IRS Tax Form 720 to prepare and report the Federal Excise Taxes collected for the 1st Quarter of 2014 has to be reported to the IRS in this April.
The Federal or the Congress apply an Excise Tax on the certain type of Products and Services. Businesses that deal in goods and service that are subjected to an excise tax must report this in Form 720 on a Quarterly basis. Excise tax in some ways resembles a state sales tax. However, you may not be aware you’re paying this tax since it’s usually included in the price of goods, such as the gasoline you purchase for your car.
What’s New in 720 this 2014?
Expiration of credits.
Credits formerly shown on Form 720, Schedule C, for biodiesel or renewable diesel mixtures (line 13), and alternative fuels and alternative fuel mixtures (line 14, except for line 14d (liquefied hydrogen)), expired on December 31, 2013.
Transportation of persons by air (IRS No. 26). For calendar year 2014, the tax on the amount paid for each domestic segment of taxable air transportation is $4.00.
Use of international air travel facilities (IRS No. 27). For calendar year 2014, the tax on the amount paid for international flights is $17.50 per person for flights that begin or end in the United States.
The tax is $8.70 per person for domestic segments that begin or end in Alaska or Hawaii (applies only to departures). See Air Transportation Taxes, later.
Arrow shafts (IRS No. 106). For calendar year 2014 the tax on arrow shafts continues to be $.48 per arrow shaft.