How often is Form 720 filed?

Form 720, the Quarterly Federal Excise Tax Return, is filed four times a year — generally due the last day of the month following the end of each calendar quarter. Deposits of collected remittance excise tax are made more frequently, on a semimonthly schedule.

What is a semimonthly deposit period?

A semimonthly period is the first 15 days of a calendar month, or the portion of the month after the 15th. Excise deposits are generally due within days after each period closes, which surprises businesses used to quarterly rhythms.

Is there penalty relief for remittance providers in 2026?

Yes — the IRS has provided transition-period deposit penalty relief for remittance transfer providers as the industry stands up compliance. Relief is temporary and conditioned on meeting the relief terms, so providers should not treat it as a reason to delay.

Form 720 for Remittance Providers: Deposits, Deadlines, and Penalty Relief (2026)

Excise Advisors · Updated July 5, 2026 · Form 720 · Compliance operations

Short answer: If you're a remittance transfer provider, you now live on two clocks. Deposits of collected 1% remittance excise tax run semimonthly; the return (Form 720) runs quarterly. Missing the deposit clock is the most common — and most expensive — first mistake.

The two clocks, explained

Semimonthly deposits. Excise deposit periods close on the 15th and the last day of each month, with deposits due shortly after each period. For the remittance tax, the first deposits were due January 29, 2026. Businesses accustomed to quarterly payroll or income-tax rhythms routinely miss this cadence.
Quarterly Form 720. The Quarterly Federal Excise Tax Return reconciles what you collected and deposited, generally due the last day of the month after each quarter ends (April 30, July 31, October 31, January 31).

The five mistakes we see most

No collection at the counter. The sender is liable, but the provider must collect. Providers that didn't update point-of-sale flows are paying the 1% out of margin.
Funding-method blindness. Exempt (account- or U.S. card-funded) vs. taxable (cash and physical instruments) isn't being captured per transaction — killing the exemption under exam.
Deposits treated as quarterly. Collected tax sits in an operating account until Form 720 time; every missed semimonthly period is a separate failure-to-deposit event.
Wrong entity files. Multi-entity groups collect through one entity and file through another, or nobody files at all.
Relying on penalty relief forever. The IRS's transition relief (see its penalty relief announcement) has conditions and an expiration. It is a runway, not an exemption.

What "caught up" looks like

A compliant provider can show: per-transaction funding-method records; a deposit calendar with semimonthly EFTPS deposits; filed Form 720s for every quarter since Q1 2026; and a reconciliation tying collections to deposits to the return. If any of those four are missing, you have a gap — the only question is size.

Not sure your deposits and filings line up?
Get a free 20-minute exposure scan from a former IRS auditor →

This article provides general information about federal excise tax topics and is not legal, tax, or accounting advice. Rules cited as of July 2026; verify current guidance at irs.gov. ExciseAdvisors · 10 South Riverside Plaza, Chicago, IL 60606.