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Form 720 Paper vs Online Filing: Which Is Better in 2026
Jan 09 ,2026

Form 720 Paper vs Online Filing: Which Is Better in 2026

What Is Form 720?

Form 720, officially known as the Quarterly Federal Excise Tax Return, is used to report and pay federal excise taxes on specific goods, services, and activities. These taxes may apply to fuel, environmental taxes, communications services, air transportation, indoor tanning services, PCORI fees, and other excise-tax categories.

The form is issued by the Internal Revenue Service and must be filed quarterly by businesses that are liable for excise taxes. Each filing requires accurate calculations and timely submission to avoid penalties or delays.


How Can Form 720 Be Filed?

Businesses can file Form 720 using two methods: paper filing (manual) or electronic filing (online). While both are technically accepted, the experience and outcomes differ significantly.

1. Paper Filing (Manual Method)

Paper filing involves downloading Form 720 from the IRS website, completing it manually, printing the return, and mailing it to the form 720 mailing address along with payment (if applicable).

2. Online Filing (Electronic Method)

Online filing allows businesses to complete and submit Form 720 electronically through an IRS-authorized e-file provider. The system validates data in real time and submits the return directly to the IRS.


Paper Filing vs Online Filing: A Clear Comparison

Feature

Paper Filing

Online Filing

Filing Speed

Slow, depends on mail delivery time and processing at IRS.

Fast, submitted instantly with immediate transmission to the IRS.

Cost Efficiency

Includes costs for printing, postage, and possible rework due to manual errors.

Online filing only requires a small processing fee, which is typically lower than the overall costs of paper filing.

Ease of Use

Involves filling out manual forms, following printed instructions, and mailing them to the IRS.

A guided, user-friendly process with easy navigation, step-by-step instructions, and form auto-fill features to reduce manual input.

Error Prevention

High risk of errors, especially in calculations and missing information, which could lead to rejections or penalties.

Inbuilt validations and automatic checks to reduce errors, minimizing the risk of form rejection and ensuring compliance with IRS rules.

Customer Support

No real-time assistance available; help is limited to calling the IRS or waiting for IRS feedback.

Immediate, real-time customer support, typically available via chat or phone, ensuring any issues are quickly addressed during the filing process.

Maintenance

Paper documents and supporting proofs must be kept and organized carefully, which can be cumbersome and prone to loss or misplacement.

All records, forms, and supporting documents are stored digitally, with easy access to view, edit, or update the filing any time before submission.

Secure Storage

Physical copies of documents can be lost, damaged, or misplaced, putting crucial information at risk.

Digital storage offers encrypted and secure storage of your filing and supporting documents, with backups ensuring data protection.

IRS Acknowledgment

Can be delayed, and acknowledgment is often unavailable unless the IRS manually processes the form and sends a confirmation.

Instant acknowledgment of receipt by the IRS, with a timestamp and confirmation number provided upon successful submission.

Tracking Status

Requires manual follow-up with the IRS to check on the status, often leading to delays.

Real-time status tracking available online, allowing you to instantly see if your filing was accepted or if there are any issues.

Amendments

Making amendments requires paper filing a corrected form, which can be time-consuming and complicated.

Amendments are much faster and simpler through online filing, with the option to submit corrections without redoing the entire process.


Why Is Online Filing the Better Choice in 2026?

IRS Is Actively Moving Away from Paper

The IRS has been steadily reducing its reliance on paper processing due to staffing limitations, operational disruptions, and emergency closures. As a result, paper filings often experience significant backlogs and delays.

Recent IRS updates, including key points from the IRS Emergency News, clearly highlight the disadvantages of paper filing:

  • Paper returns are processed much slower during IRS shutdowns or emergencies, exacerbating delays.

  • Electronic filings continue to be accepted and securely queued, ensuring your submission reaches the IRS without interruption.

  • Online systems significantly reduce processing errors, improving overall efficiency.

Furthermore, in line with the Executive Order 14247 (EO 14247), the federal government has announced plans to end most paper check processing by September 30, 2025. This move signifies a strong commitment to transitioning to fully digital tax operations and further encourages taxpayers to embrace online filing.


Faster Processing, Even During IRS Closures

When the IRS experiences emergency closures or seasonal maintenance, paper returns are often left unprocessed, while electronic filings remain securely queued and processed once systems reopen. This makes online filing far more reliable for meeting deadlines.


File your Form 720 Online with IRS Authorized QuickFile720 in minutes

Our smart intuitive online system is designed to align closely with IRS requirements. They guide filers step by step, validate calculations, and reduce common mistakes that often lead to rejections or form 720 penalties.

Read our blog on How to File Form 720 Electronically with QuickFile720 to get step-by-step guidance. 


Conclusion: Choose the Right Filing Method and the Right 720 Online Portal

In 2026, online filing is no longer just a convenience; it is the smarter, safer, and more reliable way to file Form 720. It saves time, reduces errors, provides instant acknowledgment, and ensures your records are securely stored.

QuickFile720, an IRS-authorized e-file provider, allows you to complete your Form 720 filing within minutes using a simple, guided process, helping you file confidently, on time, and without stress.

File your Form 720 Online with QuickFile720 now!

Plans & Pricing

Form 720

Price : $ 59.95 per filing

Per Claim : $ 9.95

Form 720-X Paper Filing

Price : $ 59.95 per filing

Form 8849

Price : $ 59.95 per filing