37). The

tax on underground mined coal is the lower of $1.10 per

ton or 4.4% of the sales price. Enter on the line for IRS No.

36 the number of tons of underground mined coal sold at

$25 or more per ton. Enter on the line for IRS No. 37 the

total sales price for all sales of underground mined coal

sold at a selling price of less than $25 per ton.

Surface mined coal (IRS Nos. 38 and 39). The tax on

surface mined coal is the lower of $.55 per ton or 4.4%

of the sales price. Enter on the line for IRS No. 38 the

number of tons of surface mined coal sold at $12.50 or

more per ton. Enter on the line for IRS No. 39 the total

sales price for all sales of surface mined coal sold at a

selling price of less than $12.50 per ton.

Taxable tires (IRS Nos. 108, 109, and 113). A tax

is imposed on taxable tires sold by the manufacturer,

producer, or importer at the rate of $.0945 ($.04725 in

the case of a bias ply tire or super single tire) for each 10

pounds of the maximum rated load capacity over 3,500

pounds. Figure the tax for each tire sold in each category,

as shown in the following chart, and enter the total for the

quarter on the line for IRS No. 108, 109, or 113. Enter the

number of tires for each IRS No.

IRS No.

Taxable tire category

Rate (for each

10 pounds of the

maximum rated load

capacity over 3,500

pounds)

108

Taxable tires other than

bias ply or super single

tires

$.0945

109

Taxable tires, bias ply or

super single tires (other

than super single tires

designed for steering)

.04725

113

Taxable tires, super

single tires designed for

steering

.0945

A taxable tire is any tire of the type used on highway

vehicles if wholly or partially made of rubber and if

marked according to federal regulations for highway use.

A bias ply tire is a pneumatic tire on which the ply cords

that extend to the beads are laid at alternate angles

substantially less than 90 degrees to the centerline of the

tread. A super single tire is a tire greater than 13 inches in

cross section width designed to replace two tires in a dual

fitment but doesn't include any tire designed for steering.

Gas guzzler tax (IRS No. 40). Use Form 6197, Gas

Guzzler Tax, to figure the liability for this tax. Attach

Form 6197 to Form 720. The tax rates for the gas guzzler

tax are shown on Form 6197.

One-time filing. If you import a gas guzzling

automobile, you may be eligible to make a one-time filing

of Form 720 and Form 6197 if you meet all of the following

conditions.

• You don't import gas guzzling automobiles in the course

of your trade or business.

• You aren't required to file Form 720 reporting excise

taxes for the calendar quarter, except for a one-time filing.

Instructions for Form 720 (Rev. 06-2026)

Follow the steps below to make a one-time filing.

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

liability for the tax. See When To File, earlier.

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

required.

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

your social security number (SSN) or individual taxpayer

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

Payment Voucher, in the space for the EIN.

4. Check the “one-time” filing box on the line for the

gas guzzler tax.

Vaccine taxes (IRS No. 97). A tax is imposed on the

sale or use of a vaccine manufactured, produced, or

entered into the United States at $.75 per dose if it:

• Contains diptheria toxoid, tetanus toxoid, pertussis

bacteria, extracted or partial cell bacteria, specific

pertussis antigens, or polio virus;

• Is against measles, mumps, rubella, hepatitis A,

hepatitis B, chicken pox, rotavirus gastroenteritis, or

human papillomavirus;

• Is any HIB (haemophilus influenza type B) vaccine;

• Is any meningococcal vaccine;

• Is any conjugate vaccine against streptococcus

pneumonia; or

• Any trivalent vaccine against seasonal influenza or any

other vaccine against seasonal influenza.

The effective date for the tax on any other vaccine

against seasonal influenza is the later of August 1,

2013, or the date the Secretary of the Department

of Health and Human Services lists a vaccine against

seasonal influenza for purposes of compensation for any

vaccine-related injury or death through the Vaccine Injury

Compensation Trust Fund.

If any taxable vaccine is combined with one or more

additional taxable vaccines, then the tax is imposed on

each vaccine included in the combination.

Example. MMR contains three taxable vaccines:

measles, mumps, and rubella. The tax per dose on MMR

is $2.25 (3 x $.75).

Add the tax for each taxable vaccine and enter the total

tax on the line for IRS No. 97.

Part II

Patient-centered outcomes research (PCOR) fee (IRS

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

specified health insurance policies (section 4375) and

plan sponsors of applicable self-insured health plans

(section 4376) for policy and plan years ending on or after

October 1, 2012. Generally, references to taxes on Form

720 include this fee.

Specified health insurance policies. For issuers of

specified health insurance policies, the fee for a policy

year ending on or after October 1, 2025, but before

October 1, 2026, is $3.84 (line 133(b)) ($3.47 for a

policy year ending on or after October 1, 2024, but

before October 1, 2025 (line 133(a)), multiplied by the

average number of lives covered under the policy for

that policy year. Generally, issuers of specified health

insurance policies must use one of the following four

alternative methods to determine the average number of

lives covered under a policy for the policy year.

1. The actual count method.

2. The snapshot method.

3. The member months method.

4. The state form method.

Applicable self-insured health plans. For plan

sponsors of applicable self-insured health plans, the fee

for a plan year ending on or after October 1, 2025, but

before October 1, 2026, is $3.84 (line 133(d)) ($3.47 for a

policy year ending on or after October 1, 2024, but before

October 1, 2025 (line 133(c)), multiplied by the average

number of lives covered under the plan for that plan year.

Generally, plan sponsors of applicable self-insured health

plans must use one of the following three alternative

methods to determine the average number of lives

covered under a plan for the plan year.

1. Actual count method.

2. Snapshot method.

3. Form 5500 method.

Reporting and paying the fee. File Form 720 annually

to report and pay the fee on the second-quarter Form 720

no later than July 31 of the calendar year immediately

following the last day of the policy year or plan year to

which the fee applies. Because the rate used to determine

the fee varies from year to year, you should determine

the fee using the instructions for the second-quarter Form

720. If you file Form 720 only to report the fee, don't file

Form 720 for the first, third, or fourth quarter of the year. If

you file Form 720 to report quarterly excise tax liability for

the first, third, or fourth quarter of the year (for example,

filers reporting the foreign insurance tax (IRS No. 30),

don't make an entry on the line for IRS No. 133 on those

filings).

