Fuel Taxes

You must file Fuel Excise Taxes if you are engaged in any of the following: Diesel Fuel (IRS Nos. 60a, 60b, 60c): Includes taxable removals, sales, and uses. Diesel-Water Emulsion (IRS No. 104). Dyed Fuels & LUST Taxes (IRS Nos. 105, 107, 119). Alternative Fuels: • Liquefied Petroleum Gas (LPG – IRS No. 112). • "P Series" fuels (IRS No. 118). • Compressed Natural Gas (CNG – IRS No. 120). • Liquefied Hydrogen (IRS No. 121). • Fischer-Tropsch liquid fuel from coal (IRS No. 122). • Liquid fuel derived from biomass (IRS No. 123). • Liquefied Natural Gas (LNG – IRS No. 124). Kerosene: • Kerosene Taxes (IRS Nos. 35a, 35b). • Kerosene for Aviation (IRS No. 69). • Kerosene for Commercial Aviation (IRS No. 77). • Kerosene, LUST Tax on Nontaxable Uses (IRS No. 111). Gasoline: • Gasoline (IRS Nos. 62a, 62b). • Aviation gasoline (IRS No. 14). • Fractional ownership program aircraft fuel (IRS No. 13). • Other Fuels (IRS No. 79). If you produce, sell, import, or use any of the above fuels, you must file excise tax on Form 720.

Before filing, have ready: • Business details (name, address, EIN). • Fuel type(s) handled during the quarter. • Gallons removed, sold, imported, or blended. • Records of two-party exchanges (Schedule T). • Any applicable credits or exemptions. • Documentation of storage or usage (for dyed fuels and LUST taxes).

When filing fuel taxes online, enter the following for each fuel type: Tax Date – select the date the taxable event occurred. Type of Event – e.g., removal, sale, import, blending. Fuel Type – choose from diesel, gasoline, kerosene, LPG, LNG, CNG, etc. No. of Gallons – enter the total gallons subject to tax. Tax Amount ($) – the system calculates based on IRS fuel tax rates, but you must confirm accuracy. Two-Party Exchange – indicate if the transaction was part of a two-party exchange (Schedule T). Schedule T Reporting: • All two-party exchanges must be reported separately. • Dates and gallons must match the exchange partner's records.

Credits may apply for exports, non-taxable use of fuels, or previously taxed fuel. Dyed fuel used for non-highway purposes may qualify for exemption. Claim credits directly in Form 720 with supporting documents.

Ensure fuel types and IRS numbers are correctly assigned. Verify Schedule T data (receiver, gallons, dates). System will flag invalid dates, gallon amounts, or missing fields. Submit Form 720 once all sections are accurate.

Pay excise taxes through integrated payment gateways. Save partially completed forms and return later if needed. Keep a copy of filed returns and payment confirmations for at least three years. Review past filings anytime in your online account.

Use the built-in help icon for quick field explanations. Refer to IRS Pub. 510 for detailed rules. Contact a tax professional for complex exchange or credit scenarios.