Instructions For Form 720 - 2017 printable pdf download

Instructions for Form 720

Department of the Treasury

Internal Revenue Service

(Rev. January 2017)

Quarterly Federal Excise Tax Return

Section references are to the Internal Revenue Code unless

Exported gasoline blendstocks. Claims for exported

otherwise noted.

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

Schedule C, line 14b. Continue to use line 1b to make claims

Future Developments

for exported gasoline blendstocks taxed at $.184 per gallon.

For the latest information about developments related to

Electronic filing. You can electronically file Form 720

Form 720 and its instructions, such as legislation enacted

through any electronic return originator (ERO), transmitter,

after they were published, go to

and/or intermediate service provider (ISP) participating in the

What's New

IRS e-file program for excise taxes. For more information on

e-file, visit the IRS website at

Expiration of credits. The section 6426 credits shown on

Federal tax deposits made by electronic funds transfer.

Form 720, Schedule C, for biodiesel or renewable diesel

Generally, you must use electronic funds transfer to make

mixtures (line 12), and alternative fuels and alternative fuel

federal tax deposits, such as deposits of employment tax,

mixtures (line 13), expired on December 31, 2016. Don’t

excise tax (for exceptions, see Payment of Taxes, later), and

claim the credits for fuel sold or used after December 31,

corporate income tax. Generally, electronic funds transfers

2016.

are made using the Electronic Federal Tax Payment System

At the time these instructions went to print, Congress

(EFTPS). If you do not want to use EFTPS, you can arrange

was considering legislation that would affect the

for your tax professional, financial institution, payroll service,

computation of the lines referenced above. To find

or other trusted third party to make deposits on your behalf.

CAUTION

out if this legislation was enacted, and for more details, go to

EFTPS is a free service provided by the Department of

Treasury.

To get more information about EFTPS or to enroll in

Transportation of persons by air (IRS No. 26). For

EFTPS, visit

or call 1-800-555-4477. Also see

calendar year 2017, the tax on the amount paid for each

Pub. 966.

domestic segment of taxable air transportation is increased

to $4.10.

General Instructions

The tax is increased to $9 per person for domestic

segments that begin or end in Alaska or Hawaii (applies only

Purpose of Form

to departures). See Air Transportation Taxes, later.

Use Form 720 and attachments to report your liability by IRS

Use of international air travel facilities (IRS No. 27). For

No. and pay the excise taxes listed on the form. If you report

calendar year 2017, the section 4261 tax on the amount paid

a liability on Part I or Part II, you may be eligible to use

for international flights is increased to $18 per person for

Schedule C to claim a credit.

flights that begin or end in the United States.

Who Must File

Arrow shafts (IRS No. 106). For calendar year 2017, the

section 4161 tax on arrow shafts is increased to $.50 per

See Patient-centered outcomes research fee (IRS

arrow shaft.

No. 133) in Part II for special rules about who must

Uncollected tax report. The address for submitting your

file to report the patient-centered outcomes research

CAUTION

fee.

uncollected tax report for communications and air

transportation taxes is changed. See Communications and

You must file Form 720 if:

Air Transportation Taxes-Uncollected Tax Report, later.

You were liable for, or responsible for collecting, any of the

Reminders

federal excise taxes listed on Form 720, Parts I and II, for a

prior quarter and you have not filed a final return; or

Suspension of section 4191 medical device tax (former

You are liable for, or responsible for collecting, any of the

ly IRS No. 136). The medical device tax no longer applies

federal excise taxes listed on Form 720, Parts I and II, for the

to sales for 2 years beginning January 1, 2016, through

current quarter.

December 31, 2017. For information on the tax for sales

See How To File later for more information.

before January 1, 2016, see T.D. 9604 and Notice 2012-77.

When To File

Reducing your excise tax liability. For federal income tax

purposes, reduce your section 4081 excise tax liability by the

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

amount of excise tax credit allowable under section 6426(c)

follows.

and your section 4041 excise tax liability by the amount of

your excise tax credit allowable under section 6426(d), in

determining your deduction for those excise taxes or your

cost of goods sold deduction attributable to those excise

taxes.

Jan 25, 2017

Cat. No. 64240C

Instructions For Form 720 - 2017

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