Federal Excise Tax is a tax on use or consumption of certain products which is included in the price of a product, such as motor fuels, cigarettes, and alcohol. Excise taxes may also be imposed on some activities, like gambling. Excise taxes may be imposed by the federal government or by a state. The seller or service provider will collect this excise tax and report to the federal authorities by end of every quarter.
These federal excise tax reported quarterly on IRS Form 720, can now be filed electronically through http://TaxExcise.com an IRS Authorized E-file provider for all Federal Excise Tax Returns on;
- Environmental products, such as domestic petroleum oil spills and ozone-depleting chemicals.
- Communications and air transportation taxes
- Fuels used in business
- Purchase of trucks, trailers, semi-trailers (at a percentage of the sales price)
- Ship passenger tax (per passenger)
- Manufacturers Taxes on coal, taxable tires, gas guzzlers, etc.
- Foreign insurance taxes
- Sport fishing equipment, fishing rods, poles, outboard motors, etc.
- Floor stocks tax on ozone-depleting chemicals
The U.S. government imposes excise taxes on a variety of liquid fuels. Along with heavy-vehicle use taxes and truck/trailer sales taxes, these excise taxes are collected by the IRS and placed in the federal Highway Trust Fund. The Highway Trust Fund contains three accounts: a highway account that funds road construction; a mass transit account that funds transit-related projects; and a leaking underground storage tank (LUST) account that, as the name implies, funds the remediation of leakage issues involving underground storage tanks. Once deposited into the Highway Trust Fund, the taxes are distributed to individual states based on a legislatively determined formula.
Report your Federal Quarterly Excise Taxes online today in simple step;