Instructions For Form 720 - Quarterly Federal Excise Tax Return

Floor stocks tax. Report the floor stocks tax on

Additional Information

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

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

You may find the following products helpful when preparing

by June 30. See Floor Stocks Tax on page 7.

Form 720 and any attachments.

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Publication 510, Excise Taxes for 2007, contains

Where To File

definitions and examples that will help you prepare

Form 720. Pub. 510 also contains information on fuel tax

Send Form 720 to:

credits and refunds.

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Department of the Treasury

Publication 509, Tax Calendars for 2007, has deposit and

Internal Revenue Service Center

payment due dates for all federal excise taxes.

Cincinnati, OH 45999-0009

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

of Internal Revenue Bulletin 2005-2 at

How To File

irs-irbs/irb05-02.pdf.

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

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

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

757 of Internal Revenue Bulletin 2005-12 at

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

pub/irs-irbs/irb05-12.pdf.

•

sign and date the return.

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

443 of Internal Revenue Bulletin 2005-35 at

If you have adjustments to liabilities reported for prior

pub/irs-irbs/irb05-35.pdf.

quarters, see Form 720X, Amended Quarterly Federal

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

Excise Tax Return. Do not enter adjustments on

953 of Internal Revenue Bulletin 2005-46 at

Form 720.

pub/irs-irbs/irb05-46.pdf.

If you attach additional sheets, write your name and EIN

•

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

on each sheet.

1141 of Internal Revenue Bulletin 2006-25 at

Final Return

pub/irs-irbs/irb06-25.pdf.

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

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

774 of Internal Revenue Bulletin 2006-43 at

1. Go out of business, or

pub/irs-irbs/irb06-43.pdf.

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

•

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

720 in future quarters.

405 of Internal Revenue Bulletin 2007-5 at

irs-irbs/irb07-05.pdf.

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

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

TIP

not owe excise tax in future quarters, check the final

1002 of Internal Revenue Bulletin 2007-17 at

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

pub/irs-irbs/irb07-17.pdf.

then stop sending Package 720 to you each quarter.

•

Notice 2007-97. You can find Notice 2007-97 in Internal

Revenue Bulletin 2007-49 at irs-irbs/

Recordkeeping

irb07-49.pdf.

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

You may also call the business and specialty tax line at

transactions to show that the correct tax has been paid.

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

Keep records to support all claims and all exemptions at

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

least 4 years from the latest of the date:

•

local time.

The tax became due,

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You paid the tax, or

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You filed a claim.

Private Delivery Services

You can use certain private delivery services designated by

Penalties and Interest

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

Avoid penalties and interest by filing returns and depositing

rule for tax returns and payments. These private delivery

and paying taxes when due. The law provides penalties for

services include only the following:

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

•

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

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

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

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

pm, and DHL 2nd Day Service.

interest charged on late payments. The penalty for filing a

•

Federal Express (FedEx): FedEx Priority Overnight,

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

FedEx Standard Overnight, FedEx 2Day, FedEx

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

International Priority, and FedEx International First.

Those filing after the due date must attach an explanation to

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United Parcel Service (UPS): UPS Next Day Air, UPS

the return to show reasonable cause.

Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air

Trust fund recovery penalty. If communications and air

A.M., UPS Worldwide Express Plus, and UPS Worldwide

transportation taxes are collected but not paid to the United

Express.

States Treasury or are willfully not collected, the trust fund

recovery penalty may apply. The penalty is the full amount

The private delivery service can tell you how to get

of the unpaid tax.

written proof of the mailing date.

The trust fund recovery penalty may be imposed on all

Private delivery services cannot deliver items to P.O.

persons who are determined by the IRS to be responsible

boxes. You must use the U.S. Postal Service to mail

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

any item to an IRS P.O. box address.

CAUTION

and who acted willfully in not doing so.

A responsible person can be an officer or employee of a

Photographs of Missing Children

corporation, a partner or employee of a partnership, an

employee of a sole proprietorship, an accountant, or a

The Internal Revenue Service is a proud partner with the

volunteer director/trustee. A responsible person may also

National Center for Missing and Exploited Children.

include one who signs checks for the business or otherwise

Photographs of missing children selected by the Center may

has authority to cause the spending of business funds.

appear in instructions on pages that would otherwise be

Willfully means voluntarily, consciously, and intentionally.

blank. You can help bring these children home by looking at

A responsible person acts willfully if he or she knows the

the photographs and calling 1-800-THE-LOST

required actions are not taking place.

(1-800-843-5678) if you recognize a child.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2007 Page 2

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