Frequently Asked Questions

If your business does not have an EIN (Employer Identification Number), you will need to obtain one, as it is generally required for tax and legal purposes. You can easily apply for an EIN online through the official IRS website.

A Business Name refers to the official, registered name of a business or organization under which it operates. This name is used for legal, branding, and communication purposes.

No, you cannot file your return without registering on our site. To proceed with filing, you must first complete the registration process.

Filing your return is a quick and easy process. Simply spend a few minutes providing the required information, and we will take care of the rest.

Yes, you can save your tax return and return later to complete the filing process at your convenience.

Yes, you can manage multiple businesses under a single-user registration, making it easier to handle all your tax filings in one place.

To retrieve your forgotten password, click on the 'Forgot Password?' link on the Login page and we will send the details on how to reset your password to your registered email address after verification.

Form 720 is a tax form used to report and pay federal excise taxes. These taxes apply to specific goods, services, and activities, including environmental taxes, communication taxes, air transportation taxes, fuel taxes, retail taxes, ship passenger taxes, manufacturers' taxes, foreign insurance taxes, and floor stocks taxes.

Yes, you can authorize a third-party designee to communicate with the IRS regarding Form 720 on your behalf. This allows them to discuss and exchange information related to your tax filing.

Form 720 must be filed quarterly, with due dates as follows:

If the due date falls on a Saturday, Sunday, or legal holiday, you may file the return on the next business day.

If you have no tax liability for the quarter and would like to file a return, simply enable the "Zero Liability" checkbox. This indicates that you do not owe any taxes to the IRS for that period.

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique 9-digit number assigned by the IRS to identify a business entity. Generally, businesses are required to have an EIN for tax reporting purposes. It is used by filers of Form 720 and other tax forms to ensure accurate identification and processing by the IRS.

If your address changes, you should update the information on Form 720. Make the necessary corrections and check the "Address Change" box above Part I of the form to notify the IRS of the update.

You should file a final return if your business goes out of operation or if you will no longer owe excise taxes that are reportable on Form 720 in future quarters. This indicates to the IRS that you no longer need to file excise tax returns for your business.

To file the gas guzzler tax, you must use Form 6197, which is used to calculate the liability for this tax. After completing Form 6197, attach it to Form 720 when filing your excise tax return.

Schedule T is used to report specific exchanges of taxable fuel, typically occurring before or in connection with the removal of fuel from a terminal. It is part of the reporting requirements for transactions involving fuel, ensuring compliance with federal excise tax regulations related to fuel exchanges.

No, in a two-party exchange, only the receiving party is liable for the tax. The receiving person is responsible for reporting and paying the applicable excise tax on the fuel exchanged.

Schedule A is used to report excise tax liabilities and records your net tax liability for each semi monthly period within a quarter. You are required to complete Schedule A if you have any liability for taxes listed in Part I of Form 720. However, you do not need to complete Schedule A for taxes reported in Part II or for a one-time filing of the gas guzzler tax.

Regular method taxes: Special Rule for September column G is updated for Regular method taxes for dates beginning from Sept 16 to Sept 26. Enter the liability for the period beginning September 26/27 and ending September 30 in box F.

Alternative method taxes: Special Rule for September column S is updated for Alternative method taxes for dates beginning from Sept 1 to Sept 11. Enter the tax included in the amounts billed or tickets sold for the period beginning September 11/12 and ending September 15 in box M of the 4th quarter return. Enter the tax included in amounts billed or tickets sold during the period beginning September 16 and ending September 30 in box N of the 4th quarter return.

A two-party exchange refers to a transaction (other than a sale) between two taxable fuel registrants, where the delivering party and the receiving party are both registered. In this transaction, the fuel is transferred from the delivering party, who holds the inventory position for the taxable fuel at the terminal, as reflected in the terminal operator's records. This type of exchange involves the movement of taxable fuel between parties without a sale taking place.

Schedule C is used to make claims for a credit or refund of excise taxes paid on fuels. If you have overpaid excise taxes on fuel, you can use Schedule C to request a refund or credit for the excess amount.

Claims for a credit or refund can only be made by individuals or businesses reporting liability in Part I or Part II of Form 720. This means you must have previously reported excise tax liability on the form to be eligible to claim a credit or refund.

A claimant is a person or business eligible to request a credit or refund. This individual or entity must have previously reported excise tax liability on Form 720 to be considered eligible to file a claim.

Form 6627 is used to calculate environmental taxes related to petroleum, ozone-depleting chemicals (ODCs), imported products that contain ODCs as materials in their manufacture, and the floor stocks tax on ODCs. This form helps determine the liability for these specific environmental excise taxes.

No, you cannot file Form 6627 separately. It must be attached to Form 720 when submitting your excise tax return.

Yes, you can file Communication and Air Transportation Taxes (codes 22, 26, 27, and 28) using the Regular Method option through the Simple 720 portal. This allows you to efficiently report and pay these specific excise taxes.

No, claims cannot be filed separately using Form 720. To make a claim, you must file Schedule C along with your tax return. The claim for a credit or refund of excise taxes must be submitted together with the reported tax liability.

No, Simple 720 only handles the tax liability charges that should be paid to the IRS via Bank Account or EFTPS. Penalty charges for late filing are not included. If penalties apply, the IRS will send them to the user by mail. The user should contact the IRS to inquire about potential penalty waivers.

The Superfund excise tax (IRS 53 and IRS 54) began in the 3rd quarter of Tax Year 2022. This tax applies to certain chemicals and substances that have been designated by the IRS for Superfund cleanup purposes.

If you have transactions for every month, you should break down the data and enter the amounts for each month separately. Instead of entering the total amount for the entire quarter, input the monthly figures in the appropriate sections to ensure accurate reporting for each month. This will provide a more detailed and accurate record of your tax liabilities.