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

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

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

should be applied to the second quarter. See Electronic

deposit requirement under Payment of Taxes, later.

Report the average number of lives covered in column

(a). Apply the applicable rate (column (b)) and enter the

fee in column (c).

Combine the fees for specified health insurance

policies and applicable self-insured health plans and enter

the total in the “Tax” column on the line for IRS No. 133.

More information. For more information, including

methods for calculating the average number of lives

covered, see sections 4375, 4376, and 4377.

Sport fishing equipment (other than fishing rods and

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

equipment is 10% of the sales price. The tax is paid by

the manufacturer, producer, or importer. Taxable articles

include reels, fly fishing lines (and other lines not over

130 pounds test), fishing spears, spear guns, spear tips,

terminal tackle, fishing supplies and accessories, and

any parts or accessories sold on or in connection with

these articles. See Pub. 510 for a complete list of taxable

articles. Add the tax on each sale during the quarter and

enter the total on the line for IRS No. 41.

Fishing rods and fishing poles (IRS No. 110). The tax

on fishing rods and fishing poles (and component parts)

taxed at a rate of 10% will have a maximum tax of $10 per

article. The tax is paid by the manufacturer, producer, or

importer. Add the tax on each sale during the quarter and

enter the total on the line for IRS No. 110.

Electric outboard motors (IRS No. 42). The tax on an

electric outboard motor is 3% of the sales price. The tax

is paid by the manufacturer, producer, or importer. Add the

tax on each sale during the quarter and enter the total on

the line for IRS No. 42.

Fishing tackle boxes (IRS No. 114). The tax on fishing

tackle boxes is 3% of the sales price. The tax is paid by

the manufacturer, producer, or importer. Add the tax on

each sale during the quarter and enter the total on the line

for IRS No. 114.

Bows, quivers, broadheads, and points (IRS No. 44).

The tax on bows is 11% of the sales price. The tax is

paid by the manufacturer, producer, or importer. It applies

to bows having a peak draw weight of 30 pounds or

more. The tax is also imposed on the sale of any part

or accessory suitable for inclusion in or attachment to a

taxable bow and any quiver, broadhead, or point suitable

for use with arrows described below. Add the tax on each

sale during the quarter and enter the total on the line for

IRS No. 44.

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

is increased to $0.65 per arrow shaft. The tax is paid

by the manufacturer, producer, or importer of any arrow

shaft (whether sold separately or incorporated as part of

a finished or unfinished product) of a type used in the

manufacture of any arrow which after its assembly meets

either of the following conditions.

• It measures 18 inches or more in overall length.

• It measures less than 18 inches in overall length but is

suitable for use with a taxable bow, described earlier.

Exemption for certain wooden arrows. The tax

doesn't apply to any shaft made of all natural wood with

no laminations or artificial means of enhancing the spine

of such shaft (whether sold separately or incorporated as

part of a finished or unfinished product) and used in the

manufacture of any arrow which after its assembly meets

both of the following conditions.

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

• It isn't suitable for use with a taxable bow, described

earlier.

Add the tax on each sale during the quarter and enter

the total on the line for IRS No. 106.

Indoor Tanning Services Tax

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

indoor tanning service is 10% of the amount paid for

that service. The tax is paid by the person paying for

the indoor tanning service and is collected by the person

receiving payment for the indoor tanning services.

Who must file. The person receiving the payment for

indoor tanning services (collector) must collect and remit

Instructions for Form 720 (Rev. 06-2026)

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

reason, the collector is liable for the tax.

Definition of indoor tanning services. “Indoor tanning

services” means a service employing any electronic

product designed to incorporate one or more ultraviolet

lamps and intended for the irradiation of an individual by

ultraviolet radiation, with wavelengths in air between 200

and 400 nanometers, to induce skin tanning. The term

doesn't include phototherapy service performed by, and

on the premises of, a licensed medical professional (such

as a dermatologist, psychologist, or registered nurse).

See Regulations section 49.5000B-1 for more information

and special rules for qualified physical fitness facilities,

undesignated payment cards, and bundled payments.

Enter the amount of indoor tanning services tax

collected (or due for failing to collect the tax) for the

quarter on the line for IRS No. 140.

Other Part II Taxes

Inland waterways fuel use tax (IRS No. 64). If you are

liable for the inland waterways fuel use tax, report the

number of gallons subject to tax on the line for IRS No.

64. Certain fuels must also be reported under IRS No. 125

(discussed next).

Caution: The inland waterways fuel use tax applies at the

rate listed on Form 720. This is in addition to all other

taxes imposed on the sale or use of the fuel.

Leaking underground storage tank (LUST) tax on in

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

must be paid on any liquid fuel used on inland waterways

that isn't subject to LUST tax under section 4041(d) or

4081. For example, gallons of Bunker C residual fuel oil

must be reported under both IRS Nos. 64 and 125.

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

(recaptured) if you claim the second generation biofuel

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

described under Qualified Second Generation Biofuel

Production in the Instructions for Form 6478, Biofuel

Producer Credit. When recapturing, you must pay a tax

on each gallon of second generation biofuel at the rate

you used to figure the credit.

The tax rate for second generation biofuel is $1.01 per

gallon. Fill in the number of gallons and the appropriate

rate in the “Rate” column on the line for IRS No. 51.

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

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

or renewable diesel on which a credit was claimed at the

rate used to figure the credit if you:

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

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

• Separate it from a mixture; or

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

producer credit was claimed for a use not described under

Qualified Agri-Biodiesel Production in the Instructions for

Form 8864, Biodiesel, Renewable Diesel, or Sustainable

Aviation Fuels Credit.

The rate of tax depends on the applicable rate used

to figure the credit. No deposits are required. Fill in the

number of gallons and the appropriate rate in the “Rate”

column on the line for IRS No. 117. If more than one

Instructions for Form 720 (Rev. 06-2026)

rate applies, leave the “Rate” column blank and attach a

schedule showing the rates and number of gallons taxed

at each rate.

