Form 720, the Quarterly Federal Excise Tax Return is required for businesses that deal with certain federally taxable goods and services. Many filers struggle to understand whether they are required to submit this form and how often it must be filed. This blog simplifies the rules so you can easily identify who must file Form 720 and when it needs to be filed each year.

You must file Form 720 if your business is involved in any activity that is subject to federal excise tax. The IRS determines filing requirements based on the type of goods or services, not the size of the business.

Here are the main categories of filers:

1)Businesses Selling or Producing Taxable Goods

This includes products listed under IRS excise categories such as:

• Fuel and fuel-related products

• Retail tires

• Heavy trucks, trailers, and tractors

• Certain chemicals or ozone-depleting substances

If you manufacture, sell, or import these products, Form 720 is required.

2)Service Providers Subject to Excise Tax

Some services fall under excise tax, such as:

• Indoor tanning services

• Air transportation or aviation-related services

• Certain communication or environmental services

Any business offering these must collect and report the tax using Form 720.

3)Businesses That Collect Excise Tax on Behalf of the IRS

If your business charges customers an excise tax (for example, ticket taxes or fuel taxes), you are responsible for filing Form 720 to remit the tax.

4)One-Time or Seasonal Excise Activity

Even if your excise-taxable activity occurs only in one quarter of the year, you must file Form 720 for that quarter.
You may mark it as a “Final Return” if you do not expect future liability.

In short, if your business handles a taxable product or service listed in Form 720 instructions, quarterly filing is required.

Form 720 must be filed every quarter, and the due date is the last day of the month following the quarter:

Quarter	Tax Period	Due Date
Q1	Jan 1 – Mar 31	April 30
Q2	Apr 1 – Jun 30	July 31
Q3	Jul 1 – Sep 30	October 31
Q4	Oct 1 – Dec 31	January 31 (following year)

Even if your liability is zero, you must file unless you have already submitted a Final Return.

The return is divided into distinct sections:

• Part I – for excise taxes on goods and services like fuel, ozone-depleting chemicals, air transportation, communications and similar items.

• Part II – for other excise taxes such as those on retail goods or services (indoor tanning tax, vaccine excise tax, sporting & recreational equipment taxes) and additional special excise categories.

Filing may still be done on paper, but electronic filing via an IRS-Authorized e-file provider is strongly encouraged because it offers faster processing, better error checks and digital traceability.

Missing the deadline can result in:

1)Late filing penalties

2)Late payment penalties

3)Accrued interest on unpaid balances

4)Delays in business licensing or compliance processes

Submitting electronically helps reduce errors and ensures faster IRS acceptance.

Conclusion

Form 720 applies to any business responsible for excise taxes, from fuel distributors and chemical handlers to tanning salons and air transportation services. Filing must be done every quarter unless your excise activity ends and you file a Final Return. Understanding who must file and when the deadlines fall ensures that your business stays compliant and avoids costly penalties. Filing through an IRS-Authorized online provider remains the most efficient and secure option.

File your Form 720 online with QuickFile720 Today!