Federal Excise Taxes are taxes paid when purchases are made on a specific good, such as gasoline. This excise taxes are often included in the price of the product and collected from the buyer and paid at end of every quarter with the IRS. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. One of the major components of the excise program is motor fuel, offering services like indoor tanning services, PCORI etc.
1st Quarter Federal Excise Tax Due on April 30
The first quarter federal excise taxes that a business has collected will consolidate it in the IRS Tax Form 720, and report it with the IRS by end of a quarter and pay, it is due this April 30.
Some of the Excise Taxes reported in Form 720
- Environmental products, such as domestic petroleum oil spills and ozone-depleting chemicals.
- Communications and air transportation taxes
- Fuels used in business
- Purchase of trucks, trailers, semi-trailers (at a percentage of the sales price)
- Ship passenger tax (per passenger)
- Manufacturers Taxes on coal, taxable tires, gas guzzlers, etc.
- Foreign insurance taxes
- Sport fishing equipment, fishing rods, poles, outboard motors, etc.
- Floor stocks tax on ozone-depleting chemicals
In most cases, your business may be responsible for collecting these taxes and passing on the collected taxes to the IRS.
Well, this is one subject asked by all since the time E-filing has taken its vows. As it is easy, accurate, and fast, you tend to save much time and also some dollars. The advantage here is that you could zero down all possible human errors while preparing a tax return and avoid paying additional taxes with accurate math.
Reporting quarterly federal excise taxes electronically would get your return processed instantly and you’ll receive an acknowledgment immediately. If you have missed out something and the return data does not matched with the IRS record then your return would get rejected. You can rework on the data and resubmit it for processing on the same day. TaxExcise takes extra care to make sure that you do not leave mandatory fields empty, you have to be watchful while keying in your data.
TaxExcise.com is the only website to support online tax reporting for Federal Excise Tax Form 720. We’re the pioneer in getting you the most needed online website to electronically prepare and report excise tax returns, we’re the 1st to offer e-file since 2007. We do support Federal Vehicle Use Tax Form 2290 and Claim for Refund of Excise Tax Form 8849.
IFTA Fuel Use Tax Due this April 30, Heavy Vehicle Use Tax Form 2290 for vehicles first used in March 2018 is also due this April 30.