What’s new in the Federal Excise Tax Form 720?

Hello excise taxpayers! You can start e-filing your federal excise tax form 720 for the third quarter of this tax year at TaxExcise.com. So, don’t delay your tax filings; e-file form 720 at TaxExcise.com to stay ahead of the deadlines. The last date to e-file form 720 for the third quarter is October 31, 2022. TaxExcise.com platform offers you smooth and accurate form 720 e-filing services. You can e-file form 720 online and get the proper acknowledgement from the IRS directly to the IRS.

Form 720 Quarterly Federal Excise Taxes

The IRS imposes excise taxes on various products and businesses where the dealers, buyers, importers, exporters and customers are entitled to pay the taxes. The federal excise taxes are paid every quarter of the tax year to the IRS using form 720. Many products, services, and businesses come under the federal excise tax form 720. Therefore, the taxpayers must carefully calculate their taxes, identify their category among the parts and sections of form 720 and report them to the IRS on a quarterly basis. Each product, goods and service taxed through the form 720 has multiple terms and conditions. The taxpayers must carefully understand these terms to report properly and pay the federal excise tax form 720. Reporting form 720 has deadlines for every quarter; the taxpayers must report form 720 on or before those deadlines to stay away from penalties, late charges and interests imposed by the IRS.

New updates in Form 720!

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 make use of this line to file an extension for their alternative fuel and alternative fuel mixture credits.

Environmental Tax – Chemicals (other than ODCs).

IRS No.54:

This category in federal excise tax form 70 expired on December 31, 1995. But the Infrastructure Investment and Jobs Act has reinstated this section 4661 excise tax on 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). This 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.

Environmental Tax – Imported Chemical Substances.

IRS No. 17:

The Infrastructure Investment and Jobs Act has also reinstated section 4671, the excise tax imposed on imported chemical substances. The imported chemical substance tax is equal to the chemical tax that would have been imposed on the taxable chemicals (listed in Part II of Form 6627) used as materials in the manufacture of the substance if the such substance had been manufactured in the United States. The importer of the chemical substances that are eligible for form 720 federal excise taxes must report and pay the taxes under this category. It is reinstated from 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 with form 720.