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The Quarterly Federal Excise Tax Return, Form 720, might appear puzzling at first sight, yet the form is important for the businesses that owe excise tax on certain products and services—from fuels and transportation by air to environmental taxes. This guide demystifies the process and provides specific steps that can be implemented for a smooth and sound filing experience.

Before you start, ensure that your business is liable for any one of the excise taxes mentioned in the form 720. This is a quarterly form, meaning there are specific due dates for each calendar quarter. The first quarter (January–March) is due April 30; the second quarter (April–June) is due July 31; the third quarter (July–September) is due October 31; and the final quarter (October–December) is filed January 31 of the coming year. However, if you have nothing to report in a given quarter, you might still be obliged to file by IRS expectations. 

Accuracy with the Internal Revenue System when doing anything always matters. Name, address, and the Employer Identification Number are all essential for your company business and essential to accurately complete Form 720. Each type of excise tax carries its own amounts and must be calculated individually. To that end, you need to know the correct IRS tax number as well as the applicable tax rate for that particular item or service. Documentation like sales records, inventory logs, and prior returns will be very much necessary for calculating how much excise tax you owe and ensuring accuracy of your records.

Each part of the form is divided from the others so that filing a tax liability with respect to different types of excise taxes can be achieved in Parts I and II. It is important to enter the correct IRS number for every entry made. Some taxes do require a Schedule A for breaking down those liability lines in semi-monthly periods. Now that the calculations have been accomplished in Part III, you can calculate the total tax due. E-filing is quite strongly preferred because it is fast and assures a more secure and immediate confirmation from the IRS. But, when paper filing, ensure that you mail to the proper address and include an appropriate voucher if you do a check payment.