Instructions For Form 720 - Quarterly Federal Excise Tax Return

Department of the Treasury

Instructions for Form 720

Internal Revenue Service

(Rev. October 2009)

For use with Form 720 (Rev. January 2009)

Quarterly Federal Excise Tax Return

Section references are to the Internal Revenue Code unless

General Instructions

otherwise noted.

Purpose of Form

What’s New

Use Form 720 and attachments to report liability by IRS No.

and pay the excise taxes listed on the form.

Carbon capture requirement. A credit for liquid fuel

derived from coal (including peat) through the

Who Must File

Fischer-Tropsch process can be claimed only if the fuel is

You must file Form 720 if you were previously liable for any

derived from coal produced at a gasification facility that

of the federal excise taxes listed in Parts I and II of Form

separates and sequesters not less than the following

720 and you have not filed a final return. See How To File

percentage of the facility’s total carbon dioxide emissions.

•

for more information.

50% for fuel produced after September 30, 2009, and

before December 31, 2009.

•

When To File

75% for fuel produced after December 30, 2009.

You must file a return for each quarter of the calendar year

Reminders

as follows:

Domestic segment tax. For amounts paid for each

Quarter covered

Due by

domestic segment of taxable transportation of a person by

Jan., Feb., Mar.

April 30

air (IRS No. 26), the domestic segment tax is $3.60 per

segment for transportation that begins in 2009.

Apr., May, June

July 31

Use of international air travel facilities. The tax on use of

July, Aug., Sept.

October 31

international air travel facilities (IRS No. 27) has increased

Oct., Nov., Dec.

January 31

for amounts paid during 2009. For flights that begin or end in

the United States, the tax is $16.10 per person. For

domestic segments that begin or end in Alaska or Hawaii

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

(applies only to departures), the tax is $8.00 per person.

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

Exported gasoline blendstocks. Claims for exported

business day.

gasoline blendstocks taxed at $.001 per gallon are made on

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

line 15b of Schedule C. Continue to use line 1b to make

or a designated private delivery service to meet the “timely

claims for exported gasoline blendstocks taxed at $.184 per

mailing as timely filing/paying” rule. See Private Delivery

gallon.

Services on page 2.

Credits for fuel provide incentive for United States

Floor stocks tax. Report the floor stocks tax on

production. The alcohol fuel mixture credit, biodiesel

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

mixture credit, alternative fuel credit, and alternative fuel

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

mixture credit may not be claimed for alcohol, biodiesel, and

by June 30. See Floor Stocks Tax on page 8.

alternative fuel that is produced outside the United States for

use as a fuel outside the United States. The United States

Where To File

includes any possession of the United States.

Electronic filing. You can electronically file Form 720

Send Form 720 to:

through any electronic return originator (ERO), transmitter,

Department of the Treasury

and/or intermediate service provider (ISP) participating in

Internal Revenue Service

the IRS e-file program for excise taxes. For more

Cincinnati, OH 45999-0009

information on e-file, visit the IRS website at

How To File

Electronic payment. Now, more than ever before,

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

businesses can enjoy the benefits of paying their federal

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

taxes electronically. Whether you rely on a tax professional

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

or handle your own taxes, the IRS offers you a convenient

sign and date the return.

program to make it easier. Spend less time on taxes and

more time running your business. Use the Electronic

If you have adjustments to liabilities reported for prior

Federal Tax Payment System (EFTPS) to your benefit. For

quarters, see Form 720X, Amended Quarterly Federal

information on EFTPS, visit or call the

Excise Tax Return. Do not enter adjustments on

EFTPS Customer Service at 1-800-555-4477. If you are

Form 720.

filing Form 720 electronically, you can choose to pay using

electronic funds withdrawal (direct debit). For more

If you attach additional sheets, write your name and EIN

information, see How To Make Deposits on page 8.

on each sheet.

Cat. No. 64240C

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2009

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