The Federal Excise Tax return or the FET can be prepared and filed electronically with the IRS. Use http://TaxExcise.com to e-file Excise Tax Returns at end of every quarter.
Form 720 or the Federal Excise Tax returns used to prepared and file the excise taxes collected for sale of a service or goods sold. Excise taxes are considered an indirect form of taxation because the government does not directly apply the tax. An intermediary, either the producer or merchant, is charged and then must pay the tax to the government. These taxes can be categorized in two ways:
– A fixed percentage is charged on a particular good.
– A fixed dollar amount dependent upon the quantity purchased is charged.
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.
If you owe excise tax when you file your Form 720, the IRS requires you to make payment using electronic funds transfer. Generally, most excise taxes must be paid on a semi-monthly basis. However, if the amount of excise tax is below certain levels, the IRS allows you to delay payment until you accumulate a sufficient excise tax liability.