Nov 12, 2025
IRS Form 720, the Quarterly Federal Excise Tax Return, is a critical document for businesses that owe excise taxes on certain goods and services. However, filing can be complex, and common mistakes can lead to significant penalties. To avoid these issues, filers should pay close attention to several key areas: ensuring all business details and taxpayer information are accurate, double-checking all mathematical calculations, and verifying that the correct IRS tax numbers and categories are used. Furthermore, it is crucial to file and pay by the quarterly deadlines, keep meticulous records for at least four years, and use the "final return" box if the business will no longer be subject to excise taxes. Filing electronically is also highly recommended to reduce the risk of manual errors and receive immediate confirmation.