Filing tax is a responsibility for the citizens of America. From income tax to HVUT form 2290, taxes are filed each month, quarter and yearly. One among the form is tax form 720, which is filed quarterly for the businesses based on the business they are dealing with. The tax is taken under the account and contributing of their business with the nation.
IRS form 720- Definition:
“Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. They are often included in the price of the product. These taxes are valid on activities, such as on wagering or on highway usage by trucks.” Do note, if you accrue taxes in the course of your business, you should also learn the rules of filing 720 Form
Who Is Required To File form 720?
If you own a business, you’re liable to file for the federal excise taxes listed by IRS under the form 720. The form is divided into two important part, I & II. You need to file any of the part depending upon the business you are into.
In the part-I, Ozone-depleting chemical tax; communications and air transportation taxes; fuel taxes for diesel, kerosene, gasoline, and other gases; coal and tire manufacturing taxes are included, whereas, sales of sport fishing and archery, inland waterways fuel use taxes and bio-fuel sold, but not used as fuel falls under the category of Part-II.
Authentication of Information:
While filing form 720, you don’t have to attach the receipts with the form, however, you are requested to maintain them safe and filed for authentic verification during IRS audit. You should maintain at least 4 years of record from the date of filing tax, which includes exemptions you might need to claim through form 720.
When you need to file This Federal Excise Tax Form 720:
As Form 720 is filed on quarterly basis, you need to file four times a year as per the following schedule:
|Quarter covered||Due by|
|Jan., Feb., Mar.||April 30|
|Apr., May, June||July 31|
|July, Aug., Sept.||October 31|
|Oct., Nov., Dec.||January 31|
If there is any quarter, you have no operations taking place, you still have to file the form and indicate zero as per the appropriate line(s) of the form. Also, if you’re closing your business or your activity would permanently change or close down and you don’t have to file tax anymore, you need to let IRS know about it by filing form 720 checking on “Final Return” box at the top of the form.
If you miss filing form 720 by the due date, you are liable to pay tax with a touch of penalties. the late you pay, the heavier penalties would grow. So it is advisable to efile form 720 with TaxExcise.com. With the help of our well-trained Tax Experts, you can easily file your tax return and receive your acknowledged receipt in minutes.
Why Do You Have Choose Efiling Over Paper Filing?
Being a part of a fast-paced world, it is obvious that you might miss remembering the due dates. Here is the time, when efiling comes in for your rescue. With efiling as the method of filing, you can file on or before the due date and receive a confirmation email text or fax depending upon how you need to be informed within minutes.
However, these features are not so flexible with paper filing and thus, e filing would be the best option.
Although filing form 720 through the traditional method is almost mandatory those days, you can now easily switch to e filing and receive your acknowledgement receipt within minutes instantly, eliminating the errors. Taxexcise.com is one such service provider, which allows you to efile on the go, without any hindrance to face. You can also reach our customer support if you are finding any difficulty while efiling. Reach our Tax Experts at 1-866-245-3918 or email us your queries to email@example.com. You can expect instant answers from our end.