ContentsWhat's New . . . . . . . . . . . . . . . . . . 2Reminders . . . . . . . . . . . . . . . . . . . 2Introduction . . . . . . . . . . . . . . . . . . 3Excise Taxes Not Covered . . . . . . . . . 3Chapter 1. Fuel Taxes . . . . . . . . . . . 4

Definitions . . . . . . . . . . . . . . . . . 4Information Returns . . . . . . . . . . . 5Registration Requirements . . . . . . . 5Gasoline and Aviation Gasoline . . . . 5Diesel Fuel and Kerosene . . . . . . . . 7Diesel-Water Fuel Emulsion . . . . . . 10Kerosene for Use in Aviation . . . . . 10Surtax on any liquid used in a

fractional ownership program aircraft as fuel . . . . . . 11

Certificate for Commercial Aviation and Exempt Uses . . . . 12

Other Fuels (Including Alternative Fuels) . . . . . . . . . . 12

Compressed Natural Gas (CNG) . . . . . . . . . . . . . . . . 12

Fuels Used on Inland Waterways . . . . . . . . . . . . . 13

Cellulosic or Second Generation Biofuel Not Used as Fuel . . . . . 14

Biodiesel Sold as But Not Used as Fuel . . . . . . . . . . . . . . . . 14

Chapter 2. Fuel Tax Credits and Refunds . . . . . . . . . . . . . . . . 14Gasoline and Aviation Gasoline . . . 14Undyed Diesel Fuel and

Undyed Kerosene (Other Than Kerosene Used in Aviation) . . . . . . . . . . . . . . . 15

Diesel-Water Fuel Emulsion . . . . . . 15Kerosene for Use in Aviation . . . . . 16Other Fuels (Including

Alternative Fuels) . . . . . . . . . . 16Refunds of Second Tax . . . . . . . . 17Definitions of Nontaxable Uses . . . . 17Filing Claims . . . . . . . . . . . . . . 21

Chapter 3. Environmental Taxes . . . . 24Oil Spill Liability Tax . . . . . . . . . . 24ODCs . . . . . . . . . . . . . . . . . . 24

Chapter 4. Communications and Air Transportation Taxes . . . . . . 26Uncollected Tax Report . . . . . . . . 26Communications Tax . . . . . . . . . 26Air Transportation Taxes . . . . . . . 27

Chapter 5. Manufacturers Taxes . . . . 29Taxable Event . . . . . . . . . . . . . 30Exemptions . . . . . . . . . . . . . . . 30Sport Fishing Equipment . . . . . . . 31Bows, Quivers, Broadheads,

and Points . . . . . . . . . . . . . . 32Arrow Shafts . . . . . . . . . . . . . . 32Coal . . . . . . . . . . . . . . . . . . . 32Taxable Tires . . . . . . . . . . . . . . 33Gas Guzzler Tax . . . . . . . . . . . . 33Vaccines . . . . . . . . . . . . . . . . 34Taxable Medical Devices . . . . . . . 34

Department of the TreasuryInternal Revenue Service

Publication 510(Rev. July 2013)Cat. No. 15014I

Excise Taxes(Including Fuel Tax Credits and Refunds)

Section references are to the Internal Revenue Code unless otherwise noted.

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Chapter 6. Retail Tax on Heavy Trucks, Trailers, and Tractors . . . 34

Chapter 7. Ship Passenger Tax . . . . . 37Chapter 8. Foreign Insurance

Taxes . . . . . . . . . . . . . . . . . . 38Chapter 9. Obligations Not in

Registered Form . . . . . . . . . . . 38Chapter 10. Indoor Tanning

Services Tax . . . . . . . . . . . . . . 38Chapter 11. Patient-Centered

Outcomes Research Fee . . . . . . 39Chapter 12. Filing Form 720 . . . . . . . 40Chapter 13. Payment of Taxes . . . . . 40

How To Make Deposits . . . . . . . . 40When To Make Deposits . . . . . . . 41Amount of Deposits . . . . . . . . . . 41

Chapter 14. Penalties and Interest . . . . . . . . . . . . . . . . . 41

Chapter 15. Examination and Appeal Procedures . . . . . . . . . . 42

Chapter 16. Rulings Program . . . . . . 42Chapter 17. How To Get Tax Help . . . 42Chapter 18. Appendix . . . . . . . . . . 43Index . . . . . . . . . . . . . . . . . . . . . 59

What's NewMedical device excise tax. The Affordable Care Act (the Act) (Public Law 111-148, amended by Public Law 111-152) imposes a 2.3% (.023) excise tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device. The tax applies to sales of taxable medical devices after Decem-ber 31, 2012. See Taxable Medical Devices in chapter 5, later.Tax on seasonal flu vaccines. Sales of all vaccines against seasonal influenza are now subject to the section 4131 excise tax at the ex-isting rate of $.75 per dose of taxable vaccine. Previously, only trivalent influenza vaccines were subject to this tax. See Vaccines in chap-ter 5, later.Patient-centered outcomes research fee. The Act imposes a fee on issuers of specified health insurance policies (section 4375) and plan sponsors of applicable self-insured health plans (section 4576) to help fund the Pa-tient-Centered Outcomes Research Institute. The fee, required to be reported annually on the 2nd quarter Form 720 and paid by its due date, July 31st, is based on the average number of lives covered under the policy or plan. The fee applies to policy or plan years ending on or after October 1, 2012. See chapter 11, later.