Reason for Rejection: Please ensure that the EIN, Business Name, and Address you provided match the information in the IRS database. If there has been an address change, make sure to check the Address Change box on the Tax Year Quarter Ending page. If the EIN is newly issued, note that it may take up to 15 business days for activation before you can begin filing.

The Superfund Chemical Excise Taxes went into effect on October 1st, 2022. These taxes apply to certain chemicals and substances used in manufacturing or production and are part of the funding for the Superfund program to clean up hazardous waste sites.

Form 720-X is used to make adjustments to the liability reported on a previously filed Form 720. It allows you to correct any errors or discrepancies, ensuring that the reported tax liability is accurate. This form is typically used to amend or adjust past filings.

To calculate tax for a taxable chemical (IRS 54):

• Find the tax rate for the chemical from the IRS.
• Determine the number of tons of the chemical.
• Multiply the number of tons by the tax rate.

Example: 100 tons × $0.10 = $10 tax.

To file the Form 720 for the IRS 133 – PCORI (Patient-Centered Outcomes Research Fee) and IRS 20 – Floor Stocks Tax yearly, follow these steps:

• File Annually: These taxes are filed for the second calendar quarter (April-June) each year.
• Complete Form 720: Fill out the form with the required details for PCORI and Floor Stocks Tax.
• Submit the Return: Ensure that the return is filed by the due date, which is typically July 31.

Remember, these taxes are reported on an annual basis for the second quarter.

The Superfund chemical excise taxes are reported on Form 6627, specifically in Part 1: Environmental Taxes. This form is then attached to Form 720, the Quarterly Federal Excise Tax Return, for filing with the IRS.

For taxable chemicals, the manufacturer, producer, or importer is responsible for reporting and paying the tax to the IRS. For taxable substances, the importer is responsible for reporting and paying the tax to the IRS.

A taxable substance is any substance that, at the time of sale or use by the importer of the substance, is listed as a taxable substance. (ie. The importer of substances who sells or uses those substances.)

151 substances are listed as taxable substances. Among the 151 substances, the IRS has directly determined tax rates for 120 substances.

For 31 substances (*) Tax rate per ton to be determined at a later date. Effective date is 7/1/2022. Tax amount can be calculated using conversion factor or entry value for those 31 substances.

No, you do not need to file Form 720 for a consulting business, as it is primarily used for reporting excise taxes related to specific goods and services, such as fuel, communications, and air transportation. Consulting businesses typically do not deal with these types of excise taxes.

To pay Superfund chemical excise taxes using EFTPS:

• If paying only Superfund chemical excise tax (IRS No. 54 or 17):
  • Do not break the total payment into subcategories.
  • Simply make a single payment for the total amount.
• If paying Superfund chemical excise tax along with other excise taxes:
  • Make two separate payments in EFTPS:
  • One payment for the Superfund chemical excise tax.
  • Another payment for any other excise taxes listed in the subcategories in EFTPS.

There are two separate Superfund chemical excise taxes:

• A tax on the sale or use of taxable chemicals (Tax on Chemicals (Other Than Ozone-Depleting Chemicals), IRS No. 54)
• A tax on the sale or use of imported taxable substances (Tax on Imported Chemical Substances, IRS No. 17)

There are two ways by which you can file your return:

• E- Filing is Electronically submitting Federal Excise Tax Returns to the IRS through online.
• Paper Filing is sending the Federal Excise Tax Returns to the IRS through the mail.

There are three scenarios to calculate tax amount for the imported taxable substance:

1. First scenario: IRS tax of the substance is known

   Tax rate for the imported chemical substance (120 substances) is known. Hence, tax amount is calculated by multiplying the number of tons with the tax rate of the chosen taxable substance.

2. Second scenario: Entry value of the substance is known

   Appraised entry value of the imported chemical substance (31 substances) is known. Hence, tax amount is calculated by multiplying the appraised entry value with the default tax rate of 0.1.

3. Third scenario: Conversion factor of the taxable chemical is known

   An imported taxable substance is made up of two taxable chemicals. If the conversion factor of each taxable chemical is known, then the tax amount is calculated by multiplying the number of tons and the conversion factor with the tax rate of each taxable chemical.

If you import a gas-guzzling automobile, you may be eligible to make a one-time filing of Form 720 and Form 6197 if you meet both of the following conditions:

1. You do not import gas-guzzling automobiles in the course of your trade or business.
2. You are not required to file Form 720 reporting excise taxes for the calendar quarter, except for a one-time filing.

Example:

In August 2006, H, an individual, imported a car. The car has a fuel economy rating of 15 mpg, so H is liable for the gas guzzler tax of $4,500 (Form 6197, line 9). H meets the two conditions for a one-time filing, that is:

1. H does not import gas-guzzling automobiles in the course of his trade or business, and
2. H is not otherwise required to file Form 720.

He must file Forms 720 and 6197 for the third calendar quarter of 2006. H does not have to deposit the gas guzzler tax of $4,500 but instead pays with the return. H checks the one-time filing box on Form 720.

The IRS contact number for Form 720 Excise Tax inquiries is 866-699-4096. You can reach them from 8 a.m. to 6 p.m. Eastern Time.

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0009

If you’re filing Form 720-X separately, send Form 720-X to:

Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0009

Otherwise, attach Form 720-X to your next Form 720.

There is no specific deadline for filing Form 8849. However, Form 8849 should be filed after Form 720 has been submitted. It is used to claim a refund or credit for excise taxes reported on Form 720. Ensure that Form 720 is filed first, before submitting Form 8849.

The due date for Form 720-X is the same as the due date for Form 720 for each quarter. Form 720-X is used to make adjustments or corrections to previously filed Form 720 returns, and it must be filed by the same quarterly deadlines: