Companies and individuals that do business in the United States are required by law to file taxes with the federal government. A variety of forms are required based on varying circumstances of the individual taxpayer or company. A Form 720 is also known as a Quarterly Federal Excise Tax Return.
Purpose of Form 720:
The Quarterly Federal Excise Tax Return is used to file and pay excise taxes due on a quarterly basis to keep liabilities under control. Select companies are required to pay excise tax to the federal government depending on their business. Companies that engage in the sale of gasoline or tobacco or in services including indoor tanning may be required by law to file an excise tax return.
Types of Excise Tax:
Payments made to foreign insurance companies are subject to a 1 percent excise tax that must be paid to the federal government. Other forms of excise tax include environmental taxes, such as an imported petroleum products oil spill tax. Select communications and air transportation taxes must be claimed, as well as fuel tax, retail tax and ship passenger tax.
When to Pay
The Quarterly Federal Excise Tax Return Form 720 is a quarterly tax payment and must be paid four times per calendar year. The tax return must be filed within a month from the last day of the quarter and must include all appropriate taxes due.
For example, the first quarter of the year would include January, February and March. According to the Internal Revenue Service, the tax return for this first quarter is due April 30.
For the four quarters filed, each tax liability must be broken down and determined on separate lines of the Form 720 issued by the Internal Revenue Service. The form must be filed and submitted regardless of tax liability due each quarter if the form is typically used. Adjustments to prior filing must be done on a separate form. Easy and simple efiling service is available at www.TaxExcise.com
Individuals required to file a Quarterly Federal Excise Tax Return must do so by the due date quarterly, otherwise penalties are incurred. The federal government has the right to collect late fees and interest charges on late payments, late filing even if no taxes are due and fraudulent returns. According to the Internal Revenue Service, any late returns must include an explanation providing a reasonable explanation for late filing.
Read more about Form 720 at www.TaxExcise.com.