Fill in a Valid IRS 720 Template

The IRS Form 720 is a tax form used to report and pay the federal excise taxes due on certain goods, services, and activities. This form plays a crucial role in ensuring compliance with federal tax regulations. If you're responsible for filing, take action by clicking the button below to get started.

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The IRS 720 form plays a critical role in the tax landscape, particularly for those engaged in specific activities subject to federal excise taxes. Understanding this form is essential for businesses and professionals alike, as it is primarily used to report and pay these taxes, which can encompass a range of items such as fuel, air transportation, and certain environmental taxes. Each quarter, taxpayers must carefully compile the necessary data to ensure accurate reporting and timely submission. Completing the IRS 720 involves more than just filling out a few sections; it requires a solid grasp of the applicable excise tax rates and categories, as well as the nuances of calculating liabilities appropriately. The form is structured to facilitate both quarterly payments and annual reconciliations, allowing taxpayers to manage their obligations effectively throughout the year. Thus, navigating the intricacies of the IRS 720 form can seem daunting, but with the right approach and understanding, it becomes a manageable task that ensures compliance with federal regulations.

IRS 720 Example

Form 720

(Rev. April 2020)

Department of the Treasury

Internal Revenue Service

Quarterly Federal Excise Tax Return

See the Instructions for Form 720.

Go to www.irs.gov/Form720 for instructions and the latest information.

OMB No. 1545-0023

Check here if: Final return

Address change

Name	Quarter ending
Number, street, and room or suite no.	Employer identification number
(If you have a P.O. box, see the instructions.)

City or town, state or province, country, and ZIP or foreign postal code

FOR IRS USE ONLY

Part I

IRS No.	Environmental Taxes (attach Form 6627)				Tax	IRS No.
18	Domestic petroleum oil spill tax					18
21	Imported petroleum products oil spill tax					21
98	Ozone-depleting chemicals (ODCs)					98
19	ODC tax on imported products					19
	Communications and Air Transportation Taxes (see instructions)				Tax
22	Local telephone service and teletypewriter exchange service					22
26	Transportation of persons by air*					26
28	Transportation of property by air*					28
27	Use of international air travel facilities*					27
	Fuel Taxes	Number of gallons	Rate		Tax
	(a) Diesel, tax on removal at terminal rack		$.244	}
60	(b) Diesel, tax on taxable events other than removal at terminal rack		.244			60
	(c) Diesel, tax on sale or removal of biodiesel mixture
	(not at terminal rack)		.244
104	Diesel-water fuel emulsion		.198			104
105	Dyed diesel, LUST tax		.001			105
107	Dyed kerosene, LUST tax		.001			107
119	LUST tax, other exempt removals (see instructions)		.001			119
35	(a) Kerosene, tax on removal at terminal rack (see instructions)		.244	}
	(b) Kerosene, tax on taxable events other than removal at terminal rack		.244	}		35
69	Kerosene for use in aviation (see instructions)		.219			69
77	Kerosene for use in commercial aviation (other than foreign trade)**		.044			77
111	Kerosene for use in aviation, LUST tax on nontaxable uses		.001			111
79	Other fuels (see instructions)					79
62	(a) Gasoline, tax on removal at terminal rack		.184	}
	(b) Gasoline, tax on taxable events other than removal at terminal rack		.184	}		62
13	Any liquid fuel used in a fractional ownership program aircraft		.141			13
14	Aviation gasoline		.194			14
112	Liquefied petroleum gas (LPG) (see instructions)		.183			112
118	“P Series” fuels		.184			118
120	Compressed natural gas (CNG) (see instructions)		.183			120
121	Liquefied hydrogen		.184			121
122	Fischer-Tropsch process liquid fuel from coal (including peat)		.244			122
123	Liquid fuel derived from biomass		.244			123
124	Liquefied natural gas (LNG) (see instructions)		.243			124

* No tax on amounts paid for transportation from March 28, 2020, through December 31, 2020. See instructions. ** Tax is $.001 per gallon on removals from March 28, 2020, through December 31, 2020. See instructions.

