12.   Filing Form 720

Use Form 720 to report and pay the excise taxes previously discussed in this publication. File Form 720 for each calendar quarter until you file a final Form 720. For information on filing Form 720 electronically, visit the IRS e-file website at www.irs.gov/efile.

You may be required to file your returns on a monthly or semimonthly basis instead of quarterly if you do not make deposits as required (see Payment of Taxes, later) or are liable for the excise tax on taxable fuels and meet certain conditions.

Form 720 has three parts and three schedules.

  • Part I consists of excise taxes generally required to be deposited (see Payment of Taxes, later).

  • Part II consists of excise taxes that are not required to be deposited.

  • Part III is used to figure your tax liability for the quarter and the amount of any balance due or overpayment.

  • Schedule A, Excise Tax Liability, is used to record your net tax liability for each semimonthly period in a quarter. Complete it if you have an entry in Part I.

  • Schedule C, Claims, is used to make claims. However, Schedule C can only be used if you are reporting a liability in Part I or Part II.

  • 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 rack.

Attachments to Form 720.   You may have to attach the following forms.
  • Form 6197 for the gas guzzler tax.

  • Form 6627 for environmental taxes.

Form 720X.   This form is used to make adjustments to Forms 720 filed in prior quarters. You can file Form 720X by itself or, if it shows a decrease in tax, you can attach it to Form 720. See Form 720X for more information.

Conditions to allowance.   For tax decreases, the claimant must check the appropriate box on Form 720X stating that:
  1. For adjustments of communications or air transportation taxes, the claimant has:

    1. Repaid the tax to the person from whom it was collected, or

    2. Obtained the consent of that person to the allowance of the adjustment.

  2. For other adjustments, the claimant has:

    1. Not included the tax in the price of the article and not collected the tax from the purchaser,

    2. Repaid the tax to the ultimate purchaser, or

    3. Attached the written consent of the ultimate purchaser to the allowance of the adjustment.

However, the conditions listed under (2) do not apply to environmental taxes, the ship passenger tax, obligations not in registered form, foreign insurance taxes, fuels used on inland waterways, cellulosic or second generation biofuel sold as but not used as fuel, biodiesel sold as fuel but not used as fuel, and certain fuel taxes if the tax was based on use (for example, dyed diesel fuel used in trains, LPG, and CNG).

Final return.   File a final return if:
  • You go out of business, or

  • You will not owe excise taxes that are reportable on Form 720 in future quarters.

Due dates.   Form 720 must be filed by the following due dates.
Quarter Covered Due Dates
January, February, March April 30
April, May, June July 31
July, August, September October 31
October, November, December January 31

  If any due date falls on a Saturday, Sunday, or legal holiday, you can file the return on the next business day.

One-time filing.   If you import a gas guzzling automobile, you may be eligible to make a one-time filing using your SSN if you:
  • Do not import gas guzzling automobiles in the course of your trade or business, and

  • Are not required to file Form 720 reporting other excise taxes for the calendar quarter, except for a one-time filing.

  If you meet both requirements above, see Gas guzzler tax (IRS No. 40) in the Instructions for Form 720 for how to file and pay the tax.

Payment voucher.   Form 720-V, Payment Voucher, must be included with Form 720 if you have a balance due on line 10 of Form 720 and you are making your payment by check or money order.


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