Category Archives: Form 720 Quarterly Excise Tax Efile

Ten Tips for Taxpayers Who Owe Money to the IRS

IRS
www.irs.gov

While the majority of Americans get a tax refund from the Internal Revenue Service each year, there are many taxpayers who owe and some who can’t pay the tax all at once.   The IRS has a number of ways for people to pay their tax bill.

The IRS has announced an effort to help struggling taxpayers get a fresh start with their tax liabilities. The goal of this effort is to help individuals and small business meet their tax obligations, without adding unnecessary burden.  Specifically, the IRS has announced new policies and programs to help taxpayers pay back taxes and avoid tax liens.

Here are ten tips for taxpayers who owe money to the IRS.

  1. Tax bill payments If you get a bill this summer for late taxes, you are expected to promptly pay the tax owed including any penalties and interest.  If you are unable to pay the amount due, it is often in your best interest to get a loan to pay the bill in full rather than to make installment payments to the IRS.
  2. Additional time to pay Based on your circumstances, you may be granted a short additional time to pay your tax in full. A brief additional amount of time to pay can be requested through the Online Payment Agreement application at www.irs.gov or by calling 800-829-1040.
  3. Credit card payments You can pay your bill with a credit card. The interest rate on a credit card may be lower than the combination of interest and penalties imposed by the Internal Revenue Code. To pay by credit card contact one of the following processing companies: Link2Gov at 888-PAY-1040 (or www.pay1040.com), RBS WorldPay, Inc. at 888-9PAY-TAX (or www.payUSAtax.com), or Official Payments Corporation at 888-UPAY-TAX (orwww.officialpayments.com/fed).
  4. Electronic Funds Transfer You can pay the balance by electronic funds transfer, check, money order, cashier’s check or cash.  To pay using electronic funds transfer, use the Electronic Federal Tax Payment System by either calling 800-555-4477 or using the online access at www.eftps.gov.
  5. Installment Agreement You may request an installment agreement if you cannot pay the liability in full. This is an agreement between you and the IRS to pay the amount due in monthly installment payments. You must first file all required returns and be current with estimated tax payments.
  6. Online Payment Agreement If you owe $25,000 or less in combined tax, penalties and interest, you can request an installment agreement using the Online Payment Agreement application atwww.irs.gov.
  7. Form 9465 You can complete and mail an IRS Form 9465, Installment Agreement Request, along with your bill in the envelope you received from the IRS.  The IRS will inform you (usually within 30 days) whether your request is approved, denied, or if additional information is needed.
  8. Collection Information Statement You may still qualify for an installment agreement if you owe more than $25,000, but you are required to complete a Form 433F, Collection Information Statement, before the IRS will consider an installment agreement.
  9. User fees If an installment agreement is approved, a one-time user fee will be charged.  The user fee for a new agreement is $105 or $52 for agreements where payments are deducted directly from your bank account.  For eligible individuals with lower incomes, the fee can be reduced to $43.
  10. Check withholding Taxpayers who have a balance due may want to consider changing their W-4, Employee’s Withholding Allowance Certificate, with their employer. A withholding calculator atwww.irs.gov can help taxpayers determine the amount that should be withheld.

For more information about the Fresh Start initiative, installment agreements and other payment options visit www.irs.gov.  IRS Publications 594, The IRS Collection Process, and 966, Electronic Choices to Pay All Your Federal Taxes, also provide additional information regarding your payment options. These publications and Form 9465 can be obtained from www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

TaxExcise
www.TaxExcise.com

If you have any Excise Tax claims with the IRS, use http://www.taxexcise.com The ONE STOP SHOP for all your Excise Tax needs. For any further support call us at 1-866-245-3918 or simple write to us at support@taxExcise.com
Links:

  • Publication 594, The IRS Collection Process (PDF)
  • Publication 966, Electronic Choices to Pay All Your Federal Taxes (PDF)
  • Form 9465, Installment Agreement (PDF)
  • Excise Tax Blog, click here
Issue Number: IRS Summertime Tax Tip 2011-14

Excise Tax reporting with IRS…

Excise Tax:

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. Excise Tax has several general excise tax programs. One of the major components of the excise program is motor fuel.

