Quarterly Federal Excise Tax Return

Forms and Documents

Document Name	Status
Form 6627 Form 6627- Environmental Taxes Form	Modified
Form 720-X Form 720-X - Amended Quarterly Federal Excise Tax Return Form	Unchanged
Form 720 Form 720 - Quarterly Federal Excise Tax Form	Modified
2024 Supporting Statement 1545-0023.docx Supporting Statement A	2024-07-23

IC Document Collections

IC ID	Document Title	Status
254805	Form 6627- Environmental Taxes Form	Modified
254804	Form 720-X - Amended Quarterly Federal Excise Tax Return Form	Unchanged
194180	Form 720 - Quarterly Federal Excise Tax Form	Modified

ICR Details

OMB Control No: 1545-0023	ICR Reference No: 202406-1545-001
Status: Received in OIRA	Previous ICR Reference No: 202207-1545-013
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Quarterly Federal Excise Tax Return
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 07/24/2024

	Requested	Previously Approved
Expiration Date	36 Months From Approved	07/31/2026
Responses	205,400	205,400
Time Burden (Hours)	2,746,000	2,391,400
Cost Burden (Dollars)	0	0

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Abstract: Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. One of the major components of the excise program is motor fuel. 26 USC 4081 imposes tax for miscellaneous excise taxes, manufacturers excise taxes, automotive and related items, petroleum products and motor and aviation fuel. The information supplied on Form 720 is used by the IRS to determine the correct tax liability. Additionally, the data is reported by the IRS to Treasury so that funds may be transferred from the general revenue funds to the appropriate trust funds.

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Authorizing Statute(s): US Code: 26 USC 4081 Name of Law: Imposition of tax
   US Code: 26 USC 4461 Name of Law: Imposition of tax
   US Code: 26 USC 4681 Name of Law: Imposition of tax
   US Code: 26 USC 4682 Name of Law: Definitions and special rules
  

Citations for New Statutory Requirements: US Code: 26 USC 5000D Name of Law: Designated drugs during noncompliance periods

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1545-BQ93	Final or interim final rulemaking	89 FR 55507	07/05/2024

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? Yes

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Number of Information Collection (IC) in this ICR: 3

IC Title	Form No.	Form Name
Form 6627- Environmental Taxes	6627	Environmental Taxes
Form 720 - Quarterly Federal Excise Tax	720	Quarterly Federal Excise Tax
Form 720-X - Amended Quarterly Federal Excise Tax Return	720-X	Amended Quarterly Federal Excise Tax Return

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	205,400	205,400	0	0	0	0
Annual Time Burden (Hours)	2,746,000	2,391,400	1,380	0	353,220	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The IRS is making this submission because IRC section 5000D, enacted as part of the Inflation Reduction Act of 2022, imposes an excise tax on certain sales of certain drugs. Final regulations require IRC section 5000D taxpayers to report tax liability on Form 720. A line was added to Form 720 to effectuate the provisions of IRC section 5000D. This is increased the burden by 1,380 hours due to new statutory requirements. Additionally, IRS has re-evaluated the burden calculations which has increased the burden by 353,220 hours due to Agency Estimate.

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Annual Cost to Federal Government: $280,209

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     Yes

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Yes

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 07/24/2024

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