3rd Quarter Federal Excise Tax reporting online…

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. One of the major components of the excise program is motor fuel.

Tax Form 720 Quarterly Federal Excise Tax Return

Federal Excise Tax OnlineUse Form 720 and attachments to report and pay the excise taxes as per the service render, goods sold or usage as listed above. If you report a liability on Part I or Part II, you may be eligible to use Schedule C to claim a credit.

Whether you are a manufacturer, retailer, airline or any other business that deals in goods for which excise taxes are due, you have a responsibility to file a Quarterly Federal Excise Tax Return on Form 720 up to four times per year, depending on the circumstances.

E-file Tax Form 720

This Federal Excise Tax return on Form 720 can be prepared and reported online with the IRS using http://TaxExcise.com (the only website supporting online filing for Federal Excise Tax Form 720)

Excise Taxes as a Trust Fund Tax

Excise taxes are a trust fund tax, meaning that they are collected by the business and held in trust, then paid to the IRS at specific times. If the full amount of the tax is not submitted when due, a trust fund recovery penalty may be imposed.

Government organizations, nonprofit educational organization and emergency service providers such as ambulance services, may be exempt from some federal excise taxes, including excise taxes on fuel. You must claim a refund of these taxes at the end of the year on IRS Form 8849. You must keep records and document that the fuel and other items for which excise tax was collected were used only for the exempt purchase. For instance, you would document that the gasoline was used only in an ambulance or a police car, and not in a personal vehicle.

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