Blank IRS 720 Template

The IRS Form 720 is used by businesses to report and pay the federal excise taxes applicable to various goods and services. This form covers a range of taxes, including those related to environmental taxes, communications, and transportation. Understanding how to complete Form 720 is essential for compliance, so be sure to start by filling out the form by clicking the button below.

Article Guide

The IRS Form 720 plays a crucial role in the landscape of federal taxation in the United States, primarily serving as a means for certain taxpayers to report and pay federal excise taxes. This form is essential for a range of businesses and individuals engaged in activities subject to these specific taxes, including but not limited to environmental taxes, communications taxes, and the tax on the sale of certain goods and services. Understanding the various sections of Form 720 can feel daunting, as it requires meticulous attention to detail. Taxpayers must accurately disclose their tax liability within specific categories, ensuring compliance with federal regulations. Moreover, the deadlines for filing this form are important to adhere to, as late submissions may lead to penalties. Different periods of reporting may apply, likening this form to both a quarterly and an annual obligation, depending on the circumstances. Knowing when and how to file can alleviate concerns and prevent complications with the IRS. For those who navigate this process, assistance from a knowledgeable professional may be helpful in demystifying the steps involved. By approaching the Form 720 with careful consideration and preparation, individuals and businesses can fulfill their tax obligations effectively while contributing to broader fiscal responsibilities.

Form Sample

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

⇩ PDF

Document Specifications

Fact Name	Description
Purpose	The IRS Form 720 is used to report and pay federal excise taxes. This form is typically filed quarterly and covers various types of transactions, including sales of certain goods and services.
Filing Frequency	Form 720 must be submitted on a quarterly basis. The due dates for filing are April 30, July 31, October 31, and January 31 of the following year.
Who Should File?	Businesses that produce or sell goods subject to excise tax, such as fuel producers, manufacturers of certain goods, and businesses involved in specific services, should complete and file this form.
State-Specific Forms	While the IRS Form 720 is a federal form, individual states may have their own excise tax forms. The governing laws vary by state, including for example: California's Revenue and Taxation Code Section 38001 for state-specific excise taxes.

Steps to Filling Out IRS 720

Filling out IRS Form 720 requires attention to detail and organization. Following these steps can help you complete the form accurately.

Gather necessary documents, including your tax identification number and relevant financial information.
Obtain a copy of the IRS Form 720 from the IRS website or other authorized sources.
Fill out your name, address, and taxpayer identification number in the top section of the form.
For each applicable quarter, enter the appropriate information regarding your taxable activities. Ensure accuracy in reporting all figures.
Complete the calculation section, including any applicable credits or adjustments.
Sign and date the form. If someone else prepared the form, include their information as well.
Review the completed form for errors or omissions before submission.
Send the form to the appropriate IRS address based on your location and payment type.

After submitting the form, keep a copy for your records. You may also want to monitor any correspondence from the IRS pertaining to your submission.

More About IRS 720

What is the IRS Form 720?

The IRS Form 720 is a tax form used to report and pay federal excise taxes. This includes taxes on specific goods, services, and activities. Businesses or individuals who engage in these activities may be required to use this form to report any applicable excise taxes owed to the IRS.

Who needs to file Form 720?

Any business or individual that owes federal excise taxes must file Form 720. This could include manufacturers, importers, and distributors of certain goods, as well as service providers in areas such as communications or environmental impact. If you're unsure, it’s wise to consult a tax professional.

When is Form 720 due?

Form 720 is typically due quarterly. The deadlines for each quarter are as follows: April 30 for the first quarter, July 31 for the second, October 31 for the third, and January 31 of the following year for the fourth. Timely filing helps avoid penalties and interest.

What types of taxes are reported on Form 720?

Form 720 covers a variety of excise taxes. These include fuel taxes, taxes on air transportation, and environmental taxes, among others. It's essential to review which specific taxes your business is liable for and report them accordingly.

How do I complete Form 720?

Start by gathering the necessary information about your business and the applicable excise taxes. Next, fill out the form, providing all required details and calculations. Make sure to check for accuracy before submission. Detailed instructions are available on the IRS website to assist you.

Can I file Form 720 electronically?

Yes, you can file Form 720 electronically through the IRS e-file system. Electronic filing can be more efficient and offers the benefit of quicker processing and confirmation of receipt. Many tax software programs simplify this process for you.

What if I don’t file Form 720 on time?

If you miss the deadline, you may face penalties and interest on any unpaid taxes. The IRS typically calculates the penalty based on the amount owed and the duration of the delay. It's important to file as soon as possible to minimize these consequences.

Can I correct a mistake on Form 720 after filing?

