Form 720 Instructions in Plain English
The current Form 720 instructions are the June 2026 revision, and you can read them at the IRS instructions page. They run 21 pages, but no business needs all of them. A PCORI-only filer can get by on about five pages, while a fuel seller making claims needs many more. This guide shows you which ones to read, so treat it as a companion to the IRS text and not a replacement.
What is in each section of the 720 instructions?
Page numbers are from the printed edition (Rev. 6-2026).
| Pages | Section | Why you would read it |
|---|---|---|
| 1 | What's New, Reminders, Who Must File, When To File | Rate changes and the basic filing test |
| 2 | Where To File, How To File, Making a Payment, Final Return, Recordkeeping, Penalties and Interest | The rules for zero returns, final returns, and payment options |
| 3 | Private Delivery Services, Name and Address, EIN, disregarded entities | Which EIN to use, especially for single-owner LLCs |
| 4 | Signature, Third Party Designee, Paid Preparer, start of Part I | Who signs and who the IRS may talk to |
| 4 to 9 | Part I taxes, one by one | Your tax's rules, examples, and who must file |
| 9 to 11 | Part II taxes, one by one | Same, for PCORI, fishing, archery, tanning, and others |
| 11 | Part III | How lines 4, 6, and 10 work |
| 11 to 13 | Payment of Taxes: deposits, safe harbor, online payment agreements | When deposits are required and how much |
| 13 | Schedule A | Which boxes to complete |
| 14 | Schedule T, start of Schedule C | Two-party exchanges and claim requirements |
| 14 to 19 | Schedule C line by line | Fuel, tire, and other claims |
| 20 to 21 | Paperwork Reduction Act notice, Index | The index is the fastest way to find a topic |
What changed in the 2026 instructions?
The first page lists these items under What’s New and Reminders.
- PCORI fee. $3.84 per average covered life for policy and plan years ending on or after October 1, 2025, and before October 1, 2026. It stays $3.47 for those ending on or after October 1, 2024, and before October 1, 2025.
- Inflation adjustments for 2026. Arrow shafts rise to $0.65 per shaft. The domestic air segment tax rises to $5.30. The international air travel facilities tax rises to $23.40 per person, or $11.70 for domestic segments beginning or ending in Alaska or Hawaii (departures only).
- New remittance transfer tax. A 1% tax on certain transfers after 2025, IRS No. 155, with limited penalty relief on deposits for the first three quarters of 2026.
- Expired oil spill taxes. IRS Nos. 18 and 21 expired after 2025. Don’t enter them unless Congress extends them.
- Refunds and payments. The instructions point filers to direct deposit on line 11 and recommend paying electronically.
For more on how each change plays out, see the guide to the June 2026 form revision.
Which pages matter for your business?
Everyone should read pages 1 and 2 and the signature section on page 4. Then add the row that fits you.
| If you are... | Read these | Watch for |
|---|---|---|
| Self-insured employer or health insurer | Pages 9 to 10 (IRS No. 133) | Annual filing on the second-quarter return and the counting methods. No deposits |
| Airline or charter operator | Pages 4 to 5, then 11 to 13 | Worked fare examples, uncollected tax report, regular or alternative method |
| Telephone service provider | Pages 4 to 5, then 11 to 13 | Credit rules that differ by deposit method, uncollected tax report |
| Fuel seller, blender, or terminal user | Pages 5 to 7, 11 to 13, then 14 to 19 for claims | First taxpayer's report, Schedule T, claim minimums |
| Truck or trailer dealer | Pages 7 to 8, then 11 to 13 | Weight limits, excluded body types, section 4051(d) tire credit on Schedule C, line 14a |
| Remittance transfer provider | Page 8, then 11 to 13 | Semimonthly deposits and limited 2026 penalty relief |
| Tire maker or importer | Page 9, then 11 to 13 | Which of IRS Nos. 108, 109, or 113 applies |
| Fishing or archery equipment maker | Page 10 | The $10 cap on rods and poles, and the wooden arrow exemption |
| Tanning salon | Pages 10 to 11 | If the tax isn't collected for any reason, the collector is liable |
| Foreign insurance premium payer | Page 8, then 11 to 13 | Who must file, and the treaty-based disclosure statement |
| Paid preparer | Page 4 | PTIN and firm details, and the copy you must give the client |
Not sure which row applies to you? The Form 720 filing checker can point you to the right IRS Nos., and the main Form 720 guide is a good next stop.
Five passages that are easy to miss
- Page 2, zero returns. If you aren’t reporting a tax you normally report, enter a zero on that line. If you have no tax to report, enter “None” on Part III, line 3, and sign and date.
- Page 2, adjustments. Don’t enter adjustments for earlier quarters on Form 720. Those go on Form 720-X.
- Page 3, single-owner entities. Eligible single-owner disregarded entities and qualified subchapter S subsidiaries report excise taxes under their own EINs, not the owner’s number. The exceptions are IRS Nos. 31, 51, and 117.
- Page 11, line 10. You don’t have to pay if line 10 is under $1.00. But paying taxes with the return when you should have deposited them may bring a penalty.
- Page 14, Schedule C. A claim will be disallowed if you don’t follow the required procedures or provide all the required information. For lines 1 to 6 and 14b to 14d, the combined claim must be at least $750.
What don’t the Form 720 instructions cover?
Knowing the gaps saves time, because you can go straight to the right document.
| You want | Go to |
|---|---|
| Definitions and examples for each tax, plus fuel credit detail | Pub. 510, Excise Taxes |
| A calendar of deposit dates | Pub. 509, Tax Calendars |
| Percentages for late filing and late payment | Not printed in the Form 720 instructions. The Instructions for Form 7208 state them for filers of that form |
| Tax rates for environmental taxes or gas guzzlers | Forms 6627 and 6197 |
| The PCORI rate for plan years ending on or after October 1, 2026 | Not in this edition. The IRS publishes it, so check the second-quarter 2027 instructions |
| Changes after publication | IRS.gov/Form720, under Future Developments |
Once you have read your pages
The instructions tell you what to report. You still have to apply them to your own figures. When you file online with EasyFile720, the rates for the return are built in and the math is calculated after you enter your figures. Validations catch common mistakes before you submit. The figures, and choices like which deposit method applies to you, remain yours, so keep the pages above handy while you work. An account is free to create, and you pay $39.95 per filing when you file.
FAQ
Where do I get the official Form 720 instructions?▼
They are on the IRS website, and IRS.gov/Form720 also posts developments that come after the instructions were published, such as new legislation.
Which instructions do I use for the PCORI fee?▼
The instructions say to figure the fee using the instructions for the second-quarter Form 720, because the rate varies from year to year.
Do the instructions list every tax rate?▼
No. Many rates are printed on Form 720 itself, and environmental and gas guzzler rates are on Forms 6627 and 6197.
Are the page numbers here the same in the IRS web version?▼
They are the page numbers of the printed PDF edition. Search by heading if you are reading another version.
File Form 720 online
Create a free account with no credit card and build your return. You pay $39.95 only when you file. EasyFile720 is an IRS-authorized e-file provider, and you get an acknowledgment when the IRS accepts your return.
Sources: Instructions for Form 720 (Rev. June 2026); Form 720 (Rev. June 2026); Instructions for Form 7208 (Rev. December 2025). General information, not tax advice. Confirm how the rules apply to you with a qualified advisor or the IRS.
