IRS Form 720 – File Your Quarterly Federal Excise Tax Return Online
IRS Form 720, Quarterly Federal Excise Tax Return, is used to report and pay applicable federal excise taxes on certain products, services, and business activities.
Businesses may need to file Form 720 when they are liable for or responsible for collecting one or more federal excise taxes listed on the return. Excise720 provides an online filing workflow to help businesses and tax professionals prepare applicable Form 720 information, review their return, and submit it electronically.
What Is IRS Form 720?
Form 720 is officially called the Quarterly Federal Excise Tax Return. The IRS uses the form to collect information and payments for various federal excise taxes identified by specific IRS numbers.
These taxes can apply to particular products, services, industries, or taxable activities. Examples include certain fuel, environmental, communications, air transportation, manufacturer, and other excise taxes.
Form 720 is generally filed quarterly when a filing requirement applies. However, the exact reporting and payment requirements depend on the particular excise tax and the filer's circumstances.
Businesses should review the current IRS instructions to determine which tax categories, parts, and schedules apply to their return.
Who Needs to File Form 720?
A business or other taxpayer may need to file Form 720 when it is liable for or responsible for collecting a federal excise tax reported in Part I or Part II of the form.
Filing requirements depend on the specific products sold or manufactured, services provided, and taxable activities conducted by the business.
Not every business is required to file Form 720 simply because it operates in the United States. A filing requirement generally depends on whether an applicable Form 720 excise tax or fee applies.
Special rules also apply to certain taxes and fees, including the Patient-Centered Outcomes Research (PCOR) fee.
If you are unsure whether Form 720 applies to your business, review the current IRS instructions or consult a qualified tax professional.
What Taxes Are Reported on Form 720?
Form 720 covers several categories of federal excise taxes. The applicable tax depends on the business activity and current IRS requirements.
- Fuel Taxes
Gasoline, diesel, kerosene, and other taxable fuels
- Environmental Taxes
Ozone-depleting chemicals and imported chemical substances
- Communications & Air Transportation Taxes
Communications services and air transportation of persons and property
- Manufacturer Taxes
Certain manufactured products subject to federal excise tax
- Retail Tax
Heavy trucks, trailers, and tractors sold at retail
- Ship Tax
Transportation of persons by water
- Foreign Insurance Tax
Policies issued by foreign insurers
- PCORI Tax
Patient-Centered Outcomes Research fee
- Part II Excise Taxes
Additional Part II taxes and fees reported by IRS number
- Other Excise Taxes
Additional federal excise taxes reported on Form 720
- Schedule C Claims
Credits and refund claims for exported or adjusted taxable items
- Form 720 Downloads
Official Form 720 forms, instructions, and schedules
These are examples rather than a complete list of every tax reported on Form 720.
Understanding Form 720 Parts and Schedules
Form 720 contains multiple parts and schedules. Which sections you complete depends on the federal excise taxes, claims, deposits, and transactions that apply to your filing.
Part I – Federal Excise Taxes
Part I is used to report applicable federal excise tax liabilities identified by IRS number.
It includes several categories of excise taxes, such as certain environmental, communications, air transportation, fuel, manufacturer, and other taxes.
Part I liabilities may also affect the deposit information reported on Schedule A.
Part II – Additional Excise Taxes and Fees
Part II contains additional federal excise taxes and fees covered by Form 720.
The taxes reported in this section have their own applicable rules and IRS numbers. The PCOR fee (IRS No. 133) is reported in Part II when applicable.
Filers should use the current IRS instructions to determine which Part II items apply to their circumstances.
Part III – Tax, Payments, Claims and Balance Due
Part III summarizes the financial result of the Form 720 return.
It combines the total tax reported in Parts I and II and accounts for applicable Schedule C claims, deposits made for the quarter, previous-quarter overpayments, and certain Form 720-X amounts.
Based on these amounts, Part III determines whether the return shows a balance due or an overpayment.
Schedule A – Excise Tax Liability
Schedule A is used to record net tax liabilities for applicable Part I taxes by semimonthly period.
The schedule helps report when applicable Part I tax liabilities were incurred during the quarter and includes reporting under the regular or alternative method when applicable.
Schedule T – Two-Party Exchange Information
Schedule T is used for applicable taxable fuel transactions involving two-party exchanges within a terminal.
It reports gallons of taxable fuel received or delivered in qualifying two-party exchange transactions.
Schedule C – Claims
Schedule C is used to report certain eligible claims associated with excise taxes when IRS requirements are met.
Eligibility and documentation requirements vary by claim type. Schedule C should not be used to adjust Form 720 liabilities reported for prior quarters; Form 720-X is generally used for prior-quarter liability adjustments, subject to IRS rules.
For excise tax refund claims filed separately from Form 720, see Form 8849.
File Form 720 Online With Excise720
Excise720 provides businesses and tax professionals with a streamlined way to prepare and electronically file Form 720.
The online filing workflow provides:
- Guided Form 720 data entry
- Calculation assistance where supported
- Support for applicable Form 720 tax categories
- Electronic filing
- Filing status information
- Filing confirmation and records
- Online access to filing information
- Customer support
Whether you have recurring quarterly excise tax filing requirements or need to report a particular applicable tax, Excise720 provides a centralized online workflow for completing your return.
Start Your Form 720 FilingForm 720 Filing Pricing
Excise720 uses one flat, straightforward price for Form 720 filing — no separate tiers based on the tax type or number of IRS numbers reported.
$9.95 per filing
Any filing, any tax, any tax due — on Form 720.
- Applies to any Form 720 filing, regardless of the tax, fee, or number of IRS tax types reported
- Covers zero/low-liability filings, single-tax filings, PCORI fee filings, and multi-tax filings
- Schedule A, Schedule C, and Schedule T preparation included when applicable
- Guided data entry, IRS e-filing, and instant confirmation receipt included
- No hidden charges and no per-schedule add-ons
Frequently Asked Questions About Form 720
Ready to File Form 720 Online?
Prepare your applicable Quarterly Federal Excise Tax Return through Excise720's online filing workflow.
Enter your filing information, complete the applicable excise tax sections, review your return, and submit Form 720 electronically.