| Instructions for Form 720-TO & 720-CS |
2006 Tax Year |
This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
Include the suite, room, or other unit number after the street address.
If the Post Office does not deliver mail to the street address and you have a P.O. box, show the box number instead of the
street address.
Enter the information in the following order: city, province or state, and country. Follow the country's practice for entering
the postal code. Do
not abbreviate the country's name.
Enter the name, daytime telephone number, fax number, and email address for the person who should be contacted to discuss
this information return.
Employer Identification Number (EIN)
Enter your EIN. If you do not have an EIN, use Form SS-4, Application for Employer Identification Number, to apply for one. You can get
this form at Social Security Administration offices or by calling 1-800-TAX-FORM (1-800-829-3676). You can apply for an EIN
online or by telephone,
fax, or mail. See the Instructions for Form SS-4 for more information. If you do not have your EIN by the time you must file your
information return, enter “Applied for” in any space where your EIN must be entered.
Form 637 Registration Number
Enter the assigned IRS number. Regulations sections 48.4101-1(c)(1)(iii)(iv)(vi) and (vii) require pipeline operators, position
holders, terminal
operators, and vessel operators to be registered by the IRS. If you do not have a registration number, use Form 637, Application for
Registration (For Certain Excise Tax Activities). Form 637 has information on how to apply for a registration number.
Carrier and Consignor Names and EINs
EINs are used to associate and verify transactions you report to the IRS. Therefore, it is important that you furnish correct
names and EINs for
carriers and consignors on the forms sent to the IRS.
You may use Form W-9, Request for Taxpayer Identification Number and Certification, or your own form, to request an EIN. You may be
subject to a penalty for an incorrect or missing EIN on an information return. See Penalty on page 1. You are required to maintain the
confidentiality of information obtained on a Form W-9 relating to the taxpayer's identity and you may use such information
only to comply with filing
these information returns.
Note:
Foreign persons may use the appropriate Form W-8. See the Instructions for the Requester of Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY.
Form 720-TO and Form 720-CS must be signed by a person who has authority to sign.
Terminal means a taxable fuel storage and distribution facility that is supplied by pipeline or vessel and from which liquid products,
such as taxable fuel, may be removed at a rack. However, the term does not include any facility at which gasoline blendstocks
are used in the
manufacture of products other than finished gasoline and from which no gasoline is removed. Also, the term does not include
any facility where
finished gasoline, undyed diesel fuel, or undyed kerosene is stored if the facility is operated by a taxable fuel registrant
and all such taxable fuel
stored at the facility has been previously taxed under section 4081 upon removal from a refinery or terminal.
Approved terminal means a terminal that is operated by a terminal operator who is registered with the IRS and is in good standing.
Position holder means (for IRS information reporting only), with respect to a liquid product in a terminal, the person that holds the
inventory position in the liquid product as reflected on the records of the terminal operator. A person holds the inventory
position in a liquid
product when that person has a contractual agreement with the terminal operator for the use of storage facilities and terminaling
services at a
terminal with respect to the liquid product. The term also includes a terminal operator that owns a liquid product in its
terminal.
Net gallons means liquid product measured in U.S. gallons corrected to a temperature of sixty-degrees (60°) Fahrenheit or
fifteen-degrees (15°) Celsius and to a pressure of fourteen and seven-tenths (14.7) pounds per square inch (psi).
Gross gallons means the total product measured in U.S. gallons without temperature or barometric adjustments.
Consignor means the person that hires the carrier to transport liquid product.
Transport carriers (bulk) includes pipelines, barges, or vessels delivering or removing liquid product at approved terminals.
Transport carriers (non-bulk) includes trucks or railcars delivering or removing liquid product at approved terminals and removals from
terminals (other than by truck or rail) for sale or use.
Mode of Transportation/Book Adjustment Codes. The table below lists the mode of transportation codes. See book adjustments (Code BA)
below for use of code BA instead of a transportation code.
BA-Book adjustments
are product reclassifications or conversions of products at the terminal that result in a product code change. Examples include
conversion of
diesel fuel #2 low sulphur undyed to diesel fuel low sulphur dyed and reclassification of jet fuel to kerosene high sulphur
dyed or diesel fuel high
sulphur #1 undyed. Book adjustments must be reported in summary. For book adjustments, summary reporting means the combining
of all book adjustment
transactions by product code for the reporting period.
-
Schedule A. Report the book adjustments for a product code along with the other transactions for the product code.
-
Schedule B. Do not report book adjustments on any position holder's schedule. Instead, use a separate Schedule B with “book
adjustment” as the position holder.
CE-Summary code
is used when reporting product codes 092 and 122 in summary. See Optional Summary Reporting Instructions for Product Codes 092 and 122
on page 4.
