How to Fill Out IRS Form 637

Business owners that sell certain types of products, including gasoline and alcohol, are required to pay excise taxes on their merchandise. Before companies can conduct any business that involves excise taxes, they have to register with the IRS. Form 637 is called the "Application for Registration (For Certain Excise Tax Activities)." Business owners in specified fields must fill out this form in order to perform legal transactions. Here's how.

Instructions

Difficulty: Easy

1. Apply for an Employer Identification Number (EIN) if you do not already have one. Businesses are assigned an EIN for tax purposes. Fill out IRS form SS-4 to get an EIN.
2. Understand the instructions for form 637 before you begin to fill it out. By reading the instructions and purpose of the form first, you can avoid making mistakes.
3. Review the activity letter charts included with form 637. Various business activities are assigned codes comprised of one or two letters. Find the code that most closely describes your business.
4. Fill out your application with a dark-colored ballpoint pen that is easy to read. Enter personal information in Part I and your business's activity letter in Part II.
5. Answer questions about your business in Part III of form 637. If you do not have enough room, continue on additional sheets of paper. Be sure to write your name and EIN on every additional page.
6. Attach a copy of your most recent federal income tax return, if you are required to do so. Businesses that fall within certain activity letters are asked to supply this information. Refer to the form for more information.
7. Remember to sign your application form. Make a copy using a scanner or photocopier. Keep this copy until you receive your letter of registration.
8. Send your form 637 to the IRS division stated on the instruction form. During the review process, the IRS may contact you for more information. In some cases, an inspector may visit your place of business.
9. Check the IRS website for more information about excise tax issues or to find out if your registration is still valid (see Resources below).

Tips & Warnings

• If you are required to register using form 637 and fail to do so, you may face very large penalties, in the thousands of dollars. Keep your registration current by notifying the IRS if your business changes location, ownership or nature of its activities.