How do I know if I have to file a form 720?

Full answer

Start by reviewing Parts I and II of Form 720 and the instructions for each potentially applicable tax. You generally must file if you are liable for, or responsible for collecting, one of the listed federal excise taxes during the quarter. Filing may also continue when you had a previous obligation and have not filed a final return.

Compare the listed categories with your business activities, products, services, and health plan arrangements. Do not decide based solely on revenue, profit, or business structure. Special rules apply to certain filers: a business that owes only the annual PCORI fee files just one Form 720 a year, the second-quarter return due July 31, rather than every quarter.

If your activities fall near a taxable category, consult Publication 510 or a qualified excise tax professional before concluding that filing is unnecessary.