RT-Removal from terminal.
Monthly disbursement transactions for any product code using “ RT” may be reported using the Optional Summary Reporting Instructions for
Product Codes 092 and 122 (Schedule B) on page 4, or may be reported in detail.
Terminal Operator Report, Form 720-TO
Use Form 720-TO to report receipts and disbursements of all liquid products to and from all approved terminals.
The reporting format has changed on Schedule B (Form 720-TO). A separate Schedule B must be prepared by a position holder
for each product code
that is destined for more than one state or has more than one mode of
transportation.
Each terminal operator is required to file a separate Form 720-TO for each approved terminal.
Name and location of terminal.
Enter the name and location of the terminal as published in the Federal Register for that terminal. The list of terminals
is also available on the
IRS website at www.irs.gov/excise.
Terminal control number (TCN).
Enter the TCN assigned to the terminal's physical location by the IRS.
Part III. Transactions for the Month
Part III is for the terminal operator to provide a monthly summary of the terminal receipts and disbursements by product code.
Line 1.
Enter the physical inventory of net gallons by product code at the beginning of the reporting period. This should
be the same number as reported
for actual ending inventory the previous month.
Line 2.
If you have more than one Schedule A, Terminal Operator Receipts, for a product code, combine the totals from each column (f) for the
product code and enter the total on
line 2.
Line 4.
If you have more than one Schedule B, Terminal Operator Disbursements by Position Holder, for a product code, combine the totals from
each column (e) for the product code and enter the total on line 4.
Line 6.
Enter all gains and losses by product code. The amount entered on line 6 will show any difference, plus or (minus),
between lines 5 and 7. Book
adjustments or other known transactions are not considered gain or losses.
Line 7.
Enter the actual physical ending inventory at the terminal.
Transaction Reporting Instructions for All Product Codes
Schedule A. Terminal Operator Receipts
Use this schedule to report each receipt of product (bulk and non-bulk) by the terminal operator. A separate Schedule A must
be used for each
product code.
Note:
Non-bulk receipts of product code 092 or 122 can be reported in summary by month instead of reporting them as separate transactions.
If you wish to
summarize these transactions by month, use the optional reporting instructions for Schedule A on page 4 instead of these instructions.
Enter the product code from Table 2 on page 6. Product code 122 (blending components, other) includes gasoline blendstocks as defined in
Regulations section 48.4081-1(c)(3)(i) but not listed in the product code table.
Column (a).
Enter the name of the carrier that transports the product into the terminal.
Column (b).
Enter the carrier's EIN. If the carrier is a foreign flag vessel and the EIN is unknown, enter 88-8888888.
Column (c).
Enter the mode of transportation code from
Table 1 on page 3.
Column (d).
Enter the date the product was received into the terminal (mmddyyyy).
Column (e).
Enter the identifying number from the document provided by the carrier that reflects the details of the transaction.
This could be the terminal
receipts document, pipeline ticket number, pump order number, bill of lading, barge ticket number, inspection report, etc.
Both the carrier and
terminal operator must report the same document number.
Column (f).
Enter the actual net gallons received into the terminal. For non-bulk deliveries to a terminal where net gallons are
not measured, enter gross
gallons.
Schedule B. Terminal Operator Disbursements by Position Holder
Use this schedule to report each disbursement of product (bulk and non-bulk) by the terminal operator by position holder.
A separate Schedule B for
each position holder, separating bulk from non-bulk, must be used for each product code that is destined for more than one
state or has more than one
mode of transportation.
Note:
Bulk and non-bulk disbursements of product code 092
or 122 can be reported in summary instead of reporting them as separate transactions. If you wish to summarize these transactions,
use the
optional reporting instructions for Schedule B below instead of these instructions.
Position holder (PH) name.
Enter the name of the entity holding the inventory position in the terminal.
Enter the product code from Table 2 on page 6.
Enter the destination state code from Table 3 on page 7. The destination state code is required for non-bulk (truck or rail car)
disbursements only. If a fuel transport truck is receiving fuel destined for different states, the terminal operator will
issue a bill of lading,
manifest, or other shipping document for each state of destination. You are required to report each separate shipping document
as a separate
transaction.
Enter the code from Table 1 on page 3.
Example.
ABC Terminal is preparing Schedule B for disbursements made by position holder XYZ. XYZ disburses gasoline (PC065),
diesel fuel #2 low sulphur
undyed (PC 167), and jet fuel (PC130) during the month destined for two states. ABC must prepare 6 Schedule B's to report
XYZ's transactions (3
product codes x 2 destination states).
Column (a).
Enter the name of the carrier that transports the product out of the terminal.
Column (b).
Enter the carrier's EIN. If the carrier is a foreign flag vessel and the EIN is unknown, enter 88-8888888. If the carrier is
a military vehicle and you cannot obtain proper EIN, enter 77-7777777.
