What Is IRS Form 720?
A comprehensive guide to the Quarterly Federal Excise Tax Return — who files it, what it covers, and how to submit it electronically.
Quick Answer
Form 720 is the IRS Quarterly Federal Excise Tax Return used by businesses to report and pay excise taxes on fuel, communications, air transportation, manufacturing, environmental activities, and other taxable goods and services. It is filed four times per year, with deadlines on April 30, July 31, October 31, and January 31.
What Is Form 720?
IRS Form 720, officially titled the "Quarterly Federal Excise Tax Return," is the primary form used to report and remit federal excise taxes to the Internal Revenue Service. Unlike income taxes, excise taxes are levied on specific goods, services, and activities rather than on income or profits.
The form covers a wide range of tax categories organized across Part I and Part II, with over 100 individual line items corresponding to different IRS Reference Numbers (IRNs). Businesses in industries ranging from fuel distribution and air transportation to communications and manufacturing may be required to file.
Who Must File Form 720?
Any person or business engaged in activities subject to federal excise tax must file Form 720. This includes:
- ✓Manufacturers, producers, and importers of taxable articles (firearms, ammunition, sport fishing equipment, bows and arrows, coal)
- ✓Fuel distributors, blenders, and refiners handling gasoline, diesel, kerosene, or aviation fuel
- ✓Communications service providers (local and toll telephone services)
- ✓Air carriers and freight transporters
- ✓Indoor tanning service providers
- ✓Insurers and plan sponsors subject to the Patient-Centered Outcomes Research fee (PCORI)
- ✓Companies handling ozone-depleting chemicals or other environmentally taxed substances
- ✓Foreign insurers and reinsurers with U.S. policy obligations
Parts I & II Overview
Part I — Environmental, Communications, Air Transportation, Fuel & More
Part I includes taxes on environmental activities, communications services, air transportation, fuel (gasoline, diesel, kerosene, aviation fuel), manufacturers' taxes on sport fishing equipment, firearms, bows and arrows, ship passenger taxes, and foreign insurance taxes. Each line corresponds to a specific IRS Reference Number.
Part II — Health, Retail, and Other Taxes
Part II covers the Patient-Centered Outcomes Research fee (PCORI), indoor tanning services excise tax, branded prescription drug fee, and other miscellaneous excise taxes. These taxes often apply to specific industries or compliance obligations.
Common Excise Tax Categories
Fuel Taxes
Excise taxes on gasoline, diesel fuel, kerosene, aviation fuel, and other petroleum products. Includes taxes on removal, entry, or sale of taxable fuel.
Examples: Gasoline, diesel, kerosene, aviation gasoline, aviation fuel
Environmental Taxes
Taxes on ozone-depleting chemicals (ODCs), imported petroleum products, and certain chemicals. Reported on Form 6627 when applicable.
Examples: ODCs, petroleum products, certain chemicals
Communications Taxes
Federal excise tax on amounts paid for local and toll telephone service, teletypewriter exchange service, and similar communications services.
Examples: Local telephone, toll telephone, teletypewriter exchange
Air Transportation Taxes
Excise taxes on amounts paid for taxable air transportation of persons and property within the United States, including the international departure tax.
Examples: Domestic passenger tickets, freight transport, international departure
Manufacturer's Taxes
Excise taxes imposed on manufacturers, producers, and importers of taxable articles including sport fishing equipment, bows and arrows, firearms, ammunition, and coal.
Examples: Sport fishing equipment, bows and arrows, firearms, ammunition, coal
Supporting Forms
Depending on the excise tax categories you report, the IRS may require additional forms to be attached to your Form 720 filing:
Form 6197 — Gas Guzzler Tax
Required for manufacturers and importers of automobiles that do not meet fuel economy standards. Reports the gas guzzler tax based on the vehicle's fuel economy rating.
Form 6627 — Environmental Taxes
Required when reporting taxes on ozone-depleting chemicals (ODCs), imported petroleum products at a rate equivalent to certain Superfund taxes, and other environmental excise taxes.
Form 7208 — Excise Tax on Excess Executive Compensation
Required for certain tax-exempt organizations that pay remuneration exceeding $1 million to covered employees. Reports the excise tax on excess compensation.
File720Online automatically generates these supporting forms when your filing includes the applicable tax categories.
Schedules A, C, and T
Schedule A — Excise Tax Liability
Reports your semi-monthly excise tax deposit obligations. Required if your net tax liability for the quarter exceeds $2,500. Breaks down liability into semi-monthly periods for deposit tracking.
Schedule C — Claims
Used to claim credits and adjustments for excise taxes. Includes claims for nontaxable uses of fuel, exported goods, and other IRS-approved credits. Reduces your total tax liability on the return.
Schedule T — Two-Party Exchange Information
Required for terminal operators reporting information about two-party exchange transactions involving taxable fuel. Includes details about position holders and fuel movements at IRS-registered terminals.
How to E-File Form 720 Online
Create Account & Enter Business Info
Sign up on File720Online and enter your business name, EIN, and address. Your information is saved for future quarterly filings.
Select Excise Tax Categories
Browse the IRS tax category catalog and select the lines that apply to your business. Enter quantities, gallons, or dollar amounts for each line item.
Review & Pay
Review your calculated tax amounts, verify every line on a PDF preview, and complete secure payment processing.
Submit & Receive Confirmation
Your Form 720 is electronically filed with the IRS. Receive instant confirmation and track your filing status in your dashboard.
Filing Deadlines
Form 720 is due quarterly. If the due date falls on a weekend or holiday, the deadline moves to the next business day.
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | January - March | April 30, 2026 |
| Q2 | April - June | July 31, 2026 |
| Q3 | July - September | October 31, 2026 |
| Q4 | October - December | January 31, 2027 |
Frequently Asked Questions
What is IRS Form 720?
IRS Form 720 is the Quarterly Federal Excise Tax Return. It is used to report and pay excise taxes on specific goods, services, and activities including fuel, communications, air transportation, manufacturing, environmental taxes, and more. It must be filed every quarter by the last day of the month following the end of each quarter.
Who must file Form 720?
Any individual or business that manufactures, produces, sells, or uses goods and services subject to federal excise taxes must file Form 720. This includes fuel distributors, communications providers, air carriers, manufacturers of taxable goods (firearms, sport fishing equipment, bows and arrows), indoor tanning salons, and insurers subject to PCORI fees.
What is the difference between Part I and Part II of Form 720?
Part I covers excise taxes collected or imposed on the sale or use of various goods and services, organized into IRS Reference Numbers (IRNs). Part II covers excise taxes on specific activities, including the patient-centered outcomes research fee (PCORI), indoor tanning, and certain environmental taxes. Both parts report tax liability that flows into the total due on the return.
What supporting forms are required with Form 720?
Depending on your excise tax categories, you may need Form 6197 (Gas Guzzler Tax), Form 6627 (Environmental Taxes), or Form 7208 (Excise Tax on Excess Tax-Exempt Organization Executive Compensation). File720Online automatically generates these supporting forms when your filing requires them.
Can I e-file Form 720 instead of mailing a paper return?
Yes. The IRS accepts electronic filing of Form 720 through authorized e-file providers like File720Online. E-filing is faster, reduces errors with real-time validation, and provides instant confirmation that the IRS received your return.
What happens if I miss the Form 720 deadline?
Late filing incurs a failure-to-file penalty of 5% of unpaid tax per month (up to 25%), plus a failure-to-pay penalty of 0.5% per month. Interest also accrues on unpaid balances from the original due date. Filing electronically helps ensure timely submission.
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All Schedules
A, C, and T
Supporting Forms
6197, 6627, 7208
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