As soon as the time for federal excise tax filing has come, you are all set to fill it, hopefully, you have arrived at a better comprehension of what essential details are required to file. While you are ready to file and if you are choosing to mail Form 720 to the IRS office, here are a few things to keep in mind.
Suppose you exceed more than $2500 as tax liability for the quarter, you are mandated to efile your excise tax with an IRS-authorized provider like Simple 720. This helps to establish a faster process that can benefit both the taxpayer and the IRS.
Review Form 720-X for modifications to previously reported liabilities in past quarters; refrain from recording adjustments directly on Form 720. If you are attaching extra sheets, on each sheet ensure to include your name and EIN.
On not having an EIN yet, you can check here to apply. Or you can apply for it by mailing or faxing the form SS-4 which is an application for EIN and send it to the IRS.
If you are going out of business or if you don't owe anything to the IRS in the coming quarters as you have been filing all the while, you have to file a final return.
If you possibly think there would be any penalties or interest, don't write about its explanation while filing the Form 720 return. Firstly file the form and in case you get a notice only then reply with an explanation of the notice.
Check out our Form 720 instructions page for a simplified version of the IRS Form 720 filing instructions.
For timely filing of the tax via mail as per the timely tax filing rule for payments and returns you can opt for private delivery services also known as PDS. On the IRS.gov/PDS you can find the entire list. The PDS applicable to you will let you know how to get the proof of the mail in writing.
Also, the IRS mailing addresses will change if you are opting for PDS and you may check the address here. PDS is not meant to go to the PO boxes if you want to send it there. To send to the IRS PO box you need to use US postal services.
The Form 720 can be signed by a person who is authorized by the entity. If you are getting signed by anyone other than you such as an employee or third party designee, you must check the box as yes under the section third party designee with their contact and name as the IRS will contact them in case of any information about the filed form 720.
Keep a copy of all the records with you whether it is the tax due records, the claim records, the tax paid records, or the exemptions so that you can validate the tax you are paying. Of all those from 4 years to till date.
The address for mailing form 720 to IRS is as follows:
Department of treasury
Internal Revenue Service
Ogden, UT 84201-0009
Keep these things in mind before you mail the Form 720 and you’ll be all set to file it.
Note that it is recommended to use electronic filing as it makes the entire process a lot simpler for both the IRS and you as it is faster comparatively.