Form 720 (June 2022), Quarterly Federal Excise Tax Return

What is IRS Form 720?

Form 720, or the Quarterly Federal Excise Tax Return, is a document filed with the IRS by taxpayers who provide certain goods, services, and activities subject to excise taxes. IRS Form 720 for 2022 carries over the same purpose and is categorized into three parts. Part I covers environmental taxes, communication and air transportation taxes, fuel taxes, retail tax, and manufacturers' taxes.

Part II encompasses patient-centered outcomes research fee, indoor tanning services tax, and net investment income tax. Part III is for the taxpayer to calculate the balance due or overpayment.

How to Fill Out IRS 720 Form June 2022

Step 1: Identify Yourself

Fill out the top part of the form with your business name, address, and Employer Identification Number (EIN).

Step 2: Choose the Applicable Quarter and Year

Indicate the quarter and the year for which you are filing the form in the specified boxes.

Step 3: Fill Out Part I (If Applicable)

Part I includes a variety of excise taxes. If you owe any of these taxes, fill out the corresponding lines with the appropriate amounts. The form has clear instructions for each line.

Step 4: Complete Part II (If Applicable)

If you owe taxes that fall under Part II, fill out those lines. Again, the form provides instructions for each line.

Step 5: Calculate Total Taxes

Add the amounts from Part I and Part II to determine your total taxes for the quarter. Enter this amount in the "Total Tax" line.

Step 6: Report Installment Payments

If you made any installment payments of the environmental tax for gas guzzling vehicles during the quarter, enter the total amount on the corresponding line.

Step 7: Calculate the Balance Due or Overpayment

Complete Part III to calculate the balance due or overpayment. If the total taxes are more than your deposits, you owe the difference. If your deposits are more than the total taxes, you have overpaid.

Step 8: Sign and Date the Form

Once all the information is correctly filled in, sign and date the form. By signing, you are declaring that the information provided is accurate.

How to File Form 720

The process of filing IRS 720 Form is straightforward. The fillable 720 form can be downloaded from the official IRS website. After filling it out, you can submit it electronically through the IRS e-file system. Alternatively, you can mail the completed form to the IRS.

It's crucial to note that the IRS Form 720 should be filed quarterly. The due dates are as follows: April 30 for the first quarter, July 31 for the second quarter, October 31 for the third quarter, and January 31 for the fourth quarter.

Where to send form 720

When you’re ready to file, you may wonder where to send Form 720. If you’re filing electronically, the form will be submitted directly to the IRS through the e-file system. If you opt to mail your 720 tax form, the IRS website provides an updated list of addresses, which depends on your location and whether you’re including a payment.

Why IRS form 720 June 2022 is important

The IRS uses the information from Form 720 to ensure that the correct amount of excise tax is collected. If you are required to file Form 720 and fail to do so, or inaccurately report your taxes, you could face penalties or interest. Therefore, it’s essential to familiarize yourself with IRS Form 720 for 2022 and ensure you’re meeting all tax obligations.