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

Nontaxable use of undyed kerosene refers to situations where undyed kerosene, not used in aviation, is used for specific, IRS-approved purposes that are exempt from federal excise tax. To qualify for this exemption, the kerosene must meet IRS criteria and be properly documented when claimed on Form 720 Schedule C.

Form 720 Claim Rate:
  • Nontaxable use (Line 4a) is eligible for a claim at $0.243 per gallon.
  • Use in certain intercity and local buses (Line 4b) is eligible for a claim at $0.17 per gallon.
  • Use on a farm for farming purposes (Line 4c) is eligible for a claim at $0.243 per gallon.
  • Exported (Line 4d) is eligible for a claim at $0.244 per gallon.
  • Nontaxable use taxed at $0.044 (Line 4e) is eligible for a claim at $0.043 per gallon.
  • Nontaxable use taxed at $0.219 (Line 4f) is eligible for a claim at $0.218 per gallon.

When You Are Eligible to Claim Nontaxable Use of Undyed Kerosene (Other Than Kerosene Used in Aviation)

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

Type of Use 2

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

Type of Use 6

Kerosene used in a qualified local bus.

Type of Use 7

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

Type of Use 8

Kerosene used other than as a fuel in the propulsion engine of a train or diesel-powered highway vehicle, including use as heating oil and use in a motorboat.

Type of Use 12

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

Additionally, for line 4a, the kerosene must have been used during the claim period for Type of Use 2, 6, 7, 8, or 12. For exported undyed kerosene, refer to "Exported taxable fuel" earlier.

Note - For lines 4e and 4f, the kerosene must have been used during the claim period for Type of Use 2.

How to Claim Your Nontaxable Use of Undyed Kerosene

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 kerosene 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 Kerosene 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.
Filing Steps Image 3
File Form 720 Online

Why File Electronically for Nontaxable Use
of Undyed Kerosene with Simple720?

AICPA SOC Certified & IRS-Authorized Portal
File with confidence on a platform that combines AICPA SOC certification and IRS authorization. Your data is protected by top-tier security while ensuring IRS compliance for smooth filing.
Effortless Filing Experience
Enjoy a simple, intuitive platform that allows you to submit your nontaxable use claims for undyed kerosene quickly and easily. No complex forms or confusing instructions, just a seamless filing process.
Instant Status Updates
Track your claim status in real-time with instant notifications. Stay informed every step of the way and know exactly when your claim has been accepted or processed by the IRS.
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Testimonial
What Clients Are Saying
- Michael Roberts, Texas

Effortless Claim Filing for Undyed Kerosene
Simple720 made claiming my Nontaxable Use of Undyed Kerosene credits a breeze. The process was smooth, and I submitted my claim without any issues.

- Lisa Thompson, New York

Quick and Reliable Service
Filing with Simple720 was fast, and the platform’s clear instructions made everything simple to follow. I'll definitely be using it again next year!

- David Harris, California

Stress-Free and Fast
I was able to file my nontaxable use claim for undyed kerosene without any hassle. The step-by-step process was easy to follow and completed quickly!

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