Frequently Asked Questions
E-Filing is transmitting Business Tax Returns to the IRS through the internet. Electronic filing is the safest, most secure, and private way to send your tax return to the IRS. Once you E-file your return, you will receive an electronic acknowledgment that the IRS has accepted your return for processing.
For filing your return you need to register with us.
Yes, you can come back and file your return.
Yes, you can authorize a third-party designee to exchange information concerning Form 720 with the IRS.
Form 720 must be filed for each quarter of the calendar year.
| Reporting Months | Due Date |
|---|---|
| Jan, Feb, Mar | Apr 30 |
| Apr, May, Jun | Jul 31 |
| Jul, Aug, Sep | Oct 31 |
| Oct, Nov, Dec | Jan 31 |
If any date for filing a return falls on a Saturday, Sunday, or a legal holiday, you may file the return on the next business day.
Enable checkbox zero liability, if you do not owe to IRS any tax.
If your address changes, make the corrections on Form 720 and check the Address change box above Part I of Form 720.
Use Form 6197, Gas Guzzler Tax, to figure the liability for this tax. Attach Form 6197 to Form 720.
No, the receiving person alone is liable for the tax.
Form 720 is used to file Excise Taxes like Environmental tax, Communication tax, Air transportation tax, Fuel tax, Retail tax, Ship passenger tax, Manufacturers tax, Foreign insurance tax, and Floor stocks tax.
Claims can be made only if you are reporting liability in Part I or II of Form 720.
The person who is eligible to make a claim is a claimant.
Form 6627 is used to figure the Environmental taxes on petroleum, ODCs Ozone-Depleting Chemicals, imported products that used ODCs as materials in the manufacture or production of the product, and the floor stocks tax on ODCs.
No, you need to attach Form 6627 to Form 720.
If your business does not yet have an Employer Identification Number (EIN), you can easily apply for one online through the IRS.
Apply for an EIN online:
• The fastest and easiest way to obtain an EIN is to apply online through the IRS website.
• The process is free, and you’ll receive your EIN immediately after completing the application.
The Business Name is the officially registered legal name of your business or organization. It is used for all formal and legal purposes.
Can I file my return without registering with the site?
No, you generally cannot file your tax return without registering on the online platform or tax filing service. Once registered, you can file your returns, track your submissions, and access your records for future filings.
Spend just a few minutes and share information with us to file your return.
Yes, you can have multiple businesses with a single-user registration.
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number and is used to identify a business entity. Generally, businesses need an EIN. Employer Identification Number is a 9-digit number assigned by IRS to filers of Form 720.
You can make a final return if you go out of business or will not owe excise taxes that are reportable in Form 720 in future quarters.
Schedule A is to report Excise tax liabilities. Excise Tax Liability is used to record your net tax liability for each semi-monthly period in a quarter. You must complete Schedule A if you have a liability for any tax in Part I of Form 720. Don’t complete Schedule A for Part II taxes or for a one-time filing of the gas guzzler tax.
Schedule T, Two-Party Exchange Information Reporting, is used to report certain exchanges of taxable fuel before or in connection with the removal at the terminal.
A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following occur. The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator.
Schedule C is used to make claims for credit or refund of excise taxes on fuels.
Super fund excise tax starts from 3rd quarter of TY 2022.
Break down the data’s for every month instead of entering total amount.
Form 720 Excise tax IRS contact No: 866-699-4096, 8 a.m. to 6 p.m. Eastern time
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0009
If you’re filing Form 720-X separately, send Form 720-X to:
Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0009
Otherwise, attach Form 720-X to your next Form 720
Due date for Form 720 X is same as Form 720 for every quarter
There is no specific deadline or due date to file Form 8849. But Form 720 should have been filed before that.
Here is a summary of the two methods for filing Federal Excise Tax Returns (Form 720):
1. E-Filing (Electronic Filing):
How: Submit Form 720 electronically through IRS-approved online systems or tax software.
Benefits:
Faster processing.
More secure than paper filing.
Convenient and efficient.
Receive an electronic acknowledgment from the IRS once your return is accepted.
2. Paper Filing:
How: Complete a physical copy of Form 720 and mail it to the IRS.
Considerations:
Traditional method but slower to process.
You need to ensure it is mailed to the correct IRS mailing address based on your location.
If you import a gas guzzling automobile, you may be eligible to make a one-time filing of Form 720 and Form 6197
if you meet both of the following conditions:
1.You do not import gas-guzzling automobiles in the course of your trade or business.
1.You do not import gas-guzzling automobiles in the course of your trade or business.
2.You are not required to file Form 720 reporting excise taxes for the calendar quarter, except for a one-time filing.
Example:
In August 2006, H, an individual, imports a car. The car has a fuel economy rating of 15 mpg, so H is liable for the gas guzzler tax of $4,500 (Form 6197, line 9). H meets the two conditions for a one-time filing, that is, (1) does not import gas guzzling automobiles in the course of his trade or business, and (2) is not otherwise required to file Form 720. He must file Forms 720 and 6197 for the third calendar quarter of 2006. H does not have to deposit the gas guzzler tax of $4,500 but instead pays with the return. H checks the one-time filing box on Form 720
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Enable checkbox zero liability, if you do not owe to IRS any tax.
