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IRS Form 720 Instructions: What Employers Should Know

IRS Form 720 Instructions: What Employers Should Know 2025

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The document is the Quarterly Federal Excise Tax Return (Form 720) for the IRS, revised in September 2024. It outlines the requirements for reporting various excise taxes, including environmental taxes, fuel taxes, and other specific taxes related to transportation and insurance. The form includes sections for tax calculations, claims, and payment instructions, emphasizing compliance with federal tax regulations.

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Click ‘Get Form’ to open it in the editor.
Begin by entering your name and employer identification number (EIN) at the top of the form. Ensure that all information is accurate to avoid processing delays.
Fill out the address section, including your street address, city, state, and ZIP code. If applicable, check the box for a final return or an address change.
Proceed to Part I where you will report various excise taxes. Carefully enter amounts for each applicable tax category, ensuring you reference the correct rates as indicated in the instructions.
In Part II, complete details regarding any Patient-Centered Outcomes Research Fees if applicable. Follow the prompts for average lives covered and corresponding fees.
Finally, review all entries for accuracy before signing and dating the form at the bottom. Use our platform’s features to save your progress and ensure everything is filled out correctly.

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How to know if a business needs to file form 720?

You should file Form 720 if you collect any excise tax during the current quarter. If you were responsible for collecting excise taxes during any quarter during the year and you have not filed a final excise tax return, you should file Form 720.

Is there a simplified form 720?

Simple720 is an IRS-Approved 720 online portal designed to make your federal excise tax filings effortless and stress-free.

What is 720 used for?

Reporting and Paying for Excise Taxes Schedule A of Form 720 is used to show the total amount of excise taxes you must pay for the quarter. You can send your completed Form 720 by mail or online through an IRS-approved software provider.

Who needs to fill out the IRS form 720?

Businesses. Any entity, whether a sole proprietorship, partnership, corporation, or a limited liability company, dealing in goods or services subject to federal excise taxes must file Form 720. This includes businesses involved in the sale of luxury goods, certain types of equipment, or specific services.

Why would I need to file form 720?

Businesses that are subject to excise tax generally must file a Form 720, Quarterly Federal Excise Tax Return to report the tax to the IRS. Many excise taxes go into trust funds for projects related to the taxed product or service, such as highway and airport improvements. Excise taxes are independent of income taxes.

Is Form 720 hard to fill out?

Filing Form 720 isnt difficult, but some common mistakes can make it a headache. One of the biggest issues is filling out the entire form when only a few sections apply this can lead to confusion and errors. Many businesses also miss the quarterly deadlines, which can trigger penalties.

Does my cleaning business need to file form 720?

Form 720 is for federal excise taxes - stuff like fuel, airline tickets, and certain manufacturing. A residential cleaning business definitely shouldnt need this. Check if your wife accidentally marked something related to these categories on the EIN application.

IRS Form 720 Instructions: What Employers Should Know 2025

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IRS Form 720 Instructions: What Employers Should Know 2025

Here's how it works

How to use or fill out IRS Form 720 Instructions: What Employers Should Know with DocHub

Complete this form in 5 minutes or less

Got questions?

How to know if a business needs to file form 720?

Is there a simplified form 720?

What is 720 used for?

Who needs to fill out the IRS form 720?

Why would I need to file form 720?

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People also ask

Is Form 720 hard to fill out?

Does my cleaning business need to file form 720?

Related links

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