Form 720: Quarterly Federal Excise Tax Filing Guide

Article Summary:

• Form 720 is the IRS’s Quarterly Federal Excise Tax Return required for businesses dealing in fuel, airline travel, medical devices, indoor tanning, chemicals, heavy vehicles, and other excise-taxed goods or services.
• Businesses must file Form 720 quarterly (April 30, July 31, October 31, January 31) – even if activity is low – and many must also make semi-monthly excise tax deposits.
• The form includes Parts I & II for tax categories, Part III for total liability, Schedule A for semi-monthly breakdown, and Schedule C for credits, exemptions, and refunds.
•  You must file Form 720 if you collect excise tax, owe excise tax, or previously filed and haven’t closed your return – this applies to fuel distributors, airlines, tanning salons, medical device makers, tire importers, and health plan providers.
• E-filing is recommended for faster processing and fewer errors; payments are made via EFTPS, Direct Pay, or check when mailing the form.
• Errors such as incorrect categories, missed deposits, or wrong quarter filings may trigger IRS penalties: 5% late filing + 0.5% late payment monthly, plus daily interest.
• Form 720-X is required to amend previous filings for overreported/underreported taxes or credit adjustments.
• Global FPO provides complete Form 720 compliance support, including tax calculations, quarterly filings, credit claims, Form 720-X corrections, and audit-ready documentation.

What Is IRS Form 720?

IRS Form 720 is the Quarterly Federal Excise Tax Return used to report and pay excise taxes. Unlike income taxes, excise taxes apply to specific products, services, or activities and must be reported every quarter.

Common excise categories which are included are as follows:

• Fuel and gasoline
• Airline tickets and air transportation
• Indoor tanning services
•  Medical devices
• Chemical and environmental taxes
•  PCORI fees

Who Needs to File Form 720?

As per our research and knowledge, you should fill form 720 if:

• You collect excise taxes in the quarter
• You owe excise taxes on activities conducted
• You previously filed and have not filed a final return

• Fuel retailers and distributors
• Air transportation providers
• Indoor tanning service providers
• Importers/manufacturers of tires and heavy vehicles
• Health insurance providers (PCORI fees)

Due Dates which you need to take care of:

To fill and submit Form 720 the IRS has already decided some deadlines which should be kept in mind if you are filing at the last moment. The dates are mentioned in the below table:

Note: If by any chance the due date is a weekend or a holiday the due date automatically shifts to the next working day.

Penalties for Non-Compliance:

Filing Form 720 late or not at all can trigger hefty penalties:

• Late filing penalty: 5% of the unpaid tax per month, up to 25%
• Late payment penalty: 0.5% of the unpaid tax per month
• Interest: Accrues daily on unpaid amounts

Timely and accurate filing helps your business avoid costly surprises. It also builds credibility if your company is ever subject to an IRS review.

How to file the form 720?

There are majorly two main ways to file:

1. Paper Filing:

Mail to:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201?0009

2. Electronic Filing:

The IRS allows e-filing through approved software providers. This method is faster, reduces errors, and provides confirmation when your return is received.

Payment Methods:

• EFTPS (Electronic Federal Tax Payment System)
• IRS Direct Pay (for eligible businesses)
• Check or money order (if mailing your return)

Inside IRS Form 720: Sections Explained

• Parts I & II – List the types of excise taxes and IRS numbers for what you are reporting.
• Part III – Total your liability and report prior deposits.
• Schedule A – Required if you report taxes in Part I. Breaks down your liability by semi-monthly periods.
• Schedule C – Used for claiming credits and adjustments.
• Schedule T (Optional) – Applies to terminal fuel reporting.

Want to amend past returns use Form 720-X:

Mistakes do happen sometimes. If you realize you under- or over-reported on a previous Form 720, don’t file a new form. Use Form 720 – X instead.

This is the IRS – approved method to amend your quarterly excise tax filings. It allows for corrections and adjustments while maintaining a clear audit trail.
You’ll need to explain the reason for the adjustment clearly. The IRS expects full transparency in this process.

You can amend the following mistakes:

• Overreported or underreported taxes
• 
  Category mistakes

• 
  Credit and refund adjustments

Note: Supporting documentation is key. Keep detailed records of your corrections, including what prompted the adjustment and how you recalculated your tax liability.

How Global FPO Helps Businesses File Form 720?

Global FPO specializes in full – service Form 720 management, ensuring flawless, penalty – proof excise compliance. Our experts help you:

• Determine whether your business is liable
• Calculate accurate excise taxes
• File quarterly returns with 100% accuracy
• Manage semi-monthly excise deposits
• Claim missed credits and exemptions
• File compliance – ready Form 720 – X amendments
• Maintain IRS – ready documentation
• Minimize audit risks
• Handle multi – entity and multi – state filings

Book your consultation with Global FPO today.

FAQs

Question 1: What is IRS Form 720 used for? 

To report and pay federal excise taxes for specific goods and services.

Question 2: Is Form 720 quarterly or annual? 

Quarterly

Question 3: Can Form 720 be filed online? 

Yes, IRS – approved e – filing is recommended.

Question 4: Who is required to file Form 720? 

Any business that collects or owes excise taxes.

Question 5: What happens if I don’t file Form 720? 

You may face penalties, interest, and compliance assessments.

Question 6: What is Form 720?X? 

It is used to amend previously filed Form 720 returns.