What This Notice Means
CP178 goes to businesses that file Form 720, Quarterly Federal Excise Tax Return. For the past four quarters, you indicated you had no tax to report. The IRS is asking whether you still need to file.
This isn't a bill and it isn't a penalty. It's about your filing requirement.
What to Do
If you no longer owe excise tax, file a final Form 720 next quarter:
- Write "Not liable" at the top of next quarter's Form 720, and
- Check the "Final return" box on page 1 of the form, in the upper left corner.
If you still have excise tax activity, or expect to, keep filing Form 720 as required.
If You Owe Excise Tax Again Later
If you file a final return and later owe excise tax, file a return reporting the tax. After the IRS receives a return from you reporting tax, it will automatically send you Form 720 again.
Why It Matters
As long as the IRS expects a quarterly Form 720 from you, a missing return can lead to delinquency notices. Closing the filing requirement when your business is done with excise tax keeps your account clean.
Keep this notice for your records.
If you received a CP178 and have questions about your excise tax filings, call us at (813) 229-7100.