Guide · Payments

By File720Online Editorial Team · April 17, 2026

Form 720 Payment Methods: EFTPS, Check, and More

Paying your federal excise tax balance correctly is as important as filing on time. This guide covers every payment option for Form 720 — and which one is right for your situation.

File Form 720Deposit Rules

Quick Answer

The IRS recommends EFTPS for all Form 720 payments and requires it for semi-monthly deposits. You can also pay by check (balance due only) or credit/debit card through an authorized processor. EFTPS is free and provides immediate confirmation.

EFTPS (Electronic Federal Tax Payment System)

Recommended

The IRS's own online payment system. Required for all semi-monthly deposits. Also the preferred method for paying the balance due with a quarterly return.

How to use it:

Enroll free at eftps.gov. You can schedule payments up to 365 days in advance. Payments must be submitted at least one business day before the due date to be on time.

Pros

  • ✓ Free to use
  • ✓ Required for deposits
  • ✓ Same-day or scheduled payments
  • ✓ Confirmation number as proof of payment

Cons

  • ✗ Enrollment takes 5–7 business days initially
  • ✗ Requires bank account (no credit cards)

Check or Money Order

Paper checks are acceptable for paying the balance due on a quarterly return. They are NOT acceptable for semi-monthly deposits — EFTPS is required for those.

How to use it:

Make checks payable to "United States Treasury." Include your EIN, tax period, and "Form 720" on the memo line. Mail to the address on the Form 720 instructions. Do not mail cash.

Pros

  • ✓ No enrollment required
  • ✓ Familiar payment method

Cons

  • ✗ Not acceptable for deposits
  • ✗ Slower processing
  • ✗ No immediate confirmation
  • ✗ Risk of loss in mail

Credit or Debit Card

The IRS accepts credit and debit card payments through IRS-authorized payment processors (not directly on IRS.gov for Form 720). Processor fees apply.

How to use it:

Use an IRS-approved card processor linked from the IRS website. Fees typically range from 1.82% to 1.99% for credit cards and $2–$4 for debit cards. Visit IRS.gov/payments for current approved processors.

Pros

  • ✓ No bank account required
  • ✓ Immediate payment confirmation

Cons

  • ✗ Processor fees apply
  • ✗ Not accepted for deposits
  • ✗ Fees can be significant for large tax amounts

Two Separate Payments: Service Fee vs. IRS Tax

When you file Form 720 through File720Online, there are two separate payments:

1. File720Online Service Fee

Paid to File720Online for the e-filing service. Charged when you submit your return. Payable by credit or debit card on our platform.

2. IRS Excise Tax Payment

Paid directly to the IRS. This is your actual excise tax liability. You pay the IRS separately via EFTPS, check, or authorized card processor — not through File720Online.

Related Articles

Semi-Monthly Deposit Rules

When deposits are required

Filing Due Dates

All quarterly deadlines

Form 8849 Refund Guide

Claiming excise tax refunds

Frequently Asked Questions

Can I pay Form 720 excise taxes with a credit card?
Yes, but only for the balance due on the quarterly return — not for semi-monthly deposits. Credit card payments go through IRS-authorized processors who charge a fee (typically 1.82%–1.99% of the payment amount). For large excise tax bills, this fee can be substantial, so EFTPS is usually the better option.
Is EFTPS free to use?
Yes, EFTPS is completely free to use. There are no transaction fees. You need a U.S. bank account to enroll. The only cost is your internet connection or phone time if you use the EFTPS phone system.
What is the difference between a deposit and a payment on Form 720?
A deposit is a pre-payment made during the quarter via EFTPS for each semi-monthly period. A payment is the balance due when filing the quarterly return. Deposits are required for businesses with more than $2,500 in quarterly excise tax liability. The quarterly return reconciles all deposits against total liability to determine if a balance is due or an overpayment exists.
What happens if I can't pay the full excise tax balance?
File Form 720 on time regardless of whether you can pay in full. Filing on time stops the 5% per month failure-to-file penalty. Pay as much as possible to reduce the 0.5% per month failure-to-pay penalty and interest. You can contact the IRS to discuss an installment arrangement for the remaining balance.
How do I get a confirmation that my excise tax payment was received?
EFTPS provides an EFT (Electronic Funds Transfer) acknowledgment number immediately after each payment. Save this number. If you pay by check, your cancelled check serves as proof of payment. If you e-file Form 720 and pay with the return, File720Online provides an IRS acceptance confirmation that includes the return submission details.

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Disclaimer: The information provided in this article is for general informational purposes only and should not be relied upon as legal, tax, or professional advice. Tax laws and regulations are subject to change, and their application can vary based on individual circumstances. Consult a qualified tax professional or attorney for advice specific to your situation. File720Online is an IRS-authorized e-file provider and does not provide legal or tax advice.