Everything you should know about Form 720-X

Form 720-X is an amendment form provided by the IRS to correct any errors in excise tax reporting on the previously filed Form 720, which is the Quarterly Federal Excise Tax Return. Form 720 is used by businesses to calculate and pay excise taxes on specific goods and services. 

However, if an incorrect amount was reported in a previous quarter, Form 720-X allows businesses to adjust and correct those discrepancies. This form is also known as the Amended Quarterly Federal Excise Tax Return because it specifically handles amendments to liabilities reported on Form 720 from previous quarters.

Form 720-X can be used to amend the excise tax categories reported on Form 720. Since Form 720 covers a wide range of excise tax categories, it is important to understand which categories can be adjusted using Form 720-X. However, do not use Form 720-X to amend or make changes to claims reported on Schedule C of Form 720, except in specific cases.

The only exceptions where Form 720-X can be used to amend Schedule C claims are for:

1. Section 4051(d) tire credit
   IRS Tire Credit Information
   

2. Section 6426 credits (relating to alternative fuel, biodiesel, and renewable diesel)
   IRS Alternative Fuel Credit Information
   

For all other categories listed in Form 720, Form 720-X can be used to correct previous filing errors.

You can file Form 720-X through two methods:

• Download the latest version of Form 720-X from the official IRS website.

• Fill in the required information relevant to your tax amendment.

• Once completed, send the form to the IRS mailing address provided, along with any payments due, if applicable.

• Use an RS-approved online filing portal like eFile720 to complete your Form 720-X amendments quickly and efficiently.

• Online filing streamlines the process, allowing you to complete the amendments in just a few minutes.

• Download Form720-X pdf

• Business Information: Fill in your business name, address, and Employer Identification Number (EIN) exactly as reported in your previous Form 720 filing.

• Line 1: Adjustments to Liability Reported on Previously Filed Forms 720:

• Enter the quarter and IRS number from your previous filing.

• Specify the old tax amount and the new corrected tax amount.

• Line 2: Adjustments to Form 720, Schedule C: Use this section only for claiming credits related to fuels and truck tax, which are the exceptions allowed for amendments to Schedule C.

• Line 3: Statement in Support of Adjustments: Choose the appropriate checkbox for the IRS number related to your adjustment, specifying the nature of your correction.

• Line 4: Total Adjustments: Add the adjustments from Line 1 and Line 2. If this results in a balance due, you must pay the amount owed with this filing. Attach a check to the form, ensuring your business name and address are noted on it.

• Line 5: Refund or Credit: If the result is overpaid, the IRS offers two options:

• Refund: Request a direct refund to your bank account.

• Credit: Apply the overpaid amount to your next tax filing. Be sure to enter the quarter ending date for which you intend to use the credit.

• Line 6: Explanation: Provide a detailed explanation for the amendment, including reasons and any supporting documents (if available) that justify the correction.

• Final Steps: Sign and date the form, then mail it to the IRS at the designated address.

Manual filing can be time-consuming and prone to delays. For faster, more convenient processing, consider switching to online filing through an IRS-approved portal like eFile720.

1. Login and Add Business Details:

• Log in to your eFile720 account.

• Click on "Add New Filings" and enter your business details.

2. Select Form Type: From the dropdown menu, choose “Form 720-X (Amended Quarterly Excise Tax)”.

3. Enter Correct Form 720 Details: Provide the details of the original Form 720 you are amending, including:

• Tax Year

• Quarter Ending

• IRS Number

• Original tax amount reported

• Adjusted tax amount

4. Tax Adjustment: The system will automatically calculate the change in tax amount based on the original and adjusted values.

5. Schedule C Claims (if applicable): For claims on Schedule C (fuel or truck tax credit), enter the Credit Name and Credit-CRN, then proceed.

6. Review Summary: A summary page will display the total adjustment. Review the details and proceed to the next step.

7. Handling Overpayment: If there is an overpayment, choose one of the following options:

• Apply to your next Form 720

• Refund the amount to you

8. Handling Balance Due: If there is a balance due, pay the amount along with any processing fees.

9. Complete Payment: Select your preferred payment method:

• Debit/Credit Card

• Bank Account (USA only)

Your Form 720-X will be successfully filed in just a few minutes through the eFile720 portal. After the IRS processes and approves your request, you will receive an acknowledgment via email.

WRAP:

By reading this blog, you will gain a clear understanding of Form 720-X, including its purpose and the process for filing it both manually and electronically for efficient tax corrections.