Welcome tax filers. It’s been a long time since we posted a blog on Excise Tax. However, today we thought it’s high time to get going with your thinking caps and simply shrink ourselves in excise tax. In addition, that seems to be an advantage to you. Today, we are going to speak about Part-I in form 720 covering each detail that would help you in efiling form 720 online next month i.e. July 31st 2014. Also, we are dividing the part-1 into various blogs, which can allow you to understand the form much better.
Before any delay, we are moving to the topic:
Environmental Tax Includes:
- · 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 to be paid by the person who is receiving the payment for communication services. Enter the amount collected or considered collected for the quarter.
Credits Or Refunds:
When taxes are 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 is indulged in using 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 described environmental tax and communication tax, however, next week we shall complete the Part I section and furnish you with the details. Till then, you can check out our other blog post, leave a comment and share them on your favorite social media platform. We would be glad if you do so. Reach us anytime of the day @ 1-866-245-3918 or simply drop in an email to email@example.com. We are here to support you, cater your needs.