For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 10175Y

Form 720 (Rev. 4-2020)

Form 720 (Rev. 4-2020)												Page 2
IRS No.								Rate			Tax	IRS No.
	Retail Tax—Truck, trailer, and semitrailer chassis and bodies, and tractor
33							12% of sales price					33
	Ship Passenger Tax				Number of persons			Rate			Tax
29	Transportation by water						$3 per person					29
	Other Excise Tax				Amount of obligations			Rate			Tax
31	Obligations not in registered form						$.01					31
	Foreign Insurance Taxes—Policies issued by foreign insurers				Premiums paid			Rate			Tax	IRS No.
		Casualty insurance and indemnity bonds					$.04		}
30		Life insurance, sickness and accident policies, and annuity
		contracts					.01					30
		Reinsurance					.01
	Manufacturers Taxes		Number of tons		Sales price
36	Coal—Underground mined						$1.10 per ton					36
37	Coal—Underground mined						4.4% of sales price					37
37							4.4% of sales price					37
38	Coal—Surface mined							$.55 per ton				38
39	Coal—Surface mined						4.4% of sales price					39
39							4.4% of sales price					39
							Number of tires				Tax	IRS No.
108	Taxable tires other than bias ply or super single tires											108
109	Taxable bias ply or super single tires (other than super single tires designed for steering)											109
113	Taxable tires, super single tires designed for steering											113
40	Gas guzzler tax. Attach Form 6197. Check if one-time filing						. . . . .					40
97	Vaccines (see instructions)											97
					Sales price
	Reserved for future use						2.3% of sales price
	Reserved for future use						2.3% of sales price
1	Total. Add all amounts in Part I. Complete Schedule A unless one-time filing									$
Part II
	Patient-Centered Outcomes Research Fee (see			(a) Avg. number		(b) Rate for		(c) Fee (see
IRS No.	instructions)			of lives covered		avg.		(c) Fee (see
IRS No.	instructions)			(see inst.)		covered life		instructions)			Tax	IRS No.
	Specified health insurance policies									}
	(a) With a policy year ending before October 1, 2019					$2.45
	(b) With a policy year ending on or after October 1,
	2019, and before October 1, 2020					$2.54
133	Applicable self-insured health plans											133
	(c) With a plan year ending before October 1, 2019					$2.45
	(d) With a plan year ending on or after October 1,
	2019, and before October 1, 2020					$2.54
								Rate			Tax
41	Sport fishing equipment (other than fishing rods and fishing poles)						10% of sales price					41
110	Fishing rods and fishing poles (limits apply, see instructions)						10% of sales price					110
42	Electric outboard motors						3% of sales price					42
114	Fishing tackle boxes						3% of sales price					114
44	Bows, quivers, broadheads, and points						11% of sales price					44
106	Arrow shafts						$.52 per shaft					106
140	Indoor tanning services						10% of amount paid					140
					Number of gallons			Rate			Tax
64	Inland waterways fuel use tax
64	Inland waterways fuel use tax						$.29					64
125	LUST tax on inland waterways fuel use (see instructions)						.001					125
51	Section 40 fuels (see instructions)											51
117	Biodiesel sold as but not used as fuel											117
20	Floor Stocks Tax—Ozone-depleting chemicals (floor stocks). Attach Form 6627.											20
2	Total. Add all amounts in Part II									$

Form 720 (Rev. 4-2020)

Form 720 (Rev. 4-2020)		Page 3
Part III

3	Total tax. Add Part I, line 1, and Part II, line 2
4	Claims (see instructions; complete Schedule C)	. . . . . . .	4
5	Deposits made for the quarter . . . .	5
	Check here if you used the safe harbor rule to make your deposits.
6	Overpayment from previous quarters . .	6

7Enter the amount from Form 720-X included

	on line 6, if any		7
8	Add lines 5 and 6	. . . . . . . . .		8
9	Add lines 4 and 8

10Balance Due. If line 3 is greater than line 9, enter the difference. Pay the full amount with the return (see instructions)

11Overpayment. If line 9 is greater than line 3, enter the difference. Check if you want the

overpayment:

Applied to your next return, or

Refunded to you.

Third Party Designee

Sign

Here

Paid

Preparer

Use Only

Do you want to allow another person to discuss this return with the IRS (see instructions)?		Yes. Complete the following.	No
Designee name	Phone no.	Personal identification number (PIN)

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

F					F
F	Signature		Date		F	Title
	Signature		Date			Title
	Type or print name below signature.				Telephone number
Print/Type preparer’s name		Preparer’s signature		Date				Check	if	PTIN
								Check	if
								self-employed

Firm’s name							Firm’s EIN
Firm’s address							Phone no.

