Schedule A. Excise Tax Liability

How to complete. Complete Schedule A to record net tax liabilities for Form 720, Part I, taxes for each semimonthly period in a quarter even if your net liability is under $2,500.

The following table will help you determine which boxes to complete on Schedule A.

Additional rules. Report communications and air transportation taxes based on:

• Actual collections on line 1, or

• Amounts billed or tickets sold on line 2. The amount of tax to report for a semimonthly period is the net amount that is considered collected during that period.

IF you are reporting under the...

THEN you report on line...

AND enter the net tax liability in boxes...

regular method 1 A–G. alternative method 2 M–S.

If you are reporting more than one type of tax on lines 1 and 2:

1. Add the net tax liability for each tax for each semimonthly period, and

2. Enter the total in the applicable box.

For the semimonthly period for which the additional deposit is required (September 1–11 and 16–26), the additional deposit must be at least ¹¹ /90 (12.23%) of the net tax liability reported for the lookback quarter. Also, the total deposit for that semimonthly period must be at least ¹ /6 (16.67%) of the net tax liability reported for the lookback quarter.

Exceptions. The safe harbor rule doesn't apply to the following quarters.

• The first and second quarters beginning on or after the effective date of an increase in the rate of tax unless the deposit of taxes for each semimonthly period in the calendar quarter is at least ¹ /6 (16.67%) of the tax liability you would have had for the lookback quarter if the increased rate of tax had been in effect for that lookback quarter.

• Any quarter if liability includes any tax not in effect throughout the lookback quarter.

• For deposits under the alternative method, any quarter if liability includes any tax not in effect throughout the lookback quarter and the month preceding the lookback quarter.

Requirements to be met. For the safe harbor rule to apply, you must pay any underpayment for the current quarter by the due date of the return and check the box on line 5 of Form 720.

Example. Under the alternative method, the amounts billed for communications services from June 1–15, 2026, are considered collected during the period July 1–7, 2026, and are reported for the third quarter of 2026 on Schedule A in box M, not the second quarter of 2026.

Reporting tax liability under the special September rule. An additional reporting is required under the special September rule as follows.

Regular method taxes Enter the liability for the period beginning September 26/27 and ending September 30 in box F .

Alternative method taxes Enter the tax included in the amounts billed or tickets sold for the period beginning September 11/12 and ending September 15 in box M of the fourth quarter return . Enter the tax included in amounts billed or tickets sold during the period beginning September 16 and ending September 30 in box N of the fourth quarter return .

Instructions for Form 720 (Rev. 06-2026) 13