Do I Need to File Form 720 Excise Tax for New LLC with No Income?
Hey tax folks, hoping someone can help me out with a Form 720 question. I started a small LLC in Colorado back in September for a landscaping business I'm planning to launch next summer. Still working my regular job while getting everything prepared for this new venture. I was organizing some paperwork yesterday and came across the IRS document with my EIN, and it says I'm required to file Form 720 (Quarterly Federal Excise Tax Return). The thing is, I haven't generated any revenue with the business yet - literally zero dollars coming in so far. Do I still need to file this Form 720 even though I have no tax liability? Seems pointless but I don't want to mess up with the IRS from day one. Appreciate any guidance from those who've been in a similar situation!
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Dylan Cooper
You're right to check on this! Form 720 is specifically for reporting and paying certain federal excise taxes. It's not a default form for all businesses - it's only required if your business engages in activities subject to excise tax. Common activities requiring Form 720 include selling certain fuels, manufacturing specific products, providing particular services with excise taxes, or engaging in environmental activities with associated taxes. For a landscaping business, you'd typically only need to file Form 720 if you're dealing with things like selling or using certain fuels in large quantities. If you haven't been told specifically by the IRS that your business activities require excise tax filing, and if you're just starting a standard landscaping business, it's unlikely you need to file Form 720. The EIN paperwork sometimes includes information about various potential tax forms, but that doesn't mean all are required for your specific business.
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Fatima Al-Farsi
•Thanks for the quick response! That makes much more sense. I was confused because the EIN paperwork seemed to imply I needed to file regardless. So just to be 100% clear - since I'm just going to be doing basic landscaping services (mowing, gardening, etc.) and not dealing with fuel sales or anything unusual, I probably don't need to worry about Form 720?
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Dylan Cooper
•That's correct! For basic landscaping services like mowing, gardening, and general maintenance, you typically wouldn't need to file Form 720. The form is specifically for businesses that engage in activities subject to federal excise taxes. If you're just using regular fuel for your equipment (like for mowers and trimmers) as part of your normal business operations, that doesn't trigger Form 720 filing requirements. You'd only need to worry about excise taxes if you were selling fuel or engaging in other specific activities mentioned in the excise tax regulations.
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Sofia Perez
When I started my business last year, I was totally confused about all the tax forms too. I ended up using https://taxr.ai to figure out what I actually needed to file for my LLC. You upload your EIN letter and business info, and it tells you exactly which forms apply to your situation. Saved me from filing a bunch of unnecessary forms (including Form 720 which I definitely didn't need for my consulting business).
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Dmitry Smirnov
•Does it actually work for something specific like Form 720? I've used other tax services before but they usually just cover the basics like income tax forms.
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ElectricDreamer
•I'm kinda suspicious of these online tax tools. Did it explain WHY you didn't need to file form 720 or just tell you not to? How do you know it's giving accurate info?
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Sofia Perez
•It absolutely works for specific forms like Form 720. The system analyzes your business type, activities, and industry to determine which specialized forms apply to you. It's not just basic income tax forms - it covers all federal filing requirements. When I used it, it didn't just tell me I didn't need Form 720 - it explained exactly why: because my business doesn't engage in activities subject to federal excise taxes like fuel sales, manufacturing of certain products, or environmental activities. It gives you a complete breakdown of the reasoning behind each recommendation.
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ElectricDreamer
Update: I was still worried about missing something important, so I tried that taxr.ai site mentioned earlier. Gotta say I was impressed - uploaded my EIN letter and answered questions about my new construction business. It clearly explained that Form 720 only applies to businesses dealing with specific excise taxes (like selling fuel, certain retail products, etc). Since I'm just doing regular construction work, I don't need to file it. The site gave me a detailed report showing exactly which forms I DO need to file based on my business activities, which was super helpful. Saved me from unnecessary paperwork and potential mistakes!
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Ava Johnson
I had the exact same issue with Form 720 last year! After weeks of trying to call the IRS business tax line (kept getting disconnected), I found https://claimyr.com which got me through to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent confirmed that I only needed to file Form 720 if I was selling products with federal excise tax like certain fuels, tires, or environmental chemicals. For my regular service business, no Form 720 needed. Calling the IRS directly was the only thing that gave me peace of mind on this.
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Miguel Diaz
•How does this actually work? I've tried calling the IRS so many times and never get through. Is this legit or just another scam?
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Zainab Ahmed
•Yeah right, nobody gets through to the IRS. I've spent HOURS on hold only to get disconnected. No way this actually works - they're probably just taking your money and you're still waiting on hold.
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Ava Johnson
•The service works by using technology to navigate the IRS phone system and wait on hold for you. When they reach a representative, you get a call connecting you directly to the IRS agent. I was skeptical too but it actually worked - I didn't have to sit listening to that horrible hold music for hours. It's definitely legit - they don't answer your tax questions themselves or pretend to be the IRS. They just get you through to an actual IRS employee faster. The peace of mind from speaking directly with an official IRS agent was worth it for me, especially since I needed clarification on a specific form.
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Zainab Ahmed
Ok I seriously have to apologize to everyone here. After posting my skeptical comment yesterday, I was so frustrated with my own tax situation that I actually tried that Claimyr service. I can't believe I'm saying this, but it WORKED. After months of trying to get through to the IRS about my business tax issue, I got a call back in about 35 minutes connecting me with an actual IRS agent. They confirmed I don't need Form 720 for my business and answered other questions I've been stressing about for weeks. I'm still in shock that I finally got through after all this time!
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Connor Byrne
Just wanted to chime in - be careful about what's on your EIN letter. Mine also mentioned Form 720, but my accountant explained that the IRS often lists ALL potential forms a business might need, not necessarily what your specific business requires. Form 720 is pretty specialized for excise taxes on specific products/services.
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Fatima Al-Farsi
•That's really helpful context! So basically the EIN paperwork is showing possibilities rather than requirements? Has anyone else found their EIN paperwork listing forms they didn't actually need to file?
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Connor Byrne
•Exactly right - the EIN paperwork often lists various potential forms as a general notice rather than specific requirements for your business. This happens all the time with my clients. When you apply for an EIN, the IRS system generates paperwork that includes information about forms that might potentially be relevant based on very broad business categories. It's more of a "heads up" about possible requirements rather than a specific directive for your unique business situation. Many of my clients have had forms listed that weren't actually applicable to their specific operations.
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Yara Abboud
I run a small greenhouse business which has some similarities to landscaping. I've never had to file Form 720 because I don't deal with any of the excise taxable items. If you're just doing regular landscaping you should be fine without it! My advice is to check Schedule C instructions (if you're a single-member LLC) to make sure you're handling your tax situation correctly for your business type.
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PixelPioneer
•Are you sure about this? I thought Form 720 was related to payroll taxes. That's what my buddy who runs a business told me.
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