Maximize Your Form 720 Schedule C
Refund for Nontaxable Gasoline
Usage with Simple720!

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What is Nontaxable Use of Undyed Diesel
Fuel under Schedule C Claim of Form 720?

 PCORI-Fee-Amount

Nontaxable use of undyed diesel fuel refers to situations where undyed diesel is used for specific, IRS-approved purposes that are exempt from excise tax. The fuel must meet certain criteria to qualify for the exemption, as outlined under IRS Form 720 Schedule C.

Form 720 Claim Rate:
  • Nontaxable use (Line 3a) is eligible for a claim at $0.243 per gallon.
  • Use in trains (Line 3b) is eligible for a claim at $0.243 per gallon.
  • Use in certain intercity and local buses (Line 3c) is eligible for a claim at $0.17 per gallon.
  • Use on a farm for farming purposes (Line 3d) is eligible for a claim at $0.243 per gallon.
  • Exported (Line 3e) is eligible for a claim at $0.244 per gallon.

When You Are Eligible to Claim Nontaxable
Use of Undyed Diesel Fuel

You are eligible to claim the nontaxable use of undyed diesel fuel if it was
used during the claim period for one of the following allowable purposes:

Type of Use for Line 3a:

For Line 3a, the diesel must have been used during the claim period for one of the following types of use:

Type of Use 2

Off-highway business use (business use other than in a highway vehicle registered or required to be registered for highway use), excluding personal use or use in a motorboat.

Type of Use 6

Diesel used in a qualified local bus

Type of Use 7

Diesel used in a bus transporting students and employees of schools (school buses).

Type of Use 8

Diesel used other than as a fuel in the propulsion engine of a train or diesel-powered highway vehicle (includes use as heating oil and in a motorboat).

Type of Use 12

Diesel used in a highway vehicle owned by the United States that isn’t used on a highway.

Note - Type of use 2 excludes personal use and use in a motorboat.

How to Claim Your Nontaxable Use of Undyed Diesel Fuel

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 undyed diesel used, tax date, and any other applicable details.
Filing Steps Image 1
Filing Steps Image 2
STEP 2
Select Your Eligible Claims
Choose the Nontaxable Use of Undyed Diesel Fuel 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 Nontaxable Use of
Undyed Diesel Fuel with Simple720?

Single Interface for Filing Your Tax and Claiming Credits/Refunds
Easily manage both your tax filing and nontaxable claims in one convenient interface. Streamline the process with a user-friendly platform that helps you track your submissions, claims, and refunds in real-time.
IRS-Authorized Portal
File with confidence on a system fully authorized by the IRS, ensuring that your claims are compliant and processed smoothly, every time.
AICPA Certified Portal
Your data is secure with our AICPA SOC certified platform. Benefit from the highest standards of security and privacy, keeping your personal and tax information safe throughout the filing process.

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