Form 720 Instructions: How to File, Step by Step
Plain-English instructions for the Quarterly Federal Excise Tax Return — Parts I, II, and III, the schedules, where to file, and how to pay.
Quick Answer
To complete Form 720, you enter your EIN and business information, report each excise tax you owe on its IRS No. line in Part I or Part II, attach Schedules A, C, or T if they apply, total your tax in Part III, then sign and file — either electronically through an IRS-authorized e-file provider or on paper to the address in the current IRS instructions. The return is due quarterly.
Filing Form 720 in Six Steps
Gather your EIN and business information
Legal business name, address, and Employer Identification Number — an SSN cannot be used on Form 720.
Identify your IRS Nos.
Find the line number for each excise tax you owe. Every tax on Form 720 has its own IRS No.
Complete Part I and/or Part II
Report each tax on its line, computed by rate times quantity or as a percentage of the amount paid.
Attach Schedules A, C, or T if they apply
Schedule A for deposit liability, Schedule C for claims, Schedule T for two-party fuel exchanges.
Total everything in Part III
Add your Part I and Part II taxes, subtract deposits and Schedule C claims, and find your balance due or overpayment.
Sign and file
Sign under penalties of perjury, then e-file through an authorized provider or mail the return to the IRS.
Before You Start (EIN, IRS Nos.)
Form 720 asks for your legal business name, address, quarter ending date, and Employer Identification Number (EIN). An EIN is required — a Social Security number cannot be used, even for a one-time filing such as the annual PCORI fee. If you don't have an EIN yet, apply for one on the IRS website before you begin; it's free.
Next, identify your IRS Nos. Every excise tax on Form 720 has its own IRS No., which is simply the line number where that tax is reported. For example, local telephone service is IRS No. 22, transportation of persons by air is IRS No. 26, the PCORI fee is IRS No. 133, and indoor tanning services is IRS No. 140. You only fill in the lines that apply to your business and leave the rest blank — most filers report just one or two IRS Nos.
Also check the boxes at the top of the form if they apply: address change if your address changed since your last return, and final return if you have gone out of business or will no longer owe excise taxes.
Part I Excise Taxes
Part I covers the excise taxes that are generally subject to semi-monthly deposit requirements: environmental taxes (including petroleum and ozone-depleting chemicals, with Form 6627 attached), communications taxes, air transportation taxes, fuel taxes, the retail tax on heavy trucks and trailers, ship passenger taxes, foreign insurance taxes, and manufacturers taxes such as those on coal and tires.
For each IRS No. that applies, you compute the tax and enter it in the tax column. Depending on the tax, the computation is either rate × quantity — for example, cents per gallon of fuel or dollars per ton of coal — or a percentage of the amount paid. Local telephone service is taxed at 3% of amounts paid, transportation of persons by air at 7.5% of the amount paid plus a per-segment fee that is indexed each year, and heavy truck retail sales at 12% of the sales price. The current rate for every IRS No. is printed on the form itself and in the IRS instructions.
If your total net liability for Part I taxes exceeds $2,500 for the quarter, you are generally required to make semi-monthly deposits through EFTPS during the quarter rather than paying everything with the return. If your Part I liability is $2,500 or less for the quarter, you can pay the full amount when you file. See our Form 720 due dates guide for the deposit calendar and deadlines.
Part II Excise Taxes
Part II covers excise taxes that are generally paid with the return — no semi-monthly deposits are required. This part includes the tax on sport fishing equipment, bows and arrows, indoor tanning services (10% of the amount paid, IRS No. 140), and the PCORI fee (IRS No. 133) that applies to certain health insurance policies and self-insured health plans.
The PCORI fee is a special case worth noting: although Form 720 is a quarterly return, the PCORI fee is reported once a year, on the second-quarter return due July 31. It is computed as a dollar amount per covered life, and the rate is adjusted annually — check the current IRS instructions or our PCORI fee guide for this year's rate. Many businesses file Form 720 solely for the PCORI fee or the indoor tanning tax, which makes Part II the only section they complete.
Part III: Tax, Credits & Payment
Part III is the summary. You add your total Part I and Part II taxes, then subtract any claims from Schedule C and the deposits you made during the quarter. The result is either a balance due, which you pay with the return, or an overpayment, which you can have refunded or applied to your next return.
If you owe a balance, you have three ways to pay:
EFTPS
The Electronic Federal Tax Payment System. Required for semi-monthly deposits, and available for balance-due payments too. Enrollment takes time, so sign up early.
