So filers, how are you doing? Last few weeks we were talking about form 2290 as the tax season had arrived in our calendar. However, the tax season is over and here we are in form. And that reminds us to talk about form 720, which are levied on specific goods and paid by consumers when the products are purchased. Form 720 is also known as a Quarterly Federal Excise Tax Return.
The Quarterly Federal Excise Tax Return is used to file and pay excise taxes due on a quarterly basis depending upon the business. Companies that engage in the sales of gasoline or tobacco or in services including indoor tanning is required by law to file an excise tax return.
Types of Excise Tax:
If there any payment made to the foreign insurance companies are subjected to 1 percent excise tax that must be paid to the federal government. For other form of excise tax includes 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 Should You 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 each quarter, the tax liability must be broken down and determined in separate lines of the form 720 issued by IRS. the form must be filed and submitted regardless of the tax liability due for that quarter. Do note, the adjustments should be done prior in a separate form i.e. the Form 720X. A name, EIN (employee identification number) and signature must accompany all paperwork.
Businesses, which are required to file Quarterly Federal Excise Tax Return, must file form 720 by the due date otherwise, penalties would incur. The federal government has the right to collect late filing fee and interest charge on late payments. If the delay of filing form 720 Quarterly Excise Tax, IRS has the rights to take legal action on you.
The third quarter for filing form 720 is nearing our calendar, all you need to do is come keep your documents ready and file by the first date of next month. If you have any queries or not sure how E-filing works, our Tax Experts will explain you from scratch. Reach us for more assistance at 1-866-245-3918 or email at email@example.com.