Reporting an Excise Tax with IRS is made simple and easy at www.TaxExcise.com . TaxExcise.com is the only website offering efile for all Excise Tax forms like, Form 2290, Form 8849 & Form 720.

Indoor Tanning Service Providers Must File a Federal Excise Tax Return

Beginning July 1, 2010, indoor tanning services will be subject to a 10 percent excise tax under the Affordable Care Act. Read more about Filing Indoor Tanning, Excise Tax return.

Leaking Underground Storage Tank (LUST) Tax Refunds

Taxpayers eligible for the LUST excise tax refund may use Form 8849, Claim for Refund of Excise Taxes, to file a claim.

Excise Summary Terminal Activity Reporting System (ExSTARS)

ExSTARS is a fuel reporting system developed with the cooperation of the IRS, Department of Transportation, states, and motor fuel industry, which details the movement of any product into or out of an IRS approved terminal. A facility control number (FCN) designates a storage location within the motor fuel, or renewable fuel production or the bulk transfer / terminal system. Information regarding the use of FCNs was made public by an announcement in the Federal Register on April 12, 2010. Read more at ExSTARS

Excise Tax Electronic Data Interchange (EDI) Guides (Pub. 3536)

Terminal Operators and Bulk Carriers refer to Publication 3536 for EDI filing requirements.

637 Registration Program

Under the Code and regulations, each person that engages in certain specified activities relating to excise tax must be registered by the IRS before engaging in that activity.

Excise Tax Online Exchange (ExTOLE)

The IRS administers a data repository for states to exchange motor fuel tax related information. 100 percent of the ExTOLE data originates from a particular state, and is available to other states under disclosure agreements between states. Read more at ExTOLE

Online Form 637 Registration Status Check

This Web application provides the ability for businesses to confirm whether individuals/companies have a valid IRS registration. To check your registration number, click here

Exemption From Excise Tax for Certain Wooden Arrows

On Friday, October 3, 2008, P.L. 110-343 (H.R. 1424), the Emergency Economic Stabilization Act of 2008 (Act), also known as the Tax Extenders and Alternative Minimum Tax Relief Act of 2008, was signed into law by the President. The Act includes a key provision in Title V, Section 503 that impacts the Archery federal excise tax.

Field Directive Federal Excise Tax on the Importation and Manufacture of Fishing and Archery Products

This updates the field directive that discusses the Federal Excise Tax on the importation and manufacture of fishing and archery products.

Idling Reduction Devices Exempt from 12% Retail Excise Tax

The Environmental Protection Agency’s (EPA) list of devices that reduce highway tractor idling is now available. These devices may be exempt from the 12 percent retail excise tax provided they meet the criteria set forth in section 4053(9) of the Internal Revenue Code.

References/Related Topics

•             Excise Tax Forms and Publications

•             Electronic Excise Tax Returns Are Here – Formerly Known as “ETEC” (Excise Tax e-File & Compliance) Form 2290 & 720 Join The Ranks of e-file!

•             Federal Excise Tax – Rural Airports (PDF)

•             IRS Issues Guidance on Truck Sale Excise Tax

•             Telephone Excise Tax Refund

Refer to IRS.gov website for more information.

Excise Summary Terminal Activity Reporting System (ExSTARS)

Excise Summary Terminal Activity Reporting System (ExSTARS)

What is ExSTARS?

ExSTARS is a fuel reporting system developed with the cooperation of the IRS, Department of Transportation, States, and Motor Fuel Industry, which details the movement of any liquid product into or out of an IRS approved terminal.

The ExSTARS system requires each terminal operator and bulk carrier to file monthly reports. Reports are filed for each approved terminal with a Terminal Control Number. The Terminal Control Number (TCN)/Terminal Locations Directory contains terminal control numbers and locations for IRS approved terminals.

Who is required to use ExSTARS?

Terminal Operators and Bulk Fuel Carriers (pipeline, vessel and barge operators) are required to file monthly information returns – Fuel Transaction Reports. All receipts and disbursements of liquid products to and from an approved terminal are reportable. If reportable transactions equal or exceed 25 during a monthly reporting period, electronic reporting through ExSTARS is required. Each receipt of liquid product and each disbursement of liquid product constitutes a separate transaction even if it is a single movement of fuel.

