Pay the federal excise tax on what you sell.
Some products and services carry a federal excise tax: fuel, air travel, indoor tanning, heavy trucks, and health-plan fees, among others. If your business deals in one of them, you report and pay that tax every quarter on Form 720. We identify which excise taxes apply to you, calculate them, and file on time.
A tax on specific goods and services.
Form 720 is the Quarterly Federal Excise Tax Return. Excise taxes are not general income taxes; they apply to particular things the government taxes at the point of sale or use, such as gasoline and diesel, air transportation, indoor tanning services, heavy highway trucks, sport fishing equipment, certain chemicals, and health-plan fees. If your business is in one of these lines, you collect or owe the tax and report it four times a year on Form 720. Most businesses never touch it; the ones that do usually have a single category that applies to them.
Only the parts that apply to you.
Form 720 is long because it covers every excise tax, but you complete only the lines for your activity. We fill in the category that fits and leave the rest blank.
- The right categories completed. Only the excise lines that apply to your business, whether fuel, air transportation, tanning, or another.
- The tax calculated. The amount owed for the quarter, worked out from your activity and the current rates.
- The PCORI fee when it applies. The annual health-plan fee reported on the second-quarter return if you sponsor a self-insured plan.
- A filed, paid record. Confirmation the return was filed and the tax paid, kept with your books for the quarter.
Only if you are in a taxed line.
Form 720 is not a general business filing. It applies when your activity falls into one of the excise categories, and not otherwise.
- Sellers and users of taxed fuels, and many fuel-related businesses
- Airlines and operators that collect the air transportation tax
- Tanning salons collecting the indoor tanning tax, and retailers of heavy trucks and trailers
- Employers and insurers that owe the PCORI fee on a health plan
- The majority of businesses, which are in no excise category at all
- Companies whose only federal taxes are income and payroll
- Sellers of goods that simply carry sales tax, which is a state matter
- Businesses that once owed an excise tax but no longer operate in that line
Not sure whether an excise tax touches your business? The category list is specific. We can check your activity against it before you assume you owe nothing.
Four quarters, and one yearly exception.
These figures are verified against current IRS guidance. Form 720 runs on a quarterly cycle, with the PCORI fee as the one item that is filed once a year rather than every quarter.
Excise rates and the PCORI fee amount are updated periodically. We apply the current figures for your quarter before filing.
From activity to a filed quarter.
- 1Identify your categories
We match what your business sells or uses to the excise categories on the form.
- 2Calculate the tax
We apply the current rates to your quarter, and track any semimonthly deposits along the way.
- 3File the quarterly return
We complete only your lines and file by the deadline, including the annual PCORI fee when it applies.
- 4Confirm and repeat
You get confirmation the return was filed and paid, and we carry the schedule into the next quarter.
A long form with a narrow answer.
Form 720 intimidates because it lists dozens of taxes, but your business usually owes one of them. We find the right category, get the rate current, and keep the quarterly rhythm so nothing slips.
We match your activity to the excise lines that apply and skip the ones that do not.
We track the four deadlines and the once-a-year PCORI fee so none is missed.
We apply up-to-date rates and keep any semimonthly deposits on schedule.
You see the price before you file, with no surprise add-ons. See pricing →
The rest of your federal calendar.
Your quarterly payroll tax return, on a similar rhythm.
Explore → Annual income taxForm 1120The corporate income tax return, separate from excise.
Explore → Never miss a dateCompliance calendarEvery federal and state deadline for your business in one place.
Explore → All federal formsTax CenterEvery federal filing we handle, in one hub.
Explore →Form 720, answered.
Does my business have to file Form 720?
Only if you deal in something that carries a federal excise tax, such as fuel, air transportation, indoor tanning, heavy trucks, or a self-insured health plan owing the PCORI fee. Most businesses are in no excise category and never file it; the Tax Center lists the filings that may apply to you.
When is it due?
Quarterly, on the last day of the month after each quarter: April 30, July 31, October 31, and January 31. Dates that fall on a weekend or holiday move to the next business day, and the compliance calendar keeps all four on your radar.
What is the PCORI fee?
It is a fee on self-insured health plans, reported on Form 720. It is the one item that is annual rather than quarterly, filed on the second-quarter return due July 31.
Do I fill out the whole form?
No. The form lists every excise tax, but you complete only the lines for your activity and leave the rest blank. Most filers use a single category. It is separate from your income tax return, such as Form 1120, and from payroll returns like Form 941.
What are semimonthly deposits?
For many excise taxes, you must deposit the tax twice a month rather than wait for the quarterly return. The return then reconciles what you already deposited against what you owe.