Federal Excise Taxes: How Form 720 Works Each Quarter
Published November 7, 2026
Publication 510 (Rev. December 2025), Excise Taxes, covers federal excise taxes and the forms used to report them. An excise tax is a tax on a specific good, service, or activity. It is different from the income tax on your return. This guide explains the basics of Form 720, the quarterly return. It is general information, not advice about your case.
What Form 720 is for
The publication says to use Form 720 to report and pay the excise taxes it covers. You file Form 720 for each calendar quarter until you file a final return. A calendar quarter is three months: January through March, April through June, July through September, or October through December.
Some filers may be required to file monthly or semimonthly instead of quarterly. The publication gives two reasons. One is failing to make deposits as required. The other is owing the excise tax on taxable fuels and meeting certain conditions.
The parts of the form
Form 720 has three parts and three schedules. Part I lists excise taxes that are generally required to be deposited. Part II lists taxes that are not required to be deposited. Part III figures your tax liability for the quarter and any balance due or overpayment.
- Schedule A records your net tax liability for each semimonthly period. You complete it if you have an entry in Part I.
- Schedule C is used to make claims. You can use it only if you report a liability in Part I or Part II.
- Schedule T reports certain exchanges of taxable fuel made before or with the removal of fuel at the terminal rack.
Many businesses will never use Schedule T. It applies to exchanges of taxable fuel at the terminal rack.
Some taxes need a separate attachment. The publication lists Form 6197 for the gas guzzler tax, Form 6627 for environmental taxes, and Form 7208 for taxes on the repurchase of corporate stock.
Due dates
Form 720 is due at the end of the month after each quarter closes. The publication gives these due dates:
- January, February, and March: April 30
- April, May, and June: July 31
- July, August, and September: October 31
- October, November, and December: January 31
If a due date falls on a Saturday, Sunday, or legal holiday, you can file on the next business day. The publication also describes electronic filing and points to IRS.gov for e-file details for Form 720 providers.
Correcting a prior quarter
Form 720-X is used to adjust a Form 720 filed in an earlier quarter. You can file Form 720-X by itself. If it shows a decrease in tax, you can attach it to a current Form 720.
For a tax decrease, the publication says you must check a box on Form 720-X. The box states that you repaid the tax to the person you collected it from, or that you got that person's consent to the adjustment. Other adjustments have their own conditions, so read that section before you file.
The final return
File a final return if you go out of business. You also file a final return if you will not owe excise taxes that are reportable on Form 720 in future quarters.
An example you may see: indoor tanning
The publication includes a section on indoor tanning services. The tax is 10% of the amount paid for the service. The person paying for the service pays the tax. The person receiving payment for the service collects it. The publication explains what indoor tanning services are. It says that phototherapy performed by, and on the premises of, a medical professional is not included.
Rates and other taxes
The publication covers fuel taxes, fuel tax credits, air transportation taxes, and several other excise taxes. It does not list every rate in the text. The publication says the tax rates are listed in the instructions for Form 720. Check those instructions for the rate that applies to your activity and period.
Next steps
If your business owes any federal excise tax, start by checking Publication 510 for the tax that applies to your activity. Note your filing schedule and the due date for each quarter. If you are unsure which parts of Form 720 apply, a tax professional can help you sort out the details.
Sources: Sources: IRS, Publication 510 (Rev. December 2025), Excise Taxes (https://www.irs.gov/pub/irs-pdf/p510.pdf) This is general information, not advice about your specific return.
More guides on: Self-employment and small business
