Think filing IRS form 720 is like untangling a box of holiday lights? You’re not the only one. Excise taxes – those sneaky charges buried in everything from airline tickets to truck tires – leave even seasoned business owners scratching their heads. But here’s the good news: mastering this form is simpler than you think.

In this guide, we’ll transform IRS form 720 from a bureaucratic headache into a straightforward task. You’ll learn exactly who needs to file (spoiler: it’s not just gas giants), how to calculate taxes faster than a barista makes your latte, and why skipping deadlines could cost you more than a luxury vacation. No jargon, no panic—just clear, actionable steps to keep the IRS happy and your wallet intact.

Ready to turn quarterly filings from chaos to checklist? Let’s begin.

What is IRS form 720 - And why does it matter?

IRS form 720 isn’t just paperwork – it’s the backbone of funding for roads, healthcare, and environmental programs. Officially called the Quarterly Federal Excise Tax Return, this form lets businesses report taxes on specific goods and services, like gasoline, airline tickets, and tobacco. These “hidden” taxes are baked into product prices, so consumers rarely see them. But their impact? Massive.

Take fuel taxes: 84% of U.S. highway projects rely on this revenue. Every time a trucking company or gas station files IRS form 720, they’re helping fix potholes and build bridges. The form also funds vaccines, wildlife conservation, and even black lung disease benefits for miners, according to IRS guidelines.

In short, IRS form 720 keeps America moving – literally. And if your business handles taxable goods, it’s your ticket to compliance (and good karma).

Who needs to file IRS form 720?

Think IRS form 720 is only for oil giants and tobacco empires? Think again. Your local craft brewery, neighborhood tanning salon, or even a small truck dealership might need to file. Here’s the breakdown:

Manufacturers & Producers: Breweries, wineries, and biodiesel blenders.
Importers: Businesses bringing trucks, trailers, or chemicals like refrigerants into the U.S.
Retailers: Sellers of heavy-duty trucks, indoor tanning services, or sport fishing gear.
Niche Services: Airlines (passenger taxes), casinos, and shipping companies.

The IRS lists over 40 taxable categories – many apply to everyday businesses. If you sell, make, or import anything from alcohol to fishing equipment, IRS form 720 isn’t optional. Skip it, and penalties hit 5% of unpaid taxes monthly, maxing out at 25%.

Bottom line: Whether you’re a solo entrepreneur or a mid-sized distributor, compliance keeps the IRS (and your budget) happy.

3 surprising benefits of filing IRS form 720 correctly

Filing IRS form 720 isn’t just about avoiding fines – it’s a strategic move that rewards your business. Here’s how:

1. Dodge costly penalties
Miss a deadline? The IRS slaps a 5% monthly penalty on unpaid taxes, capping at 25%. For a $2,500 down the drain – enough to upgrade your office tech or host a team retreat.

2. Unlock hidden tax credits
Did you know the IRS rewards eco-friendly businesses? One trucking company we worked with saved $12,000 by claiming biofuel credits on form 720. Check the IRS tax credits page to see if you qualify.

3. Fund public services (and boost your reputation)
Every dollar paid via form 720 supports roads, vaccines, and environmental programs. Imagine telling clients, “Our excise taxes helped build that new highway.”

Smart filing = fewer headaches, more rewards.

Your step-by-step roadmap to filing IRS form 720

Filing IRS form 720 doesn’t have to feel like assembling IKEA furniture. Follow these 10 clear steps to nail your quarterly excise tax return:

Grab the form
Download the latest IRS Form 720 directly from the IRS website or request a paper copy by mail.
Pinpoint your quarter
Check the table below to confirm your filing deadline based on your business’s taxable period:
Quarter Reporting period Deadline
Q1 January – March April 30
Q2 April – June July 31
Q3 July – September October 31
Q4 October – December January 31
Fill in business basics
Enter your legal business name, EIN, and address in Part I. Double-check for typos – this is the IRS equivalent of spelling your name right on a coffee cup.
Calculate your tax liability
Work through Parts II (e.g., fuel taxes), III (communications taxes), and IV (other categories like tanning services). Use current IRS tax rates – they update yearly.
Total it up
Add all taxes owed in Part V. If your total exceeds $2,500 for the quarter, you must pay electronically via EFTPS.
Choose your payment method

- Under $2,500: Mail a check with form 720.
- Over $2,500: Pay online via EFTPS (it’s free and secure).

