Instructions For Form 720 - Quarterly Federal Excise Tax Return

•

The floor stocks tax on ODCs, IRS No. 20 (reported in

Specific Instructions

Part II).

Attach Form 6627 to Form 720. The tax rates for these

taxes are shown on Form 6627.

Name and Address

The first time you file Form 720, type or print your name,

Communications Taxes

address (including the suite, room, or other unit number),

and the quarter ending date (month and year). After that, the

Who Must File

IRS will mail you a Package 720 with a preaddressed Form

The person receiving the payment for communications

720 every quarter. If your address changes, make the

services must collect and pay over the tax and file the

corrections on Form 720 and check the address change box

return. Enter the amount of tax collected or considered

above Part I of Form 720.

collected for the quarter.

P.O. box. If the post office does not deliver mail to the

Communications Services (IRS No. 22)

street address and you have a P.O. box, show the box

number instead of the street address.

The tax is 3% of amounts paid for local telephone service

and teletypewriter exchange service.

Foreign address. Enter the city, province or state, and

country. Follow the country’s practice for entering the postal

Credits or Refunds

code. Do not abbreviate the country name.

If tax is collected and paid over for nontaxable services from

Employer Identification Number (EIN)

the communications tax, the collector or taxpayer may

request a credit or refund as described below and in Notices

If the EIN on the preaddressed Form 720 is wrong or you

2006-50 and 2007-11.

did not receive a preaddressed Form 720, enter the correct

Collectors. The collector may request a credit or refund

number. If you are a one-time filer, you may not need an

only if it has repaid the tax to the person from whom the tax

EIN. See Gas guzzler tax on page 6. If you do not have an

was collected, or obtained the consent of that person to the

EIN, you may apply for one online. Go to the IRS website at

allowance of the credit or refund. These requirements also

and click on the “Employer ID

apply to nontaxable service refunds.

Numbers” link. You may also apply for an EIN by calling

1-800-829-4933 (hours of operation are Monday - Friday,

Collectors using the regular method for deposits.

7:00 a.m. to 10:00 p.m. local time), or you can fax or mail

Collectors using the regular method for deposits must use

Form SS-4, Application for Employer Identification Number,

Form 720X to request a credit or refund.

to the IRS.

Collectors using the alternative method for deposits.

Collectors using the alternative method for deposits must

Signature

adjust their separate accounts for the credit or refund. For

Form 720 must be signed by a person authorized by the

more information, see Alternative method on page 8.

entity to sign this return.

Form 720 taxpayers. Credits or refunds for nontaxable

service that was billed after February 28, 2003, and before

Third Party Designee

August 1, 2006, can be requested by taxpayers only on their

2006 federal income tax returns. Instructions to request the

If you want to allow an employee of your business, a return

credit or refund are available with the 2006 income tax

preparer, or other third party to discuss your Form 720 with

returns. Do not use Form 8849, Form 720, or Form 843 to

the IRS, check the “Yes” box in the Third Party Designee

make claims for nontaxable service; the IRS will not process

section of Form 720. Also, enter the designee’s name,

these claims.

phone number, and any five digits that person chooses as

his or her personal identification number (PIN).

Air Transportation Taxes

By checking the “Yes” box, you are authorizing the IRS to

speak with the designee to answer any questions relating to

When these instructions were prepared for printing,

the processing of or the information reported on

the air transportation taxes discussed below were

Form 720. You are also authorizing the designee to:

scheduled to expire for travel beginning after

•

CAUTION

Exchange information concerning Form 720 with the IRS,

December 14, 2007. If these taxes are extended, you must

and

continue to collect and pay over the tax and report the taxes

•

Respond to certain IRS notices that you have shared with

on the lines for IRS Nos. 26, 28, and 27.

your designee relating to Form 720. The IRS will not send

notices to your designee.

Who Must File

You are not authorizing the designee to receive any

The person receiving the payment for air transportation

refund check, bind you to anything (including additional tax

services must collect and pay over the tax and file the

liability), or otherwise represent you before the IRS. If you

return. Enter the amount of tax collected or considered

want to expand the designee’s authority, see Publication

collected for the quarter.

947, Practice Before the IRS and Power of Attorney.

Transportation of Persons by Air (IRS No. 26)

The authorization will automatically expire 1 year from the

The tax on transportation of persons by air is made up of the

due date (without regard to extensions) for filing your Form

percentage tax and the domestic segment tax. Add the

720. If you or your designee want to revoke this

percentage tax and the domestic segment tax to get the

authorization, send a written statement of revocation to the

total tax on transportation of persons by air.

Department of the Treasury, Internal Revenue Service

Center, Cincinnati, OH 45999. See Publication 947 for more

Percentage tax. The percentage tax is 7.5% for amounts

information.

paid for taxable transportation of persons by air.

Domestic segment tax. For amounts paid for each

Part I

domestic segment of taxable transportation of persons by

air, the domestic segment tax is $3.40 per segment for

Environmental Taxes

transportation that begins in 2007.

Use Form 6627, Environmental Taxes, to figure the

Rural airports. If a segment is to or from a rural airport,

environmental taxes on:

the domestic segment tax does not apply.

•

Oil spill liability, IRS Nos. 18 and 21;

•

Transportation of Property by Air (IRS No. 28)

Ozone-depleting chemicals (ODCs), IRS No. 98;

•

Imported products that used ODCs as materials in the

The tax is 6.25% of amounts paid for transportation of

manufacture or production of the product, IRS No. 19; and

property by air.

-3-

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2007 Page 3

Related Articles

Related forms

Related Categories