Instructions For Form 720 - Quarterly Federal Excise Tax Return

Photographs of Missing Children

You are not authorizing the designee to receive any

refund check, bind you to anything (including additional

The Internal Revenue Service is a proud partner with the

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

National Center for Missing and Exploited Children.

you want to expand the designee’s authorization, see

Photographs of missing children selected by the Center

Pub. 947, Practice Before the IRS and Power of

may appear in instructions on pages that would otherwise

Attorney.

be blank. You can help bring these children home by

looking at the photographs and calling 1-800-THE-LOST

Part I

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

Environmental Taxes

Use Form 6627, Environmental Taxes, to figure the

Specific Instructions

environmental taxes on:

•

ODCs, IRS No. 98;

•

Name and Address

Imported products that used ODCs as materials in the

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

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

and

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

•

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

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

Attach Form 6627 to Form 720. The tax rates for

the IRS will mail you a Package 720 with a preprinted

these taxes are shown on Form 6627.

label every quarter. Use the preprinted label on your

form. If your address changes, make the corrections on

Communications and Air Transportation

the label and check the address change box above Part I

Taxes

on page 1 of Form 720.

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

Who Must File

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

The person receiving the payment for communications or

number instead of the street address.

air transportation services must collect and pay over the

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

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

or considered collected for the quarter.

country. Follow the country’s practice for entering the

postal code. Do not abbreviate the country name.

Communications Services (IRS No. 22)

The tax is 3% of amounts paid for local telephone

Employer Identification Number (EIN)

service, toll telephone service, and teletypewriter

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

exchange service.

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

Transportation of Persons by Air (IRS No. 26)

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

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

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

the percentage tax and the domestic segment tax. Add

SS-4, Application for Employer Identification Number, to

the percentage tax and the domestic segment tax to

apply for one. You can get this form by calling

get the total tax on transportation of persons by air.

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

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 designee to answer any questions that

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

may arise during the processing of your return. You are

also authorizing the designee to:

Fuel Taxes

•

Give the IRS any information that is missing from your

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

return,

•

gasoline, diesel fuel, and kerosene that may again be

Call the IRS for information about the processing of

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

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

report. The report must contain all the information as

and

•

shown in the Model Certificate A, Appendix C of

Respond to certain IRS notices that you have shared

Pub. 510.

with the designee about math errors and return

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

The person who paid the first tax must:

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

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