Form 720 (Rev. 4-2020)

Page 4

Schedule A Excise Tax Liability (see instructions)

Note: You must complete Schedule A if you have a liability for any tax in Part I of Form 720. Don’t complete Schedule A for Part II taxes or for a one-time filing of the gas guzzler tax.

1Regular method taxes

(a) Record of Net			Period
Tax Liability		1st–15th day			16th–last day
First month	A			B
Second month	C			D
Third month	E			F
Special rule for September	*	. . . . . . . . .		G

(b)Net liability for regular method taxes. Add the amounts for each semimonthly period.

2Alternative method taxes (IRS Nos. 22, 26, 28, and 27)

(a) Record of Taxes			Period
Considered as		1st–15th day			16th–last day
Collected		1st–15th day			16th–last day
Collected

First month	M			N
Second month	O			P
Third month	Q			R
Special rule for September	*	. . . . . . . . .		S

(b)Alternative method taxes. Add the amounts for each semimonthly period.

* Complete only as instructed (see instructions).

Schedule T Two-Party Exchange Information Reporting (see instructions)

Fuel	Number of gallons
Diesel fuel, gallons received in a two-party exchange within a terminal, included
on Form 720, IRS No. 60(a)
Diesel fuel, gallons delivered in a two-party exchange within a terminal

Kerosene, gallons received in a two-party exchange within a terminal, included
on Form 720, IRS No. 35(a), 69, 77, or 111
Kerosene, gallons delivered in a two-party exchange within a terminal

Gasoline, gallons received in a two-party exchange within a terminal, included
on Form 720, IRS No. 62(a)
Gasoline, gallons delivered in a two-party exchange within a terminal

Aviation gasoline, gallons received in a two-party exchange within a terminal, included
on Form 720, IRS No. 14
Aviation gasoline, gallons delivered in a two-party exchange within a terminal

	Form 720 (Rev. 4-2020)

Form 720 (Rev. 4-2020)		Page 5
Schedule C	Claims	Month your income tax year ends

•Complete Schedule C for claims only if you are reporting liability in Part I or II of Form 720.

•See instructions for kerosene used in commercial aviation from March 28, 2020, through December 31, 2020.

•Attach a statement explaining each claim as required. Include your name and EIN on the statement (see instructions).

Caution: Claimant has the name and address of the person(s) who sold the fuel to the claimant, the dates of purchase, and if exported, the required proof of export. For claims on lines 1a and 2b (type of use 13 and 14), 3c, 4b, and 5, claimant hasn’t waived the right to make the claim.

1	Nontaxable Use of Gasoline	Note: CRN is credit reference number.		Period of claim
			Type of use	Rate	Gallons	Amount of claim	CRN
a Gasoline (see Caution above line 1)				$.183		$	362

b Exported (see Caution above line 1)				.184			411
2	Nontaxable Use of Aviation Gasoline			Period of claim
			Type of use	Rate	Gallons	Amount of claim	CRN
a Used in commercial aviation (other than foreign trade)				$.15		$	354

b Other nontaxable use (see Caution above line 1)				.193			324

c Exported (see Caution above line 1)				.194			412

d LUST tax on aviation fuels used in foreign trade				.001			433
3	Nontaxable Use of Undyed Diesel Fuel			Period of claim

Claimant certifies that the diesel fuel did not contain visible evidence of dye.

Exception. If any of the diesel fuel included in this claim did contain visible evidence of dye, attach a detailed explanation and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

		Type of use	Rate	Gallons		Amount of claim	CRN
a	Nontaxable use		$.243		$		360
b	Use in trains		.243				353
c Use in certain intercity and local buses (see Caution above line 1)			.17				350

d Use on a farm for farming purposes			.243				360

e Exported (see Caution above line 1)			.244				413

4Nontaxable Use of Undyed Kerosene (Other Than Kerosene Used in Aviation) Period of claim

Claimant certifies that the kerosene did not contain visible evidence of dye.

