Form 720 — Quarterly Federal Excise Tax Return

This skill produces an audit-grade draft of Form 720 covering the federal excise taxes a business is liable for in a given quarter. Most filers only owe one or two specific taxes (PCORI fee for self-insured health plans being the most common), so the skill spends 80% of its time on the handful of common categories and provides pointers for the rest.

The math is per-line mechanical. The judgment is in identifying which IRS Numbers (the 100+ line items in Parts I and II) apply to the filer's business and distinguishing Form 720 obligations from adjacent forms (Form 2290, Form 11-C, state excise). When liability is unclear, the agent must ASK rather than guess — wrongly omitting an excise tax produces compounding penalties under §6651.

When to invoke

Engage this skill when any of the following is true: