Form 720 and PCORI fee FAQs


Our partners cannot pay us to guarantee favorable reviews of their products or services. Except in the case of a tax required to be collected and paid over, the person incurring liability for tax must file the return. In the case of a tax required to be collected and paid over, the person required to collect the tax must file the return.


The Form 720 is due on the last day of the month following the end of the quarter. For example, you must file a Form 720 by April 30 for the quarter ending on March 31. Use the IRS instructions, tax software, or a tax professional to calculate each excise tax amount. The amount you enter in the “tax” column reflects the excise taxes your business incurred during the quarter, whether or not you already paid it. This way, when it’s time to fill out Form 720, all of your information will be up to date, organized and complete.

About Form720

Description of benefits and details at On IRS Form 720, you’ll see a line for each type of excise tax that you may owe, usually based on unit sales or weight. Also known as the two-party exchange information reporting is imposed on diesel fuel used in the terminal, or delivered within a terminal. The same rule applies to the usage of Kerosene, Gasoline, and Aviation Gasoline too. Using pdfFiller with Google Docs allows you to create, amend, and sign documents straight from your Google Drive.

  • They must report on their total sales for the quarter being reported.
  • Complete No. 1 of Schedule A unless you are liable for any of the alternative-method taxes, as indicated by the appropriate IRS numbers (22, 26, 28 or 27 — which correspond to Part I).
  • Be sure to enter your EIN SSN for one-time filing Form 720 and the tax period on your check or money order.
  • Creating operating agreements allows LLC owners to have more control over their businesses.
  • By authorizing H&R Block to e-file your tax return, or by taking the completed return to file, you are accepting the return and are obligated to pay all fees when due.

Or, if you need some extra help What Is Form 720? Where To Get, How To Fill Out 720, consider investing in tax preparation software like those below. If you reported any tax liabilities in Part One, you will need to break down your excise tax liability semi-monthly for the entire quarter in Schedule A. A company in the market of these specific goods and services must pay extra taxes, also known as excise taxes. Enrollment in, or completion of, the H&R Block Income Tax Course or Tax Knowledge Assessment is neither an offer nor a guarantee of employment. There is no tuition fee for the H&R Block Income Tax Course; however, you may be required to purchase course materials, which may be non-refundable. The Income Tax Course consists of 62 hours of instruction at the federal level, 68 hours of instruction in Maryland, 80 hours of instruction in California, and 81 hours of instruction in Oregon.


Your expert will only sign and file your return if they believe it’s 100% correct and you are getting your best outcome possible. If you get a larger refund or smaller tax due from another tax preparer, we’ll refund the applicable TurboTax Live Full Service federal and/or state purchase price paid. If you pay an IRS or state penalty because of an error that a TurboTax tax expert or CPA made while acting as a signed preparer for your return, we’ll pay you the penalty and interest. Generally, most excise taxes must be paid on a semi-monthly basis. However, if the amount of excise tax is below certain levels, the IRS allows you to delay payment until you accumulate a sufficient excise tax liability.

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You need to complete the Schedule T section of Form 720 only if your business produces or sells diesel fuel, kerosene, gasoline or aviation gasoline. Schedule T reports the total taxable fuel gallons received or delivered in a two-party exchange within a terminal. The IRS considers a semimonthly period as the first 15 days of the month or the 16th through the last day of the month . According to the instructions applicable to the form. The requirement for filing a return under this part 40 applies separately to each tax listed by IRS Number on Form 720. Except as provided in this paragraph , an entry must be made on the line for the IRS Number in order to file a return of the tax corresponding to that number.

Who Uses IRS Form 720?

How you may also determine how you pay the IRS any necessary funds. See if you qualify for student loan refinancing and compare real time offers. Type text, add images, blackout confidential details, add comments, highlights and more. Emerald Card Retail Reload Providers may charge a convenience fee. Any Retail Reload Fee is an independent fee assessed by the individual retailer only and is not assessed by H&R Block or Pathward. Learn how to protect yourself and your money from falling victim to tax fraud.

  • If the IRS approves the application, it issues an Approval of Excise Tax Registration Letter .
  • If you’re a tax professional , you can take advantage of discounts based on the number of filings you require.
  • The more common method is a specific fixed amount charged per unit produced or sold, based on weight, volume, or other physical measurements.
  • Businesses that simply buy excise goods don’t file Form 720.
  • All tax forms of this type must be filed once in a quarter.
  • Before diving into filling out Form 720, take the time to gather all the necessary documents you need in one place.

If so, check the box located on page one of your return. An amended tax return is submitted to show corrections to the originally filed excise tax return. Form 720, known as the Quarterly Federal Excise Tax Return6, is used by organizations to report any federal excise taxes collected.