Exception. If any of the kerosene included in this claim did contain visible evidence of dye, attach a detailed explanation and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

	Caution: Claims cannot be made on line 4 for kerosene sales from a blocked pump.	Type of use	Rate	Gallons	Amount of claim	CRN
a	Nontaxable use		$.243		$	346
b	Use in certain intercity and local buses (see Caution above line 1)		.17			347
c	Use on a farm for farming purposes		.243			346
d	Exported (see Caution above line 1)		.244			414
e	Nontaxable use taxed at $.044		.043			377
f	Nontaxable use taxed at $.219		.218			369
5 Kerosene Used in Aviation (see Caution above line 1)			Period of claim
		Type of use	Rate	Gallons	Amount of claim	CRN
a	Kerosene used in commercial aviation (other than foreign
	trade) taxed at $.244		$.200		$	417
b	Kerosene used in commercial aviation (other than foreign
	trade) taxed at $.219		.175			355
c	Nontaxable use (other than use by state or local
	government) taxed at $.244		.243			346
d	Nontaxable use (other than use by state or local
	government) taxed at $.219		.218			369
e	LUST tax on aviation fuels used in foreign trade		.001			433

Form 720 (Rev. 4-2020)

Page 6

6Nontaxable Use of Alternative Fuel

Caution: There is a reduced credit rate for use in certain intercity and local buses (type of use 5) (see instructions).

		Type of use	Rate	Gallons, or gasoline	Amount of claim	CRN
		Type of use	Rate	or diesel gallon	Amount of claim	CRN
				equivalents
a	Liquefied petroleum gas (LPG) (see instructions)		$.183		$	419
b	“P Series” fuels		.183			420
c	Compressed natural gas (CNG) (see instructions)		.183			421
d	Liquefied hydrogen		.183			422
e	Fischer-Tropsch process liquid fuel from coal (including peat)		.243			423
f	Liquid fuel derived from biomass		.243			424
g	Liquefied natural gas (LNG) (see instructions)		.243			425
h	Liquefied gas derived from biomass		.183			435
7 Sales by Registered Ultimate Vendors of Undyed Diesel Fuel				Period of claim
			Registration number

Claimant certifies that it sold the diesel fuel at a tax-excluded price, repaid the amount of tax to the buyer, or has obtained written consent of the buyer to make the claim. Claimant certifies that the diesel fuel didn’t contain visible evidence of dye. Exception. If any of the diesel fuel included in this claim did contain visible evidence of dye, attach a detailed explanation and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

		Rate	Gallons		Amount of claim	CRN
a Use by a state or local government		$.243		$		360

b Use in certain intercity and local buses		.17				350
8 Sales by Registered Ultimate Vendors of Undyed Kerosene			Period of claim
	(Other Than Kerosene For Use in Aviation)	Registration number

Claimant certifies that it sold the kerosene at a tax-excluded price, repaid the amount of tax to the buyer, or has obtained the written consent of the buyer to make the claim. Claimant certifies that the kerosene didn’t contain visible evidence of dye. Exception. If any of the kerosene included in this claim did contain visible evidence of dye, attach a detailed

explanation and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

	Rate	Gallons	Amount of claim	CRN
a Use by a state or local government	$.243		$	346

b Sales from a blocked pump	.243
b Sales from a blocked pump	.243

c Use in certain intercity and local buses	.17			347
9 Sales by Registered Ultimate Vendors of Kerosene For Use in Aviation	Registration number

•See Caution above line 1.

•Claimant sold the kerosene for use in aviation at a tax-excluded price and hasn’t collected the amount of tax from the buyer, repaid the amount of tax to the buyer, or has obtained written consent of the buyer to make the claim. See the instructions for additional information to be submitted.

		Type of use	Rate	Gallons	Amount of claim	CRN
a	Use in commercial aviation (other than foreign trade) taxed at $.219		$.175		$	355
b	Use in commercial aviation (other than foreign trade) taxed at $.244		.200			417
c	Nonexempt use in noncommercial aviation		.025			418
d	Other nontaxable uses taxed at $.244		.243			346
e	Other nontaxable uses taxed at $.219		.218			369
f	LUST tax on aviation fuels used in foreign trade		.001			433
10 Sales by Registered Ultimate Vendors of Gasoline			Registration number

Claimant sold the gasoline at a tax-excluded price and hasn’t collected the amount of tax from the buyer, repaid the amount of tax to the buyer, or has obtained written consent of the buyer to take the claim; and obtained an unexpired certificate from the buyer and has no reason to believe any information in the certificate is false. See the instructions for additional information to be submitted.

