Publication 510 - Introductory Material
What's New
Alternative fuel. There were changes to the rate of tax on the sale for use or use of certain liquids used as a fuel in a motor vehicle or motorboat, except gas oil, fuel oil, or any product taxable under Internal Revenue Code section 4081. See Other Fuels (Including Alternative Fuels) in chapter 1. Two credits are available: the alternative fuel credit and the alternative fuel mixture credit. See Alternative Fuel Credits in chapter 2.
Use of international air travel facilities. The tax on use of international air travel facilities for amounts paid during 2007 is:
$15.10 per person for flights that begin or end in the United States, or
$7.50 per person for domestic segments that begin or end in Alaska or Hawaii (applies only to departures).
Domestic segment tax. For amounts paid for each domestic segment of taxable transportation of persons by air, the domestic segment tax is $3.40 per segment for transportation that begins in 2007.
Arrow shafts. The tax on arrow shafts sold during 2007 is $.42 per arrow shaft. See Arrow Shafts in chapter 5.
Diesel fuel used in trains. The tax rate on dyed diesel fuel used in trains is $.001. The claim rate for undyed diesel fuel used in trains is now $.243.
Inland waterways fuel use tax. The inland waterways fuel use tax is now $.201.
Qualified blood collector organizations. Qualified blood collector organizations are generally exempt from many federal excise taxes including the tax on fuels, tires, communication services, and for heavy vehicles (except that the exemption from the highway use tax applies after June 30, 2007). Each blood collector organization must be registered by the IRS as a condition for applying for the exemption (or credit or payments). To apply for registration, see Form 637, Application for Registration (For Certain Excise Tax Activities).
Credit for kerosene used in noncommercial aviation. Ultimate purchasers of kerosene may claim a credit for kerosene used in noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) if they have not waived the right to the claim.
Taxable vaccines. Meningococcal and human papillomavirus vaccines have been added to the list of taxable vaccines. The effective date is for sales or uses after January 31, 2007.
Reminders
Fuel tax credits and refunds. Publication 378 is no longer available as a separate publication. See chapter 2 for complete information on credits and refunds.
Wagering taxes. You can find the information in the instructions for Forms 730 and 11-C, as applicable.
Registration for certain activities. You are required to be registered for certain excise tax activities, such as blending of gasoline, diesel fuel, or kerosene outside the bulk transfer/terminal system. See the instructions for Form 637 for the list of activities for which you must register. Also see Registration Requirements under Fuel Taxes in chapter 1 for information on registration for activities related to fuel. Each business unit that has, or is required to have, a separate employer identification number must be registered. To apply for registration, complete Form 637 and provide the information requested in its instructions. If your application is approved, you will receive a Letter of Registration showing the activities for which you are registered, the effective date of the registration, and your registration number. A copy of Form 637 is not a Letter of Registration.
Imported products table. The imported products table can be found in Regulations section 52.4682-3(f)(6).
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication 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.
Introduction
This publication covers the excise taxes for which you may be liable during 2007 and which are reported on Form 720. It also covers fuel tax credits and refunds previously covered in
Publication 378.
Comments and suggestions.
We welcome your comments about this publication and your suggestions for future editions. You can email us at *taxforms@irs.gov (the asterisk must be included in the address). Please put “Publications Comment” on the subject line. You can write to us at the following address:Internal Revenue Service
Tax Products Coordinating Committee
SE:W:CAR:MP:T:T:SP
1111 Constitution Ave. NW, IR-6406
Washington, DC 20224
Useful Items - You may want to see:
Publication
509 Tax Calendars for 2007
Form (and Instructions)
11-C
Occupational Tax and Registration Return for Wagering637
Application for Registration (For Certain Excise Tax Activities)720
Quarterly Federal Excise Tax Return720X
Amended Quarterly Federal Excise Tax Return730
Monthly Tax Return for Wagers1363
Export Exemption Certificate2290
Heavy Highway Vehicle Use Tax Return2290(SP)
Declaracion del Impuesto sobre el Uso de Vehiculos Pesados en las Carreteras2290(FR)
Declaration d'Impot sur L'utilisation des Vehicules Lourds sur les Routes4136
Credit for Federal Tax Paid on Fuels6197
Gas Guzzler Tax6478
Credit for Alcohol Used as Fuel6627
Environmental Taxes8849
Claim for Refund of Excise Taxes, and Schedules 1-3, 5, 6, and 88864
Biodiesel and Renewable Diesel Fuels Credit
Information Returns
Form 720-TO, Terminal Operator Report
Form 720-CS, Carrier Summary Report
Notices
Notice 2005-4 that is available on page 289 of Internal Revenue Bulletin 2005-2 at www.irs.gov/pub/irs-irbs/irb05-02.pdf.
Notice 2005-24 that is available on page 757 of Internal Revenue Bulletin 2005-12 at www.irs.gov/pub/irs-irbs/irb05-12.pdf.
Notice 2005-62 that is available on page 443 of Internal Revenue Bulletin 2005-35 at www.irs.gov/pub/irs-irbs/irb05-35.pdf.
Notice 2005-80 that is available on page 953 of Internal Revenue Bulletin 2005-46 at www.irs.gov/pub/irs-irbs/irb05-46.pdf.
Notice 2006-50 that is available on page 1141 of Internal Revenue Bulletin 2006-25 at www.irs.gov/pub/irs-irbs/irb06-25.pdf.
Notice 2006-92 that is available on page 774 of internal Revenue Bulletin 2006-43 at www.irs.gov/pub/irs-irbs/irb06-43.pdf.
Notice 2007-11 that is available on page 405 of Internal Revenue Bulletin 2007-5 at www.irs.gov/pub/irs-irbs/irb07-05.pdf.
Notice 2007-37 that is available on page 1002 of Internal Revenue Bulletin 2007-17 at www.irs.gov/pub/irs-irbs/irb07-17.pdf.
Excise Taxes Not Covered
In addition to the taxes discussed in this publication, you may have to report certain other excise taxes.
For tax forms relating to alcohol and tobacco, visit the Alcohol and Tobacco Tax and Trade Bureau website at www.ttb.gov.
Heavy Highway Vehicle Use Tax
You report the federal excise tax on the use of certain trucks, truck tractors, and buses used on public highways on Form 2290, Heavy Highway Vehicle Use Tax Return. The tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. Vans, pickup trucks, panel trucks, and similar trucks generally are not subject to this tax.
Note.
A Spanish version (Forma 2290(SP)) and a French version (Formulaire 2290(FR)) and separate instructions for each are also available. See How To Get Tax Help inchapter 15.
Registration of vehicles.
Generally, you must prove that you paid your heavy highway vehicle use tax to register your taxable vehicle with your state motor vehicle department or to enter the United States in a Canadian or Mexican registered taxable vehicle. Generally, a copy of Schedule 1 (Form 2290) is stamped by the IRS and returned to you as proof of payment. If you have questions on Form 2290, see How to Get Tax Help in chapter 15, or you can call the Form 2290 call site at 1-866-699-4096 (toll free) from the United States, and 1-859-669-5733 (not toll free) from Canada and Mexico. The hours of service are 8:00 a.m. to 6:00 p.m. Eastern time.Wagering Tax and Occupational Tax
The information on wagering tax can be found in the instructions for Form 730, Tax on Wagering, and Form 11-C, Occupational Tax and Registration Return for Wagering.
