What's the difference between the Regular and Alternative Methods?

The Regular Method reports tax based on payments received, while the Alternative Method reports based on billed amounts assumed to be collected next quarter.

Do exemptions apply for certain routes or airports?

Yes. Qualifying rural airports and specific exempt flight routes may not require segment tax under certain conditions.

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Simplify Communication & Air Transportation Tax Compliance – Fast, Accurate & Online

Q: What if tax was collected incorrectly?

You may adjust using Form 720-X or through the Alternative Method, provided customers are refunded or have given consent.

Q: What if no tax was collected?

You must still file Form 720 and deposit the uncollected tax. IRS penalties apply if unreported.

Fast. Secure. IRS-Authorized.

If your business provides telephone communication services, manages air travel, or collects federal excise taxes from customers — these taxes must be reported accurately each quarter using IRS Form 720.

With Simple720Tax, you get guided, error-proof, and fully IRS-authorized e-filing that makes compliance simple. No confusion. No manual forms. No penalty risks.

Accurate Communications and Air Transportation Taxes Reporting with Simple720Tax

What Are Communications & Air Transportation Taxes?

Federal taxes apply to certain services including:

•Local telephone and voice communication services
•Domestic and international passenger flights
•Air freight
•International travel opportunities and typewriter exchange

These activities fall under IRS Nos. 22, 26, 27, and 28 on IRS Form 720.

Accurate quarterly recording ensures:

✓Comply with federal excise tax requirements
✓Adequate tax collection from end users
✓Avoid IRS penalties and interest
✓Keep financial records smooth and ready for audit

Does Your Business Need to File?

You are required to file Form 720 for Communications or Air Transportation taxes if your business:

•Provides local telephone or voice exchange services (IRS No. 22)
•Offers domestic or international air travel (IRS Nos. 26 & 27)
•Handles air cargo transportation (IRS No. 28)
•Bills customers for federal communication or aviation excise tax
•Failed to collect excise tax — a separate filing is still mandatory

If any of these apply, Simple720Tax ensures accurate, compliant filing every quarter.

What You'll Need Before You Start

To file smoothly, gather:

✓Business name, EIN, and registered address
✓Customer billing records and payment logs
✓Ticket counts, passenger segments, or cargo miles
✓Documentation for exemptions such as rural airport exemptions, private aircraft management, and fractional ownership
✓Supporting documents for credits or refunds (over-collected taxes)

How to File Online — in 5 Simple Steps

Log In to Your Simple720Tax Dashboard

Access your IRS-authorized filing hub with secure login.

Enter Business & Activity Details

Select filing quarter, billing period, filing method (Regular or Alternative), and taxable service categories.

Report Taxable Amounts

Communications tax: 3% rate. Air travel segment tax: as per updated IRS rates. Total billed amounts, ticket segments, facility charges, or cargo miles.

Verify Your Filing Method

Regular Method: Based on tax collected from payments received. Alternative Method: Based on billed amounts for the quarter. The system alerts you if inputs conflict with IRS rules.

Submit & Make Your Tax Payment

Pay electronically via EFTPS, debit card, or business check. Instantly download your IRS-filed Form 720. Your records remain securely stored for at least three years.

Why Correct Filing Matters

✓Avoid IRS penalties for incorrect or late deposits

✓Maintain accurate excise tax billing and reporting

✓Claim credits for refunds or exempt services

✓Stay fully compliant with IRS communication and aviation rules

✓Build trust through transparent customer billing

Correct filing ensures your business stays compliant and avoids unnecessary risk.

File with Ease — Stay Compliant with Simple720Tax

Simple720Tax makes quarterly excise tax filing simple, accurate, and stress-free — so you can focus on running your business.

Start Your Communications & Air Transportation Tax Filing Today

Frequently Asked Questions

Who must collect and file these taxes?

Telecom providers, airlines, air carriers, and managed communication service providers must collect the tax, file Form 720, and submit payments to the IRS.