Form 720 and Environmental Taxes – A Sneak Peek

Taxation is considered to be one of the byzantine activities but there is no way one can escape from it. You may hire a tax professional to help you file excise tax return but it is always wise to understand the taxes you are paying for. With the several taxes levied by the Federal Government, Tax 720 is a quarterly Tax return that some and not all businesses file with the IRS. Although, understanding form 720 might not be easy but reading this article might make things clear and logical.

Quarterly Federal Excise Return: The Actual Purpose

The federal government collects excise tax on a wide-variety of goods and services such as indoor tanning excise tax, airline ticket tax, and gasoline tax. Although, the tax is included in the price but the seller and manufacturer should file a return to report to the Internal Revenue Service quarterly. It is advisable to select the right option from the taxes listed on tax 720 form. Read on to get a brief insight of the environmental taxes.

Environmental Taxes: Imposed on:

  • Oil Spill Liability Tax

Businesses using crude oil, which includes natural gasoline and crude oil condensates should use form 6627 and 720 to file for oil spill liability tax.

  • Imported Petroleum Products:

Whether used for consumption, warehousing, or any other purpose in the United States, businesses are legally responsible to file for excise tax 720. This tax is imposed only once, therefore businesses should ensure if the tax has already been imposed on.

  • Ozone-depleting Chemicals or ODCs:

ODC tax is levied on manufacturers and importers for selling and using of ODC to generate income and for other purposes. However, there are scenarios when businesses can be exempted from tax ODC such as metered-dose inhalers, recycled ODCs, Exported ODCs, ODCs used in natural form.

E-filing Tax Return: The Viable Option:

With the filing date approaching soon (April 30th for first quarter), e-filing your tax return is the right way to reduce the hassles. Many CPAs filing tax return for their customers choose By electronic filing you save the environment too. Call us @ 866-245-3918 to share your ideas or get your queries answered.