So filers, how are you doing today? Today’s discussion topic is form 720, the quarterly filed excise tax. The form itself being complicated, we are going to talk and thoroughly discuss about the part I shared in the form.
Before any delay, we are moving to the topic:
The first tax is on environment.
Environmental Tax is calculated on:
- Oil spill liability, IRS Nos. 18 and 21;
- Ozone-depleting chemicals (ODCs), IRS No. 98;
- Imported products that used ODCs as materials in the manufacture or production of the product, IRS No. 19; and
- The floor stocks tax on ODCs, IRS No. 20 (reported on Form 720, Part II).
Attach Form 6627 to Form 720. The tax rates for these taxes are shown on Form 6627.
Communication tax is the 3% of the amount paid for the local telephone service and teletypewriter exchange services. This tax is supposed to be paid by the person who receives the payment for the communication service. Enter the amount collected or considered collected for the quarter.
Credits Or Refunds:
Tax collected and paid over for nontaxable services from communication tax, the collector or the taxpayer may request for a credit or a refund.
Note For Collectors:
The collector may request a credit or a refund only if he has repaid the tax to the person from whom the tax was collected or gained consent from the person for the allowance of the credit or the refund. However, these requirements also apply for nontaxable service refunds.
Collectors Using Regular Method Of Deposit:
If the collector has paid by the regular method of depositing the money, he/she is required to use form 720X to request a credit or refund.
Collectors Using Alternative Method For Deposits:
If the collector is using alternative method for deposits, he/ she must adjust their separate accounts for credit and refund. You can gain more information on this by referring IRS Nos. 22, 26, 27, and 28), later.
We have briefly discussed environmental tax and communication tax. if you are liable to file and pay your dues on form 720, you can always try a hand with efiling through an authorized efiling service provider- TaxExcise.com. We have been in the most authentic and authorized efiling service provider around for a decade and more. We know exactly what you are looking for, the kind of service and the user-friendly application.
However, there are few more taxes included in form 720. We shall discuss the same in the next article. Till then, keep filing taxes on time and reach our Tax Experts for more assistance. Feel free to call us @ 1-866-245-3918 or send an email email@example.com. We’ll be more than happy to support you.