Absolutely. If you realize that you’ve made a mistake after submitting Form 720, you can file an amended return. Use the IRS Form 720-X to correct any errors. Be sure to include detailed information about what needs to be changed to avoid issues.

Where do I send my completed Form 720?

Where you send your completed Form 720 depends on your location and whether you're including a payment. Specific mailing addresses are available on the IRS website. It's crucial to check these details to ensure timely processing of your form.

How can I get more help with Form 720?

If you need more assistance, the IRS provides resources online, including instructions for completing Form 720. Additionally, you can contact the IRS directly or consult a tax professional for personalized guidance. Don't hesitate to reach out for help if you need it!

Common mistakes

Incorrect Identification Information: Many individuals forget to double-check their name, Social Security number, or Employer Identification Number. Even a small typo can cause delays in processing.
Missing Signature: Some applicants neglect to sign the form. A signature is essential, and in its absence, the submission may be considered incomplete.
Filing for the Wrong Quarter: It’s important to ensure that the filing period corresponds with the quarter selected on the form. Misalignment can lead to confusion and potential penalties.
Inaccurate Calculation of Taxes: Errors in calculating the amount owed can create significant issues. Reviewing the math prior to submitting the form can help prevent overpayments or underpayments.
Neglecting to Include Additional Forms: Some people mistakenly believe that the IRS 720 form stands alone. It often requires additional documentation, which, if overlooked, can result in an incomplete submission.
Failing to Keep Copies: After submission, individuals sometimes forget to save a copy of their completed form for their records. Keeping a personal copy is crucial for future reference and correspondence.
Ignoring Deadlines: Lastly, many do not pay close attention to filing deadlines. Submitting the form late can incur penalties, making it important to mark the due dates on a calendar.

Documents used along the form

The IRS Form 720 is primarily used for reporting and paying the federal excise taxes imposed on certain goods and services, as well as for various other purposes related to compliance with tax obligations. However, several other forms and documents often accompany it in practice. Each of these forms serves a specific role in the larger framework of tax compliance and reporting.

IRS Form 2290: This form is for reporting the heavy vehicle use tax. Owners of heavy vehicles must file this annually to ensure they adhere to federal tax requirements associated with highway use.
IRS Form 8849: Taxpayers can use this form to claim refunds for certain excise taxes. This might become necessary if the tax was paid erroneously or if other specific criteria are met.
IRS Form 725: This form reflects various payments made, often used alongside Form 720 to provide a comprehensive account of excise tax payments.
Form 990: This is the annual return required by tax-exempt organizations. Although it doesn’t directly relate to Form 720, organizations might file it to report their overall financial picture, including excise tax obligations.
IRS Form 720X: Primarily a corrective form, it is used to amend a previously filed Form 720. This can happen if there were errors in the excise tax calculations or reporting.
IRS Form 1040: While mostly associated with individual income tax, individuals may include excise taxes assessed on certain goods like fuel or luxury items in their overall tax calculations.
Payment Voucher Form 7004: This form is submitted to request an extension for filing certain business tax returns which may include those liable for excise taxes typically reported by Form 720.

Understanding these accompanying forms and documents not only clarifies the tax compliance process but can also help taxpayers navigate the complexities of federal obligations effectively. Properly managing these forms can ensure individuals and organizations meet their tax responsibilities accurately and on time.

Similar forms

The IRS Form 941 is similar to the IRS Form 720 in that both documents are used for reporting taxes. However, Form 941 is specifically for employers to report wages paid and the taxes withheld from employees’ paychecks. This includes federal income tax, Social Security tax, and Medicare tax. Unlike Form 720, which is for reporting certain types of liabilities, Form 941 is focused on employee-related payroll taxes. Both forms must be filed regularly, typically on a quarterly basis, which ensures that the IRS maintains updated records of tax liabilities.

The IRS Form 944 is another document that bears similarities to the Form 720. The main distinction lies in its use by smaller employers. Form 944 allows businesses with smaller annual payrolls to report their payroll liabilities once a year instead of quarterly, as is the case with Form 941. Like Form 941 and Form 720, it requires accurate reporting of withheld taxes and payments owed, simplifying the process for employers who meet specific criteria and thereby reducing their filing burden.

The IRS Form 1099 series shares similarities with the IRS Form 720 in terms of reporting income and certain tax liabilities. Form 1099 covers a range of specific income types, such as freelance earnings and interest income. Each variation, such as 1099-MISC or 1099-NEC, provides information to the IRS about different income sources. Unlike Form 720, which focuses on excise taxes, the 1099 forms primarily report income information, ensuring that all taxable earnings are accounted for by both taxpayers and the IRS.

