Payment — Instruction 720 — Instructions for Form 720

Generally, semimonthly deposits of excise taxes are required. A semimonthly period is the first 15 days of a month (the first semimonthly period) or the 16th through the last day of a month (the second semimonthly period).

However, no deposit is required for the situations listed below. The taxes are payable with the return.

The net liability for taxes listed in Form 720, Part I, doesn't exceed $2,500 for the quarter.

Instructions for Form 720 (Rev. 06-2026) 11

The gas guzzler tax is being paid on a one-time filing. See Gas guzzler tax (IRS No. 40), earlier.
The PCOR fee is being paid with a second-quarter Form 720. See Patient-centered outcomes research (PCOR) fee (IRS No. 133) , earlier.

• The liability is for taxes listed in Form 720, Part II, except the floor stocks tax, which generally requires a single deposit.

Special rule for deposits of taxes in September 2026. If you are required to make deposits, see the chart later. The special rule doesn't apply to taxes not required to be deposited (see Payment of Taxes , earlier). See Regulations sections 40.6302(c)-2 and 40.6302(c)-3 for rules to figure the net tax liability for the deposits due in September.

Additional Deposit of Taxes in September 2026

For the period

the information you will need to provide your financial institution to make a same-day wire payment, go to IRS.gov/SameDayWire .

Tip: You will automatically be enrolled in EFTPS when you apply for an EIN. You will receive a separate mailing containing instructions for activating your EFTPS enrollment after you receive your EIN.

When To Make Deposits There are two methods for determining deposits: the regular method and the alternative method.

The regular method applies to all taxes in Form 720, Part I, except for communications and air transportation taxes if deposits are based on amounts billed or tickets sold, rather than on amounts actually collected. See Alternative method (IRS Nos. 22, 26, 27, and 28) , later.

If you are depositing more than one tax under a method, combine all the taxes under the method and make one deposit for the semimonthly period.

Regular method. The deposit of tax for a semimonthly period is due by the 14th day following that period. Generally, this is the 29th day of a month for the first semimonthly period and the 14th day of the following month for the second semimonthly period. If the 14th or the 29th day falls on a Saturday, Sunday, or legal holiday, you must make the deposit by the immediately preceding day that isn't a Saturday, Sunday, or legal holiday.

Type of tax

Regular method taxes

Alternative method taxes (IRS Nos. 22, 26, 27, and 28) (based on amounts billed)

Beginning on Ending on Due date

Sept. 16 Sept. 26 Sept. 29

Sept. 1 Sept. 11 Sept. 29

Caution: Using the regular method: For the remaining days in September (27–30), make your deposits by the 10th day of October. Because October 11 is a Saturday, you must deposit the day before. Using the alternative method: For the remaining days in September (12–30), see Pub. 509 for deposit dates.

How To Make Deposits To avoid a penalty, make your deposits timely and don't mail your deposits directly to the IRS. Records of your deposits will be sent to the IRS for crediting to your accounts.

Alternative method (IRS Nos. 22, 26, 27, and 28). Deposits of communications and air transportation taxes may be based on taxes included in amounts billed or tickets sold during a semimonthly period instead of on taxes actually collected during the period. Under the alternative method, the tax included in amounts billed or tickets sold during a semimonthly period is considered collected during the first 7 days of the second following semimonthly period. The deposit of tax is due by the third business day after the seventh day of that period.

Electronic deposit requirement. You must deposit all depository taxes (such as excise tax, employment tax, or corporate income tax) by electronic funds transfer.

Example. The tax included in amounts billed or tickets sold for the period June 16–30, 2026, is considered collected from July 16–22, 2026, and must be deposited by July 25, 2026.

Depositing on time. For EFTPS deposits to be on time, you must initiate the transaction at least 1 day before the date the deposit is due (before 8:00 p.m. Eastern time).

To use the alternative method, you must keep separate accounts of the tax included in amounts billed or tickets sold during the month and report on Form 720 the tax included in amounts billed or tickets sold and not the amount of tax that is actually collected. For example, amounts billed in December, January, and February are considered collected during January, February, and March and are reported on Form 720 as the tax for the first quarter of the calendar year.

If a deposit is due on a day that isn't a business day or that is a legal holiday, see When To Make Deposits, later. The term “legal holiday” means any legal holiday in the District of Columbia.

Same-day wire payment option. If you fail to submit a deposit transaction on EFTPS by 8:00 p.m. Eastern time the day before the date a deposit is due, you can still make your deposit on time by using the Federal Tax Collection Service (FTCS). To use the same-day wire payment method, you will need to make arrangements with your financial institution ahead of time. Check with your financial institution regarding availability, deadlines, and costs. Your financial institution may charge you a fee for payments made this way. To learn more about

The separate account for any month can't include an adjustment resulting from a refusal to pay or inability to collect unless the refusal has been reported to

The separate account for each month must reflect:

All items of tax included in amounts billed or tickets sold during the month, and
Other items of adjustment relating to tax for prior months (within the statute of limitations on credits or refunds).

12 Instructions for Form 720 (Rev. 06-2026)

the IRS. See Communications and Air Transportation Taxes—Uncollected Tax Report , earlier.

The net tax liability that is considered collected during the semimonthly period must be either:

The net amount of tax reflected in the separate account for the corresponding semimonthly period of the preceding month, or
One-half of the net amount of tax reflected in the separate account for the preceding month.

Amount To Deposit Deposits of taxes for a semimonthly period must be at least 95% of the amount of net tax liability for that period, unless the safe harbor rule applies. See Safe Harbor Rule, later.

The net tax liability for a semimonthly period is the total liability for the period minus any claims allowed on Schedule C for the period. Net tax liability for a semimonthly period may be figured by dividing the net tax liability for the month by 2, provided this method of computation is used for all semimonthly periods in the calendar quarter.

Caution: The net tax liability for a semimonthly period isn't reduced by any amounts from Form 720-X.

Safe Harbor Rule

The safe harbor rule applies separately to deposits under the regular method and the alternative method. Persons who filed Form 720 for the lookback quarter (the second calendar quarter preceding the current quarter) are considered to meet the semimonthly deposit requirement if the deposit for each semimonthly period in the current quarter is at least ¹ /6 (16.67%) of the net tax liability reported for the lookback quarter.

Caution: The IRS may withdraw the right to make deposits of tax using the safe harbor rule from any person not complying with these rules.

Online Payment Agreement If you can't pay the full amount of tax owed, you can apply for an installment agreement online. You can apply for an installment agreement online if the total amount you owe in combined tax, penalties, and interest is $25,000 ($50,000 for individuals) or less, and you've filed all required returns. To apply using the Online Payment Agreement Application, go to IRS.gov/OPA .