	Rate	Gallons	Amount of claim	CRN
a Use by a nonprofit educational organization	$.183		$	362

b Use by a state or local government	.183
b Use by a state or local government	.183

Form 720 (Rev. 4-2020)

Form 720 (Rev. 4-2020)							Page 7
11 Sales by Registered Ultimate Vendors of Aviation Gasoline		Registration number
	Claimant sold the aviation gasoline at a tax-excluded price and hasn’t collected the amount of tax from the buyer, repaid the amount
	of tax to the buyer, or has obtained written consent of the buyer to take the claim; and obtained an unexpired certificate from the buyer
	and has no reason to believe any information in the certificate is false. See the instructions for additional information to be submitted.

		Rate		Gallons		Amount of claim	CRN
a Use by a nonprofit educational organization		$.193			$		324

b Use by a state or local government		.193
b Use by a state or local government		.193
12	Biodiesel or Renewable Diesel Mixture Credit Period of claim			Registration number
	Biodiesel mixtures. Claimant produced a mixture by mixing biodiesel with diesel fuel. The biodiesel used to produce the
	mixture met ASTM D6751 and met EPA’s registration requirements for fuels and fuel additives. The mixture was sold by the
	claimant to any person for use as a fuel or was used as a fuel by the claimant. Claimant has attached the Certificate for
	Biodiesel and, if applicable, the Statement of Biodiesel Reseller. Renewable diesel mixtures. Claimant produced a mixture by
	mixing renewable diesel with liquid fuel (other than renewable diesel). The renewable diesel used to produce the renewable
	diesel mixture was derived from biomass, met EPA’s registration requirements for fuels and fuel additives, and met ASTM
	D975, D396, or other equivalent standard approved by the IRS. The mixture was sold by the claimant to any person for use as
	a fuel or was used as a fuel by the claimant. Claimant has attached the Certificate for Biodiesel and, if applicable, Statement of
	Biodiesel Reseller, both of which have been edited as discussed in the instructions for line 12. See the instructions for line 12
	for information about renewable diesel used in aviation.
		Rate	Gal. of biodiesel or			Amount of claim	CRN
			renewable diesel

a Biodiesel (other than agri-biodiesel) mixtures		$1.00			$		388
b	Agri-biodiesel mixtures	1.00					390
c	Renewable diesel mixtures	1.00					307
13 Alternative Fuel Credit and Alternative Fuel Mixture Credit			Registration number

For the alternative fuel mixture credit, claimant produced a mixture by mixing taxable fuel with alternative fuel. Claimant certifies that it (a) produced the alternative fuel, or (b) has in its possession the name, address, and EIN of the person(s) that sold the alternative fuel to the claimant; the date of purchase; and an invoice or other documentation identifying the amount of the alternative fuel. The claimant also certifies that it made no other claim for the amount of the alternative fuel, or has repaid the amount to the government. The alternative fuel mixture was sold by the claimant to any person for use as a fuel or was used as a fuel by the claimant.

			Gallons, or
		Rate	gasoline or diesel		Amount of claim	CRN
			gallon equivalents
			(see instructions)
a	Liquefied petroleum gas (LPG)*	$.50			$	426
b	“P Series” fuels	.50				427
c	Compressed natural gas (CNG)*	.50				428
d	Liquefied hydrogen	.50				429
e	Fischer-Tropsch process liquid fuel from coal (including peat)	.50				430
f	Liquid fuel derived from biomass	.50				431
g	Liquefied natural gas (LNG)*	.50				432
h	Liquefied gas derived from biomass*	.50				436
i	Compressed gas derived from biomass*	.50				437
	* You can’t claim the alternative fuel mixture credit for this fuel.

14	Other claims. See the instructions. For lines 14b and 14c, see the Caution above line 1 on page 5.				Amount of claim	CRN
a	Section 4051(d) tire credit (tax on vehicle reported on IRS No. 33)				$	366
b	Exported dyed diesel fuel and exported gasoline blendstocks taxed at $.001					415
c	Exported dyed kerosene					416
d	Diesel-water fuel emulsion
e	Registered credit card issuers
			Number of tires		Amount of claim	CRN
f	Taxable tires other than bias ply or super single tires				$	396
g	Taxable tires, bias ply or super single tires (other than super single tires designed for steering)					304
h	Taxable tires, super single tires designed for steering					305
i
j
k
15	Total claims. Add amounts on lines 1 through 14. Enter the result here and on Form 720, Part III, line 4.			15

Form 720 (Rev. 4-2020)

Form 720-V, Payment Voucher

Purpose of Form

Complete Form 720-V if you’re making a payment by check or money order with Form 720, Quarterly Federal Excise Tax Return. We will use the completed voucher to credit your payment more promptly and accurately, and to improve our service to you.