Floor Stocks Tax

Ozone-depleting chemicals floor stocks tax (IRS No.

20). Use Form 6627 to figure the liability for this tax. Enter

the amount from column (d) of Form 6627, Part IV, line 4,

on the line for IRS No. 20. Attach Form 6627 to the Form

720 that is due July 31 of each year.

Excise Tax on Repurchase of Corporate Stock

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

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

Attach your Form 7208 to your Form 720, due for the first

full quarter after the close of your tax year.

Sales of Designated Drugs During Statutory

Periods

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

the sale by the manufacturer, producer, or importer of any

designated drug during a day that falls within a period

described in section 5000D(b). Under Regulations section

40.6011(a)-1, taxpayers are required to report any section

5000D drug tax liability on Form 720. This regulation

applies to calendar quarters beginning on or after October

1, 2023. You may be required to file Form 720-X to report

revisions to previously reported section 5000D liabilities.

Part III

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

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

Line 6. Include on line 6 the amount from line 11 of your

previous return that you applied to this return and the

amount from Form 720-X, line 5b.

Note: Include on line 6 of your next return the amount

from line 11 you want to have applied to that return.

Caution: If you owe other federal tax, interest, or penalty,

the overpayment on line 11 and line 7 will first be applied

to the unpaid amounts.

Line 10. If line 3 is more than line 9, enter the difference

on line 10. You don't have to pay if line 10 is under $1.00.

You may pay the amount shown on line 10 by IRS

Direct Pay, EFTPS, check or money order, or, if filing

electronically, EFW (direct debit). If you pay by IRS Direct

Pay, EFTPS, or direct debit, don't file Form 720-V.

Caution: If you don't deposit as required and instead pay

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

Payment of Taxes

Generally, semimonthly deposits of excise taxes are

required. A semimonthly period is the first 15 days of

a month (the first semimonthly period) or the 16th through

the last day of a month (the second semimonthly period).

However, no deposit is required for the situations listed

below. The taxes are payable with the return.

• The net liability for taxes listed in Form 720, Part I,

doesn't exceed $2,500 for the quarter.

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

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

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

Form 720. See Patient-centered outcomes research

(PCOR) fee (IRS No. 133), earlier.

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

the floor stocks tax, which generally requires a single

deposit.

Special rule for deposits of taxes in September 2026.

If you are required to make deposits, see the chart later.

The special rule doesn't apply to taxes not required

to be deposited (see Payment of Taxes, earlier). See

Regulations sections 40.6302(c)-2 and 40.6302(c)-3 for

rules to figure the net tax liability for the deposits due in

September.

Additional Deposit of Taxes in September 2026

For the period

Type of tax

Regular

method taxes

Alternative

method taxes

(IRS Nos. 22,

26, 27, and 28)

(based on

amounts billed)

Beginning on

Ending on

Due date

Sept. 16

Sept. 26

Sept. 29

Sept. 1

Sept. 11

Sept. 29

Caution: Using the regular method: For the remaining

days in September (27–30), make your deposits by the

10th day of October. Because October 11 is a Saturday,

you must deposit the day before. Using the alternative

method: For the remaining days in September (12–30),

see Pub. 509 for deposit dates.

How To Make Deposits

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

mail your deposits directly to the IRS. Records of your

deposits will be sent to the IRS for crediting to your

accounts.

Electronic deposit requirement. You must deposit all

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

corporate income tax) by electronic funds transfer.

Depositing on time. For EFTPS deposits to be on

time, you must initiate the transaction at least 1 day before

the date the deposit is due (before 8:00 p.m. Eastern

time).

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

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

The term “legal holiday” means any legal holiday in the

District of Columbia.

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

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

time the day before the date a deposit is due, you can

still make your deposit on time by using the Federal Tax

Collection Service (FTCS). To use the same-day wire

payment method, you will need to make arrangements

with your financial institution ahead of time. Check with

your financial institution regarding availability, deadlines,

and costs. Your financial institution may charge you a

fee for payments made this way. To learn more about

the information you will need to provide your financial

institution to make a same-day wire payment, go to

IRS.gov/SameDayWire.

Tip: You will automatically be enrolled in EFTPS when

you apply for an EIN. You will receive a separate

mailing containing instructions for activating your EFTPS

enrollment after you receive your EIN.

When To Make Deposits

There are two methods for determining deposits: the

regular method and the alternative method.

The regular method applies to all taxes in Form 720,

Part I, except for communications and air transportation

taxes if deposits are based on amounts billed or tickets

sold, rather than on amounts actually collected. See

Alternative method (IRS Nos. 22, 26, 27, and 28), later.

If you are depositing more than one tax under a

method, combine all the taxes under the method and

make one deposit for the semimonthly period.

Regular method. The deposit of tax for a semimonthly

period is due by the 14th day following that period.

Generally, this is the 29th day of a month for the first

semimonthly period and the 14th day of the following

month for the second semimonthly period. If the 14th

or the 29th day falls on a Saturday, Sunday, or legal

holiday, you must make the deposit by the immediately

preceding day that isn't a Saturday, Sunday, or legal

holiday.

Alternative method (IRS Nos. 22, 26, 27, and 28).

Deposits of communications and air transportation taxes

may be based on taxes included in amounts billed or

tickets sold during a semimonthly period instead of on

taxes actually collected during the period. Under the

alternative method, the tax included in amounts billed or

tickets sold during a semimonthly period is considered

collected during the first 7 days of the second following

semimonthly period. The deposit of tax is due by the third

business day after the seventh day of that period.

Example. The tax included in amounts billed or tickets

sold for the period June 16–30, 2026, is considered

collected from July 16–22, 2026, and must be deposited

by July 25, 2026.

To use the alternative method, you must keep separate

accounts of the tax included in amounts billed or tickets

sold during the month and report on Form 720 the tax

included in amounts billed or tickets sold and not the

amount of tax that is actually collected. For example,

amounts billed in December, January, and February are

considered collected during January, February, and March

and are reported on Form 720 as the tax for the first

quarter of the calendar year.

