Form 720

Quarterly Federal Excise Tax Return

Tax form 720 is used to make estimated excise tax payments on certain categories of income/assets. Excise taxes are taxes that attempt to discourage certain interests and/or place additional tax on dangerous activities. For example, an expat taxpayer who has an interest in a specific type of foreign life insurance plan would have to use IRS form 720 to report the excise taxes on that interest.