If you have your return prepared by a third party and a payment is required, provide this payment voucher to the return preparer.

Don’t file Form 720-V if you’re paying the balance due on line 10 of Form 720 using EFTPS.

Specific Instructions

Box 1. If you don’t have an EIN, you may apply for one online by visiting www.irs.gov/EIN. You may also apply for an EIN by faxing or mailing Form SS-4, Application for Employer Identification Number, to the IRS. However, if you’re making a one-time filing, enter your social security number.

Box 2. Enter the amount paid from line 10 of Form 720.

Box 3. Darken the circle identifying the quarter for which the payment is made. Darken only one circle.

Box 4. Enter your name and address as shown on Form 720.

•Enclose your check or money order made payable to “United States Treasury.” Be sure to enter your

EIN (SSN for one-time filing), “Form 720,” and the tax period on your check or money order. Don’t send cash. Don’t staple this voucher or your payment to the return (or to each other).

•Detach the completed voucher and send it with your payment and Form 720. See Where To File in the Instructions for Form 720.

Form 720-V (2020)

Detach here and mail with your payment and Form 720.

Form 720-V

Department of the Treasury

Internal Revenue Service

1Enter your employer identification

number (EIN). See instructions.

	Payment Voucher	OMB No. 1545-0023
		OMB No. 1545-0023

Don’t staple or attach this voucher to your payment.		2020
Don’t staple or attach this voucher to your payment.

Dollars

Cents

Enter the amount of your payment.

Make your check or money order payable to “United States Treasury.”

3Tax Period

1st	3rd
Quarter	Quarter
2nd	4th
Quarter	Quarter

4Enter your business name (individual name if sole proprietor).

Enter your address.

City or town, state or province, country, and ZIP or foreign postal code

Click for IRS 720 File

File Breakdown

Fact Name	Description
Form Purpose	The IRS Form 720 is used to report and pay certain federal excise taxes.
Filing Frequency	This form is typically filed quarterly, but some taxes require more frequent filings.
Eligibility	Businesses that report liabilities for excise taxes must file this form.
Types of Taxes	Excise taxes on gasoline, air transportation, and environmental taxes are reported using this form.
Due Dates	Form 720 is due on the last day of the month following the end of each quarter.
Extensions	Taxpayers can apply for an extension to file, but any owed tax must still be paid on time.
Electronic Filing	Form 720 can be filed electronically through the IRS e-file program.
State-Specific Forms	Some states have specific excise tax forms governed by state laws, which may differ from the IRS process.
Record Keeping	It’s crucial to maintain records related to excise taxes, as the IRS may request documentation.
Penalties	Failure to file Form 720 on time can result in penalties and interest on unpaid taxes.

Guide to Using IRS 720

After obtaining the IRS 720 form, it's essential to ensure that you fill it out accurately to meet your tax obligations. Follow these steps carefully to complete the form and avoid any mistakes that might delay processing your return.

Obtain the Form: Download the IRS 720 form from the IRS website or request a paper copy.
Identify Your Filing Period: Determine the specific tax period for which you are filing the form. This could be quarterly or for a specific timeframe.
Fill Out Your Information: At the top of the form, write your name, business name (if applicable), address, and taxpayer identification number (TIN).
Enter the Tax Period: Indicate the start and end dates for the period you are reporting.
Complete the Body of the Form: Review the sections that pertain to your specific tax obligations. Fill in the required figures accurately.
Calculate Totals: Add up all relevant amounts in the designated section to determine your total liability.
Sign and Date the Form: Ensure that you sign and date the form in the appropriate sections. Without a signature, the form may be rejected.
Submit the Form: Send the completed form to the appropriate IRS address, either electronically or via mail, depending on your preference.

Get Answers on IRS 720

What is IRS Form 720?

IRS Form 720, also known as the Quarterly Federal Excise Tax Return, is used by businesses to report and pay specific excise taxes. These taxes are often related to activities like the sale of certain goods, transportation services, or environmental taxes. Filing this form ensures compliance with federal tax requirements.

Who needs to file Form 720?

Businesses that are liable for excise taxes need to file Form 720. This includes sellers of specific products, businesses offering taxable services, and those involved in activities like wagering or using fuel for non-taxable purposes. If your business falls into these categories, you’ll likely need to file.