The separate account for each month must reflect:

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

sold during the month, and

2. Other items of adjustment relating to tax for prior

months (within the statute of limitations on credits or

refunds).

The separate account for any month can't include an

adjustment resulting from a refusal to pay or inability

to collect unless the refusal has been reported to

Instructions for Form 720 (Rev. 06-2026)

the IRS. See Communications and Air Transportation

Taxes—Uncollected Tax Report, earlier.

The net tax liability that is considered collected during

the semimonthly period must be either:

• The net amount of tax reflected in the separate

account for the corresponding semimonthly period of the

preceding month, or

• One-half of the net amount of tax reflected in the

separate account for the preceding month.

Amount To Deposit

Deposits of taxes for a semimonthly period must be at

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

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

later.

The net tax liability for a semimonthly period is the

total liability for the period minus any claims allowed

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

semimonthly period may be figured by dividing the net

tax liability for the month by 2, provided this method of

computation is used for all semimonthly periods in the

calendar quarter.

Caution: The net tax liability for a semimonthly period

isn't reduced by any amounts from Form 720-X.

Safe Harbor Rule

The safe harbor rule applies separately to deposits under

the regular method and the alternative method. Persons

who filed Form 720 for the lookback quarter (the second

calendar quarter preceding the current quarter) are

considered to meet the semimonthly deposit requirement

if the deposit for each semimonthly period in the current

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

reported for the lookback quarter.

For the semimonthly period for which the additional

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

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

net tax liability reported for the lookback quarter. Also,

the total deposit for that semimonthly period must be at

least 1/6 (16.67%) of the net tax liability reported for the

lookback quarter.

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

following quarters.

• The first and second quarters beginning on or after the

effective date of an increase in the rate of tax unless

the deposit of taxes for each semimonthly period in

the calendar quarter is at least 1/6 (16.67%) of the tax

liability you would have had for the lookback quarter if the

increased rate of tax had been in effect for that lookback

quarter.

• Any quarter if liability includes any tax not in effect

throughout the lookback quarter.

• For deposits under the alternative method, any quarter

if liability includes any tax not in effect throughout the

lookback quarter and the month preceding the lookback

quarter.

Requirements to be met. For the safe harbor rule to

apply, you must pay any underpayment for the current

quarter by the due date of the return and check the box on

line 5 of Form 720.

Instructions for Form 720 (Rev. 06-2026)

Caution: The IRS may withdraw the right to make

deposits of tax using the safe harbor rule from any person

not complying with these rules.

Online Payment Agreement

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

apply for an installment agreement online. You can apply

for an installment agreement online if the total amount

you owe in combined tax, penalties, and interest is

$25,000 ($50,000 for individuals) or less, and you've filed

all required returns. To apply using the Online Payment

Agreement Application, go to IRS.gov/OPA.

Schedule A. Excise Tax Liability

How to complete. Complete Schedule A to record

net tax liabilities for Form 720, Part I, taxes for each

semimonthly period in a quarter even if your net liability

is under $2,500.

The following table will help you determine which boxes

to complete on Schedule A.

IF you are reporting

under the...

regular method

alternative method

THEN you report

on line...

AND enter the

net tax liability in

boxes...

A–G.

M–S.

If you are reporting more than one type of tax on

lines 1 and 2:

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

semimonthly period, and

2. Enter the total in the applicable box.

Additional rules. Report communications and air

transportation taxes based on:

• Actual collections on line 1, or

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

tax to report for a semimonthly period is the net amount

that is considered collected during that period.

Example. Under the alternative method, the amounts

billed for communications services from June 1–15, 2026,

are considered collected during the period July 1–7,

2026, and are reported for the third quarter of 2026 on

Schedule A in box M, not the second quarter of 2026.

Reporting tax liability under the special September

rule. An additional reporting is required under the special

September rule as follows.

Regular method taxes

Enter the liability for the period beginning

September 26/27 and ending September 30

in box F.

Alternative method taxes

Enter the tax included in the amounts billed

or tickets sold for the period beginning

September 11/12 and ending September 15

in box M of the fourth quarter return. Enter

the tax included in amounts billed or tickets

sold during the period beginning September

16 and ending September 30 in box N of the

fourth quarter return.

Schedule T. Two-Party Exchange

Information Reporting

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

delivering person, is liable for the tax imposed on the

removal of taxable fuel from the terminal at the terminal

rack. A “two-party exchange” means a transaction (other

than a sale) where the delivering person and receiving

person are both taxable fuel registrants and all of the

following occur.

• The transaction includes a transfer from the delivering

person, who holds the inventory position for the taxable

fuel in the terminal as reflected in the records of the

terminal operator.

• The exchange transaction occurs before or at the same

time as completion of removal across the rack by the

receiving person.

• The terminal operator in its records treats the receiving

person as the person that removes the product across the

terminal rack for purposes of reporting the transaction on

Form 720-TO, Terminal Operator Report.

• The transaction is the subject of a written contract.

Information reporting. Schedule T is used to report

gallons of taxable fuel:

• Received in a two-party exchange within a

terminal—these gallons must also be included on the

appropriate line on Form 720, page 1; or

• Delivered in a two-party exchange with a removal

across the rack.

Enter all gallons of fuel received or delivered in a

two-party exchange within a terminal for the applicable

fuel.

Schedule C. Claims

Complete all information requested for each line, including

“Month your income tax year ends” and “Period of

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

claim as “MM/DD/YYYY–MM/DD/YYYY.” Your claim will

be disallowed if you don't follow the required procedures

or don't provide all the required information. Also, you

are certifying the applicable statement(s) on Schedule C

when you make a claim. See Pub. 510 for more

information.

Caution: You must include in gross income (income tax

return) the amount from line 4 of Form 720, Part III, if you

took a deduction on the income tax return that included

the amount of the taxes and that deduction reduced the

income tax liability. See Pub. 510 for more information.

Don't use Schedule C:

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

• For amounts you will claim or have claimed on Form

4136, or as a refund on Form 8849, Claim for Refund of

Excise Taxes, and its separate schedules;

• To make adjustments to liability reported on Forms 720

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

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

used in a fractional ownership program aircraft as fuel

(IRS No. 13) (instead, use Form 720-X); or

• To request an abatement or a refund of interest under

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

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

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

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

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

penalty under section 6715 for misuse of dyed fuel.

