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Understanding your CP178 Notice
Your tax return filing requirements may have changed: You may no longer owe excise tax.
What you need to do
If you no longer owe excise tax, file a final Quarterly Excise Tax Return (Form 720) by:
- Writing "Not liable" at the top of next quarter’s Form 720, and
- Checking the box that says, "Final return," located on Page 1 of the form in the upper left corner.
- If you owe excise tax in the future, we’ll automatically send you Form 720 after we receive a return from you reporting tax.
You may want to...
Answers to Common Questions
How do I know if my business remains liable for excise taxes?
Your business is liable for excise tax if it involves goods, services, or activities identified on Form 720.
If I no longer owe excise taxes where to I mail my final Form 720?
File a final Form 720 if you no longer owe excise taxes because you’re either going out of business or you will not owe excise taxes in future quarters. Check the final return box above Part I of Form 720 and mail to IRS, Cincinnati, OH 45999-0009.
I don’t handle excise taxes for my corporation. How can I request that the IRS send all future notices directly to our accountant?
Complete a Form 8822, Change of Address, and send it to the address shown on the form.
Tips for next year
Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.
Understanding your notice
Reading your notice
Your notice may look different from the sample because the information contained in your notice is tailored to your situation.
Notice CP178, Page 1
Page Last Reviewed or Updated: 28-Mar-2014
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