Form 720-TO Terminal Operator Report. Form 720-TO is required to be filed by a terminal operator to report monthly receipts and disbursements of all liquid products to and from all approved terminals.

Form 720-CS Carrier Summary Report. Form 720-CS is required to be filed by bulk transport carriers (barges, ships, and pipelines) who receive or deliver products in or out of storage at a terminal, or any other location designated by a facility control number (FCN).  Pipelines only file for receipt or delivery transactions at an approved terminal.

Facility Control Number System (FCN)

A facility control number designates a storage location within the motor fuel, or renewable fuel production or the bulk transfer / terminal system. Facilities include refineries (RCN), approved terminals (TCN), biodiesel production facilities (BCN), or ethanol production facilities (ECN). Currently, only TCNs are required to file returns.  Information in the RCN directory is required for reporting purposes for carriers. The BCN and ECN numbers will be released at a later date. Information regarding the use of FCNs was made public by an announcement in the Federal Register on April 12, 2010.

When to file?

The report is due the last day of the month following the reporting period. If any due date for filing a return falls on a Saturday, Sunday, or legal holiday, the report maybe filed on the next business day.

How to file?

• Apply to participate in electronic filing using letter(s) of application. Fill-in letters of application are available for Terminal Operator/Carriers and Transmitters.

• Electronic Filing (Electronic Data Interchange) over the Internet

• A test cycle will be used to test the exchange of files between the electronic filer and the IRS prior to submitting production files. These tests will ensure the successful submission of qualifying electronic Form720-TO, and Form 720-CS information returns.

• Paper submission of Form 720-TO and/or 720-CS

Why is filing required?

•  Implementation of Treasury Regulation 48.4101-2 requiring “taxable fuel registrants” to provide information reports.

• Match Information Returns against Excise Tax Returns.

The new electronic format will be available for testing beginning in early December 2010.

Please see a  summary of these changes for further details.

References/Related Topics

Source: IRS.gov read more.

Leaking Underground Storage Tank (LUST) Tax Refunds

Leaking Underground Storage Tank (LUST) Tax Refunds – How to claim refund using Form 8849

TaxExcise.com is a certified efile service provider for all Excise Tax forms. We support Form 8849 claims on excise taxes including Schedule 1,2,3,5,6 & 8.

Through www.TaxExcise.com LUST claim can be made to IRS.

What is LUST?

The LUST tax is a $.001 per gallon tax imposed on taxable fuels to fund the cleanup of leaking underground motor fuel storage tanks.

On Dec. 29, 2007, the President signed the Tax Technical Corrections Act of 2007. Section 6(d) of the Act amends Section 1362 of the Energy Policy Act of 2005 and Sections 4041, 4042, 4082 and 6430 of the Internal Revenue Code (IRC) to remove a double LUST excise tax that was previously imposed on dyed diesel fuel used in trains and fuels (other than Bunker C residual fuel oil) used on inland waterways, and to allow a refund of any second LUST tax paid. Additionally, the amendments exempt fuel used in foreign trade from the LUST tax and allow a refund of any LUST tax previously imposed on that use.

Due to amendments to the Tax Technical Corrections Act of 2007, some taxpayers are entitled to a LUST excise tax refund. Taxpayers eligible for a refund are encouraged to use Form 8849, Claim for Refund of Excise Taxes, to file a refund claim. No interest will be paid on LUST tax refunds.

Instructions for Completing Form 8849

Use www.TaxExcise.com to complete your LUST clams, also use the available efile service to claim it electronically.

LUST TAX REFUND claims on

Aviation fuel “Kerosene for use in aviation, LUST tax on foreign trade, the Credit Reference Number (CRN) 433.

Dyed diesel fuel used in trains and inland waterways,  “LUST tax on dyed diesel fuel used in trains and inland waterways” and the CRN 434.

Mail Form 8849 and Schedule 6 to:

IRS prefer electronic method to do Excise Tax claims, still you want to do it over mail, use www.Taxexcise.com prepare your claim form 8849 return and mail it to

Internal Revenue Service
P.O. Box 312
Covington, KY 41012-0312

IRS’ preferred method for claiming the LUST tax refund is the use of Form 8849. Form 8849 will be the most timely and convenient. As an alternative to filing Form 8849 to claim a refund, taxpayers may claim a credit on their federal income tax return by using line 17 on Form 4136, Claim for Federal Tax Paid on Fuels.