Type of Use Table

The following table lists the nontaxable uses of fuels. You

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

column as required.

No.

Type of use

On a farm for farming purposes

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)

Export

In a boat engaged in commercial fishing

In certain intercity and local buses

In a qualified local bus

In a bus transporting students and employees of schools

(school buses)

For diesel and kerosene (other than kerosene used in

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

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

off-highway business use)

In foreign trade

Certain helicopter and fixed-wing aircraft uses

Exclusive use by a qualified blood collector organization

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

used on a highway

Exclusive use by a nonprofit educational organization

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

or the District of Columbia

In an aircraft or a vehicle owned by an aircraft museum

In military aircraft

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

The following requirements must be met.

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

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

and 14d). This amount may be met by:

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

claimant's income tax year, or

b. Aggregating amounts from any quarters of the

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

been made.

2. Claims must be filed during the first quarter

following the last quarter of the claimant's income tax

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

income taxpayer's claim for the first quarter is due June 30

if filed on Form 8849. However, Form 720 must be filed by

April 30.

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

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

during the period of claim.

Instructions for Form 720 (Rev. 06-2026)

5. The ultimate purchaser is the only person eligible to

make the claim.

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

Claims, later.

Exported taxable fuel. The claim rates for exported

taxable fuel are listed on lines 1b, 2c, 3e, and 4d and in

the instructions for lines 14b and 14c. Taxpayers making

a claim for exported taxable fuel must include with their

records proof of exportation. Proof of exportation includes:

• A copy of the export bill of lading issued by the

delivering carrier,

• A certificate by the agent or representative of the export

carrier showing actual exportation of the fuel,

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

foreign country to which the fuel is exported, or

• A statement of the foreign consignee showing receipt of

the fuel.

Line 1. Nontaxable Use of Gasoline

Allowable uses. The gasoline must have been used

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

For exported gasoline, see Exported taxable fuel, earlier.

Type of use 2 doesn't include any personal use or use in a

motorboat.

Line 2. Nontaxable Use of Aviation Gasoline

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

have been used during the period of claim for type of use

9, 10, or 16. For exported aviation gasoline, see Exported

taxable fuel, earlier.

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

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

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

use 9.

Line 3. Nontaxable Use of Undyed Diesel

Caution: Ultimate purchasers use line 3d to make claims

for diesel used on a farm for farming purposes.

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

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

or 12. For exported undyed diesel, see Exported taxable

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

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

heating oil and use in a motorboat.

Line 4. Nontaxable Use of Undyed Kerosene

(Other Than Kerosene Used in Aviation)

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

been used during the period of claim for type of use 2, 6,

7, 8, or 12. For exported undyed kerosene, see Exported

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

personal use or use in a motorboat. Type of use 8 includes

use as heating oil and use in a motorboat.

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

during the period of claim for type of use 2.

Line 5. Kerosene Used in Aviation

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

of kerosene used in commercial aviation (other than

foreign trade) is eligible to make this claim. For lines

Instructions for Form 720 (Rev. 06-2026)

5c, 5d, and 5e, the ultimate purchaser of kerosene

used in noncommercial aviation (except for nonexempt,

noncommercial aviation and exclusive use by a state, a

political subdivision of a state, or the District of Columbia)

is eligible to make this claim. Claimant certifies that the

right to make the claim hasn't been waived.

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

have been used during the period of claim in commercial

aviation. If the claimant buys kerosene partly for use in

commercial aviation and partly for use in noncommercial

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

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

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

15, or 16.

For line 5e, the kerosene must have been used during

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

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

use 9.

Line 6. Nontaxable Use of Alternative Fuel

Claimant. The ultimate purchaser of the taxed alternative

fuel is the only person eligible to make this claim.

Allowable uses. The alternative fuel must have been

used during the period of claim for type of use 1, 2, 4,

5, 6, 7, 11, 13, 14, or 15.

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

the “Type of use” column. Enter the correct claim rate in

the “Rate” column. The claim rates for type of use 5 are

listed below.

Line number

Claim rate: Type of use 5

$.109*

.110

.109**

.110

.17

.169***

.110

* This is the claim rate per GGE (5.75 pounds or 1.353 gallons of LPG).

** This is the claim rate per GGE (5.66 pounds or 123.57 cubic feet of CNG).

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

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

1.353 = 7,391 GGE x $.109 = $805.62 claim amount.

Information for Claims on Lines 7–11

Registration number. To make an ultimate vendor claim

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

registration number, including the prefix (for prefixes, see

the instructions for Form 637, Application for Registration),

on the applicable line for your claim. If you aren't

registered, use Form 637 to apply for a registration

number.

Required certificates or waivers. The required

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

instructions and are available in Pub. 510.

Line 7a. Sales by Registered Ultimate Vendors

of Undyed Diesel

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

Claims, later.

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

the diesel is the only person eligible to make this claim

and has obtained the required certificate from the buyer

and has no reason to believe any information in the

certificate is false. See Model Certificate P in Pub. 510.

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

Registration number. Enter your UB registration number

in the space provided.

Allowable sales. The fuel must have been sold during

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

local government (including essential government use by

an Indian tribal government).

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

the kerosene is the only person eligible to make this

claim and has obtained the required certificate from the

buyer and has no reason to believe any information in the

certificate is false. See Model Certificate P in Pub. 510.

For line 8b, claimant has a statement, if required, that

contains the date of sale, the name and address of the

buyer, and the number of gallons of kerosene sold to the

buyer. For lines 8a and 8b, only one claim may be filed for

any gallon of kerosene.

Claim requirements. The following requirements must

be met.

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

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

met for quarterly claims filed on Form 720.

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

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

and 9 may be combined.

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

quarter following the earliest quarter of the claimant's

income tax year included in the claim. For example, a

calendar-year income taxpayer's claim for the first quarter

is due June 30 if filed on Form 8849. However, Form 720

must be filed by April 30.

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

Claims, later.

Registration number. Enter your UV registration number

in the space provided.

