Instructions For Form 720 - 2017 (Page 11 of 20) in pdf

this is the 29th day of a month for the first semimonthly period

Additional deposit of taxes in September 2016

and the 14th day of the following month for the second

For the period

semimonthly period. If the 14th or the 29th day falls on a

Type of Tax

Beginning on

Ending on

Due Date

Saturday, Sunday, or legal holiday, you must make the

deposit by the immediately preceding day that is not a

Regular

Sept. 16

Sept. 26

Sept. 29

Saturday, Sunday, or legal holiday.

method taxes

Alternative

Alternative method (IRS Nos. 22, 26, 27, and 28).

method taxes

Deposits of communications and air transportation taxes may

(IRS Nos. 22,

Sept. 1

Sept. 11

Sept. 29

be based on taxes included in amounts billed or tickets sold

26, 27, and 28)

during a semimonthly period instead of on taxes actually

(based on

collected during the period. Under the alternative method, the

amounts billed)

tax included in amounts billed or tickets sold during a

semimonthly period is considered collected during the first 7

days of the second following semimonthly period. The

For the remaining days in September (27–30), be

deposit of tax is due by the third business day after the

sure to make your deposits by the 14th day of

seventh day of that period.

October.

CAUTION

Example. The tax included in amounts billed or tickets

sold for the period June 16–30, 2017, is considered collected

How To Make Deposits

from July 16–22, 2017, and must be deposited by July 27,

To avoid a penalty, make your deposits timely and do not

2017.

mail your deposits directly to the IRS. Records of your

To use the alternative method, you must keep separate

deposits will be sent to the IRS for crediting to your accounts.

accounts of the tax included in amounts billed or tickets sold

during the month and report on Form 720 the tax included in

Electronic deposit requirement. You must deposit all

amounts billed or tickets sold and not the amount of tax that

depository taxes (such as excise tax, employment tax, or

is actually collected. For example, amounts billed in

corporate income tax) by electronic funds transfer.

December, January, and February are considered collected

Depositing on time. For EFTPS deposits to be on time,

during January, February, and March and are reported on

you must initiate the transaction at least 1 day before the date

Form 720 as the tax for the first quarter of the calendar year.

the deposit is due (before 8:00 p.m. Eastern time).

The separate account for each month must reflect:

If a deposit is due on a day that is not a business day or

1. All items of tax included in amounts billed or tickets

legal holiday, see below under When To Make Deposits. The

sold during the month, and

term “legal holiday” means any legal holiday in the District of

Columbia.

2. Other items of adjustment relating to tax for prior

months (within the statute of limitations on credits or

Sameday wire payment option. If you fail to submit a

refunds).

deposit transaction on EFTPS by 8:00 p.m. Eastern time the

day before the date a deposit is due, you can still make your

The separate account for any month cannot include an

deposit on time by using the Federal Tax Collection Service

adjustment resulting from a refusal to pay or inability to

(FTCS). To use the same-day wire payment method, you will

collect unless the refusal has been reported to the IRS. See

need to make arrangements with your financial institution

Communications and Air Transportation Taxes—

ahead of time. Please check with your financial institution

Uncollected Tax Report, earlier.

regarding availability, deadlines, and costs. Your financial

The net tax liability that is considered collected during the

institution may charge you a fee for payments made this way.

semimonthly period must be either:

To learn more about the information you will need to provide

The net amount of tax reflected in the separate account for

your financial institution to make a same-day wire payment,

the corresponding semimonthly period of the preceding

visit

and click on Same-day wire.

month, or

You will automatically be enrolled in EFTPS when

One-half of the net amount of tax reflected in the separate

you apply for an EIN. You will receive a separate

account for the preceding month.

TIP

mailing containing instructions for activating your

EFTPS enrollment after you receive your EIN.

Amount To Deposit

Deposits of taxes for a semimonthly period must be at least

When To Make Deposits

95% of the amount of net tax liability for that period, unless

the safe harbor rule applies. See Safe Harbor Rule later.

There are two methods for determining deposits: the regular

method and the alternative method.

The net tax liability for a semimonthly period is the total

liability for the period minus any claims allowed on

The regular method applies to all taxes on Form 720, Part

Schedule C for the period. Net tax liability for a semimonthly

I, except for communications and air transportation taxes if

period may be figured by dividing the net tax liability for the

deposits are based on amounts billed or tickets sold, rather

month by 2, provided this method of computation is used for

than on amounts actually collected. See Alternative

all semimonthly periods in the calendar quarter.

methodlater.

The net tax liability for a semimonthly period is not

If you are depositing more than one tax under a method,

reduced by any amounts from Form 720X.

combine all the taxes under the method and make one

deposit for the semimonthly period.

CAUTION

Regular method. The deposit of tax for a semimonthly

period is due by the 14th day following that period. Generally,

Instructions for Form 720 (Rev. 12017)

Instructions For Form 720 - 2017 Page 11

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