The IRS Form 1065 also has comparable features with Form 720 as both are used in relation to tax liabilities, but for different types of entities. Form 1065 is intended for partnerships to report income, deductions, gains, and losses. Partnerships do not pay tax at the entity level; instead, the income is passed through to individual partners. Thus, while Form 720 focuses on excise taxes, Form 1065 centers on partnership tax reporting, providing a snapshot of financial activities and tax responsibilities for multiple stakeholders.

The IRS Form 1120 is another tax document that bears a resemblance to Form 720 when considering that both relate to corporate entities. Form 1120 is used by corporations to report their income, gains, losses, deductions, and tax liability. The primary distinction is that while Form 720 addresses specific excise taxes, Form 1120 is centered on corporate income tax. Corporations must file Form 1120 annually to ensure compliance and accurate reporting of their financial activities.

Lastly, the IRS Form 720-TO is closely aligned with the IRS Form 720 as both pertain to the reporting of excise taxes. Form 720-TO is specifically utilized by certain businesses that qualify for a streamlined process for reporting and remitting these taxes. While Form 720 is a general excise tax form, 720-TO simplifies the reporting for eligible organizations, allowing them to report fewer details on a less frequent basis. Both forms ensure that excise tax obligations are met, but Form 720-TO caters to specific criteria designed for efficiency.

Dos and Don'ts

When filling out the IRS Form 720, it is important to follow certain guidelines to ensure accuracy and compliance. Here are some dos and don'ts to consider:

Do gather all necessary information before starting the form.
Do carefully read the instructions provided with the form.
Do double-check your calculations for accuracy.
Do ensure that all required fields are filled out completely.
Don't ignore deadlines for filing the form.
Don't submit the form without making copies for your records.
Don't forget to sign the form where required.

By following these guidelines, you can help ensure that your submission is processed smoothly. Taking these steps can minimize the risk of delays or issues with your application.

Misconceptions

Misconceptions about the IRS Form 720 can lead to confusion and potential errors in filing. Below is a list of nine common misunderstandings regarding this form, along with clarifications to help individuals navigate the tax landscape more effectively.

Form 720 is only for corporations. Many believe that only businesses need to file Form 720. In reality, any entity that meets specific criteria, including individuals, may be required to file this form.
Form 720 is only for quarterly taxes. While Form 720 is indeed used for certain quarterly tax payments, it is also utilized for annual reporting in specific circumstances. It is essential to understand the context of your filing.
Filing Form 720 means I owe taxes. Just because a form is filed does not automatically imply a tax liability. It may simply be a reporting requirement, and in some cases, individuals can have a zero tax liability.
All activities are reported on Form 720. This form is specific in nature. It is specifically used to report excise taxes and does not serve as a catch-all for all tax activities.
Filing Form 720 is unnecessary if I file my regular tax return. This is incorrect. Depending on the circumstances, separate forms, including Form 720, may still be required alongside your regular tax return.
I can file Form 720 at any time during the year. While it may be true that form submissions can be made at various times, everyone must adhere to strict deadlines. Missing these deadlines can result in penalties.
Form 720 is the same as Form 1040. These are two different forms serving separate purposes. It is critical to use the correct form to avoid complications.
I need to hire a professional to file Form 720. While many individuals choose to seek professional assistance, this form can be completed by those with basic knowledge of their tax situations. Proper resources can guide you through the process.
The penalties for incorrect Form 720 filings are minor. This misconception can lead to significant issues. Penalties for non-compliance can be quite steep, making it essential to approach this form carefully and accurately.

Understanding the realities behind these misconceptions is vital for compliance and peace of mind. Education about tax forms like IRS Form 720 can empower individuals to manage their financial responsibilities confidently.

Key takeaways

Filling out the IRS 720 form correctly is essential for anyone who needs to report and pay specific federal excise taxes. Here are key takeaways to keep in mind:

Understand the Purpose: The IRS 720 form is used primarily to report and pay federal excise taxes related to certain goods and activities.
Know the Deadlines: Make sure to check the due dates for filing the form. Generally, quarterly filings are required, with specific deadlines for each quarter.
Be Accurate: Double-check your entries. Errors can lead to delays in processing or incorrect tax bills, which can create unnecessary headaches later.
Use the Right Tax Rates: Familiarize yourself with the correct excise tax rates. Various categories may apply, such as those related to fuel, healthcare, or other specific goods.
Keep Records: Retain copies of your submitted forms and any supporting documentation. This can help in case of questions or audits from the IRS.
Consider E-Filing: Filing electronically may streamline the process and provide immediate confirmation of receipt.

By paying close attention to these takeaways, you can ensure a smoother experience with the IRS 720 form and its associated requirements.