Form 720 e-file built for fuel distributors
If you remove fuel from a terminal rack, blend biodiesel outside the bulk transfer system, or distribute aviation fuel, alternative fuels, or LPG/CNG/LNG — Form 720 is your quarterly obligation. EasyFile720 handles every fuel IRS line, Schedule T two-party exchanges, and Schedule C nontaxable-use credits in one workflow.
- All 16+ fuel IRS lines in one filing — diesel, gasoline, kerosene, aviation, alternative
- Schedule T two-party exchange reporting (terminal rack receivers)
- Schedule C credits for farming, government, export, intercity bus, off-highway use
- Semimonthly EFTPS deposit tracking for liabilities over $2,500/qtr
- 2026 inflation-adjusted rates applied automatically
- ⚠️Mismatched line entries. Removal at rack vs. other taxable events vs. biodiesel mixtures all post to the same IRS No. 60 — but go on different sub-lines (a/b/c). We route each gallon to the correct sub-line automatically.
- ⚠️Two-party exchange confusion. Receiver is liable, but both parties have to report on Schedule T. We track both sides for you.
- ⚠️Missed Schedule C credits. Farming, government, export, intercity bus — every nontaxable use is worth claiming, with the right CRN.
- ⚠️CNG/LNG conversion. Per-GGE / per-DGE rates trip up paper filers. We do the math.
Which Form 720 IRS lines apply to your business?
The fuel-related IRS line items you'll typically see. EasyFile720 surfaces only the lines you actually use based on your filing profile.
| IRS No. | Description | 2026 Rate |
|---|---|---|
| 60(a) | Diesel — removal at terminal rack | $0.244 / gal |
| 60(b) | Diesel — other taxable events | $0.244 / gal |
| 60(c) | Diesel — biodiesel mixture (not at rack) | $0.244 / gal |
| 62(a) | Gasoline — removal at terminal rack | $0.184 / gal |
| 62(b) | Gasoline — other taxable events | $0.184 / gal |
| 35(a) | Kerosene — removal at terminal rack | $0.244 / gal |
| 14 | Aviation gasoline | $0.194 / gal |
| 69 | Kerosene for noncommercial aviation | $0.219 / gal |
| 77 | Kerosene for commercial aviation | $0.044 / gal |
| 112 | LPG (liquefied petroleum gas) | $0.183 / GGE |
| 120 | CNG (compressed natural gas) | $0.183 / GGE |
| 124 | LNG (liquefied natural gas) | $0.243 / DGE |
| 105 | Dyed diesel — LUST tax | $0.001 / gal |
| 107 | Dyed kerosene — LUST tax | $0.001 / gal |
Note: per-gallon fuel rates are unchanged for 2026. The June 2026 IRS revision adjusted air transportation, arrow shafts, and added IRS No. 155 (remittance) — none of which affect typical fuel distributor filings.
Fuel distributor FAQ
Which IRS lines on Form 720 apply to a fuel distributor?▼
The most common lines are IRS No. 60 (diesel — $0.244/gal), No. 62 (gasoline — $0.184/gal), and No. 35 (kerosene — $0.244/gal). If you handle aviation fuel you also touch No. 14 (aviation gasoline — $0.194/gal), No. 69 (kerosene for noncommercial aviation — $0.219/gal), and No. 77 (kerosene for commercial aviation — $0.044/gal). Alternative fuels add Nos. 112, 118, 120–124. The dyed-fuel LUST taxes (Nos. 105, 107, 119) apply at $0.001/gal on otherwise-exempt removals.
Do I need Schedule T?▼
Yes — if you receive or deliver taxable fuel in a two-party exchange within a terminal. The receiving party (not the delivering party) is liable for the tax in a two-party exchange, but both sides report the gallons on Schedule T. EasyFile720 includes a guided Schedule T workflow alongside the main IRS-line entry.
How do semimonthly EFTPS deposits work for fuel distributors?▼
If your net Part I tax liability for the quarter exceeds $2,500, you must deposit semimonthly via EFTPS. A semimonthly period is the 1st–15th of the month and the 16th–end of the month. Deposits are due by the 14th day after each period ends (typically the 29th of the same month for the first period and the 14th of the next month for the second). Most fuel distributors easily exceed $2,500 quarterly.
Which Schedule C credits apply to fuel distributors?▼
Common ones: Section 4081 nontaxable use credits (when fuel is sold for exempt purposes — farming, government, non-profit education, certain buses, off-highway use, exports), and Section 4051(d) tire credit if you also sell taxable trucks. EasyFile720 walks you through every Schedule C line you may be eligible for, with the correct CRN.
What about CNG and LNG — those are not per-gallon?▼
Right. CNG is taxed at $0.183 per gasoline gallon equivalent (1 GGE = 5.66 lbs or 123.57 cubic feet). LNG is taxed at $0.243 per diesel gallon equivalent (1 DGE = 6.06 lbs or 1.71 gallons). EasyFile720 does the GGE/DGE conversion automatically — enter your physical gallons or cubic feet.
When are the quarterly deadlines?▼
Q1 (Jan–Mar): April 30. Q2 (Apr–Jun): July 31. Q3 (Jul–Sep): October 31. Q4 (Oct–Dec): January 31. Special September deposit rules apply — see the IRS instructions or EasyFile720's automatic deadline reminders.
Stop dreading quarterly Form 720
Built for fuel distributors. All 16+ fuel IRS lines, Schedule T, Schedule C credits, and semimonthly deposit tracking — IRS-authorized e-file.