When is Form 720 due?

The due date for Form 720 is quarterly. It must be filed on or before the last day of the month following the end of each quarter. For example:

Q1 (January - March): Due by April 30
Q2 (April - June): Due by July 31
Q3 (July - September): Due by October 31
Q4 (October - December): Due by January 31 of the following year

How do I file Form 720?

You can file Form 720 electronically, which is often the easiest method. Alternatively, you can mail a paper copy to the IRS. Ensure that you provide accurate information and attach any necessary schedules. Most businesses find that e-filing simplifies the process and allows for faster processing.

What are the penalties for not filing Form 720?

If you fail to file Form 720 on time, you may face penalties and interest charges on unpaid taxes. The penalty for late filing can be significant, so it’s crucial to get your form submitted on schedule. Additionally, failure to pay any taxes owed by the deadline can result in further complications.

Can I amend my Form 720?

Yes, you can amend Form 720 if you discover an error after you’ve already filed. Use Form 720-X, which is specifically designed for making corrections to your previously submitted Form 720. Ensure you follow the instructions closely when filing an amendment.

What specific types of excise taxes does Form 720 cover?

Form 720 covers various excise taxes, including but not limited to:

Fuel taxes
Environmental taxes
Communications and air transportation taxes
Health care-related taxes

Each tax may have different reporting requirements, so be sure to check the instructions or consult with a tax professional.

Where can I find Form 720?

You can find IRS Form 720 on the official IRS website. The form is available for download in PDF format. Additionally, the website provides detailed instructions on how to complete and submit it.

Is there a fee to file Form 720?

No, there is no fee for filing Form 720 itself. However, if you owe excise taxes, you'll need to pay them along with your filing. Be prepared to submit payment electronically or by check, depending on your filing method.

Common mistakes

Filing the IRS Form 720 can be a straightforward process, yet many individuals make common mistakes that lead to complications. First and foremost, failing to identify the applicable tax period can cause confusion. Taxpayers must specify whether they are reporting for a quarterly or annual period. If this information is incorrect, it may result in penalties or delays in processing.

Another frequent oversight involves incomplete information. Many filers neglect to provide all required details about their business activity or industry classification. This lack of thoroughness can hinder the IRS's ability to properly review the submission. Ensuring that all sections of the form are filled out accurately and completely is essential.

The third mistake involves incorrect calculations. Taxpayers might miscalculate their tax liabilities or misinterpret the tax rate applicable to their activities. This can lead to either overpayment or underpayment, both of which carry potential consequences. It is vital to double-check all calculations and consult IRS guidelines to confirm accuracy.

Furthermore, another error people often commit is neglecting to sign and date the form. Without a signature, the form is considered incomplete. The IRS does not process unsigned forms, which can cause delays and necessitate re-filing.

Not keeping a copy of the submitted form represents a fifth pitfall. Documentation is crucial for future reference or in case the IRS requests additional information or clarification. Retaining a copy of the completed form provides a safeguard against possible disputes.

Lastly, failing to file on time can result in penalties or interest on overdue payments. Many individuals underestimate the importance of adhering to deadlines, which can lead to unnecessary financial burdens. Setting reminders or using electronic filing options can help ensure timely submissions.

Documents used along the form

The IRS Form 720, known as the Quarterly Federal Excise Tax Return, is a critical document for reporting and paying federal excise taxes. When completing this form, individuals and businesses may also need to reference or submit additional forms and documents related to these taxes. Below is a list of other forms and documents that are often used in conjunction with the IRS Form 720.

IRS Form 2290: This form is used to report and pay the Heavy Highway Vehicle Use Tax for vehicles over 55,000 pounds. Businesses that operate such vehicles must file this form annually along with Form 720.
IRS Form 8849: A claim for refund of excise taxes can be made using this form. It may be used to claim a refund for taxes reported on Form 720.
IRS Form 720-X: This is an amended excise tax return that can be used to correct errors or changes on a previously filed Form 720. It helps ensure accurate reporting and compliance.
IRS Form 1040: As the individual income tax return, Form 1040 may be relevant for individuals who need to report excise taxes on their personal income filings.
IRS Form 941: Employers use this form to report payroll taxes, including certain excise taxes related to employee benefits or taxes on specific goods.
IRS Form 990: Nonprofit organizations may need to file this form, which includes information on any excise taxes they might be liable for under certain circumstances.
IRS Schedule C: This schedule is for sole proprietors to report income and expenses. If excise taxes apply to their business activities, they must account for those here.
IRS Form 4868: This is the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. If an extension to file taxes is needed, this form may be relevant.
State Excise Tax Forms: Depending on your state, separate forms may be required to report and pay state-specific excise taxes, which could accompany the IRS 720 form.

