Instructions For Form 720 - Quarterly Federal Excise Tax Return

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

paid. Keep records to support all claims and all

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

exemptions at least 4 years from the latest of the date:

•

next business day.

The tax became due,

•

You paid the tax, or

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

•

You filed a claim.

Service or a designated private delivery service to meet

the “timely mailing as timely filing/paying” rule. See

Private Delivery Services on page 3.

Penalties and Interest

Floor stocks tax. Report the floor stocks tax on

Avoid penalties and interest by filing returns and

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

depositing and paying taxes when due. The law provides

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

penalties for filing a return late; depositing taxes late;

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

paying taxes late; willfully failing to collect and pay tax or

file a return; negligence; and fraud. These penalties are

Where To File

in addition to the interest charge on late payments. The

Send Form 720 to the Internal Revenue Service Center,

penalty for filing a return late will not be imposed if you

Cincinnati, OH 45999-0009.

can show that the failure to file a timely return is due to

reasonable cause. Those filing after the due date must

How To File

attach an explanation to the return to show reasonable

cause.

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

enter a zero on the appropriate line in Part I or II (Form

Trust fund recovery penalty. If communications and air

720). Also, if you have no tax to report, write “None” on

transportation taxes are collected but not paid to the

line 3, Part III; sign and date the return.

United States Treasury or are willfully not collected, the

If you have adjustments to liabilities reported for prior

trust fund recovery penalty may apply. The penalty is the

quarters, see Form 720X, Amended Quarterly Federal

full amount of the unpaid tax.

Excise Tax Return. Do not enter adjustments on

The trust fund recovery penalty may be imposed on all

Form 720.

persons who are determined by the IRS to be

If you attach additional sheets, write your name and

responsible for collecting, accounting for, and paying

EIN on each sheet.

over these taxes, and who acted willfully in not doing so.

One-Time Filing

A responsible person can be an officer or employee of

If you import a gas guzzling automobile, you may be

a corporation, a partner or employee of a partnership, an

eligible to make a one-time filing of Form 720 and

employee of a sole proprietorship, an accountant, or a

Form 6197, Gas Guzzler Tax, if you meet all of the

volunteer director/trustee. A responsible person may also

following conditions:

include one who signs checks for the business or

•

You do not import gas guzzling automobiles in the

otherwise has authority to cause the spending of

course of your trade or business and

business funds.

•

You are not required to file Form 720 reporting excise

Willfully means voluntarily, consciously, and

taxes for the calendar quarter, except for a one-time

intentionally. A responsible person acts willfully if he or

filing.

she knows the required actions are not taking place.

To make a one-time filing:

1. File Form 720 for the quarter in which you incur

Additional Information

liability for the tax. See When To File on page 1.

You may find the following products helpful when

2. Pay the tax with Form 720. No deposits are

preparing Form 720 and any attachments:

required.

•

Publication 510, Excise Taxes for 2005, contains

3. If you are an individual and do not have an

definitions and examples that will help you prepare

employer identification number (EIN), enter your social

Form 720.

security number (SSN) or individual taxpayer

•

identification number (ITIN) on Form 720 and

Publication 378, Fuel Tax Credits and Refunds, has

Form 720-V in the space for the EIN.

information on fuel tax claims.

•

4. Check the one-time filing box above Part I of

Publication 509, Tax Calendars for 2005, has deposit

Form 720.

and payment due dates for all federal excise taxes.

•

Notice 2005-4. You can find Notice 2005-4 on page

Final Return

289 of Internal Revenue Bulletin 2005-2 at

pub/irs-irbs/irb05-02.pdf.

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

•

Notice 2005-24. You can find Notice 2005-24 on page

you:

757 of Internal Revenue Bulletin 2005-12 at

1. Go out of business or

pub/irs-irbs/irb05-12.pdf.

2. Will not owe excise taxes that are reportable on

•

Notice 2005-62.You can find Notice 2005-62 on page

Form 720 in future quarters.

443 of Internal Revenue Bulletin 2005-35 at

pub/irs-irbs/irb05-35.pdf.

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

•

Notice 2005-80. You can find Notice 2005-80 on page

TIP

not owe excise tax in future quarters, check the

953 of Internal Revenue Bulletin 2005-46 at

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

pub/irs-irbs/irb05-46.pdf.

will then stop sending Package 720 to you each quarter.

You may also call the business and specialty tax line

Recordkeeping

at 1-800-829-4933 with your excise tax questions. The

Keep copies of your tax return, records, and accounts of

hours of operation are Monday - Friday, 8:00 a.m. to 8:00

all transactions to show that the correct tax has been

p.m. local time.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2005 Page 2

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