Glossary

Form 720-TO – Terminal Operator Report

What is Form 720-TO, the Terminal Operator Report?

Form 720-TO, the Terminal Operator Report, is an IRS form that terminal operators who handle taxable fuels, such as gasoline, diesel, and aviation fuel, must file. This form provides the IRS with information about the fuels received at and distributed from the operator’s terminals, helping to track fuel movements and ensure correct collection of excise taxes.

Key Concepts Related to Form 720-TO

Taxable Fuel

Remember, Form 720-TO deals with taxable fuels. These are specific types of fuels that are subject to federal excise taxes. Gasoline, diesel, and aviation fuel are some of the most common examples.

Terminal

A terminal is the storage facility we’ve been talking about. It’s a specific location where taxable fuels are stored, and they are the focus of the reporting requirement under Form 720-TO.

Excise Tax

The excise tax is the tax on the fuel. This tax is what Form 720-TO indirectly helps the IRS to collect. This tax is a significant source of revenue for funding transportation projects.

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