Taxes are the major way for the government to make money. Federal excise taxes are imposed on the purchase and sale of goods such gasoline including truck owners and operators handling the trucking business. If you own a business in the U.S and responsible to file any of the federal excise taxes listed on the Part I or II in IRS form 720, then you must file every quarter and before the time expires. Filing excise tax in the US has an interesting history and reading this blog will provide you an insight into the trend for filing excise tax in the U.S have an interesting history and reading this blog will provide brief insight into the evolution of the Federal excise tax.
Excise Tax during the American Revolutionary War
Federal excise taxes in the United States have an interesting background. There was serious monetary shortage after the American Revolutionary War when the then elected President George Washington signed an agreement on July 4, 1989. The agreement clearly mentioned the collection of excise taxes on imported goods. The repay the debt, the Congress imposed excise tax on liquor, tobacco, carriages, refined sugar, and snuff.
Excise Tax during the War of 1812
During the 1812 war, the U.S government once again levied excise taxes to meet the expenses but these taxes were abolished in 1817. The excise taxes that were imposed during the war were mostly on the manufactured goods, which were eventually repealed. However, in 1883 the government once again levied excise tax on liquor and tobacco.
Excise Tax during the Civil War
When the Civil War started, the Congress imposed the earlier federal excise taxes with the introduction of the Revenue Act of 1861. Additionally, in 1862, the U. S Government levied excise tax returns on additional products such as gunpowder, playing cards, iron, leather, piano, yachts, patent medicines, and much more. However, like previously most of these excise taxes were repealed except on liquor and tobacco.
Excise Tax in the Twentieth Century
During this era, the rates on excise taxes were increased and new excise taxes came into being to fund the Spanish-American War but, again these taxes were abolished during the 1920’s. It was in 1956, when the tax on highway vehicles was imposed to be filed by owner operators to support funding in the maintenance of the highways. Besides, there were excise taxes imposed on automobiles, air travel, and telephone service. Moreover, there was an increase on the excise tax rates on tobacco and alcohol during the 1990s.
Excise Tax in the Present Day
Today, it is mandatory for business owners and individuals dealing with the purchase and sale of products to report excise tax return every quarter. Additionally, there were few additions in Form 720 such as Indoor Tanning Tax (introduced in 2010) and Patient Centered Outcomes Research Fee (introduced in 2012). To save time, many excise tax filers choose to file online and TaxExcise.com is the one-stop destination. We are the first IRS certified e filing service provider paving way to safe and secured e filing. Call us at 1-866-245-3918 or mail us at email@example.com for any queries and assistance.