Sign, date, and review
An unsigned Form 720 is like an unsigned check – worthless. Sign Part III, and have your tax pro co-sign if you used one.
Attach schedules (if needed)
Some taxes, like biofuels or ozone-depleting chemicals, require extra forms. The IRS instructions list what to include.
Submit your form
- Mail: Send to the IRS address in the instructions.
- E-file: Use IRS-approved software for instant confirmation.
Keep records for 3+ Years
Store copies of form 720, payment receipts, and supporting documents. Audits are rare, but preparedness is priceless.

Pro Tip: Set calendar reminders for quarterly deadlines. One missed date can trigger a 25% penalty – yikes.

Deadlines and penalties: What happens if you miss the cutoff?

The IRS doesn’t send “friendly reminders” for IRS Form 720 – they send penalties. Here’s what’s at stake if you’re late:

The penalty breakdown

Late filing: 5% of unpaid taxes per month, maxing out at 25%.
Late payment: 0.5% of unpaid taxes monthly (up to 25%).
Underpayment: Interest compounds daily at the federal rate (currently 8% as of 2024).

Example: A $2,500 in penalties. That’s enough to cover a business-class flight to Paris – except the IRS gets the vacation, not you.

The E-filing rule
If your quarterly tax liability exceeds $2,500, you must pay electronically via EFTPS. Paper checks for larger amounts risk rejection and penalties.

How to avoid disaster

Mark deadlines: Use the table in Section 5 to track due dates.
Double-check math: Underpaying by $1 still triggers interest. The IRS Tax Calculator helps.
Save proof: Keep e-file confirmations or certified mail receipts.

Missed a deadline? File ASAP – the longer you wait, the deeper the hole.

Pro tips to simplify your IRS form 720 filing process

Dreading quarterly tax paperwork? These IRS-approved strategies turn IRS form 720 filings from chaotic to calm:

E-file through approved software
While the IRS accepts paper forms, e-filing via IRS-approved software speeds up processing and reduces errors. Taxpayers can submit forms 24/7 through a certified transmitter – no more postal delays.
Automate payments (Even if you file paper forms)
Use EFTPS to schedule tax payments in advance. Pro tip: Pair this with calendar alerts for deadlines to dodge penalties.
Go digital with records
Track transactions monthly using tools like QuickBooks or Excel. Store receipts in cloud folders labeled by quarter (e.g., “2024 Q3 Excise Taxes”).
Let Pros handle the heavy lifting
H&S Accounting & Tax Services specializes in IRS Form 720 prep, ensuring accurate calculations and on-time submissions—so you can focus on your business.

Remember: E-filing is optional, but it’s a game-changer for busy businesses.

Secure compliance and partner with tax pros

Mastering IRS form 720 isn’t just about avoiding fines – it’s about fueling the roads your trucks drive on, the vaccines your employees rely on, and the clean air your community breathes. By now, you’ve got the tools: deadlines etched in your calendar, e-filing shortcuts, and penalties that’ll make you triple-check every digit.

But let’s face it: tax forms shouldn’t monopolize your time. That’s where H&S Accounting & Tax Services shines. Our team handles IRS form 720 filings like clockwork, leaving you free to focus on what you do best – running your business.

Ready to ditch the paperwork maze? Book a free consultation today. Let’s turn quarterly taxes from a chore into your quietest win.

Master IRS Form 720: Quick & Stress-Free Filing Guide