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The IRS Form 720, also called the Quarterly Federal Excise Tax Return, is a requirement for companies to report and pay excise taxes, which includes all of the taxes on goods and services. One of the most important yet neglected items included in this is the excise tax on fuel, which includes gasoline, diesel, kerosene, and so on, as well as other taxable fuels. Many businesses, particularly those involved in transportation, construction, and agriculture, do not realize that fuel used in any manner other than highway driving qualifies their businesses for pretty substantial fuel credits.

Fuel-tax refunds can be claimed by businesses that use taxed fuel for off-road activities such as farm machinery, refrigeration units, forklifts, and construction machinery. If your company pays a fuel excise tax but does not use all that fuel for highway driving, there may be the potential to claim a refund or credit on Form 720. This provision directs the IRS to ensure that a business does not overpay taxes on fuel that never sees public ways.

By accurately filing Form 720 Schedule C with proper usage records, businesses would be able to claim fuel tax credits. Inaccurate bookkeeping could lead to loss of revenue or penalties, so it is important to keep track of gallons purchased, type of use, and supporting invoices. Many companies miss these refunds simply because they are unaware of which fuels or uses are eligible. Maximize your potential refunds and stay compliant by leveraging IRS Form 720 e-filing and maintaining detailed documentation. 

If your business uses fuel in ways other than highway driving, it is very likely you qualify for excise tax refunds. Not taking advantage of these credits leaves cash flow that could be reinvested into your business operations. A tax professional or special software for fuel tax credits makes sure you are claiming what you deserve. Staying up-to-date regarding Form 720 fuel tax credits is more than compliance—it is about keeping more dollars in your business.