Sport Fishing and Archery Form 720 Quarterly Federal Excise Tax Return filing and payment relief provided for the first and second quarters of 2020

 

In response to the COVID-19 pandemic, the Secretary of the Treasury has provided sport fishing and archery taxpayers with relief for filing and paying Form 720 sporting goods excise taxes for the first and second quarters of 2020 until October 31, 2020. The payments for the first quarter, covering the months of January, February and March 2020 (due April 30, 2020) and the second quarter, covering the months of April, May and June 2020 (due July 31, 2020), are automatically postponed until October 31, 2020. The postponements of the due dates are automatic, so affected taxpayers do not have to call the IRS or file any extension forms to receive this relief.

First quarter relief for sport fishing and archery excise taxes

Notice 2020-55 PDF provides the following specific instructions for the first quarter (January, February and March 2020) Form 720:

  • An affected taxpayer who has already filed a first quarter Form 720 for sport fishing and archery excise taxes by the normal due date (April 30, 2020) but has not fully paid such excise taxes may pay those taxes by the postponed deadline of October 31, 2020. 
  • An affected taxpayer who takes advantage of this postponement should file only one first quarter Form 720 for the sport fishing and archery IRS line item numbers reflected in the notice by the postponed deadline of October 31, 2020. 
  • An affected taxpayer who takes advantage of the extended deadline must file a paper (not electronic) Form 720, adding the label "Notice 2020-55" in the top-center of the form, by the October 31 deadline.
  • If an affected taxpayer is required to file a Form 720 for excise taxes other than for sport fishing and archery on April 30, 2020, and has not done so, they should file a Form 720 reporting these taxes as soon as possible with the sport fishing and archery lines blank, to stop the further accrual of late filing penalties.

Second quarter relief for sport fishing and archery excise taxes

Notice 2020-48 PDF provides the following specific instructions for the second quarter (April, May and June) Form 720:

  • An affected taxpayer could have filed a Form 720 for excise taxes and paid the corresponding excise taxes for sport fishing and archery by the normal due date (July 31, 2020). Those returns could have been filed electronically.
  • An affected taxpayer who takes advantage of this postponement should file only one second quarter Form 720 for the sport fishing and archery IRS line item numbers reflected in the notice by the postponed deadline of October 31, 2020.
  • An affected taxpayer who takes advantage of the extended deadline must file a paper (not electronic) Form 720, adding the label "Notice 2020-48" in the top-center of the form, by the October 31 deadline.
  • If an affected taxpayer is required to file a Form 720 for excise taxes other than for sport fishing and archery equipment, these taxes are still due by the normal due date (July 31, 2020) and may be filed electronically. However, the affected taxpayer may still take advantage of the postponement of sport fishing and archery excise taxes by leaving these lines blank on the initial filing and then file a subsequent paper Form 720 by the October 31, 2020, extended due date.
  • FET payments for the second and third quarters of 2020 must be filed and paid separately by October 31. They cannot be combined into a single payment. Affected taxpayers should clearly designate the type of tax and tax period for which the payment is made.
  • As a result of the postponement, no interest, penalty or addition to tax for failure to file a Form 720 for excise taxes on sport fishing and archery equipment will apply if the affected taxpayer follows the guidelines outlined in Notice 2020-55 and Notice 2020-48.