Everything You Need to Know About Form 720

What is Form 720?
Form 720 is a quarterly tax return used to report excise taxes owed to the IRS. Excise taxes apply to specific goods, services, or activities, including gasoline, airline tickets, indoor tanning services, and environmental products.

Who Should File Form 720?

• Fuel distributors, importers, and sellers.
• Airlines and air transport providers.
• Communication service providers (telephone, local services).
• Businesses offering indoor tanning services.
• Companies responsible for environmental and manufacturer excise taxes.

When to File Form 720?
Form 720 must be filed quarterly by the following deadlines:

• 1st Quarter: April 30 (for Jan–Mar)
• 2nd Quarter: July 31 (for Apr–Jun)
• 3rd Quarter: October 31 (for Jul–Sep)
• 4th Quarter: January 31 (for Oct–Dec)

Taxes Reported on Form 720
Form 720 is divided into three parts:

• Part I – Environmental taxes, communications, and air transportation.
• Part II – Fuel-related excise taxes and retail taxes.
• Part III – Patient-Centered Outcomes Research Fee (PCORI) and other specialized excise taxes.

Key Information Required

• Taxpayer details (name, EIN, business address).
• Type of excise tax and taxable amount.
• Calculated tax liability for each category.
• Proof of payment (if applicable).

Why is Form 720 Important?

• Ensures businesses pay required excise taxes on time.
• Avoids penalties for late or inaccurate filing.
• Provides transparency in industries with high excise obligations like fuel and airlines.

How to File Form 720

• Download the form from PrimePDF website,
• Complete the sections relevant to your excise tax obligations.
• Submit the form and payment by mail or through the IRS e-file system.
• Retain copies for records in case of IRS review.

Processing Time
Processing times vary, but payments are applied as of the filing date. Electronic filing generally ensures faster processing.