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

attach a separate sheet with the name and TIN of each

governmental unit to whom the diesel was sold and the

number of gallons sold to each.

Line 7b. Sales by Registered Ultimate Vendors

of Undyed Diesel for Use in Certain Intercity and

Local Buses

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

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

waives their right to make the claim by providing the

registered ultimate vendor with an unexpired waiver. See

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

for any gallon of diesel.

Claim requirements. The following requirements must

be met.

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

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

met for quarterly claims filed on Form 720.

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

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

and 9 may be combined.

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

quarter following the earliest quarter of the claimant's

income tax year included in the claim. For example, a

calendar-year income taxpayer's claim for the first quarter

is due June 30 if filed on Form 8849. However, Form 720

must be filed by April 30.

Lines 8a and 8b. Sales by Registered Ultimate

Vendors of Undyed Kerosene (Other Than

Kerosene Sold for Use in Aviation)

Allowable sales. The fuel must have been sold during

the period of claim:

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

(including essential government use by an Indian tribal

government); or

• For line 8b, from a blocked pump.

Claim requirements. The following requirements must

be met.

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

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

met for quarterly claims filed on Form 720.

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

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

combined.

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

quarter following the earliest quarter of the claimant's

income tax year included in the claim. For example, a

calendar-year income taxpayer's claim for the first quarter

is due June 30 if filed on Form 8849. However, Form 720

must be filed by April 30.

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

Claims, later.

Registration number. Enter your UV or UP registration

number in the space provided.

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

attach a separate sheet with the name and TIN of each

governmental unit to whom the kerosene was sold and the

number of gallons sold to each.

Line 8c. Sales by Registered Ultimate Vendors

of Undyed Kerosene for Use in Certain Intercity

and Local Buses

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

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

waives their right to make the claim by providing the

registered ultimate vendor with an unexpired waiver. See

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

for any gallon of kerosene.

Claim requirements. The following requirements must

be met.

Instructions for Form 720 (Rev. 06-2026)

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

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

met for quarterly claims filed on Form 720.

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

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

combined.

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

quarter following the earliest quarter of the claimant's

income tax year included in the claim. For example, a

calendar-year income taxpayer's claim for the first quarter

is due June 30 if filed on Form 8849. However, Form 720

must be filed by April 30.

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

Claims, later.

Registration number. Enter your UB registration number

in the space provided.

Lines 9a and 9b. Sales by Registered Ultimate

Vendors of Kerosene for Use in Commercial

Aviation (Other Than Foreign Trade)

Claimant. The registered ultimate vendor of the kerosene

sold for use in commercial aviation is eligible to make

this claim only if the buyer waives their right by providing

the registered ultimate vendor with an unexpired waiver.

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

filed for any gallon of kerosene sold for use in commercial

aviation.

Allowable sales. The kerosene sold for use in

commercial aviation must have been sold during the

period of claim for use in commercial aviation (other than

foreign trade).

Claim requirements. The following requirements must

be met.

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

commercial aviation during a period that is at least 1

week. This requirement will generally be met for quarterly

claims filed on Form 720.

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

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

combined.

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

quarter following the earliest quarter of the claimant's

income tax year included in the claim. For example, a

calendar-year income taxpayer's claim for the first quarter

is due June 30 if filed on Form 8849. However, Form 720

must be filed by April 30.

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

Claims, later.

Registration number. Enter your UA registration number

in the space provided.

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

Ultimate Vendors of Kerosene Sold for Use in

Noncommercial Aviation

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

the kerosene sold for use in nonexempt, noncommercial

aviation is the only person eligible to make this claim,

and the registered ultimate vendor has obtained the

Instructions for Form 720 (Rev. 06-2026)

required certificate from the ultimate purchaser. See

Model Certificate Q in Pub. 510. For lines 9d, 9e, and

9f, the registered ultimate vendor of the kerosene sold

for nontaxable use in noncommercial aviation (foreign

trade for line 9f) is eligible to make this claim only if the

buyer waives their right to make the claim by providing

the registered ultimate vendor with an unexpired waiver.

See Model Waiver L in Pub. 510. For type of use 14,

see Model Certificate P in Pub. 510. Only one claim

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

noncommercial aviation.

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

been sold for a nonexempt use in noncommercial aviation.

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

noncommercial aviation must have been sold during the

period of claim for type of use 1, 9, 10, 11, 13, 14, 15, or

16.

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

aviation must have been sold during the period of claim for

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

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

Claim requirements. The following requirements must

be met.

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

noncommercial aviation during a period that is at least 1

week. This requirement will generally be met for quarterly

claims filed on Form 720.

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

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

combined.

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

quarter following the earliest quarter of the claimant's

income tax year included in the claim. For example, a

calendar-year income taxpayer's claim for the first quarter

is due June 30 if filed on Form 8849. However, Form 720

must be filed by April 30.

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

Claims, later.

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

14) registration number in the space provided.

Information to be submitted. For claims on lines 9d

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

the name and TIN of each governmental unit to whom

the kerosene was sold and the number of gallons sold to

each.

Lines 10 and 11. Sales by Registered Ultimate

Vendors of Gasoline and Aviation Gasoline

Claimant. The registered ultimate vendor of the gasoline

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

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

providing the registered ultimate vendor with an unexpired

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

claim may be filed for any gallon of gasoline or aviation

gasoline.

Allowable sales. The gasoline or aviation gasoline must

have been sold during the period of claim for:

• Use by a nonprofit educational organization, or

• Use by a state or local government (including essential

government use by an Indian tribal government).

Claim requirements. The following requirements must

be met.

1. The claim must be for gasoline or aviation gasoline

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

requirement will generally be met for quarterly claims filed

on Form 720.

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

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

combined.

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

quarter following the earliest quarter of the claimant's

income tax year included in the claim. For example, a

calendar-year income taxpayer's claim for January and

February is due June 30 if filed on Form 8849. However,

Form 720 must be filed by April 30.

Registration number. Enter your UV registration number

in the space provided.

Information to be submitted. For claims on lines 10

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

each nonprofit educational organization or governmental

unit to whom the gasoline or aviation gasoline was sold

and the number of gallons sold to each.

