Quarterly Filing of Form 720: Key Dates & Deadlines for 2025
This blog breaks down the exact quarterly deadlines for 2025 and highlights important IRS updates, including new electronic filing requirements.
What Is Form 720 and Why Is It Filed Quarterly?
Form 720 is the official IRS return used to report and pay various federal excise taxes. These excise taxes are imposed on certain goods, services, and activities such as:
1)Fuel taxes
2)Indoor tanning services
3)Environmental taxes
4)Air transportation taxes
5)Retail tires and heavy vehicle taxes
Since excise tax liabilities arise throughout the year, the IRS requires Form 720 to be filed quarterly to ensure timely reporting and payment.
Key Quarterly Deadlines for 2025
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C)Even if liability is zero for the quarter, you must file unless you checked the “Final Return” box in a previous filing.
2025 Updates: IRS Requires Online Filing
The IRS has increased its push for digital compliance.
1)IRS now requires excise tax filers to submit Form 720 online.
2)Filing Form 720 electronically is mandatory for most businesses.
3)IRS encourages using an IRS-Authorized e-file provider for secure and fast submission.
Using an IRS-authorized online portal ensures:
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Instant submission and confirmation
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Reduced chance of rejection (automatic validation of errors)
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Faster processing
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Immediate access to copies of submitted returns
If you run any business that owes excise taxes, the safest and most efficient filing method is through a trusted IRS-Authorized e-file service.
Special Situations to Know
If your business no longer owes excise taxes, you must check the “Final Return” box.
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Filing is still required for zero tax liability unless the IRS officially removes you from quarterly filing.
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Businesses with one-time excise tax liability (e.g., only in Q2) can file for that quarter and stop afterward.
What Happens If You Miss the Deadline?
Failing to file Form 720 on time—or failing to pay the tax by the due date—can lead to costly IRS penalties. Here is what typically happens:
a. Late Filing Penalty
IRS can charge up to 5% of the tax owed per month, up to a maximum of 25%.
b. Late Payment Penalty
If the tax is not paid by the due date, IRS adds a 0.5% penalty per month, also up to 25%.
c. Interest Charges
Interest accrues daily on unpaid taxes from the original due date until the balance is paid.
d. Rejection Delays
Paper filers face:
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Delayed processing
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Higher chance of rejection
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No immediate confirmation
e. Compliance Red Flags
Consistent late filing can draw IRS attention and increase audit risk.
f. Loss of On-Time Filing Benefits
Businesses depending on excise-tax compliance for licensing, contracts, or DOT/industry renewals may face disruption.
The easiest way to avoid these penalties is to file electronically before the deadline.
Conclusion
Form 720 filing is a critical compliance requirement for businesses dealing with excise-taxable goods and services. With the IRS now mandating online filing, using an authorized e-file provider is the most reliable way to stay compliant, avoid penalties, and ensure accurate reporting.
Mark your calendar for all four 2025 deadlines—April 30, July 31, October 31, and January 31—and file ahead of time to ensure smooth IRS acceptance.