IRS Form 720 Quarterly Federal Excise Tax Return

An amended tax return is submitted to show corrections to the originally filed excise tax return. Within the framework of business activities, many goods and services fall under tax excise taxes. The most common products in this list are tobacco, alcoholic beverages, motorcycles and kerosene, electronic systems, and petroleum raw materials.

For instance, it provides for liability for oil spills and taxes on ozone-depleting chemicals and toxins. You are also What Is Form 720? Where To Get, How To Fill Out required to pay communication taxes. It is usually three percent of the total amount paid for the local connection.

How to Pay using EFTPS for Superfund chemical taxes

Well, with, you can stay assured and file with confidence, as we are categorized as the most authentic IRS certified e file service provider and the most Trusted. At, we maintain privacy, providing the assurance for a secure e-filing process and avoid misuse of information. Except in the case of a tax required to be collected and paid over, the person incurring liability for tax must file the return. In the case of a tax required to be collected and paid over, the person required to collect the tax must file the return. If you owe a PCORI fee, it must be paid using IRS Form 720 by July 31 following the last day of the plan year. For self-insured health plans, see Part II, IRS No. 133 of the form.

What Is Form 720? Where To Get, How To Fill Out

You will have to pay this amount with your return filing of Form 720. If none of the excise taxes in Part I apply to your business, go to Part II. However, if your business has any tax liability in Part I, complete the Schedule A section of IRS Form 720. If your business is paying excise taxes for communications or air transportation, you have the option to pay according to an alternative schedule as dictated by the Form 720 instructions. The IRS considers a semimonthly period as the first 15 days of the month or the 16th through the last day of the month . Form 720 is for businesses to report excise taxes paid on goods and activities listed in parts one and two of the form. All levels of government levy excise taxes to influence behavior and raise revenue.

Determine if you need to fill out Schedule T or Schedule C and complete these sections of Form 720

The Excise taxes are due for every quarter in a year and the below table clearly indicates the actual due date. If the due date falls on weekend or on a federal holiday, you should file on the next business day. TurboTax Audit Support Guarantee – Business Returns. We will not represent you before the IRS or state tax authority or provide legal advice.

  • If the quarter of the year is from April to June, the deadline is July 31.
  • On Part III of IRS Form 720, you’ll calculate your total taxes by adding the totals from Part I and Part II and putting the sum in box 3.
  • The third party then sends the tax to the IRS and files the Form 720.
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What is a 720 form?

A pack of cigarettes is subject to a $4.50 excise tax in D.C., for instance. Excise taxes are payable to your local tax authority, the IRS, or the Alcohol and Tobacco Trade Bureau , depending on the good or activity. Only file Form 720 for IRS-collected excise taxes. The documents posted on this site are XML renditions of published Federal Register documents.

If your business provides any items or services enlisted in Part II, calculate your total tax at the bottom of this part. E-Filing is transmitting Business Tax Returns to the IRS through the internet. Electronic filing is the safest, most secure, and private way to send your tax return to the IRS.

The easiest way to edit About Form 720, Quarterly Federal Excise Tax Return – IRS in PDF format online

If the date is a public holiday or a weekend, submit it on the next business day. To apply, you may use the postal or courier service. Schedule A – This schedule aids an individual in listing deductions and includes various categories of expenses like dental and medical; theft losses, charity gifts and taxes. Now that I’ve switched from Word to PDFLiner, I save lots of time processing and digitally distributing tons of billing forms, work orders, forecast reports, and invoices. In addition to this, thanks to PDFLiner, we’ve significantly minimized our paper consumption.

  • Does your software accommodate the regular method or not.
  • A simple tax return is one that’s filed using IRS Form 1040 only, without having to attach any forms or schedules.
  • Otherwise, you will not be able to submit this form.
  • Others may be based in a foreign country and must pay an excise tax to import their products into the US.
  • The Superfund chemical excise taxes are reported on Form 6627 Part 1 , Environmental Taxes, which is attached to Form 720, Quarterly Federal Excise Tax Return.
  • Form 720, the federal excise taxes are filed every quarter when an individual offers a service or sells goods or products that has an excise tax component.

The Form 720 is due for every quarter during the tax year. Please note, if the due date comes on the weekend or on a national holiday, it must be filed on the next business day. You are liable to file Form 720, the federal excise taxes every quarter when you offer a service, sell a product or goods that has an excise tax component.

Do not forget to sign the document after checking and filling in the application. You also have the right to grant access to a third party to provide information or fill out a form. In this case, in the “Authorized Third Party” field, specify their name, the phone number, and any five digits for that person’s PIN. This person may share information with official state authorities, answer any questions.

These markup elements allow the user to see how the document follows the Document Drafting Handbook that agencies use to create their documents. These can be useful for better understanding how a document is structured but are not part of the published document itself. These tools are designed to help you understand the official document better and aid in comparing the online edition to the print edition. This document has been published in the Federal Register.


“You were liable for, or responsible for collecting, any of the federal excise taxes listed on Form 720, Parts I and II, for a prior quarter and you haven’t filed a final return. The government imposes certain excise taxes to discourage the use of products and services or change behavior, like tobacco, alcohol, firearms, and gambling. Managing excise taxes can be more challenging than income taxes. The end users may or may not be aware of the amount of excise tax included in the prices they pay. Federal excise taxes are imposed on the sale of certain goods, services, and activities.

  • If none of the excise taxes in Part I apply to your business, go to Part II. However, if your business has any tax liability in Part I, complete the Schedule A section of IRS Form 720.
  • The tax for health insurance is calculated differently than the other categories.
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  • Payments for excise taxes, however, are required on a semimonthly basis and should be made by electronic funds transfer.
  • Excise Tax Liability, is used to record your net tax liability for each semimonthly period in a quarter.

If your business does not deal with any of these products or services, you do not have to fill out this tax form. Start by adding up the total excise taxes for the quarter on line 3. Then, subtract claims from Schedule C and deposits your business made ahead of filing. Eventually, you’ll make your way down to lines 10 and 11, where you figure out whether you are due a refund or owe more in excise taxes. You can make a tax payment when you file Form 720.

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