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Environmental Tax - File IRS
Form 720 Online with Efile720

Environmental tax is a type of federal excise tax charged on petroleum products and chemicals that can cause environmental damage. These include ozone-depleting chemicals (ODCs) reported on Form 720 (Schedule A, IRS Nos. 53-141 for petroleum/chemicals) and Form 6627 for ODCs. This tax applies to both domestic petroleum Superfund taxes and imported chemicals. Rates vary by item per IRS Pub 510 (e.g., $0.184/gal for diesel Superfund tax).

E-File Form 720

Core Objectives

  • Funds Cleanup Initiatives: To generate revenue to support the Superfund program, which is responsible for cleaning up hazardous waste sites throughout the U.S.
  • Incentivizes Responsibility: To discourage the use of polluting petroleum and chemicals through financial penalties levied on producers and importers. It also provides funding for the cleanup of accidental spills.
  • Promotes Stewardship: It allows businesses to be held financially accountable for the environmental damage they cause. This encourages businesses to minimize pollution.
  • Enhances Public Health: It funds projects that restore ecosystems, protect public health, and support communities.

EFile720 Key Benefits

Efile720 maps Foreign Insurance Excise Tax data directly to applicable Form 720 Part I (Tax)
entries, reducing manual interpretation of IRS worksheets.

Authorized IRS Platform

Offers an easy-to-use, automated, and secure method for eFiling Form 720 for all environmental tax schedules.

Automatic Calculation and Instant IRS Acknowledgements

Does not require manual calculations; therefore minimizing errors and provides paperwork to document that the IRS accepted Form 720 immediately.

User-Friendly Interface

Simple for entering data into the Form 720 and includes an error-checking process that enables users to proactively identify data entry problems before they occur.

Efficiency Gain

Tax consultants spend less time on the paperwork and more time working on their businesses via paperless Form 720 e-filing.

Fast Submission

The IRS will confirm e-filed forms in minutes; the lag time for submitting paper-filed forms is days to weeks.

Penalty Avoidance

Timely, precise submissions avoid fines for errors or late filing.

Provide Professional Support

The user will have access to the expertise of excise tax professionals, accounting software integration, and eligibility review for credits/refunds.

Prepare for Your Audit

Maintain the complete history of e-filed environmental tax records and documentation for easy compliance checks.

Critical Filing Deadlines

Quarter Reporting Period Due Date Notes
Q1 January - March April 30 Last day of the month following the quarter end
Q2 April - June July 31 Form 720 required for environmental taxes
Q3 July - September October 31 E-filing is mandatory if liability exceeds $2,500 quarterly
Q4 October - December January 31 No extensions available; late filing incurs penalties

Frequently Asked Questions

The environmental taxes are for petroleum, Superfund, and other specified chemicals under IRS Nos. 53, 54, and 17 (Schedule A).

Producers, manufacturers, or importers of certain petroleum and chemical materials.

Yes, eFile720 is an IRS-approved provider to e-file Form 720 and the various environmental schedules.

No, the IRS does not allow extensions for Form 720—it is always subject to strict quarterly filing deadlines.

E-filing enables extremely fast, accurate filing with mandatory compliance for filings over $2,500 liability and immediate IRS validation.