Taxpayers Eligible to Claim a LUST Tax Refund Under the Provisions of the Tax Technical Corrections Act of 2007

Only taxpayers involved with the tax on fuel used in inland waterways, trains and aircraft engaged in foreign trade are eligible for the LUST tax refund.

For fuel used in aircraft in foreign trade: The ultimate purchaser unless it waives its right to the claim to the ultimate vendor under IRC Section 6427(l)(4)(C).

For fuel used in inland waterways: The person that paid the tax as the operator of the vessel in which the propulsion fuel was consumed.

For fuel used in trains: The operator of the train, unless the deliverer of the fuel paid the tax under Treasury Regulation Section 48.4082-4(b)(2)(ii).

The LUST tax imposed under IRC Section 4041(a)(1)(C)(ii) does not apply after Dec. 31, 2006.

Explanation of the Term “use in foreign trade”

Generally, use in foreign trade includes any use of an aircraft in a commercial international flight that leaves the United States (subject to the reciprocity rules of IRC 4221(e)(1)).  Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for compensation or hire.

Receipt of Refund

The IRS anticipates issuance of refunds within 20 days of receipt of Form 8849.

General Scenarios

If you own a taxable fuel terminal and in 2007 reported the LUST tax on Form 720, Quarterly Federal Excise Tax Return, under abstract 119, you are not entitled to the LUST tax refund because only one LUST tax was paid on your fuel.

If you used undyed diesel fuel in your train, you are not entitled to the LUST tax refund.

If you used undyed diesel fuel in your inland waterways vessel, you may be eligible but only if you paid the inland waterways tax of $0.201 per gallon.

If you used dyed diesel fuel in your inland waterways vessel to operate generators that are not part of the propulsion system of the vessel, you are not entitled to the LUST tax refund. This fuel use is excluded from the tax imposed by IRC Section 4042, so no double LUST tax would have been paid.

References/Related Topics

Excise Tax: www.irs.gov

Excise Tax e-File & Compliance (ETEC) Programs – Form 720, 2290 and 8849

The Excise Tax e-File project was initiated to satisfy the IRS’ requirement to provide electronic filing of Form 2290, Heavy Highway Vehicle Use Tax Return, as directed in the American Jobs Creation Act (October 2004). Excise Tax e-File & Compliance (ETEC) Programs (Form 720, 2290 and 8849) has joined the ever-growing-number of tax forms and schedules that can be electronically filed, providing taxpayers the speed and reliability that millions of taxpayers and business owners already enjoy.

Form 720, Quarterly Federal Excise Tax Return is also available for optional electronic filing.  Simply make your selection on the 720 e-file partner’s page and join millions of taxpayers enjoying the convenience and ease of on-line filing, immediate acknowledgment of receipt and faster service.

Form 2290, Heavy Highway Vehicle Use Tax Return is available for electronic filing. The electronic version of Form 2290 will improve excise tax processing, expedite refunds, save personal resources (e.g., time & postage) and reduce preparation and processing errors.  Schedule 1 will be available almost immediately (once your return is accepted by the IRS) through your software developer/transmitter – no more waiting for it to come in the mail!

Taxpayers filing Form 2290 reporting 25 or more vehicles for any taxable period are required by statute to electronically file their Form 2290 tax return through an IRS-approved software provider.

Form 8849, Claim for Refund of Excise Taxes (Schedules 1,2, 3, 5, 6 and8) are now available for e-file. Electronically submitted Schedules 2, 3 and 8 refund claims will be processed within 20 days of acceptance by the IRS, versus the usual 45 day processing time on all other 8849 schedules.

FILE YOUR TAXES NOW!
To file your excise forms electronically you will need to select an approved software provider for the tax forms you want to file.   Form 720 provider information can be found on the 720 e-file partner’s page.  Form 2290 provider information can be found on the 2290 e-file partner’s page. Form 8849 provider information can be found on the 8849 e-file partner’s page.

QUESTIONS? Call  Excisetax.com at 866-245-3918 or simply email it to support@taxexcise.com