Tax Forms What is Form 720? Understanding the Ins and Outs of Quarterly Federal Excise Tax Returns Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published Mar 24, 2025 - [Updated Apr 8, 2025] 3 min read Reviewed by Katharina Reekmans, Enrolled Agent Do you own a business that deals with goods and services subject to excise tax? If so, you’re likely no stranger to the world of federal excise taxes and the quarterly return that comes with it – Form 720. But even if you’re not a seasoned pro, navigating the ins and outs of Form 720 doesn’t have to be a daunting task. From determining who needs to file to understanding what to include on the return, there are countless ways to set yourself up for success when completing a quarterly federal excise tax return. Table of Contents Key TakeawaysUnderstanding Form 720: What is it and Who Needs to File?What to Include on Form 720Who Files Form 720?When do You File Form 720? Filling Out Form 720Paying Your Excise TaxesEase the Burden of Form 720: Expert Assistance with TurboTax Live Business Key Takeaways Businesses that deal in goods and services subject to excise tax must file a Form 720 on a quarterly basis to report the tax to the IRS. The IRS provides two tests to determine whether you need to file a Form 720 at the conclusion of each calendar quarter. You must file a Form 720 if you collect any excise tax during the current quarter or if you were responsible for collecting excise taxes during any quarter during the year and you have not filed a final excise tax return. Form 720 is due on the last day of the month following the end of the quarter. Understanding Form 720: What is it and Who Needs to File? The federal government charges an excise tax on specific types of products and services, and, in some ways, it resembles a state sales tax. However, you may not be aware you’re paying this tax since it’s usually included in the price of goods, such as the gas you purchase for your vehicle. Businesses that deal in goods and services that are subject to excise tax need to prepare a Form 720 on a quarterly basis to report the tax to the IRS. What to Include on Form 720 There is an extensive list of goods and services that the federal government collects excise taxes on. Some of the more common products and services subject to the excise tax include: A surcharge on indoor tanning Gasoline Airline tickets Coal products Who Files Form 720? Whether you are a manufacturer, retailer, airline, or any other business that deals in goods for which excise taxes are due, you have a responsibility to file a Quarterly Federal excise Tax Return on Form 720 up to four times a year, depending on the circumstances. When do You File Form 720? Each quarter, you are required to report excise taxes to the IRS on a Form 720, which shows the amount of excise taxes you must pay for that quarter. At the end of each quarter, you have until the end of the next month to file and pay your excise taxes. QuarterMonthsDue Date1stJanuary – March April 302ndApril – June July 313rd July – September October 314thOctober – DecemberJanuary 31 Filling Out Form 720 Form 720 includes a line for each type of excise tax that you may be responsible for paying. A majority of the excise taxes are charged based on unit sales or weight. For example, if you sell diesel fuel, you’ll need to input the number of gallons sold and multiply it by the rate per gallon. Paying Your Excise Taxes If you owe excise tax when you file your Form 720, the IRS requires you to make payment using electronic funds transfer. To avoid penalties, you should ensure that your payment reaches the IRS by the deadline. This requires you to initiate the transfer by 8 p.m. (EST) one day before the due date. Ease the Burden of Form 720: Expert Assistance with TurboTax Live Business Don’t let Form 720 leave you stressed. With TurboTax Live Business, you can get expert help with your quarterly federal excise tax return and file with confidence. Our small business tax experts are always up-to-date with the latest tax laws and will ensure you get every credit and deduction possible, so you can put more money back into your business. Get started today and take advantage of our 100% accurate, expert-approved guarantee. Get Started You know your small business—we know business taxes. Our self-employed and business tax experts will ensure you get every tax break with 100% accuracy, guaranteed. Start for free 100% free to start. Pay only when you file. Previous Post Inheritance & Schedule K-1, 1041 Tax Forms: Trust and Estate… Next Post Form 2210 Instructions: How to Calculate and Pay Estimated Taxes… Written by TurboTaxBlogTeam More from TurboTaxBlogTeam Leave a ReplyCancel reply Browse Related Articles Tax Help How to File a Business Tax Extension: Deadlines, Forms, and Penalties Tax Tips The White Lotus Tax Lessons: Navigating Gift Taxes, Lump Sum Payouts, Hush Money, and the IRS Tax Questions What Day Are Taxes Due? April 15! How to File for a Tax Extension or Pay Taxes Online Tax Questions What Happens If You File Your Taxes Wrong? Late Filing Penalties, Interest, and More Tax Questions What’s Tax Deductible? 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