Instructions For Form 720 - Quarterly Federal Excise Tax Return

Department of the Treasury

Instructions for Form 720

Internal Revenue Service

(Rev. July 2008)

Quarterly Federal Excise Tax Return

Section references are to the Internal Revenue Code unless

otherwise noted.

General Instructions

Reminders

Purpose of Form

Use Form 720 and attachments to report liability by IRS No.

Alternative fuel credit and mixture credits. The

and pay the excise taxes listed on the form.

alternative fuel credit must first be taken on Schedule C

When To File

(Form 720) to reduce liability for alternative fuel and

compressed natural gas (CNG) reported on Form 720. The

You must file a return for each quarter of the calendar year

alcohol fuel mixture credit, biodiesel mixture credit,

as follows:

renewable diesel mixture credit, and alternative fuel mixture

credit must first be taken on Schedule C (Form 720) to

Quarter covered

Due by

reduce taxable fuel liability for gasoline, diesel fuel, and

Jan., Feb., Mar.

April 30

kerosene reported on Form 720. For more information, see

the instructions for lines 12, 13, and 14.

Apr., May, June

July 31

July, Aug., Sept.

October 31

Disregarded entities and qualified subchapter S

Oct., Nov., Dec.

January 31

subsidiaries. After December 31, 2007, qualified

subchapter S subsidiaries (QSubs) and eligible single-owner

If any due date for filing a return falls on a Saturday,

disregarded entities are treated as separate entities for

Sunday, or legal holiday, you may file the return on the next

excise tax and reporting purposes. QSubs and eligible

business day.

single-owner disregarded entities must pay and report

excise taxes (other than IRS Nos. 31, 51, and 117), register

Send your return to the IRS using the U.S. Postal Service

for excise tax activities, and claim any refunds, credits, and

or a designated private delivery service to meet the “timely

payments under the entity’s employer identification number

mailing as timely filing/paying” rule. See Private Delivery

(EIN). These actions cannot take place under the owner’s

Services on page 2.

taxpayer identification number (TIN). Some QSubs and

Floor stocks tax. Report the floor stocks tax on

disregarded entities may already have an EIN. However, if

ozone-depleting chemicals (ODCs), IRS No. 20, on the

you are unsure, please call the IRS Business and Specialty

return due by July 31 of each year. The tax payment is due

Tax line at 1-800-829-4933. For more information on

by June 30. See Floor Stocks Tax on page 7.

applying for an EIN, see Employer Identification Number

(EIN) on page 2.

Where To File

Generally, QSubs and eligible single-owner disregarded

Send Form 720 to:

entities will continue to be treated as disregarded entities for

Department of the Treasury

other federal tax purposes (other than employment taxes).

Internal Revenue Service

Thus, taxpayers filing Form 4136, Credit for Federal Tax

Cincinnati, OH 45999-0009

Paid on Fuels, with Form 1040, Individual Income Tax

Return, can use the owner’s TIN. For more information on

How To File

these new regulations, see Treasury Decision (T.D.) 9356.

You can find T.D. 9356 on page 675 of Internal Revenue

If you are not reporting a tax that you normally report, enter

a zero on the appropriate line in Part I or II (Form 720). Also,

Bulletin 2007-39 at

if you have no tax to report, write “None” on line 3, Part III;

sign and date the return.

Electronic filing. You can now electronically file Form 720

through any electronic return originator (ERO), transmitter,

If you have adjustments to liabilities reported for prior

and/or intermediate service provider (ISP) participating in

quarters, see Form 720X, Amended Quarterly Federal

the IRS e-file program for excise taxes. For more

Excise Tax Return. Do not enter adjustments on

information on e-file, visit the IRS website at

Form 720.

If you attach additional sheets, write your name and EIN

on each sheet.

Electronic payment. Now, more than ever before,

businesses can enjoy the benefits of paying their federal

Final Return

taxes electronically. Whether you rely on a tax professional

File a final return if you have been filing Form 720 and you:

or handle your own taxes, the IRS offers you a convenient

1. Go out of business, or

program to make it easier. Spend less time on taxes and

2. Will not owe excise taxes that are reportable on Form

more time running your business. Use the Electronic

720 in future quarters.

Federal Tax Payment System (EFTPS) to your benefit. For

information on EFTPS, visit or call the

EFTPS Customer Service at 1-800-555-4477. If you are

If you are only filing to report zero tax and you will

filing Form 720 electronically, you can choose to pay using

TIP

not owe excise tax in future quarters, check the final

electronic funds withdrawal (direct debit). For more

return box above Part I of Form 720. The IRS will

information, see How To Make Deposits on page 7.

then stop sending Package 720 to you each quarter.

Cat. No. 64240C

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2008

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