Instructions for Forms 720-TO and 720-CS (1/2004)

Purpose of Forms

Form 720-TO is an information return that is used by terminal operators to report their monthly receipts and disbursements of liquid products.

Reporting is required for inactive terminals.

Form 720-CS is an information return that is used by bulk carriers to report their monthly receipts and disbursements of liquid products.

A liquid product is any liquid that is transported into storage at a terminal or delivered out of a terminal. See the product code table on page 6.

When To File

Forms 720-TO and 720-CS must be filed monthly. The report is due the last day of the month following the month in which the transaction occurs.

If any due date for filing a return falls on a Saturday, Sunday, or legal holiday, you may file the return on the next business day.

Send your information return to the IRS using the U.S. Postal Service or a designated private delivery service to meet the “timely mailing as timely filing/paying” rule. See Private Delivery Services below.

Where To File

Mail Forms 720-TO and 720-CS to the Internal Revenue Service Center, Stop 5701G, Cincinnati, OH 45999. Send the forms to the IRS in a flat mailing (not folded). Do not staple, tear, or tape any of these forms. If you are sending a large number of forms, you may send them in conveniently sized packages. On each package, write your name and EIN and number the packages consecutively. Postal regulations require forms and packages to be sent by First-Class Mail.

How To Complete Forms 720-TO and 720-CS

Below are suggestions that will allow the IRS to process the submitted forms in the most economical manner:

If you need additional forms or schedules, you may use photocopies.
Although handwritten forms are acceptable, the IRS prefers that you type or machine print data entries using 10 pitch (pica) or 12 pitch (elite) black type. Use block print, not script characters. Insert data in the middle of the blocks not touching other printing and guidelines, and take other measures to guarantee a dark black, clear, sharp image.
Do not enter 0 (zero) or “None” in data entry boxes when no entry is required. Leave the boxes blank unless the instructions specifically require that you enter a 0 (zero).

Substitute Forms 720-TO and 720-CS

If you want to prepare and use a substitute Form 720-TO or 720-CS, see Pub. 1167, General Rules and Specifications for Substitute Tax Forms and Schedules. If your substitute Form 720-TO or 720-CS is approved, the form approval number must be printed in the lower left margin of each substitute form you file with the IRS.

Extension of Time To File

You may request an extension of up to 30 days to file a return. Explain the cause of the delay fully and send your request to the Internal Revenue Service Center, Stop 5701G, Cincinnati, OH 45999.

Corrected Returns

If you filed a return with the IRS and later discover you made an error, you must correct it as soon as possible. If you filed your return electronically, see Pub. 3536 for instructions.

When making a correction to a paper filed return, you must send in the first page of Form 720-TO or 720-CS and the schedule(s) that needs to be corrected with the “Void” box checked. Identify the transaction you are correcting, either by highlighting or attaching an explanation. Then, complete another first page of Form 720-TO or 720-CS along with the corrected schedule(s) with the “Corrected” box checked. On the corrected schedule(s), only enter the information for the transaction you are correcting.

Recordkeeping

Keep copies of information returns you have filed with the IRS or the data to reconstruct for at least 3 years from the date of the return. Your records must be available at all times for inspection by the IRS.

Penalty

Failure to file correct information returns by the due date. If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also applies if you report an incorrect employer identification number (EIN) or fail to report an EIN where required.

Private Delivery Services

You can use certain private delivery services designated by the IRS to meet the “timely mailing as timely filing” rule for information returns. The most recent list of designated private delivery services was published by the IRS in September 2002. This list includes only the following:

Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service.
DHL Worldwide Express (DHL): DHL “Same Day” Service and DHL USA Overnight.
Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First.
United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

The private delivery service can tell you how to get written proof of the mailing date.

How To Get Forms and Publications

Personal Computer

You can access the IRS website 24 hours a day, 7 days a week at www.irs.gov to:

Download forms, instructions, and publications.
Search publications on-line by topic or keyword.
Send us comments or request help by email.
Sign up to receive local and national tax news by email.

CD-ROM

Order Pub. 1796, Federal Tax Products on CD-ROM, and get:

Current year forms, instructions, and publications.
Prior year forms, instructions, and publications.
Frequently requested tax forms that may be filled in electronically, printed out for submission, and saved for recordkeeping.
The Internal Revenue Bulletin.

Buy the CD-ROM on the Internet at www.irs.gov/cdorders from the National Technical Information Service (NTIS) for $22 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) to buy the CD-ROM for $22 (plus a $5 handling fee).

Phone

You can get forms, publications, and automated information 24 hours a day, 7 days a week, by phone. Call 1-800-TAX-FORM (1-800-829-3676) to order current and prior year forms, instructions, and publications. You should receive your order within 10 days.

How To Get Help

You can the IRS toll free at 1-800-829-4933 for answers to your questions about completing Form 720-TO or Form 720-CS, excise tax information, or obtaining an employer identification number. You can get excise tax information on the IRS website at www.irs.gov/excise.

Unresolved Tax Problems

If you have attempted to deal with an IRS problem unsuccessfully, you should contact the Taxpayer Advocate. The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels.

While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review.

Your assigned personal advocate will listen to your point of view and will work with you to address the concerns. You can expect the advocate to provide:

A "fresh look" at a new or on-going problem.
Timely acknowledgment.
The name and phone number of the individual assigned to your case.
Updates on progress.
Timeframes for action.
Speedy resolution.
Courteous service.

When contacting the Taxpayer Advocate, you should provide the following information:

Your name, address, and employer identification number.
The name and telephone number of an authorized contact person and the hours he or she can be reached.
The type of tax return and year(s) involved.
A detailed description of the problem.
Previous attempts to solve the problem and the office that had been contacted.
A description of the hardship you are facing (if applicable).

You may contact a Taxpayer Advocate by calling a toll-free number, 1-877-777-4778. Persons who have access to TTY/TDD equipment may call 1-800-829-4059 and ask for Taxpayer Advocate assistance. If you prefer, you may call, write, or fax the Taxpayer Advocate office in your area. See Pub. 1546, The Taxpayer Advocate Service of the IRS, for a list of addresses and fax numbers.

General Instructions