Hello, federal excise taxpayers! It’s time to report the form 720 federal excise taxes for the third quarter of this tax year. This message is a gentle reminder that October 31, 2022, is the last date to report the federal excise tax form 720 to the IRS. Taxpayers must e-file form 720 at TaxExcise.com and stay ahead of the deadline in this quarter.
What is Federal excise tax form 720?
The federal government imposes quarterly excise taxes on certain products and services. The taxes are paid every quarter of the tax year by the users, owners, dealers, and importers of the particular products and services to the IRS through the federal excise form 720. You need to identify the category or line in which your service/product in form 720 and report the taxes accordingly. IRS will charge penalties, late charges and interest on the tax dues if you miss the deadline. Therefore, you must file form 720 quarterly excise taxes to the IRS on or before October 31, 2022.
What’s new in Form 720 this quarter?
IRS has restored or reinstated three categories in form 720 excise taxes;
Extension for Alternative fuels and Alternative fuel mixture credits.
Schedule C line 13:
IRS has restored line 13 in form 720, Schedule C, which is the extension of alternative fuel and alternative fuel mixture credits sold or used in 2022. The form 720 taxpayers under the environmental taxes can use this line to file an extension for their alternative fuel and alternative fuel mixture credits.
Environmental Tax – Imported Chemical Substances.
IRS No. 17:
The importer of the chemical substances eligible for form 720 federal excise taxes must report and pay the taxes under this category. It was reinstated in July 2022. Therefore, taxpayers must report and pay the taxes for imported chemical substances from this third quarter. And they must use form 6627 to determine the taxes and attach it to form 720.
Environmental Tax – Chemicals (other than ODCs).
This excise tax is imposed on the manufacturer, producer, or importer of chemicals who sells or uses these chemicals (other than ODCs). The reinstatement of excise taxes on chemicals other than ODCS is effective from July 2022. As July falls in the third quarter of the tax year, those who are dealing with the chemicals that fit under this category of form 720 must report the taxes using form 720 within the deadline. Taxpayers should use form 6627 to figure out the taxes on chemicals (other than ODCs) and attach it with the federal excise tax form 720.
What is the best place to e-file form 720?
TaxExcise.com is the best place to e-file form 720 federal excise taxes online directly to the IRS for this third quarter. TaxExcise.com is an IRS-approved online form 720 e-filing service provider where taxpayers can e-file form 720 for their respective products/services smoothly without any errors or obstacles. You can easily select the service or product, proceed with e-filing and complete the whole process in just a few steps. Once you complete the 720 e-filing, you can transmit it to the IRS and instantly get the acceptance from the IRS to your email address. Form 720 quarterly excise taxes e-filing begins at $49.99 at TaxExcise.com. You can also avail yourself of our seasonal pricing packages to save on your form 720 e-filing service charges. E-file form 720 at TaxExcise.com today and stay ahead of the deadline.