Column (c).
Enter the date the product was removed from the terminal (mmddyyyy).
Column (d).
Enter the identifying number from the document provided by the terminal operator to the carrier that reflects the
details of the transaction. This
could be a bill of lading, manifest, inspection report, or other shipping document. Both the carrier and terminal operator
must report the same
document number.
Column (e).
Enter the actual net gallons disbursed from the terminal.
Column (f).
Enter the gross gallons disbursed from the terminal as shown on the document listed in column (d). No entry is required
for product codes 092 and
122.
Optional Summary Reporting Instructions for Product Codes 092 and 122, and Disbursements Using Mode of Transportation Code
“RT”
Schedule A. Terminal Operator Receipts
Use these instructions to report in summary by month the non-bulk receipts of product codes 092 and 122 into the terminal.
If you have bulk
receipts for product codes 092 and 122, you must use the instructions for Schedule A on page 3 and report these transactions
in detail. Use a separate
Schedule A for product codes 092 and 122. Do not combine product code 092 with product code 122.
Product code.
If the product is a blending component and not listed in Table 2, enter 122. If the product is not a blending component,
enter 092.
Column (a).
Enter “ Various.”
Column (b).
Enter “ 99-9999999.”
Column (d).
Enter the month ending date (mmddyyyy).
Column (e).
Enter “ Summary.”
Column (f).
Add the net gallons for all transactions for the month and enter the total.
Schedule B. Terminal Operator Disbursements by Position Holder
Use these instructions to report in summary the total disbursements (bulk and non-bulk) of product codes 092 and 122 for each
position holder. Use
a separate Schedule B for product codes 092 and 122.
Product code.
If the product is a blending component and not listed in Table 2, enter 122. If the product is not a blending component,
enter 092.
Destination state.
Enter the destination state code from Table 3 on page 7.
Mode of transportation.
Enter “ CE” or “ RT”, if applicable.
Column (a).
Enter “ Various.”
Column (b).
Enter “ 99-9999999.”
Column (c).
Enter the month ending date (mmddyyyy).
Column (d).
Enter “ Summary.”
Column (e).
Add the total net gallons for all transactions for the month by the terminal for each position holder and product
code, and enter the total.
Column (f).
Not required for product codes 092 and 122.
Carrier Summary Report, Form 720-CS
Form 720-CS is required to be filed by bulk transport carriers (barges, vessels, and pipelines) who receive liquid product
from an approved
terminal or deliver liquid product to an approved terminal.
Part II. Transactions for the Month
Part II is used by the carrier to report a monthly summary of the receipts from terminals and disbursements to terminals by
product code. Use only the product codes listed in Table 2 on page 6.
Schedule A. Carrier Receipts From a Terminal
Use this schedule to report each bulk receipt of liquid product by the carrier from a terminal. A separate Schedule A must
be used for each product
code.
TCN.
Enter the TCN assigned to the terminal's physical location by the IRS. The list of terminals by TCN is available on
the IRS website at
www.irs.gov/excise.
Enter the product code from Table 2 on page 6. Product code 122 (blending components, other) includes gasoline blendstocks as defined in
Regulations section 48.4081-1(c)(3)(i) but not listed in the product code table.
Column (a).
Enter the EIN of the company hiring the carrier.
Column (b).
Enter the name of the company hiring the carrier.
Column (c).
Enter the code from Table 1 on page 3.
Column (d).
Enter the date from the document in column (e) (mmddyyyy).
Column (e).
Enter the identifying number from the document provided by the terminal operator to the carrier that reflects the
details of the transaction. This
could be a bill of lading, manifest, inspection report, or other shipping document. Both the carrier and terminal operator
must report the same
document number.
Column (f).
Enter the actual net gallons received from the terminal.
Schedule B. Carrier Deliveries To a Terminal
Use this schedule to report each bulk delivery of liquid product by the carrier to a terminal. A separate Schedule B must
be used for each product
code.
TCN.
Enter the TCN assigned to the terminal's physical location by the IRS.
Enter the product code from Table 2 on page 6.
Column (a).
Enter the EIN of the company hiring the carrier.
Column (b).
Enter the name of the company hiring the carrier.
Column (c).
Enter the code from Table 1 on page 3.
Column (d).
Enter the date from the document in column (f) (mmddyyyy).
Column (e).
Enter the identifying number from the document provided by the carrier to the terminal operator when the product is
delivered to the terminal that
reflects the details of the transaction. This could be the terminal receipts document, pipeline ticket number, barge ticket
number, inspection report,
etc. Both the carrier and terminal operator must report the same document number.
Column (f).
Enter the actual net gallons delivered to the terminal.
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