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Kerosene Used in Aviation

What is Kerosene Used in Aviation
under Schedule C Claim of Form 720?

Kerosene Used in Aviation

Kerosene used in aviation refers to kerosene fuel used for qualifying aviation purposes where the federal excise tax paid is eligible to be claimed under IRS Form 720 Schedule C. These claims apply to specific commercial and noncommercial aviation uses, as defined in the Schedule C instructions.

Form 720 Claim Rate:
  • Kerosene used in commercial aviation (other than foreign trade) taxed at $0.244 (Line 5a) is eligible for a claim at $0.200 per gallon.
  • Kerosene used in commercial aviation (other than foreign trade) taxed at $0.219 (Line 5b) is eligible for a claim at $0.175 per gallon.
  • Nontaxable use (other than use by state or local government) taxed at $0.244 (Line 5c) is eligible for a claim at $0.243 per gallon.
  • Nontaxable use (other than use by state or local government) taxed at $0.219 (Line 5d) is eligible for a claim at $0.218 per gallon.
  • LUST tax on aviation fuels used in foreign trade (Line 5e) is eligible for a claim at $0.001 per gallon.

When You Are Eligible to Claim Kerosene Used in Aviation

You are eligible to claim the nontaxable use of kerosene used in aviation if it
was used during the claim period for one of the following allowable purposes:

For lines 5a and 5b

The ultimate purchaser of kerosene used in commercial aviation (other than foreign trade) is eligible to make this claim. The kerosene must have been used during the claim period for commercial aviation purposes. If the claimant buys kerosene partly for use in commercial aviation and partly for use in noncommercial aviation, refer to Notice 2005-80, section 3(e)(3).

For line 5e

The kerosene must have been used during the claim period for Type of Use 9 (foreign trade). This claim is made in addition to the claim made on lines 5c and 5d for Type of Use 9.

For lines 5c, 5d, and 5e

The ultimate purchaser of kerosene used in noncommercial aviation (except for nonexempt, noncommercial aviation and exclusive use by a state, a political subdivision of a state, or the District of Columbia) is eligible to make this claim. The kerosene must have been used during the claim period for one of the following types of use:

  • Type of Use 1: On a farm for farming purposes
  • Type of Use 9: In foreign trade
  • Type of Use 10: Certain helicopter and fixed-wing aircraft uses
  • Type of Use 11: Exclusive use by a qualified blood collector organization
  • Type of Use 13: Exclusive use by a nonprofit educational organization
  • Type of Use 15: In an aircraft or a vehicle owned by an aircraft museum
  • Type of Use 16: In military aircraft

Note - In all cases, the claimant must certify that the right to make the claim has not been waived.

How to Claim Your Kerosene Used in Aviation

STEP 1
Provide Business and Tax Information
Begin by entering your business name, address, Employer Identification Number (EIN), and contact details. Choose the appropriate category for your filing and fill in relevant information such as the quantity of kerosene used in aviation, tax date, and any other applicable details.
Filing Steps Image 1
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STEP 2
Select Your Eligible Claims
Choose the Kerosene Used in Aviation category that applies to your claim. If you have any supporting documents, you can upload them at this stage to ensure your claim is accurate and complete.
STEP 3
Review Tax Adjustment and Payment
The system will automatically calculate the tax amount based on the claim details provided. Any necessary adjustments will be applied, and you can proceed with the payment to finalize your claim submission.
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Why File Electronically for Kerosene Used
in Aviation with Simple720?

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Affordable & Transparent Pricing
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Our expert support team is here to assist you at every step. Whether you have questions or need help, we provide fast, responsive customer service to ensure your filing process goes smoothly.

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