Part-I in Excise Tax Form 720

IRS excise tax form comprises of several sections and understanding them makes your tax filing process smooth. Here’s a brief overview of the various sections involved in Part I in IRS Form 720.

•  Environmental Tax:
  Dealers and sellers of; crude oil, imported petroleum products, and ODC’s are subjected to file this excise tax return.
•  Communication Tax:
  If you’re using local telephone services and teletypewriter exchange service, you’re liable to file this Quarterly Federal Communication Tax.
•  Air Transportation Tax:
  Air transportation Tax needs to be filed by the Airline Company, providing a consolidated report about the passengers and the property handled through flights. Also, the usage of transportation facilities should be reported in this excise tax form.
• Fuel Tax:
  This involves the use and sell of diesel, kerosene, gasoline and LNG.
•  Retail Tax:
  All manufacturers and sellers of highway vehicles such as bus, heavy trucks and truck tractors should file under this category.
• Ship Passenger Tax:
  The IRS imposes tax on certain ship voyages. This tax is applied annually on the person organizing the voyage.
•  Foreign Insurance Tax:
  Foreign issuers issuing policies such as indemnity bonds and casualty insurance are implied.
• Manufacturer Tax:
  This IRS excise tax applies to the seller and manufacturers of coal. This tax also involves one-time gas guzzler tax imposed on imported vehicles and vehicles driven by gasoline or diesel fuel with a minimum gross weight of 6,000 lbs.

Part-II in Excise Tax Form 720

Yes, there is a part-II in form 720, which includes sports fishing equipment, arrow shafts, fishing roles and poles, use of fuel on inland waterways, biodiesel sold but not used, and electric outboard motors. On Dec 6, 2012 there was a new addition in this section of the excise tax form, known as the ‘Patient-Centered Outcomes Research Fee’.

Patient-Centered Outcomes Research Fee – A Brief Overview

The newly introduced ‘Patient-Centered Outcomes Research Fee’, imposed by the ‘Affordable Care Act’ helps in funding the patient-centered outcomes research institute. It is to be paid annually using Form 720 during the second quarter.

LUST Tax:

The Part II in IRS excise tax form 720 also comprises of the Leaking Underground Storage Tank Tax, mostly referred as the LUST tax. This excise tax is one percent per gallon of the excise tax levied on the taxable fuels sold in the U.S. Moreover, the tax amount received helps fund the LUST trust fund responsible for handling any clean-ups and repair.

Indoor Tanning Tax:

In 2010, the Federal government imposed a new kind of tax return applicable to establishments providing indoor tanning services. This excise tax took effect from July 1, 2010 this tax is not imposed on fitness offering tanning, as an additional amenity but do not charge any additional fees. If you own saloon offering tanning facilities, you should file this excise tax return every quarter on part II. However, this tax is not applicable to licensed medical professionals such as dermatologists and psychologists offering tanning services.

Schedule A, T and C in Form 720

Schedule A:

Schedule A in IRS form 720 helps you list the deductions, which includes various categories of expenses such as medical and dental, charity gifts, theft losses, and taxes. For easy and hassle-free, filing of Schedule A you should file it through taxexcise.com and preserve the documents of the expenses made during the year in your registered account.

Schedule T:

Also known as the two-party exchange information reporting is imposed on diesel fuel used in terminal, or delivered within a terminal. The same rule applies for the usage of Kerosene, Gasoline, and Aviation Gasoline too.

Schedule C:

To report loss or profit of the business you own or the profession you handle, you need to file form 1040 in Schedule C. Here, you can explain your wages, expenses along with income and deductions too.

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