Line 12. Reserved for Future Use

Line 13. Reserved for Future Use

Line 14. Other Claims

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

uses and resales of certain articles subject to

manufacturer or retailer excise taxes, claimant certifies

that it sold the article at a tax-excluded price, repaid the

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

written consent of the ultimate vendor to make the claim;

and has the required supporting information.

Lines 14b and 14c. Exported Dyed Diesel,

Exported Dyed Kerosene, and Exported Gasoline

Blendstocks Taxed at $.001

Caution: Claimant is required to have the name and

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

the dates of purchase, and, if exported, the required proof

of export.

A claim may be made for dyed diesel or dyed kerosene

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

Claims for exported gasoline blendstocks taxed at $.001

per gallon are made on line 14b. See Exported taxable

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

gallon.

Caution: Claims for exported gasoline blendstocks taxed

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

Line 14d. Diesel-Water Emulsion

Generally, the claim rate for the nontaxable use of a

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

number (CRN) 309) is $.197. The fuel must have been

used during the period of claim for type of use 1, 2, 3, 5, 6,

7, 8, or 12. For type of use 5, the claim rate is $.124 (CRN

309). For type of use 3 (exported), the claim rate is $.198

(CRN 306) and is reported on line 14d.

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

310) and used to produce a diesel-water emulsion is

$.046 per gallon of diesel so used (blender claims). The

claimant must attach a statement certifying that (a) the

claimant produced a diesel-water emulsion containing at

least 14% water; (b) the emulsion additive is registered

by a U.S. manufacturer with the EPA under the Clean Air

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

claimant used undyed diesel taxed at $.244 to produce

the diesel-water emulsion; and (d) the claimant sold or

used the diesel-water emulsion in the blender's trade or

business. The blender claimant must be registered by the

IRS and must enter their registration number on line 14d

and enter the applicable CRN.

Claim requirements. See Claim requirements for lines

1–6 and lines 14b–14d, earlier.

Line 14e. Registered Credit Card Issuers

Allowable sales. The gasoline (CRN 362), aviation

gasoline (CRN 324), diesel (CRN 360), kerosene (CRN

346), or kerosene for use in aviation (CRN 369) must have

been purchased with a credit card issued to the ultimate

purchaser during the period of claim:

• For gasoline or aviation gasoline, for the exclusive

use by a state or local government (including essential

government use by an Indian tribal government) or for the

exclusive use of a nonprofit educational organization; or

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

the exclusive use by a state or local government (including

essential government use by an Indian tribal government).

Claimant. The registered credit card issuer is the only

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

1. Is registered by the IRS;

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

purchaser or has obtained the written consent of the

ultimate purchaser to make the claim;

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

amount of tax to the ultimate vendor, has obtained the

written consent of the ultimate vendor to make the claim,

or has otherwise made arrangements which directly or

indirectly provide the ultimate vendor with reimbursement

of the tax; and

4. Has in its possession an unexpired certificate from

the ultimate purchaser and has no reason to believe any

of the information in the certificate is false. See Model

Certificate R in Pub. 510.

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

issuer must collect the tax from the ultimate purchaser and

only the ultimate purchaser can make the claim.

Claim requirements. The following requirements must

be met.

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

diesel, kerosene, or kerosene for use in aviation sold

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

Instructions for Form 720 (Rev. 06-2026)

will generally be met for quarterly claims filed on Form

720.

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

($100 for kerosene or kerosene for use in aviation).

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

quarter following the earliest quarter of the claimant's

income tax year included in the claim. For example, a

calendar-year income taxpayer's claim for the first quarter

is due June 30 if filed on Form 8849. However, Form 720

must be filed by April 30.

4. The claimant must enter its registration number on

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

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

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

sheet listing the fuels, amounts, and CRNs.

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

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

gasoline and aviation gasoline.

Claim rates. The claim rates are shown below.

CRN

Claim rate

324

$.193

346

.243

360

.243

362

.183

369

.218

Annual Claims

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

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

alternative fuel mixtures produced after 2011). Generally,

an annual claim is made on Form 4136 for the income

tax year during which the fuel was used by the ultimate

purchaser, sold by the registered ultimate vendor, used

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

Form 4136 for more information.

Lines 14f–14h. Tire Credits

A credit or refund (without interest) is allowable on

tax-paid tires if the tires have been:

• Exported;

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

• Sold to a nonprofit educational organization for its

exclusive use;

• Sold to a qualified blood collector organization for its

exclusive use in connection with a vehicle the organization

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

transportation of blood;

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

• Sold in connection with qualified intercity, local, or

school buses.

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

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

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

above.

Instructions for Form 720 (Rev. 06-2026)

The person who paid the tax is eligible to make the

claim and must include:

• A detailed description of the claim,

• Any additional information required by the regulations,

• How the claim amount was figured,

• Any other information to support the claim, and

• The number of tires claimed for each CRN.

Claim requirement. Generally, the claim must be filed

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

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

Lines 14i–14k. Other Claims

Caution: Don't use lines 14i–14k to make

communications tax claims for nontaxable services. See

Communications Taxes, earlier.

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

the table under Claim requirement below. See Pub. 510

for information on allowable claims relating to these taxes.

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

must include the following information for each claim.

• A detailed description of the claim.

• Any additional information required by the regulations.

• The amount of the claim.

• How you figured the claim amount.

• Any other information to support the claim.

Claim requirement. Generally, the claim must be filed

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

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

Tax

CRN

Ozone-depleting chemicals (ODCs)

398

Chemicals (other than ODCs)

454

Imported chemical substances

317

ODC tax on imported products

349

Truck, trailer, and semitrailer chassis and bodies, and

tractors

383

Gas guzzler automobiles

340

Vaccines

397

Sport fishing equipment

341

Fishing rods and fishing poles

308

Fishing tackle boxes

387

Electric outboard motors

342

Bows, quivers, broadheads, and points

344

Arrow shafts

389

The Taxpayer Advocate Service (TAS) Is Here To

Help You

What Is the Taxpayer Advocate Service?

The Taxpayer Advocate Service (TAS) is an independent

organization within the Internal Revenue Service (IRS).

