Instructions For Form 720 - Quarterly Federal Excise Tax Return

Part I

Specific Instructions

Environmental Taxes

Use Form 6627, Environmental Taxes, to figure the

Name and Address

environmental taxes on:

•

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

ODCs, IRS No. 98;

•

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

Imported products that used ODCs as materials in the

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

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

the IRS will mail you a Package 720 with a preprinted

and

•

label every quarter. Use the preprinted label on your

The floor stocks tax on ODCs, IRS No. 20.

form. If your address changes, make the corrections on

Attach Form 6627 to Form 720. The tax rates for

the label and check the address change box above Part I

these taxes are shown on Form 6627.

on page 1 of Form 720.

Communications and Air Transportation

P.O. box. If the Post Office does not deliver mail to the

Taxes

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

number instead of the street address.

Who Must File

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

The person receiving the payment for communications or

country. Follow the country’s practice for entering the

air transportation services must collect and pay over the

postal code. Do not abbreviate the country name.

tax and file the return. Enter the amount of tax collected

or considered collected for the quarter.

Employer Identification Number (EIN)

Communications Services (IRS No. 22)

If the EIN on the label is wrong or you did not receive a

The tax is 3% of amounts paid for local telephone

preprinted label, enter the correct number. (If you are a

service, toll telephone service, and teletypewriter

one-time filer, you do not need an EIN. See One-Time

exchange service.

Filings on page 1.) If you do not have an EIN, use Form

Transportation of Persons by Air (IRS No. 26)

SS-4, Application for Employer Identification Number, to

apply for one. You can get this form by calling

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

1-800-TAX-FORM (1-800-829-3676) or by visiting the

the percentage tax and the domestic segment tax.

IRS Web Site at You can ask for an EIN by

Percentage tax. The percentage tax is 7.5% for

calling the Tele-TIN phone number for your service

amounts paid for taxable transportation of persons by air.

center listed in the instructions for Form SS-4.

Domestic segment tax. For amounts paid for each

domestic segment of taxable transportation of persons by

Signature

air, the domestic segment tax is $3.00 per segment for

transportation that begins in 2002.

Form 720 must be signed by a person authorized by the

entity to sign this return.

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

the domestic segment tax does not apply.

Third Party Designee

Transportation of Property by Air (IRS No. 28)

If you want to allow an employee of your business or

The tax is 6.25% of amounts paid for transportation of

another person to discuss your Form 720 with the IRS,

property by air.

check the “Yes” box in the Third Party Designee section

Use of International Air Travel Facilities (IRS No.

of the return. Also, enter that person’s name, phone

27)

number, and any five digits that person chooses as his or

her personal identification number (PIN). The designation

For amounts paid during 2002, the tax on international

must specify an individual and may not refer to your

flights is:

•

payroll office or a tax preparation firm.

$13.20 per person for flights that begin or end in the

United States or

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

•

$6.60 per person for domestic segments that begin or

IRS to call the designated employee or person to answer

end in Alaska or Hawaii (applies only to departures).

any questions that may arise during the processing of

your return. You are also authorizing the designated

Fuel Taxes

person to:

•

First taxpayer’s report. If you are reporting gallons of

Give the IRS any information that is missing from your

gasoline, diesel fuel, and kerosene that may again be

return,

•

subject to tax, you may need to file a first taxpayer’s

Call the IRS for information about the processing of

report. The report must contain all the information as

your return or the status of your refund or payment(s),

shown in the Model Certificate A, Appendix C of

and

•

Pub. 510.

Respond to certain IRS notices that you have shared

with the designee about math errors and return

The person who paid the first tax must:

•

preparation. The notices will not be sent to the designee.

Give a copy of the first taxpayer’s report to the buyer;

•

You are not authorizing the designee to receive any

File the first taxpayer’s report with Form 720 for the

refund check, bind you to anything (including additional

quarter for which the report relates; and

•

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

Write “EXCISE —FIRST TAXPAYER’S REPORT”

you want to expand the designee’s authorization, see

across the top of a separate copy of the report, and by

Pub. 947, Practice Before the IRS and Power of

the due date of Form 720, send the copy to: Internal

Attorney.

Revenue Service Center, Cincinnati, OH 45999-0555.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2002 Page 3

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