IRS Tax Form 720, or the Quarterly Federal Excise Tax Return, is where the businesses across America report and pay the excise taxes, must be completed at end of every quarter. The Federal Excise Taxes is imposed on specific goods or services that are manufactured in or imported into the U.S. Excise taxes are often included in the price of the product, like gasoline or alcohol, so you might not even realize you’re paying them. However, if your business sells a good or service that is subject to excise tax, then you are responsible for reporting and paying those taxes; IRS Form 720 allows you to do so.
Essentially, Form 720 needs to be completed by the last day of the first month that follows the end of the prior quarter. Now it is due for the 2nd Quarter of 2021, usually July 31 is the deadline, this year it falls on a weekend and August 2 is the due day.
Quarterly Federal Excise Taxes
Some of the excise taxes filed in IRS Tax Form 720 are;
- Environmental taxes: petroleum oil spills, imported petroleum products, ozone-depleting chemicals (if you must pay these environmental taxes, you’ll also have to complete IRS Form 6627).
- Communication and air transportation taxes: phone service or air transportation.
- Fuel taxes: diesel, kerosene, gasoline, natural gas.
- Retail tax: trucks, trailers, tractors.
- Ship passenger tax.
- Foreign insurance taxes: health insurance policies issued by foreign insurers.
- Manufacturers taxes: coal, tires, “gas guzzler,” vaccines.
- PCORI Trust Fund Fee
- Indoor Tanning Service Excise Tax
- Specified health insurance policies.
- Sport fishing equipment.
- Bows and arrows.
Electronic Filing at TaxExcise.com is easy, and quick. One of the best ways to avoid errors and stress when completing tax forms like Form 720 is to stay organized. Electronic filing is stress free where the tax math is automatically done at the backend with the inputs you key-in. If you realize a few days before the deadline that you’re unprepared, you’re more likely to commit errors when completing the form, or even file late. By preparing ahead of time and paying close attention to your deadlines, you’ll be able to avoid errors and any late fees.
Electronic Filing over Paper Filing
Although many business owners still prefer to work on paper, you may be able to save yourself both time and hassle by utilizing the IRS’ e-file program like TaxExcise.com. Completing the form electronically will save you money on paper and stamps; plus, you won’t be relying on your mailing system to make sure you meet your deadline. In addition, filling out Form 720 electronically can make it easier for you to consult information housed in your accounting software, refer to the IRS filing instructions, as well as check for any recent IRS updates to the form.
Phone Support and Walk through along the way!
Our experts are just a phone call away; we can guide you step by step to complete your 720 Quarter Excise Tax returns. Reach us today at (866) 245 – 3918; or write to us at support@TaxExcise.com;