IRS Form 720 is a quarterly federal excise tax return for businesses that sell goods or services subject to excise tax. It includes Schedule A, Schedule T, Schedule C, and a payment voucher called Form 720-V. Excise taxes apply to specific goods like fuel, alcohol, and activities like indoor tanning services. Deadlines are crucial, as penalties may apply for late submissions.
Filing Requirements
Businesses must file Form 720 quarterly, following the proper deadlines: April 30th, July 31st, October 31st, and January 31st. The form can be submitted electronically or by mail, and excise tax payments are required semi-monthly by electronic funds transfer.
Who Is Required to File?
Taxpayers classified as Spanish Tax Residents must file Form 720. A Spanish tax resident is defined as someone spending more than 183 days in Spain within a calendar year. Non-residents in Spain or those under the Special Tax Regime are not required to file. The deadline for filing is between January 1 and March 31 of the year following the tax year in question.
Completing Form 720
When filling out IRS Form 720, businesses must include all accounting documents and calculate the excise taxes using Part I for relevant taxes such as fuel, alcohol, and medical device taxes. Form 720 is due one month after each quarter’s end.
Additionally, for those required to file, the following table assists in determining which boxes to complete on Schedule A:
| IF you are reporting under the… | THEN you report on line… | AND enter the net tax liability in boxes… |
|---|---|---|
| regular method | 1 |
Penalties and FAQs
Late filings incur a penalty of 5% of the unpaid tax for each month or part of a month overdue, up to 5 months. Accurate record-keeping is essential to facilitate proper completion of Form 720 and for supporting documentation during audits.
Excise Tax Impact
The final price consumers pay for goods and services often includes the excise taxes absorbed by businesses.
**Example of Form 720:** [Visit Spanish Tax Agency](https://www.agenciatributaria.gob.es/AEAT.sede/en_gb/procedimientos/GI34.shtml)Assistance and Submission
For assistance, tax professionals are available to aid in the filing process. Form 720 can be electronically filed through authorized participants in the IRS e-file program.
Send your completed Form 720 to:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0009