Date: 12/14/2025
Form 720 in 2025: Key Updates & New OBBB Tax Rules
The June 2025 revision of Form 720 brings important updates for businesses owing federal excise taxes. This form is your quarterly report for various excise taxes, with semimonthly deposits often required. If you need Form 720 filing assistance June 2025, understanding these changes is crucial for compliance.
The updated form details include:
- **Part I — Main excise categories:** Environmental (chemicals, petroleum, ODCs), Communications & air transportation, Fuel (diesel, gasoline, kerosene, LPG/CNG/LNG, hydrogen, biofuels), and Manufacturer’s taxes (e.g., coal, certain tires).
- **Part II — Selected taxes & fees:** PCORI fee, Inland waterways fuel use, Sport-fishing/outdoor items, Indoor tanning services, and Stock buyback excise (reported via Form 7208).
Required schedules like Schedule A track your semimonthly liabilities for Part I taxes, while Schedule C handles claims for nontaxable uses or credits. Quarterly due dates are April 30, July 31, October 31, and January 31 (for the prior year’s fourth quarter), with electronic deposits via EFTPS being standard.
New OBBB Tax Rules & Penalty Relief
The One, Big, Beautiful Bill (OBBBA) introduces a new 1% excise tax on certain remittance transfers made after December 31, 2025. This tax applies to transfers paid by cash, money order, or similar instruments. Remittance transfer providers are responsible for collecting this tax from the sender, making semimonthly deposits, and filing quarterly on Form 720. Ensuring OBBB tax rule changes compliance is vital for affected providers.
To ease the transition, the IRS announced limited Form 720 penalty relief services for the new remittance-transfer tax deposits during the first three quarters of 2026. To qualify, you must make timely semimonthly deposits, even if computations are initially incorrect, and pay any underpayment by the quarter’s Form 720 due date. This relief helps providers navigate how to file Form 720 excise taxes under these new rules without immediate penalty for minor deposit errors. Consulting Form 720 tax preparation experts can help ensure you meet the conditions for this relief and stay on top of the June 2025 Form 720 deadline help.
Who Files Form 720 & What to Report
Businesses that collected or owe specific federal excise taxes during a quarter generally need to file Form 720. This includes a range of taxes, such as those on certain fuels, communications and air transportation, manufacturer’s items, indoor tanning services, and the Patient-Centered Outcomes Research Institute (PCORI) fee. Even if you normally report a tax but have no liability for a given quarter, you typically still file Form 720, reporting “zero” for that line. Many filers only submit the second-quarter return for the PCORI fee, while others file all four quarters depending on their activities. For Form 720 filing assistance in June 2025, understanding these nuances is crucial to correctly filing Form 720 excise taxes. A significant upcoming change affects remittance transfer providers. As defined by the Electronic Fund Transfer Act, these providers must file Form 720 quarterly for a new 1% excise tax on certain transfers made after December 31, 2025, specifically when paid by cash, money order, cashier’s check, or similar instruments. Staying compliant with these OBBBA tax rule changes is essential. If you face challenges, Form 720 penalty relief services might be available, but proactive filing is always best.What to Report (June 2025 Form)
When preparing your Form 720 for June 2025, you’ll detail various excise taxes:- Part I — Main excise categories:
- Environmental taxes (e.g., chemicals, petroleum/Superfund, ODCs).
- Communications & air transportation taxes.
- Fuel taxes (e.g., diesel, gasoline, kerosene/aviation, LPG/CNG/LNG, hydrogen, biofuels).
- Manufacturer’s taxes (e.g., coal, certain tires; “gas guzzler” reported via Form 6197).
- Part II — Selected taxes & fees:
- PCORI fee (for specified health insurance and applicable self-insured plans).
- Inland waterways fuel use.
- Sport-fishing/outdoor items (e.g., rods, tackle boxes, bows, arrow shafts).
- Indoor tanning services.
- Stock buyback excise (reported via Form 7208).
- New OBBBA 1% excise tax on certain remittance transfers made after December 31, 2025, when paid by cash, money order, cashier’s check, or similar instruments (check IRS instructions for the specific line).
Filing Deadlines & Deposit Requirements for Form 720
If your business owes federal excise taxes, you’ll file Form 720 quarterly. Understanding these deadlines and deposit rules is crucial for compliance. If you’re wondering **how to file Form 720 excise taxes**, start with the quarterly due dates for 2025:
| Quarter Covered | 2025 Filing Due Date |
|---|---|
| January–March | April 30 |
| April–June | July 31 |
| July–September | October 31 |
| October–December | January 31, 2026 |
Remember, if any due date falls on a weekend or legal holiday, you have until the next business day to file. Most deposits for Form 720 are made electronically through the Electronic Federal Tax Payment System (EFTPS).
For most Part I excise taxes, semimonthly deposits are required. Each month is split into two periods (1st-15th and 16th-end of month), with deposits generally due by the 14th day of the following period. This practically means deposits are due by the 29th and the 14th of the month, with a special rule for September deposits. You must complete Schedule A (Excise Tax Liability) to record these semimonthly liabilities if Part I taxes are owed.
A significant change begins in 2026 with the new 1% OBBB Remittance-Transfer Excise Tax. This tax, effective for transfers after December 31, 2025, requires remittance transfer providers to collect and make semimonthly deposits. Ensuring **OBBB tax rule changes compliance** will be vital for affected businesses. The IRS offers limited **Form 720 penalty relief services** for this new tax during the first three quarters of 2026, provided timely deposits are made and any underpayment is paid by the Form 720 due date. For complex situations or if you need **Form 720 filing assistance June 2025** or **June 2025 Form 720 deadline help**, consulting **Form 720 tax preparation experts** can provide valuable guidance.
Navigating OBBB Changes & Avoiding Form 720 Penalties
The **One, Big, Beautiful Bill (OBBBA) tax rule changes compliance** introduces a new 1% excise tax on certain remittance transfers, effective for transfers made after December 31, 2025. This tax specifically targets transfers paid by cash, money order, cashier’s check, or similar instruments. Remittance transfer providers are responsible for collecting this tax from the sender. You’ll report this new tax quarterly on Form 720, and providers must make semimonthly deposits following the standard timetable. Understanding **how to file Form 720 excise taxes** is now more critical than ever for affected businesses. The IRS has announced limited **Form 720 penalty relief services** for the first three quarters of 2026 concerning this new remittance-transfer tax. To qualify for this relief, you must:- Make timely semimonthly deposits, even if your calculations are initially inaccurate.
- Pay any underpayment in full by the due date of that quarter’s Form 720.
About the Author
ARUN KP
With over 15 years of extensive experience in the accounting and taxation industry, Arun KP specializes in cross-border India-US taxation. As an Entrepreneur and AI Content Generator, he leverages cutting-edge technology to simplify complex financial landscapes for individuals and businesses.
Entrepreneur | AI Content Generator | India-US Tax Professional | Accountant
Disclaimer: This article is for informational purposes only and does not constitute professional tax advice.
