Form 720: Quarterly Federal Excise Tax Return
Who files Form 720, the standard quarterly deadlines, and why some liabilities follow special deposit or annual-reporting rules.
Purpose of Form 720
Form 720 reports numerous federal excise taxes identified by IRS number, including taxes involving communications, air transportation, fuel, environmental activities, certain retail sales, and other specified transactions. It is also used for the PCOR fee under special annual rules.
Who must file
A business generally files when it is liable for or responsible for collecting an excise tax listed in Parts I or II, including when a prior-quarter liability remains active and a final return has not been filed. Tax-specific rules determine registration, exemptions, deposits, claims, and attachments.
Deposits and special rules
Many excise taxes have deposit schedules that are separate from the quarterly return deadline. The PCOR fee is reported on the second-quarter Form 720 and due July 31 of the following calendar year for the applicable policy or plan year. Prior-quarter corrections generally use Form 720-X when applicable.
Quarterly controls
- Map each taxable activity to the correct IRS number.
- Verify registrations and exemption certificates.
- Reconcile deposits to reported liability.
- Review Schedule C claims and supporting records.
- Track PCOR obligations separately from ordinary quarterly excise activity.
Primary sources
This resource is provided for general educational purposes and does not constitute legal, tax, benefits, safety, or other professional advice. Requirements and individual circumstances vary. Confirm current rules with authoritative sources and qualified advisors.
Back to Resources