Blog Details

For those submitting the Quarterly Federal Excise Tax Return Form 720 and making a payment using the paper-based return, it may be necessary to submit Form 720-V, Payment Voucher. The payment voucher includes data which can also be obtained from Form 720, but still plays an important role in processing and allocating payment by the IRS.

Knowing when the Form 720-V must be submitted and how it operates may help the taxpayer prevent any payment processing problems.

Form 720-V, Payment Voucher, is a payment document provided by the IRS for taxpayers who are mailing a payment along with their paper-filed Form 720.

The purpose of Form 720-V is not to report additional tax information. Instead, it serves as a payment identification document that assists the IRS in matching the payment to the proper taxpayer, tax period, and form 720 filing.

Form 720-V is submitted together with:

• The completed Form 720, Quarterly Federal Excise Tax Return

• The required payment (if there is a balance due)

Form 720-V requires basic information that allows the IRS to properly process the payment. The details generally include:

• Employer Identification Number (EIN) of the taxpayer

• Taxpayer name

• Address information

• Payment amount

• Tax period information

• Other payment identification details required by the IRS

Most of this information is already reported on Form 720. However, the voucher presents payment-related information in a format that can be processed separately by IRS payment systems

Taxpayers often ask themselves what the need for form 720-V is since similar data is found on the 720 form. However, the main idea behind form 720-V is the efficient handling of payments by the IRS.

When a taxpayer mails a paper Form 720 with a payment, the IRS processes two separate items:

1. The tax return information

• Used to determine the taxpayer's reported excise tax liability.

2. The payment information

• Used to apply the payment to the correct taxpayer account and tax period.

Since return processing and payment processing are separate IRS workflows, Form 720-V helps the IRS quickly identify where the payment belongs.

Form 720-V is detached from the tax form prior to its mailing, since the voucher form is separate from the tax form at the IRS.

The separation allows IRS processing systems to:

• Quickly identify the taxpayer making the payment

• Apply the payment to the correct tax period

• Reduce delays caused by manually searching through the entire tax return

• Improve accuracy when matching payments with filed returns

Although Form 720-V is sent along with Form 720 to the IRS, it is treated as being separate within the IRS system.

The taxpayer does not send Form 720-V separately. It should be included in the same mailing package along with the return and payment.

Form 720-V is required only in specific situations. It is mainly used when a taxpayer is mailing a payment with a paper-filed Form 720. 

Visit IRS Form720 Instructions for more details regarding Form 720.

Yes, Form 720 can be filed without Form 720-V, but the filing method matters.

The primary way to file Form 720 without using Form 720-V is through electronic 720 filing.

With electronic filing:

• The return information is submitted directly to the IRS electronically.

• The taxpayer receives an electronic acknowledgement after successful submission.

• Payments can be made through approved electronic payment methods without attaching a payment voucher.

For a simpler and more efficient filing experience, taxpayers can use an IRS-authorized online filing provider such as QuickFile720.

With QuickFile720, taxpayers can:

• Complete Form 720 online with guided instructions

• Reduce manual errors

• Submit filings electronically

• Receive IRS submission confirmation

• Avoid paper forms and payment vouchers

Conclusion

Form 720-V is crucial in Form 720 paper filings since it helps the IRS make payments easier to identify. The form, however, does not add any further information regarding taxes but improves payment matching and helps reduce processing problems. 

Form 720-V is used only if taxpayers are mailing payments along with a paper-filing return since no such form is needed in case of electronic filing of the document. Taxpayers can opt for a quick and easy way of filing through an IRS-authorized method such as QuickFile720.