EFW (e-file)
Electronic funds withdrawal — a direct debit from your bank account, available when you e-file Form 720. The payment is authorized as part of the electronic return.
Check + Form 720-V
Paper filers with a balance due can pay by check or money order, sending the payment voucher (Form 720-V) with the return so the IRS matches the payment correctly.
Finally, sign the return. Form 720 is signed under penalties of perjury by a person authorized to act for the business, with their title and the date. If a paid preparer completes the return, the preparer signs as well. When you e-file, the signature is captured electronically as part of the submission.
Schedules A, C & T
Form 720 includes three schedules. Most filers need at most one of them — and many need none at all:
Schedule A — Excise Tax Liability
Reports your net tax liability for each semi-monthly period of the quarter, so the IRS can verify your deposits were timely and sufficient. Complete Schedule A if you have liability for any Part I tax. You do not complete Schedule A for Part II taxes, since those are paid with the return.
Schedule C — Claims
Used to claim credits — most commonly for nontaxable uses of fuel, such as fuel used off-highway or for farming. You may make a claim on Schedule C only if you are reporting an excise tax liability in Part I or Part II of the same return. Schedule C claims reduce the tax you owe in Part III.
Schedule T — Two-Party Exchange Information
Applies only to registered fuel businesses. It reports the gallons of taxable fuel received or delivered in a two-party exchange within a terminal. If you don't trade fuel inside a terminal, you can skip Schedule T entirely.
Where to File / Mailing Address
You have two options for filing Form 720: e-file through an IRS-authorized provider or mail a paper return to the IRS.
If you file on paper, mail the completed and signed return to the address listed in the current IRS Instructions for Form 720 — for most filers, that is the IRS service center in Ogden, Utah. IRS mailing addresses do change from time to time, so always confirm the exact address in the latest instructions on IRS.gov before you mail your return. A return mailed to an outdated address can be delayed, and with a quarterly deadline there is little room for delay.
E-filing removes that risk entirely. There is no address to look up, no postage, and no wondering whether the return arrived — you receive confirmation once the IRS accepts your submission.
How to E-File Instead
The IRS accepts Form 720 electronically through authorized e-file providers. With File720Online, the paper instructions above collapse into a guided interview: you answer plain-English questions, we select the correct IRS Nos., compute each tax at the current rate, generate any required schedules, and transmit the return directly to the IRS.
You can pay your balance due by electronic funds withdrawal as part of the same submission, and you get IRS acceptance confirmation instead of waiting on the mail. If you're new to excise taxes, start with our What is Form 720? overview, then file when you're ready.
Ready to skip the paperwork? E-file Form 720 now — most filers finish in minutes.
Instructions FAQ
Where do I mail Form 720?
Paper Form 720 returns are mailed to the IRS service center listed in the current Instructions for Form 720 — an address in Ogden, Utah for most filers. Because IRS mailing addresses can change, always confirm the address in the latest instructions before mailing. E-filing avoids the mailing address question entirely and gives you confirmation that the IRS received your return.
Do I need an EIN to file Form 720?
Yes. Form 720 requires an Employer Identification Number (EIN) — you cannot use a Social Security number. If you do not have an EIN, you can apply for one free of charge on the IRS website, and you should apply early enough to have the number before your filing deadline.
What are the IRS Nos. on Form 720?
Each excise tax on Form 720 is identified by an IRS No., which is the line number where that tax is reported. For example, local telephone service is IRS No. 22, transportation of persons by air is IRS No. 26, the PCORI fee is IRS No. 133, and indoor tanning services is IRS No. 140. You only complete the lines for taxes that apply to your business.
What is Form 720-V?
Form 720-V is the payment voucher included with Form 720. Use it when you file a paper return and pay a balance due by check or money order, so the IRS can match your payment to your return. Do not use Form 720-V for semi-monthly deposits — deposits must be made electronically through EFTPS.
What is the difference between Part I and Part II of Form 720?
Part I lists the excise taxes that are generally subject to semi-monthly deposit requirements, such as fuel, environmental, communications, and air transportation taxes. Part II lists taxes that are generally paid when you file the return, such as the PCORI fee and the indoor tanning services tax, with no deposits required.
Skip the Instructions — E-File Form 720
File720Online turns these instructions into a guided interview: correct IRS Nos., current rates, and direct IRS transmission with confirmation.
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