Reminders for Form 720

IRS Form 720, Quarterly Federal Excise Taxes are due by July 31, for the 2nd Quarter. Here are some reminders before you start efiling your Form 720.

Medical device excise tax. The Affordable Care Act (Public Law 111-148, amended by Public Law 111-152), imposes a 2.3% (.023) excise tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device. The tax applies to sales of taxable medical devices after December 31, 2012.

Alternative fuel mixture credit can be claimed on Schedule C (Form 720) only.  For alternative fuel mixtures produced after December 31, 2011, the section 6426 alternative fuel mixture credit can be claimed on Schedule C (Form 720) only, not on Form 4136, Credit for Federal Tax Paid on Fuels, or Schedule 3 (Form 8849), Claim for Refund of Excise Taxes, and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel, and kerosene.

Expiration of alcohol fuel mixture credit.    The section 6426 alcohol fuel mixture credit expired after December 31, 2011.

Exported gasoline blendstocks.   Claims for exported gasoline blendstocks taxed at $.001 per gallon are made on Schedule C, line 15b. Continue to use line 1b to make claims for exported gasoline blendstocks taxed at $.184 per gallon.

Electronic filing.   You can electronically file Form 720 through www.TaxExcise.com

Federal tax deposits must be made by electronic funds transfer.   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). Forms 8109 and 8109-B, Federal Tax Deposit Coupon, are obsolete. Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. EFTPS is a free service provided by the Department of Treasury.  To get more information about EFTPS or to enroll in EFTPS, visit www.eftps.gov or call 1-800-555-4477. Additional information about EFTPS is also available in Publication 966, The Secure Way to Pay Your Federal Taxes.

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