Instructions For Form 720 - Quarterly Federal Excise Tax Return (Page 2 of 18) in pdf

If any due date for filing a return falls on a Saturday,

The trust fund recovery penalty may be imposed on all

Sunday, or legal holiday, you may file the return on the next

persons who are determined by the IRS to be responsible

business day.

for collecting, accounting for, and paying over these taxes,

and who acted willfully in not doing so.

Send your return to the IRS using the U.S. Postal Service

or a designated private delivery service to meet the “timely

A responsible person can be an officer or employee of a

mailing as timely filing/paying” rule. See Private Delivery

corporation, a partner or employee of a partnership, an

Services below.

employee of a sole proprietorship, an accountant, or a

volunteer director/trustee. A responsible person may also

Floor stocks tax. Report the floor stocks tax on

include one who signs checks for the business or otherwise

ozone-depleting chemicals (ODCs), IRS No. 20, on the

has authority to cause the spending of business funds.

return due by July 31 of each year. The tax payment is due

by June 30. See Floor Stocks Tax on page 8.

Willfully means voluntarily, consciously, and intentionally.

A responsible person acts willfully if he or she knows the

Where To File

required actions are not taking place.

Send Form 720 to:

Additional Information

Department of the Treasury

Internal Revenue Service

You may find the following products helpful when preparing

Cincinnati, OH 45999-0009

Form 720 and any attachments.

•

Pub. 510, Excise Taxes, contains definitions and

How To File

examples that will help you prepare Form 720. Pub. 510

also contains information on fuel tax credits and refunds.

If you are not reporting a tax that you normally report, enter

•

Pub. 509, Tax Calendars, has deposit and payment due

a zero on the appropriate line in Part I or II (Form 720). Also,

dates for all federal excise taxes.

if you have no tax to report, write “None” on line 3, Part III;

•

Notice 2005-4. You can find Notice 2005-4 on page 289

sign and date the return.

of Internal Revenue Bulletin 2005-2 at

If you have adjustments to liabilities reported for prior

•

quarters, see Form 720X, Amended Quarterly Federal

Notice 2005-24. You can find Notice 2005-24 on page

Excise Tax Return. Do not enter adjustments on

757 of Internal Revenue Bulletin 2005-12 at

Form 720.

•

Notice 2005-62. You can find Notice 2005-62 on page

If you attach additional sheets, write your name and EIN

443 of Internal Revenue Bulletin 2005-35 at

on each sheet.

•

Notice 2005-80. You can find Notice 2005-80 on page

Final Return

953 of Internal Revenue Bulletin 2005-46 at

File a final return if you have been filing Form 720 and you:

•

1. Go out of business, or

Notice 2006-50. You can find Notice 2006-50 on page

2. Will not owe excise taxes that are reportable on Form

1141 of Internal Revenue Bulletin 2006-25 at

720 in future quarters.

•

Notice 2006-92. You can find Notice 2006-92 on page

If you are only filing to report zero tax and you will

774 of Internal Revenue Bulletin 2006-43 at

TIP

not owe excise tax in future quarters, check the final

•

return box above Part I of Form 720. The IRS will

Notice 2007-11. You can find Notice 2007-11 on page

then stop sending Package 720 to you each quarter.

405 of Internal Revenue Bulletin 2007-5 at

•

Recordkeeping

Notice 2007-37. You can find Notice 2007-37 on page

1002 of Internal Revenue Bulletin 2007-17 at

Keep copies of your tax return, records, and accounts of all

transactions to show that the correct tax has been paid.

•

Notice 2007-97. You can find Notice 2007-97 on page

Keep records to support all claims and all exemptions at

1092 of Internal Revenue Bulletin 2007-49 at

least 4 years from the latest of the date:

•

The tax became due,

•

Notice 2008-110. You can find Notice 2008-110 on page

•

You paid the tax, or

1298 of Internal Revenue Bulletin 2008-51 at

•

You filed a claim.

•

Notice 2009-6. You can find Notice 2009-6 on page 311

Penalties and Interest

of Internal Revenue Bulletin 2009-3 at

Avoid penalties and interest by filing returns and depositing

and paying taxes when due. The law provides penalties for

You may also call the business and specialty tax line at

filing a return late; depositing taxes late; paying taxes late;

1-800-829-4933 with your excise tax questions. The hours

willfully failing to collect and pay tax or file a return;

of operation are Monday – Friday, 7:00 a.m. to 10:00 p.m.

negligence; and fraud. These penalties are in addition to the

local time.

interest charged on late payments. The penalty for filing a

return late will not be imposed if you can show that the

Private Delivery Services

failure to file a timely return is due to reasonable cause.

Those filing after the due date must attach an explanation to

You can use certain private delivery services designated by

the return to show reasonable cause.

the IRS to meet the “timely mailing as timely filing/paying”

Trust fund recovery penalty. If communications and air

rule for tax returns and payments. These private delivery

transportation taxes are collected but not paid to the United

services include only the following:

•

States Treasury or are willfully not collected, the trust fund

DHL Express (DHL): DHL Same Day Service, DHL Next

recovery penalty may apply. The penalty is the full amount

Day 10:30 am, DHL Next Day 12:00 pm, DHL Next Day 3:00

of the unpaid tax.

pm, and DHL 2nd Day Service.

-2-

Instructions For Form 720 - Quarterly Federal Excise Tax Return Page 2

Related Articles

Related forms

Related Categories