Use Form 6197, Gas Guzzler Tax, to figure the liability for this tax. Attach Form 6197 to Form 720.
It is effective from October 1st, 2022.
Tax rate for each taxable chemical is determined by IRS, hence tax amount is calculated multiplying No. of tons with Tax rate of the chosen taxable chemical.
IRS 133 – PCORI (Patient-Centered Outcomes Research Fee) and IRS 20 – Floor Stocks Tax are the two IRS taxes to be filed Yearly (Second calendar quarter Apr-Jun)
We cannot file claims alone using Form 720. Claims/Schedule C should be filed along with any tax.
No need to file Form 720 for consulting.
There are three scenarios to calculate tax amount for the imported taxable substance.
First scenario: IRS tax of the substance is known Tax rate for the imported chemical substance (120 substances) is known, hence tax amount is calculated multiplying No. of tons with Tax rate of the chosen taxable substance.
Second scenario: Entry value of the substance is known Appraised Entry value of the imported chemical substance (31 substances) is known; hence tax amount is calculated multiplying Appraised Entry Value with Tax rate default 0.1
Third scenario: Conversion Factor of the Taxable chemical is known. An imported taxable substance is made up of two taxable chemicals, if the conversion factor of each taxable chemical is known, hence tax amount is calculated multiplying No. of tons and Conversion Factor with Tax rate of each taxable chemical.
Yes, we can file Communication and Air Transportation Taxes (22,26,27&28) in Regular Method option using efile720 portal.
No, efile Excise720 handles only Tax Liability charges which should be paid to IRS though Bank Account/EFTPS. For late filing cases, Penalty charges has been sent to user through mail by IRS. User should check with IRS for Waiving penalty.
For taxable chemicals, the manufacturer, producer, or importer of the taxable chemical is responsible for reporting and paying to the IRS. For taxable substances, the importer of the taxable substance is responsible for reporting and paying to the IRS.
The Superfund chemical excise taxes are reported on Form 6627 Part 1, Environmental Taxes, which is attached to Form 720, Quarterly Federal Excise Tax Return.
There are two separate Superfund chemical excise taxes: a) a tax on the sale or use of taxable chemicals (Tax on Chemicals (Other Than Ozone-Depleting Chemicals), IRS No. 54) b) a tax on the sale or use of imported taxable substances (Tax on Imported Chemical Substances, IRS No. 17)
eFiling is transmitting Business Tax Returns to the IRS through the internet. Electronic filing is the safest, most secure, and private way to send your tax return to the IRS. Once you efile your return, you will receive an electronic acknowledgment that the IRS has accepted your return for processing.
Reason for Rejection: Check your EIN Business Name address matches with details in IRS database. If address changes, enable checkbox address change on Tax Year Quarter Ending page. IF EIN is new, it takes 15 Business days to get activated after which customer can start filing.
If you only pay Superfund chemical excise tax (IRS No. 54 or 17) Do not break the total payment into Subcategories in EFTPS.
If you pay Superfund chemical excise tax and any other excise tax, Make two separate payments in EFTPS - one for Superfund chemical excise tax and another for any other excise tax listed in Sub Categories in EFTPS.
A taxable substance is any substance that, at the time of sale or use by the importer of the substance, is listed as a taxable substance. (ie. The importer of substances who sells or uses those substances.)
151 substances are listed as taxable substances. Among 151 substances, for 120 substances IRS determined Tax rates as shown below. For 31 substances (*) Tax rate per ton to be determined at a later date. Effective date is 7/1/2022. Tax amount can be calculated using conversion factor or entry value for those 31 substances.
151 substances are listed as taxable substances. Among 151 substances, for 120 substances IRS determined Tax rates as shown below. For 31 substances (*) Tax rate per ton to be determined at a later date. Effective date is 7/1/2022. Tax amount can be calculated using conversion factor or entry value for those 31 substances.
Regular method taxes: Special Rule for September column G is updated for Regular method taxes for dates beginning from Sept 16 to Sept 26. Enter the liability for the period beginning September 26/27 and ending September 30 in box F.
Alternative method taxes: Special Rule for September column S is updated for Alternative method taxes for dates beginning from Sept 1 to Sept 11. Enter the tax included in the amounts billed or tickets sold for the period beginning September 11/12 and ending September 15 in box M of the 4th quarter return. Enter the tax included in amounts billed or tickets sold during the period beginning September 16 and ending September 30 in box N of the 4th quarter return.
Alternative method taxes: Special Rule for September column S is updated for Alternative method taxes for dates beginning from Sept 1 to Sept 11. Enter the tax included in the amounts billed or tickets sold for the period beginning September 11/12 and ending September 15 in box M of the 4th quarter return. Enter the tax included in amounts billed or tickets sold during the period beginning September 16 and ending September 30 in box N of the 4th quarter return.
1.Use this form 720-X to make adjustments to liability reported on Forms 720 you have filed for previous quarters.
2.Use to correct a previously filed Form 720
2.Use to correct a previously filed Form 720
Due date for Form 720 X is same as Form 720 for every quarter