Instructions For Form 720 - Quarterly Federal Excise Tax Return

Department of the Treasury

Instructions for Form 720

Internal Revenue Service

(Rev. January 2002)

Quarterly Federal Excise Tax Return

Section references are to the Internal Revenue Code unless otherwise noted.

If you have adjustments to liabilities reported for prior

General Instructions

quarters, see Form 720X, Amended Quarterly Federal

Excise Tax Return. Do not enter adjustments on Form

720.

What’s New

If you attach additional sheets, write your name and

The following changes are effective after December 31,

EIN on each sheet.

2001.

•

The tax on sales of luxury passenger vehicles (IRS No.

One-Time Filings

92) is reduced to 3% of the sales price in excess of

If you import for personal use a gas guzzling automobile

$40,000. See page 5.

•

or a passenger vehicle subject to the luxury tax, you may

The domestic segment tax on amounts paid for

be eligible to make a one-time filing of Form 720 and

transportation of persons by air (IRS No. 26) increases to

Form 6197.

$3.00 per segment for travel that begins in 2002. See

page 3.

You may make a one-time filing to report the gas

•

The tax on use of international air travel facilities (IRS

guzzler tax or the luxury tax if you meet all of the

No. 27) increases for amounts paid during 2002.

following conditions:

•

You can now allow an employee or another person to

You do not use the vehicle in the course of any trade

resolve certain tax issues with the IRS. See Third Party

or business;

•

Designee on page 3.

You do not import gas guzzling automobiles or luxury

passenger vehicles in the course of your trade or

Purpose of Form

business; and

•

You are not required to file Form 720 reporting excise

Use Form 720 and attachments to report liability by IRS

taxes for the calendar quarter, except for a one-time

No. and pay the excise taxes listed on the form.

filing.

When To File

To make a one-time filing:

1. File the return for the quarter in which you incur

You must file a return for each quarter of the calendar

liability for the tax. See When To File above.

year as follows:

2. Pay the tax with the return. No deposits are

required.

Quarter covered

Due by

3. If you are an individual and do not have an

Jan., Feb., Mar.

April 30

employer identification number (EIN), enter your social

Apr., May, June

July 31

security number (SSN) on Form 720 in the space for the

EIN.

July, Aug., Sept.

October 31

4. Check the one-time filing box above Part I on

Oct., Nov., Dec.

January 31

page 1 of Form 720.

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

Final Return

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

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

next business day.

you:

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

1. Go out of business or

Service or a designated private delivery service to meet

2. Will not owe excise taxes that are reportable on

the “timely mailing as timely filing/paying” rule. See

Form 720 in future quarters.

Private Delivery Services on page 2.

Floor stocks tax. Report the floor stocks tax on

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

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

TIP

not owe excise tax in future quarters, check the

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

final return box above Part I on page 1 of Form

due by June 30. See page 6.

720. The IRS will then stop sending Package 720 to you

each quarter.

Where To File

Recordkeeping

Send Form 720 to the Internal Revenue Service Center,

Cincinnati, OH 45999-0009.

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

all transactions to show that the correct tax has been

How To File

paid. Keep records to support all adjustments claimed

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

and all exemptions at least 4 years from the latest of the

enter a zero on the appropriate line in Part I or II (Form

following dates:

•

720). Also, if you have no tax to report, write “None” on

When the tax became due,

•

lines 3 and 5, page 2, Part III, and sign the return.

When you paid the tax,

Cat. No. 64240C

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2002

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