How to File Form 720: A Simple Step-by-Step Guide

If your business is responsible for certain federal excise taxes, you may need to file IRS Form 720, officially known as the Quarterly Federal Excise Tax Return. Understanding how to file it correctly can help you stay compliant and avoid unnecessary filing errors.

Here’s a simple overview of the Form 720 filing process.

Step 1: Determine Whether You Need to File

Before starting, identify whether your business is responsible for any federal excise taxes reported on Form 720.

Form 720 covers various excise tax categories, including fuel, environmental, communications and air transportation, manufacturing, and certain other taxable activities.

Step 2: Gather Your Tax Information

Collect the records needed for the applicable quarter. Depending on your tax type, this may include taxable sales, quantities, business details, and other transaction information.

Having accurate records ready can make Form 720 filing much easier.

Step 3: Calculate Your Excise Tax

Calculate the amount of federal excise tax your business owes based on the applicable tax category and rate.

Because different excise taxes use different calculation methods, make sure you use the requirements that apply to your specific business activity.

Step 4: Complete Form 720

Enter your business information and applicable tax details in the required sections of Form 720. Review your calculations and make sure you have completed any additional schedules required for your return.

If you're filing online, Excise720 provides a streamlined way to prepare and electronically submit Form 720.

Step 5: Review and Submit Your Return

Before submitting, double-check your business information, tax amounts, calculations, and reporting period.

Once everything is correct, electronically file your return and retain the filing confirmation for your records.

When Should You File Form 720?

Form 720 is generally filed quarterly, with standard deadlines of April 30, July 31, October 31, and January 31. Weekend and legal holiday rules may affect the actual due date.

Filing early gives you additional time to identify and correct potential issues.

Ready to File Form 720 Online?

Knowing how to file Form 720 starts with identifying the correct excise tax, gathering accurate records, calculating the liability, and completing the required sections.

For a simpler online filing experience, you can file Form 720 online with Excise720 and electronically submit your federal excise tax return.