Quick File 720, or the Quarterly Federal Excise Tax Return, is a tax form that businesses must file every quarter to report and pay federal excise taxes. Excise taxes are imposed by the federal government on specific goods or services that are produced or imported into the U.S. Common examples include taxes on gasoline, alcohol, tobacco, and certain environmental taxes.These excise taxes are often included in the price of the product, which means consumers may not even realize they're paying them. However, if your business manufactures, sells, or imports goods or services subject to excise tax, you are responsible for reporting and paying those taxes. Quick File 720 provides the framework for businesses to report and pay the appropriate excise taxes each quarter.
Quick File 720 consists of three parts, along with Schedule A, Schedule T, and Schedule C sections. If your business is responsible for filing Form 720, you must complete it on a quarterly basis, either electronically or by mail.While the filing itself is done quarterly, excise tax payments are required on a semimonthly basis. These payments must be made through electronic funds transfer (EFT) to comply with IRS regulations.
You are required to file Form 720, the federal excise tax return, every quarter if you offer services or sell products that include an excise tax component. Excise taxes are due each quarter, and the table below shows the specific due dates for each filing period. If a due date falls on a weekend or federal holiday, the filing should be done on the next business day.
Take a look at the table below to see when you need to file your excise tax.
| Months | Due Date |
|---|---|
| January, February, March | April 30 |
| April, May, June | July 31 |
| July, August, September | October 31 |
| October, November, December | January 31 (next year) |
You should file a final return for Form 720 if any of the following apply:
Form 720 includes multiple sections that cover a variety of excise taxes. Understanding these sections will help simplify your filing process. Below is a brief overview of the key sections included in Part I of Form 720:
Businesses dealing with crude oil, imported petroleum products, and ozone-depleting chemicals (ODCs) must file this excise tax.
If you use local telephone services and teletypewriter exchange services, you are liable to file this quarterly Federal Communication Tax.
Airline companies must report excise taxes related to air transportation services, including passenger and property handling, as well as transportation facilities usage.
This section covers taxes related to the use and sale of fuels such as diesel, kerosene, gasoline, and liquefied natural gas (LNG).
Manufacturers and sellers of highway vehicles, including buses, heavy trucks, and truck tractors, must file excise taxes under this category.
This tax is applied annually to certain ship voyages and must be filed by the person organizing the voyage.
Foreign issuers of policies, such as indemnity bonds and casualty insurance, are required to file under this section.
Part II includes additional taxes such as:
In Part III, you will calculate your total taxes by summing the totals from Part I and Part II. If Schedule C is filled, you'll add the total claim amount, deposits made for the quarter, and any overpayments from previous quarters. If the total tax is greater than the combined total of claims, deposits, and overpayments, the balance due should be paid with your Form 720 filing. If the total tax is less than the combined total, you can either apply the overpayment to your next return or request a refund.
Helps you list deductions such as medical expenses, charitable contributions, theft losses, and taxes. Filing Schedule A through Quick File 720 allows you to easily document and preserve your expense records.
This schedule reports two-party exchange information on diesel fuel used in or delivered to a terminal. It also applies to the usage of kerosene, gasoline, and aviation gasoline.
Reports the profit or loss of a business or profession, including wages, expenses, income, and deductions.
If someone else is filing your Form 720 on your behalf, they are classified as a Paid Preparer. The preparer is required to provide the following details on Form 720: