The importance of filing a Final Return with Form 720 is to formally notify the IRS that your business has stopped activities subject to excise taxes. Once the Final Return is filed, the IRS will update its records and stop sending you Form 720 filing requirements for future quarters.

To file a Final Return for Form 720, you can choose between two methods:

1. Manual Filing:

2. Online Filing:

• Use an IRS-approved e-filing portal to submit your Form 720 electronically.

• After submission, the IRS will process your form and send you an acknowledgment of receipt and approval.

Both methods ensure the IRS is notified that your business no longer owes excise taxes, helping you avoid future filing obligations and potential penalties.

1. Fill in Your Business Details:

• Enter your business name, address, phone number, and Employer Identification Number (EIN) in the relevant fields on Form 720.

2. Complete the Relevant Sections:

• Fill out the sections of Form 720 that apply to the specific excise taxes your business has been reporting. These are the same sections you’ve been completing in previous filings.

3. Indicate Final Return:

• At the top of Form 720, check the box labelled "Final Return" above Part 1. This signals to the IRS that this is your final filing.

4. Submit the Final Return:

• Once the form is completed, send it to the correct IRS 720 mailing address.

After mailing the form, your Final Return will be processed, and the IRS will record that you no longer need to file Form 720 in future quarters.

Manual filings can be time-consuming and less efficient, which is why the IRS recommends filing Form 720 online. The online filing method is faster, more efficient, and provides instant confirmation of receipt from the IRS.

It reduces the chance of errors, ensures quicker processing, and allows businesses to easily track their submissions. Additionally, e-filing eliminates the need for mailing paperwork, making the process more convenient and reliable for businesses.

You can use our IRS-approved online portal eFile720 for a smooth and efficient filing experience. 

1. Create an Account (For New Users):

• Visit eFile720 and create a free account.

• Add your business details such as name, address, EIN, and other relevant information.

2. For Existing Users:

• Log in to your account and select the "Start Filing" option against your pre-added business details.

3. Form Selection:

• Choose "Form 720" as the form type.

• Select the relevant tax year and quarter for the filing.

4. Indicate Final Return:

• Check the box labelled "Check if this return is final" to notify the IRS that this is your final Form 720 filing.

5. Business Category and Liability:

• Choose the appropriate business category.

• Check the box indicating "Check if you want to file this return with empty tax liability" if you no longer have any excise tax liability.

6. Review and Submit:

• Review the filing summary for accuracy.

• Submit your final return with a small processing fee.

Once your Form 720 Final Return is submitted, the IRS will process it. You will receive an acknowledgment once it has been approved, completing the filing process smoothly and efficiently.

WRAP:

After reading this blog, you'll understand:

• What Form 720 Final Return is

• Why filing it is important

• How to file it, both manually and online using eFile720

This will help ensure you comply with IRS requirements and avoid penalties.