Form 720-Quarterly Federal Excise Tax
Form 720 is a
Quarterly Excise Tax Return; it is used to reporting federal excise tax liability for assured products such as goods like gasoline and fuel. These excise taxes are included in the cost of product and charges on actions such as wagering or using trucks on highways.
Who Must File 720 Form
Form 720 is filed when you own a business, which deals with goods and services. This is subject to excise tax, you need to prepare the Form 720 on a quarterly basis and report the tax to the IRS. Form 720, Quarterly Federal Excise Tax attachments are used to
- Report the liability by the IRS and
- Pay the excise taxes listed on the Form.
A business entity is liable to
file federal excise taxes if the sold goods are listed on Form 720, Part I and II.
|Part I excise taxable commodities include
||Petroleum spill taxes and ozone-depleting chemical tax; air transportation taxes, and communications; fuel taxes for kerosene, gasoline, and other gases; tire manufacturing taxes and coal.
|Part II excise taxes are related to the sales of
||Sports fishing and archery, inland waterways fuel used tax and bio fuel sold but it does not include used as fuel.
When is Due Date for Form 720
Form 720, the federal excise taxes are filed every quarter when an individual offers a service, sells goods or a product that has an excise tax component. Form 720 is due for every quarter during in the tax year. Note that, if the due date comes on the weekend or on a national holiday, it must be filed on the next business day.
|January, February, March
|April, May, June
|July, August, September
|October, November, December
If you are not reporting for excises taxes in the any of the quarter, you must send a Form 720 as per the due date, with “0” on the appropriate line on Form 720. and also, if you are going to close your business permanently, then check on the “Final Return” on Form 720, indicating IRS that you would not be filing anymore.
Excise Tax Form 720 –Part I
There are multiple sections in IRS excise tax Form and it requires deep understanding about each of the sections for a smooth filing process. Detailed view of the various sections in IRS720 Form Part I am as follows:
Dealers and sellers of the imported petroleum products, crude oil, and ODC’s file this excise tax return.
Users of local telephone services and teletypewriter exchange service are liable to file this Quarterly Federal Communication Tax.
Air Transportation Tax:
Airline Company files the Air transportation tax by providing a consolidated report about the passengers and the objects handled through the flights. It also includes the reporting of the use of transportation facilities in this excise tax Form.
Fuel tax engages in the use and sells of kerosene, gasoline, diesel, and LNG.
All the sellers and manufacturers of highway vehicles file this retail tax. Here the highway vehicles include heavy trucks, bus and truck tractors.
Ship Passenger Tax:
The Internal Revenue Service (IRS) enforces the tax on certain ship voyages. The person who is organizing the voyage must file this tax on an annual basis.
Foreign Insurance Tax:
Foreign issuers imply the issuing policies like casualty insurance and indemnity bonds.
The manufacturers and sellers of coal need to file this IRS excise tax. Here the tax involves one-time gas guzzler tax that is imposed on the imported vehicles and the vehicles driven by diesel fuel or gasoline with a minimum gross weight of 6,000 lbs.
Excise Tax Form 720 – Part II
Part II in Form 720 includes arrow shafts, sports fishing equipment, fishing roles, and poles; use of fuel on inland waterways, sold biodiesel and not used biodiesel and electric outboard motors. As a new addition to this section “Patient-Centered Outcomes Research Fee” is added to the excise tax Form on Dec 6th, 2012.
Patient-Centered Outcomes Research Fee:
“Affordable Care Act” imposed the “Patient-Centered Outcomes Research Fee” in order to aid in helping the patient-centered outcomes research institute. This is paid during the second quarter annually using Form 720.
Leaking Underground Storage Tank commonly referred as LUST tax comes under the Part II in the IRS excise tax Form 720. This LUST excise tax is 1 % per gallon of the excise tax levied on all the taxable fuels that are sold in the United States. LUST trust fund, which is responsible for handling any clean-ups and repair is benefited by the tax amount received.
Indoor Tanning Tax:
The Federal government forced a new tax return which is applicable to establishments proving indoor tanning services in the year 2010. Note that this tax is not imposed on fitness offer tanning as an additional amenity but do not charge any additional fees. On the other hand, if you are an owner of a salon offering tanning facilities, you need to file this excise tax every quarter on part II. This tax is not relevant to licensed medical professionals like psychologists, dermatologists offering tanning services. This excise tax is effective from July 1st, 2010
Form 720 – Schedules A, T, and C
- Schedule A (Excise Tax Liability) - This schedule aids an individual to list the deductions and includes various categories of expenses like dental and medical; theft losses, charity gifts, and taxes.
- Schedule T (Two-Party Exchange Information Reporting) -This schedule is also referred as two-party exchange information reporting and it is imposed on diesel fuel or gallons of taxable fuel used in the terminal or delivered within the terminal. This rule is applicable for other fuel usages such as Kerosene, Aviation Gasoline, and Gasoline.
- Schedule C (Claims): This schedule is used to report any loss or profit of the individual’s business or the profession and must file the Form 1040 in Schedule C. Wages, expenses along with the income and deductions are enclosed by the individual.
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Form 720 with IRS. Contact us our US based customer support team to clarify your queries about Form 720 quarterly excise tax return via 8849 Form @703-229-0326 or simply send a mail to
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