Instructions For Form 720 - Quarterly Federal Excise Tax Return

•

Excise Tax Return. Do not enter adjustments on

Publication 509, Tax Calendars for 2006, has deposit

Form 720.

and payment due dates for all federal excise taxes.

•

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

If you attach additional sheets, write your name and

289 of Internal Revenue Bulletin 2005-2 at

EIN on each sheet.

pub/irs-irbs/irb05-02.pdf.

•

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

Final Return

757 of Internal Revenue Bulletin 2005-12 at

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

pub/irs-irbs/irb05-12.pdf.

you:

•

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

1. Go out of business or

443 of Internal Revenue Bulletin 2005-35 at

2. Will not owe excise taxes that are reportable on

pub/irs-irbs/irb05-35.pdf.

•

Form 720 in future quarters.

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

953 of Internal Revenue Bulletin 2005-46 at

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

pub/irs-irbs/irb05-46.pdf.

TIP

not owe excise tax in future quarters, check the

You may also call the business and specialty tax line

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

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

will then stop sending Package 720 to you each quarter.

hours of operation are Monday - Friday, 8:00 a.m. to 8:00

p.m. local time.

Recordkeeping

Private Delivery Services

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

all transactions to show that the correct tax has been

You can use certain private delivery services designated

paid. Keep records to support all claims and all

by the IRS to meet the “timely mailing as timely filing/

exemptions at least 4 years from the latest of the date:

paying” rule for tax returns and payments. These private

•

The tax became due,

delivery services include only the following:

•

You paid the tax, or

DHL Express (DHL): DHL Same Day Service, DHL

•

You filed a claim.

Next Day 10:30 am, DHL Next Day 12:00 pm, DHL Next

Day 3:00 pm, and DHL 2nd Day Service.

Penalties and Interest

•

Federal Express (FedEx): FedEx Priority Overnight,

Avoid penalties and interest by filing returns and

FedEx Standard Overnight, FedEx 2Day, FedEx

depositing and paying taxes when due. The law provides

International Priority, and FedEx International First.

•

penalties for filing a return late; depositing taxes late;

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

paying taxes late; willfully failing to collect and pay tax or

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

file a return; negligence; and fraud. These penalties are

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

in addition to the interest charge on late payments. The

Express.

penalty for filing a return late will not be imposed if you

The private delivery service can tell you how to get

can show that the failure to file a timely return is due to

written proof of the mailing date.

reasonable cause. Those filing after the due date must

Private delivery services cannot deliver items to

attach an explanation to the return to show reasonable

P.O. boxes. You must use the U.S. Postal Service

cause.

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

CAUTION

Trust fund recovery penalty. If communications and air

transportation taxes are collected but not paid to the

Photographs of Missing Children

United States Treasury or are willfully not collected, the

trust fund recovery penalty may apply. The penalty is the

The Internal Revenue Service is a proud partner with the

full amount of the unpaid tax.

National Center for Missing and Exploited Children.

Photographs of missing children selected by the Center

The trust fund recovery penalty may be imposed on all

may appear in instructions on pages that would otherwise

persons who are determined by the IRS to be

be blank. You can help bring these children home by

responsible for collecting, accounting for, and paying

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

over these taxes, and who acted willfully in not doing so.

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

A responsible person can be an officer or employee of

a corporation, a partner or employee of a partnership, an

employee of a sole proprietorship, an accountant, or a

Specific Instructions

volunteer director/trustee. A responsible person may also

include one who signs checks for the business or

Name and Address

otherwise has authority to cause the spending of

business funds.

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

Willfully means voluntarily, consciously, and

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

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

intentionally. A responsible person acts willfully if he or

the IRS will mail you a Package 720 with a preaddressed

she knows the required actions are not taking place.

Form 720 every quarter. If your address changes, make

Additional Information

the corrections on Form 720 and check the address

change box above Part I of Form 720.

You may find the following products helpful when

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

preparing Form 720 and any attachments:

•

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

Publication 510, Excise Taxes for 2006, contains

number instead of the street address.

definitions and examples that will help you prepare

Form 720.

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

•

Publication 378, Fuel Tax Credits and Refunds, has

country. Follow the country’s practice for entering the

information on fuel tax claims.

postal code. Do not abbreviate the country name.

-2-

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2006 Page 2

Related Articles

Related forms

Related Categories