Extension of fuel tax credits. The following section 6426 credits, previously expired on De-cember 31, 2011, are retroactively extended.

Biodiesel or renewable diesel mixture credit.Alternative fuel credit.Alternative fuel mixture credit.

See Notice 201326 (fuel tax credits) on page 984 of I.R.B. 201318 at www.irs.gov/pub/irs-irbs/irb13-18.pdf; also see chapter 2, later.Alternative fuel mixture credit can be claimed on Schedule C (Form 720) only. For alternative fuel mixtures produced after De-cember 31, 2011, the section 6426 alternative fuel mixture credit can be claimed on Sched-ule C (Form 720) only, not on Form 4136, Credit for Federal Tax Paid on Fuels, or Schedule 3 (Form 8849), Claim for Refund of Excise Taxes, and only to the extent of your section 4081 tax-able fuel liability for gasoline, diesel, and kero-sene. See Biodiesel or Renewable Diesel Mix-ture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit in chapter 2, later.Expiration of alcohol fuel mixture credit. The section 6426 alcohol fuel mixture credit ex-pired after December 31, 2011.Expiration of alcohol fuels credits. The sec-tion 40 alcohol, alcohol mixture, and small etha-nol producer credits expired after December 31, 2011.Second generation biofuel producer credit and excise tax. The section 40 cellulosic bio-fuel producer credit was retroactively extended to include fuel sold or used through January 2, 2013. After January 2, 2013, cellulosic biofuel is renamed second generation biofuel, which adds algae-based fuel. The second generation biofuel producer credit is for fuel sold or used after January 2, 2013, and before January 1, 2014.

You are liable for an excise tax on each gal-lon of cellulosic or second generation biofuel at the rate you used to figure the credit if you do not use the fuel for the purposes described un-der Qualified Cellulosic Biofuel Production or Qualified Second Generation Biofuel Produc-tion, later. Report the tax on Form 720. See Cel-lulosic or Second Generation Biofuel Not Used as Fuel, later; also see Form 6478, Biofuel Pro-ducer Credit, for more information.Extension of section 40A biodiesel fuels credit. The biodiesel fuels credit, previously expired on December 31, 2011, is retroactively extended.Future developments. The IRS has created a page on IRS.gov that includes information about Publication 510 at www.irs.gov/pub510. Information about any future developments will be posted on that page.

RemindersPublication 510 updates. Publication 510 is not updated annually. Instead, it will be updated only when there are major changes in the tax law.Use of international air travel facilities. Generally, the tax on the use of international air

travel facilities increases annually. See the In-structions for Form 720 for the tax rate. For more information, see Air Transportation Taxes in chapter 4.Aviation fuels for use in foreign trade. Avia-tion gasoline and kerosene for use in aviation are exempt from the leaking underground stor-age tank (LUST) tax.Arrow shafts, tax rate. Generally, the tax on arrow shafts increases annually. See Form 720 for the tax rate.Disregarded entities and qualified subchap-ter S subsidiaries. Qualified subchapter S subsidiaries (QSubs) and eligible single-owner disregarded entities are treated as separate en-tities for excise tax and reporting purposes. QSubs and eligible single-owner disregarded entities must pay and report excise taxes (other than IRS Nos. 31, 51, and 117), register for most excise tax activities, and claim any re-funds, credits, and payments under the entity's employer identification number (EIN). These actions cannot take place under the owner's taxpayer identification number (TIN). Some QSubs and disregarded entities may already have an EIN. However, if you are unsure, please call the IRS Business and Specialty Tax line at 1-800-829-4933.

Generally, QSubs and eligible single-owner disregarded entities will continue to be treated as disregarded entities for other federal tax pur-poses (other than employment taxes).

For more information on these regulations, see Treasury Decision (T.D.) 9356, T.D. 9462, and T.D. 9596. You can find T.D. 9356 on page 675 of Internal Revenue Bulletin (I.R.B.) 2007-39 atwww.irs.gov/pub/irs-irbs/irb07-39.pdf;T.D. 9462 on page 504 of I.R.B. 2009-42 atwww.irs.gov/pub/irs-irbs/irb09-42.pdf;and T.D. 9596 on page 84 of I.R.B. 2012-30 atwww.irs.gov/pub/irs-irbs/irb12-30.pdf.Registration for certain activities. You are required to be registered for certain excise tax activities, such as blending of gasoline, diesel fuel, or kerosene outside the