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In times marked by eco-consciousness, knowing your environmental tax obligations has been more relevant than ever. The IRS Form 720, termed as the Quarterly Federal Excise Tax Return, contains several environmental excise taxes for which businesses must make reports and payments. If your business is engaged in the manufacture, import, or sale of environmentally-related products, your business needs to green its books and navigate these taxes correctly.

Form 720 establishes the procedure under which businesses may report and remit a variety of federal excise taxes, some of them concerning environmental issues. Directly affected industries are petroleum, chemicals, and ozone-depleting substances (ODS).

You may have to file if you:

* Sell taxable chemicals

* Import or manufacture ozone-depleting substances

* Use of pavements manufactured of taxable fuels or coal

The form is filed quarterly and has to be submitted to the IRS until the close of the month succeeding to the quarter.

* Tax on Ozone-Depleting Chemicals (ODCs) – applies to manufacturers and importers

* Petroleum Superfund Tax – revived for the purpose of financing hazardous waste clean-up

* Chemical Superfund Tax – applies to certain listed chemicals

* Imported Substance Tax – for import of products containing taxable chemicals

These taxes were reinstated and/or amended under the Infrastructure Investment and Jobs Act (IIJA) with respect to restoration of vital Superfund programs to address environmental issues.

Getting it filed right is not only about averting the about avoiding penalties from the IRS, It demonstrates your commitment to corporate environmental responsibility Revenues collected from these taxes help clean-ups, support public health initiatives, and provide a disincentive for pollution. Firms that act legitimately send a clear message to stakeholders that they care about sustainability, compliance, and green credibility.