IRS Instruction 720-CS – Bulk transport carriers operating barges, ships, and pipelines must comply with strict IRS reporting requirements for liquid products in the fuel distribution system. IRS Form 720-CS, officially titled the Carrier Summary Report, helps the IRS track taxable fuel movements through the bulk transfer/terminal system under IRC Section 4101.
This comprehensive guide to the IRS Instruction 720-CS (Rev. July 2017) explains who must file, deadlines, step-by-step completion instructions, reportable products, and more. The instructions remain current as of February 2026, with no revisions issued since July 2017. Download the official PDF here: https://www.irs.gov/pub/irs-pdf/i720cs.pdf.
Whether you are a new filer or need a refresher on Form 720-CS instructions, this article covers everything based directly on IRS.gov sources.
What Is IRS Form 720-CS and Its Purpose?
Form 720-CS is an information return that bulk transport carriers use to report monthly receipts and disbursements of all liquid products at storage locations identified by a Facility Control Number (FCN).
A “liquid product” includes any liquid transported in or out of storage at a terminal or other FCN-designated facility (excluding crude oil movements by carriers). The form supports IRS oversight of the motor fuel distribution system and helps reconcile transactions reported on related forms like Form 720-TO (Terminal Operator Report).
Key facts:
- Used with Form 720-CS (Rev. September 2010).
- Separate schedules required per facility and per product code.
- Focuses on net gallons (temperature-corrected to 60°F).
Who Must File Form 720-CS?
You must file if you are a bulk transport carrier (barge, ship, or pipeline operator) that:
- Receives or delivers reportable liquid products into or out of storage at a terminal or any FCN-designated location.
- Pipelines file only for receipt/delivery transactions at approved terminals (operated by a taxable fuel registrant).
Exceptions:
- Do not report crude oil movements.
- Vessel operators, position holders, and terminal operators may need Form 637 registration.
Carriers handling 25 or more transactions per month face mandatory electronic filing (see below).
When and Where to File Form 720-CS?
Filing frequency: Monthly.
Due date: Last day of the month following the transaction month (e.g., January transactions due February 28/29).
If the due date falls on a weekend or legal holiday, file on the next business day. Timely mailing = timely filing via USPS or IRS-designated private delivery service.
Mailing address (paper filers):
Internal Revenue Service
Attn: Excise Unit, Stop 5701G
Cincinnati, OH 45999
Send forms flat (no folding), without staples, tears, or tape. For multiple packages, label each with your name, EIN, and sequential numbering. Use First-Class Mail.
Electronic Filing Requirements (ExSTARS)
Electronic filing via the Excise Summary Terminal Activity Reporting System (ExSTARS) is required if you report 25 or more transactions in a month. All filers are strongly encouraged to e-file.
For details and enrollment (via Letter of Application), see:
- IRS.gov/Excise
- Publication 3536, Motor Fuel Excise Tax EDI Guide
Electronic filing improves accuracy and provides faster acknowledgments.
Step-by-Step: How to Complete IRS Form 720-CS?
Follow these IRS Instruction 720-CS guidelines for clear, scannable forms:
- Preparation tips:
- Use black 10- or 12-pitch type (preferred) or neat block print.
- Photocopy additional pages/schedules as needed.
- Leave boxes blank if no entry (do not write “0” or “None” unless instructed).
- Approved substitute forms require a form approval number (see Pub. 1167).
- Page 1 – Identification:
- Enter your legal name, address (include suite/P.O. Box), EIN (apply at IRS.gov/EIN if needed; write “Applied For” temporarily).
- Provide Form 637 registration number (if applicable for pipelines, etc.).
- Enter contact name, phone, fax, and email.
- Check “Corrected” or “Void” boxes as needed for amendments.
- Part II – Monthly Summary:
- Summarize total receipts and disbursements by product code (from Table 2) across all FCN locations.
- Schedule A – Carrier Receipts From a Facility (one per facility/product):
- Line 1: Product code.
- For each transaction (Line 2+):
- (a) Consignor EIN
- (b) Consignor name
- (c) Mode code (Table 1)
- (d) Vessel official number (if barge/ship)
- (e) Transaction date (MMDDYYYY)
- (f) Document number (e.g., bill of lading)
- (g) Net gallons received
- Schedule B – Carrier Deliveries To a Facility (one per FCN/product):
- Enter facility name and FCN at top.
- Same columns as Schedule A, but for deliveries (net gallons delivered).
Signature: An authorized person must sign and date the form.
Reportable Liquid Products and Product Codes (Table 2 Summary)
Report every liquid product using codes from IRS Table 2. Separate schedules per code. Key examples include:
| Product Category | Product Code(s) | Notes |
|---|---|---|
| Crude Oil | 001 | Report only at approved terminals |
| Condensate | 049 | — |
| Gasoline | 065 | — |
| Aviation Gasoline | 125 | — |
| Jet Fuel | 130 | — |
| Diesel Fuel (various) | 161, 167, 227 | Undyed/dyed variants |
| Kerosene (various) | 145, 073 | — |
| Biodiesel mixtures | B00–B99, D00–D99 | Percentage-based |
| Ethanol mixtures | E00–E99 | Percentage-based |
| Blending Components (Other) | 122 | Specific exclusions apply |
| Undefined/Other | 092 | Excludes listed codes |
| Food Products | 960 | Report if at approved terminal |
| Asphalt | 188 | — |
Full Table 2 appears in the official instructions PDF. Mixtures use percentage indicators (e.g., E79 = 79% ethanol).
Mode Codes (Table 1)
| Transport Mode | Domestic Code | Import Code | Export Code |
|---|---|---|---|
| Barge | B | IB | EB |
| Ship (Great Lakes/Ocean) | S | IS | ES |
| Pipeline | PL | IP | EP |
For imports/exports, optional origin/destination country codes apply (see Table 3 abbreviations in instructions).
Facility Control Numbers (FCNs)
Every storage location uses an FCN:
- TCN = Terminal
- RCN = Refinery
- BCN/ECN = Biodiesel/Ethanol production facilities
Search current FCN lists at IRS.gov/Excise.
Extensions, Corrections, Recordkeeping & Penalties
- Extensions: Automatic 30-day first-time extension if requested in writing by due date (fax: 859-669-5788).
- Corrections: Mark “Void” on incorrect pages, submit “Corrected” versions with explanations.
- Recordkeeping: Keep copies/data for at least 3 years.
- Penalties: Apply for late filing, incomplete/incorrect information, or missing/incorrect EINs.
Related Forms and Resources
- Form 720 – Quarterly Federal Excise Tax Return
- Form 720-TO – Terminal Operator Report
- Form 637 – Registration for Certain Excise Tax Activities
- Pub. 3536 – Motor Fuel Excise Tax EDI Guide (for e-filing)
- Official IRS pages: About Form 720-CS | Instructions HTML
Future developments: Check IRS.gov/Form720CS for any legislative updates.
Final Tips for Accurate Filing
Accurate Form 720-CS reporting prevents penalties and ensures smooth fuel tracking compliance. Obtain correct consignor EINs using Form W-9 (or W-8 series for foreign entities). Consider e-filing through ExSTARS for efficiency, especially with higher transaction volumes.
For personalized advice, consult a tax professional or contact the IRS Excise Tax line. Always use the latest official instructions from IRS.gov.
This guide is for informational purposes only and is based solely on current IRS publications as of February 2026. Tax rules can change—verify directly with the IRS before filing.
Download the official IRS Instruction 720-CS PDF: https://www.irs.gov/pub/irs-pdf/i720cs.pdf