Using the correct forms in conjunction with IRS Form 720 is essential for compliance with federal tax obligations. Each form serves a specific purpose and helps ensure that taxpayers report their taxes accurately and completely.

Similar forms

Form 1040: The IRS 1040 form is the standard individual income tax return form. Like IRS 720, it is filed annually, and both forms require accurate reporting of specific information, though 1040 focuses on individual income tax obligations while 720 deals with certain excise taxes.
Form 941: This payroll tax form is filed quarterly by employers to report income taxes, Social Security tax, and Medicare tax withheld from employee wages. Similar to Form 720, Form 941 addresses specific tax-related responsibilities and is used to ensure compliance with tax regulations.
Form 1099: The 1099 series of forms, used to report various types of income received, shares a commonality with Form 720 in that both require taxpayers to track and report significant financial transactions. They each play a vital role in helping the IRS monitor tax compliance.
Form 990: Nonprofit organizations use this form to report their financial activities. Similar to Form 720, Form 990 helps ensure transparency and compliance with federal guidelines, allowing both documents to play a crucial role in the broader tax system.
Form 2220: This form is used for calculating penalties related to underpayment of estimated tax. Like Form 720, it serves to address specific taxpayer obligations under IRS regulations, ensuring that taxpayers adhere to expected payment schedules and requirements.

Dos and Don'ts

When filling out the IRS Form 720, it's essential to keep several key points in mind. Here are six things you should and shouldn't do to ensure your submission is accurate and complete.

Do double-check all provided information for accuracy. Mistakes can lead to delays or issues with your filing.
Do include all required supporting documentation. This can help substantiate your claims and facilitate processing.
Do use the most current version of Form 720. The IRS updates forms periodically, and using an outdated version can cause problems.
Do sign and date the form. An unsigned form can be rejected or considered incomplete.
Don't leave any sections blank. If a section does not apply, mark it as "N/A" to provide clarity.
Don't forget to keep a copy of the completed form for your records. This can be essential for future reference or if any questions arise.

Misconceptions

Misconceptions about the IRS 720 form can lead to confusion among taxpayers. Understanding these misconceptions can help clarify the purpose and requirements of the form. Here are six common misunderstandings:

It is only for businesses. Many believe the IRS 720 form is exclusively for business entities. In fact, individuals involved in certain activities, like employers required to pay the Patient-Centered Outcomes Research Institute (PCORI) fee, must also use this form.
Submissions are only necessary once a year. Some people think they only need to file the 720 annually. However, it is required to file it quarterly for specific fees, such as the PCORI fee.
The form is only about health care-related fees. While it prominently handles fees related to health care programs, it also covers other specific excise taxes. Its scope is broader than many realize.
Filing is optional if you don’t owe any fees. Some assume that if there are no fees owed, they don't need to file. This is incorrect; filing is still required even when no fees are due.
Filing can be delayed without penalty. There is a misconception that you can file the form whenever it suits you. Late submissions can incur penalties, so timely filing is essential.
Paper forms are the only option. Another common myth is that IRS 720 must be filed using paper forms. Electronic filing is available and may be a more convenient option for many.

Understanding these misconceptions helps ensure compliance with IRS regulations and simplifies the filing process.

Key takeaways

When dealing with the IRS 720 form, understanding its purpose and proper completion is essential. Here are some important takeaways to keep in mind:

Purpose of the Form: The IRS 720 form is primarily used to report and pay specific federal excise taxes. These taxes might apply to activities such as air transportation and manufacturing of certain products.
Frequency of Filing: Depending on your specific tax obligations, you may need to file the 720 form quarterly or annually. Be mindful of the due dates to avoid penalties.
Accurate Reporting: Double-check all values and information provided on the form. Accuracy is crucial as mistakes can lead to delays or penalties in processing.
Keep Records: After submitting the form, maintain a copy for your records. This is important for any potential audits and for future reference when filling out subsequent forms.