TAS helps taxpayers resolve problems with the IRS,

makes administrative and legislative recommendations to

prevent or correct the problems, and protects taxpayer

rights. We work to ensure that every taxpayer is treated

fairly and that you know and understand your rights under

the Taxpayer Bill of Rights. We are Your Voice at the IRS.

How Can TAS Help Me?

TAS can help you resolve problems that you haven’t been

able to resolve with the IRS on your own. Always try to

resolve your problem with the IRS first, but if you can’t,

then come to TAS. Our services are free.

• TAS helps all taxpayers (and their representatives),

including individuals, businesses, and exempt

organizations. You may be eligible for TAS help if your

IRS problem is causing financial difficulty, if you’ve tried

and been unable to resolve your issue with the IRS, or if

you believe an IRS system, process, or procedure just isn’t

working as it should.

• To get help any time with general tax topics, visit

www.TaxpayerAdvocate.IRS.gov. The site can help you

with common tax issues and situations, such as what to

do if you make a mistake on your return or if you get a

notice from the IRS.

• TAS works to resolve large-scale (systemic) problems

that affect many taxpayers. You can report systemic

issues at www.IRS.gov/SAMS. (Be sure not to include any

personal identifiable information.)

6011 requires you to provide the requested information.

Section 6109 requires you to provide your identifying

number. Routine uses of this information include giving it

to the Department of Justice for civil and criminal litigation,

and to cities, states, the District of Columbia, and U.S.

commonwealths and territories for use in administering

their tax laws. We may also disclose this information to

other countries under a tax treaty, to federal and state

agencies to enforce federal nontax criminal laws, or to

federal law enforcement and intelligence agencies to

combat terrorism. Failure to provide this information in a

timely manner or providing false or fraudulent information

may subject you to penalties.

You aren't required to provide the information requested

on a form that is subject to the Paperwork Reduction Act

unless the form displays a valid OMB control number.

Books or records relating to a form or its instructions

must be retained as long as their contents may become

material in the administration of any Internal Revenue

law. Generally, tax returns and return information are

confidential, as required by section 6103.

The time needed to complete and file these forms

and related schedules will vary depending on individual

circumstances. The estimated average times are:

How Do I Contact TAS?

TAS has offices in every state, the District of Columbia,

and Puerto Rico. To find your local advocate’s number:

• Go to www.TaxpayerAdvocate.IRS.gov/Contact-Us,

• Check your local directory, or

• Call TAS toll free at 877-777-4778.

What Are My Rights as a Taxpayer?

The Taxpayer Bill of Rights describes ten basic rights

that all taxpayers have when dealing with the IRS. Go

to www.TaxpayerAdvocate.IRS.gov/Taxpayer-Rights for

more information about the rights, what they mean to

you, and how they apply to specific situations you may

encounter with the IRS. TAS strives to protect taxpayer

rights and ensure the IRS is administering the tax law in a

fair and equitable way.

Privacy Act and Paperwork Reduction Act Notice. We

ask for the information on these forms in order to carry

out the Internal Revenue laws of the United States. We

need it to figure and collect the right amount of tax.

Miscellaneous excise taxes are imposed under subtitle

D of the Internal Revenue Code. These forms are used

to determine the amount of tax that you owe. Section

Form

Recordkeeping

Learning about

the law or

the form

Preparing,

copying,

assembling, and

sending the

form to the IRS

720

8 hr., 48 min.

5 hr., 27 min.

1 hr., 53 min.

720-X

6 hr., 13 min.

0 hr., 18 min.

0 hr., 24 min.

Comments and suggestions. We welcome your

comments about this publication and your suggestions

for future editions. You can send us comments through

IRS.gov/FormComments. Or you can write to:

Internal Revenue Service

Tax Forms and Publications

1111 Constitution Ave. NW

IR-6526

Washington, DC 20224

Although we can’t respond individually to each comment

received, we do appreciate your feedback and will

consider your comments and suggestions as we revise

our tax forms, instructions, and publications. Don’t send

tax questions, tax returns, or payments to the above

address.

Instructions for Form 720 (Rev. 06-2026)

Index

Address, Name and 3

Air transportation:

Uncollected tax report 5

Air transportation taxes 4

Alternative fuel 7

Amount to deposit 13

Arrow shafts 10

Biodiesel sold as but not used as

fuel 11

Bows, quivers, broadheads, and

points 10

Form 6627 4

Form 720-V 11

Fuel taxes 5

Gas guzzler automobiles:

One-time filing 9

Gasoline 6

Help, additional 2

How to file:

Zero tax 2

Indoor tanning services 10

Inland waterways fuel use tax 11

Interest, Penalties and 2

Claims (Schedule C) 14

Coal 9

Communications:

Uncollected tax report 5

Communications taxes 4

Kerosene 6

Kerosene for use in aviation 6

Deposits, How to make 12

Diesel 5

Diesel-water emulsion 6

Manufacturers taxes 8

Name and address 3

Electric outboard motors 10

Employer identification number 3

Environmental taxes 4

Exported taxable fuel 15

Final return 2

Fishing rods and fishing poles 10

Fishing tackle boxes 10

Floor stocks 11

Foreign insurance policies 8

Form 6197 9

Obligations not in registered

form 8

ODCs 11

One-time filing 9

Other fuels, tax rates 6

Patient-centered outcomes

research fee 9

Payment of taxes 11

Payment voucher 11

Penalties and interest 2

Recordkeeping 2

Retail tax 7

Schedule A (Excise Tax

Liability) 13

Schedule C (Claims) 14-19

Schedule T (Two-Party Exchange

Information Reporting) 14

Section 40 fuels 11

Ship passenger tax 8

Sport fishing equipment 10

Tanning services, Indoor 10

Taxable tires 9

Taxes, Payment of 11

Third Party Designee 4

Tire credit, Section 4051(d) 8

Tires, taxable 9

Transportation by water 8

Trucks, trailers, tractors 7

Two-Party Exchange Information

Reporting 14

Uncollected tax report 5

Vaccines 9

When to deposit 12

When to file 1

Where to file 2

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.