Registration Requirements for Form 720

The Form 720 excise tax returns are due the last day of the month following the month in which the transaction occurs. Generally, these returns can be filed on paper or electronically. IRS encourages to use electronic method as it is Simple, Safe and Secured.

Registration Requirements for Form 720:

The following discussion applies to excise tax registration requirements for activities relating to fuels only. See Form 637 for other persons who must register and for more information about registration.

Persons that are required to be registered.   You are required to be registered if you are a:

  • Blender,
  • Enterer,
  • Pipeline operator,
  • Position holder,
  • Refiner,
  • Terminal operator,
  • Vessel operator,
  • Producer or importer of alcohol, biodiesel, agri-biodiesel, and renewable diesel, or
  • Producer of cellulosic biofuel.
Persons that may register.   You may, but are not required to, register if you are a:

  • Feedstock user,
  • Industrial user,
  • Throughputter that is not a position holder,
  • Ultimate vendor,
  • Diesel-water fuel emulsion producer,
  • Credit card issuer, or
  • Alternative fuel claimant.

Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. However, they must be registered to file claims for certain sales and uses of fuel. See Form 637 for more information.

Taxable fuel registrant.
This is an enterer, an industrial user, a refiner, a terminal operator, or a throughputter who received a Letter of Registration under the excise tax registration provisions and whose registration has not been revoked or suspended. The term registrant as used in the discussions of these fuels means a taxable fuel registrant.
Additional information.   See the Form 637 instructions for the information you must submit when you apply for registration.

Failure to register.   The penalty for failure to register if you must register, unless due to reasonable cause, is $10,000 for the initial failure, and then $1,000 each day thereafter you fail to register.

Refer IRS.gov for information

 

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