Instructions For Form 720 - Quarterly Federal Excise Tax Return

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Final Return

Notice 2005-80. You can find Notice 2005-80 on page

953 of IRB 2005-46 at

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

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1. Go out of business, or

Notice 2006-50. You can find Notice 2006-50 on page

2. Will not owe excise taxes that are reportable on Form

1141 of IRB 2006-25 at

720 in future quarters.

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Notice 2006-92. You can find Notice 2006-92 on page

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

774 of IRB 2006-43 at

not owe excise tax in future quarters, check the final

TIP

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return box above Part I of Form 720. The IRS will

Notice 2007-11. You can find Notice 2007-11 on page

then stop sending Package 720 to you each quarter.

405 of IRB 2007-5 at

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Recordkeeping

Notice 2007-37. You can find Notice 2007-37 on page

1002 of IRB 2007-17 at

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

transactions to show that the correct tax has been paid.

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Notice 2007-97. You can find Notice 2007-97 on page

Keep records to support all claims and all exemptions at

1092 of IRB 2007-49 at

least 4 years from the latest of the date:

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The tax became due,

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Notice 2008-110. You can find Notice 2008-110 on page

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You paid the tax, or

1298 of IRB 2008-51 at

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You filed a claim.

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Notice 2009-6. You can find Notice 2009-6 on page 311

Penalties and Interest

of IRB 2009-3 at

Avoid penalties and interest by filing returns and depositing

and paying taxes when due. The law provides penalties for

You may also call the business and specialty tax line at

filing a return late; depositing taxes late; paying taxes late;

1-800-829-4933 with your excise tax questions. The hours

willfully failing to collect and pay tax or file a return;

of operation are Monday – Friday, 7:00 a.m. to 10:00 p.m.

negligence; and fraud. These penalties are in addition to the

local time.

interest charged on late payments. The penalty for filing a

Private Delivery Services

return late will not be imposed if you can show that the

failure to file a timely return is due to reasonable cause.

You can use certain private delivery services designated by

Those filing after the due date must attach an explanation to

the IRS to meet the “timely mailing as timely filing/paying”

the return to show reasonable cause.

rule for tax returns and payments. These private delivery

Trust fund recovery penalty. If communications, air

services include only the following:

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transportation, and indoor tanning taxes are collected but

DHL Express (DHL): DHL Same Day Service.

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not paid to the United States Treasury or are willfully not

Federal Express (FedEx): FedEx Priority Overnight,

collected, the trust fund recovery penalty may apply. The

FedEx Standard Overnight, FedEx 2Day, FedEx

penalty is the full amount of the unpaid tax.

International Priority, and FedEx International First.

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United Parcel Service (UPS): UPS Next Day Air, UPS

The trust fund recovery penalty may be imposed on all

Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air

persons who are determined by the IRS to be responsible

A.M., UPS Worldwide Express Plus, and UPS Worldwide

for collecting, accounting for, and paying over these taxes,

Express.

and who acted willfully in not doing so.

The private delivery service can tell you how to get

A responsible person can be an officer or employee of a

written proof of the mailing date.

corporation, a partner or employee of a partnership, an

employee of a sole proprietorship, an accountant, or a

Private delivery services cannot deliver items to P.O.

volunteer director/trustee. A responsible person may also

boxes. You must use the U.S. Postal Service to mail

include one who signs checks for the business or otherwise

any item to an IRS P.O. box address.

CAUTION

has authority to cause the spending of business funds.

Photographs of Missing Children

Willfully means voluntarily, consciously, and intentionally.

A responsible person acts willfully if he or she knows the

The Internal Revenue Service is a proud partner with the

required actions are not taking place.

National Center for Missing and Exploited Children.

Photographs of missing children selected by the Center may

Additional Information

appear in instructions on pages that would otherwise be

blank. You can help bring these children home by looking at

You may find the following products helpful when preparing

the photographs and calling 1-800-THE-LOST

Form 720 and any attachments.

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

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Pub. 510, Excise Taxes, contains definitions and

examples that will help you prepare Form 720. Pub. 510

also contains information on fuel tax credits and refunds.

Specific Instructions

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Pub. 509, Tax Calendars, has deposit and payment due

dates for all federal excise taxes.

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Notice 2005-4. You can find Notice 2005-4 on page 289

Name and Address

of Internal Revenue Bulletin (IRB) 2005-2 at

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

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Notice 2005-24. You can find Notice 2005-24 on page

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

757 of IRB 2005-12 at

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

IRS will mail you a Package 720 with a preaddressed Form

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Notice 2005-62. You can find Notice 2005-62 on page

720 every quarter. If your address changes, make the

443 of IRB 2005-35 at

corrections on Form 720 and check the address change box

above Part I of Form 720.

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Instructions for Form 720 (Rev. 7-2010)

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2010 Page 2

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