Instructions for Form 720 - Introductory Material


Future Developments

For the latest information about developments related to Form 720 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form720.

What's New

Expiration of credits.   Credits formerly shown on Form 720, Schedule C, for biodiesel or renewable diesel mixtures (line 13), and alternative fuels and alternative fuel mixtures (line 14, except for line 14d (liquefied hydrogen)), expired on December 31, 2013.

Transportation of persons by air (IRS No. 26).   For calendar year 2014, the tax on the amount paid for each domestic segment of taxable air transportation is $4.00.

Use of international air travel facilities (IRS No. 27).   For calendar year 2014, the tax on the amount paid for international flights is $17.50 per person for flights that begin or end in the United States.

  The tax is $8.70 per person for domestic segments that begin or end in Alaska or Hawaii (applies only to departures). See Air Transportation Taxes, later.

Arrow shafts (IRS No. 106).   For calendar year 2014 the tax on arrow shafts continues to be $.48 per arrow shaft.

Reminders

Tax on seasonal flu vaccines.   Sales of all vaccines against seasonal influenza are now subject to the section 4131 excise tax at the existing rate of $.75 per dose of taxable vaccine. Previously, only trivalent influenza vaccines were subject to this tax. See Vaccine taxes (IRS No. 97), later.

Medical device excise tax.   A 2.3% (.023) excise tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device now applies to sales of taxable medical devices after December 31, 2012. See Taxable medical devices (IRS No. 136), later.

Exported gasoline blendstocks.   Claims for exported gasoline blendstocks taxed at $.001 per gallon are made on Schedule C, line 15b. Continue to use line 1b to make claims for exported gasoline blendstocks taxed at $.184 per gallon.

Electronic filing.   You can electronically file Form 720 through any electronic return originator (ERO), transmitter, and/or intermediate service provider (ISP) participating in the IRS e-file program for excise taxes. For more information on e-file, visit the IRS website at www.irs.gov/efile.

Federal tax deposits must be made by electronic funds transfer.   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Forms 8109 and 8109-B, Federal Tax Deposit Coupon, are obsolete. Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. EFTPS is a free service provided by the Department of Treasury.

  To get more information about EFTPS or to enroll in EFTPS, visit www.eftps.gov or call 1-800-555-4477. Also see Publication 966, Electronic Federal Tax Payment System, A Guide to Getting Started.


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