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Form 720 is the Quarterly Federal Excise Tax Return. Unlike income tax, which is based on how much your business earns, excise tax is a usage or activity tax tied to specific goods and services. The IRS uses this form to collect tax on items like fuel, air travel, and indoor tanning.

For an LLC, the responsibility often stems from being a collector. Even if your LLC is a single-member disregarded entity, the IRS treats the business as a separate corporation specifically for excise tax purposes. This means you are legally responsible for reporting and remitting these funds every three months.

Not every LLC needs to worry about this form, but if your business touches certain industries, it is mandatory. In 2026, the most common LLCs required to file include:

• Tanning Salons: Any LLC providing indoor tanning services must collect and pay a 10% excise tax

• Fuel Dealers: Businesses selling or using gasoline, diesel, or aviation fuels

• Manufacturers: LLCs that sell specific retail items like heavy trucks, trailers, or even certain sporting equipment like bows and arrows

• Health Providers: Certain issuers of health insurance policies must file to report the PCORI fee on their second-quarter return

Before you sit down to file, you need your records organized to avoid math errors. At a minimum, have the following ready:

1. Business Basics: Your legal LLC name and Employer Identification Number (EIN).

2. Inventory/Service Logs: The total number of taxable units sold or the total revenue from taxable services during the quarter.

3. Quarter End Dates: Remember that 2026 deadlines follow a strict schedule. If a deadline falls on a weekend, it moves to the next business day. For example, Q4 2025 is due February 2, 2026.( Source - Bloombergtax )

4. Deposit Records: If your tax liability exceeded $2,500 in a prior quarter, you likely made semi-monthly deposits that must be reconciled on the form

The IRS is particularly strict about excise taxes because you are often holding money that belongs to the government.

• Missing the Zero Filing: If you are registered for excise tax but had no taxable sales this quarter, you must still file a "zero" return to avoid non-filing penalties.

• Using the Wrong EIN: LLC owners sometimes use their personal SSN by mistake. Excise taxes must stay tied to the business EIN to maintain your corporate veil.

• Late Deposits: If you owe more than $2,500, the IRS expects that money twice a month. Waiting until the end of the quarter can result in significant interest charges.

Managing an LLC in 2026 requires staying ahead of quarterly requirements like Form 720. By understanding your specific industry obligations and using the right tools, you can keep your business in good standing with the IRS.

Ready to simplify your LLC’s tax season? File Your Form 720 with QuickFile720 Today!