All You Need To Know About Form 720

Greetings from Taxexcise.com, we are proud to share some good moments with our fan followers online. Despite of having tedious schedules, you take out time to read and acknowledge our blogs, we really do appreciate that. Today, we would throw light on Form 720, Quarterly Excise Tax Return. According to IRS, Excise Taxes are paid when the purchaser buy goods like gasoline. These excise taxes are included in the price of the product, and chargeable on activities like wagering or on highway usage by trucks. Make a note, if you accrue excise taxes in the course of doing business; you should be well aware of the rules on filing form 720 excise tax.

Who Is Required To File Form 720?

As a business entity, you are liable to file the federal excise tax if you sell commodities listed on the form 720, Parts I and II. The excise taxable commodities included in part I are petroleum spill taxes and ozone-depleting chemical tax; communications and air transportation taxes; fuel taxes for diesel, kerosene, gasoline, and other gases; coal and tire manufacturing taxes.

In part II, excise taxes related to the sales of sport fishing and archery, inland waterways fuel used tax and bio-fuel sold, but not used as fuel.

Importance of Information Verification:

When you are filing form 720, you don’t have to attach the receipts to the form, however, it is important to maintain the copies of the records you referred to fill the form as well the receipts of all the transactions, to verify authenticity. It is important to maintain at least four years from the date you have filed taxes to maintain a quick check on the information mentioned, including the exemptions you have claimed on the form 720.

When is form 720 due?

As form 720 is filed on quarterly basis, you’re required to file four times a year: for the first quarter, the due date falls by April 30, likewise July 31 for the second quarter, October 31 for the third quarter and by January 31 for the final quarter.

If you are not liable for excises taxes during any of the quarter, you must send in Form 720 as per the due dates, indicating zero on the appropriate line(s) of the form. In addition, if you are going out of the business permanently, Just check on the “Final Return” on form 720, indicating IRS that you would not be filing any more.

As the due date is around the corner, we would like to remind all our taxpayers to file and pay their form 720 for the first Quarter on or before the due date i.e. 30th April 2014 to avoid penalties. Gear up with your documents and file it today. The earliest you file, the better for you.

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