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This IRS form, Form 720, is pertinent to any type of business running on fuels like diesel, gasoline, kerosene, and aviation fuels. It is officially called the Quarterly Federal Excise Tax Return. Fuel excise taxes go to financing highways and infrastructure, and also take input federally through IRC sections like 4081 and 4091. Thus, the most common case is, if your business either imports, or produces, or sells fuels, or uses them for off-highway business use, you are liable. The form does not only concern fuel producers but also applies to trucking companies, logistics providers, and even construction businesses who need to know how Form 720 fuel taxes affect their operations.

If your business sells fuel in bulk, blends fuels, or runs fuel terminals, then you'll likely need to file under Part I of Form 720. Even end-users in some circumstances may be required to report their use under certain exemptions or refund claims may include fleet operators or companies that operate diesel-powered machinery.

The IRS is pushing businesses to e-file Form 720 via these approved providers. Not only do electronic filings speed up processes, but also minimize errors - indeed, it becomes the best alternative for businesses handling more fuel tax categories. The deadline is usually the last day of the month following the end of the quarter (April 30, for instance, will fall within the end of Q1). Companies should also consider using software or services that can help manage fuel tax automation and excise tax recovery and recordkeeping.