One-time filing in Form 720, Gas Guzzler Tax (Excise Tax)

Congress established Gas Guzzler Tax provisions in the Energy Tax Act of 1978 to discourage the production and purchase of fuel-inefficient vehicles. The Gas Guzzler Tax is assessed on new cars that do not meet required fuel economy levels. These taxes apply only to passenger cars. Trucks, minivans, and sport utility vehicles (SUV) are not covered because these vehicle types were not widely available in 1978 and were rarely used for non-commercial purposes. The IRS is responsible for administering the gas guzzler program and collecting the taxes from car manufacturers or importers. The amount of tax is posted on the window stickers of new cars – the lower the fuel economy, the higher the tax.

If you import a gas guzzling automobile, you may be eligible to make a one-time filing of Gas Guzzler Excise Tax using your SSN in Form 720, Quarterly Excise Tax Return, if you:

  1. Do not import gas guzzling automobiles in the course of your trade or business, and
  2. Are not required to file Form 720 reporting other excise taxes for the calendar quarter, except for a one-time filing.

If you meet both requirements above, see Gas guzzler tax (IRS No. 40) in the Instructions for Form 720 for how to file and pay the tax. This can also be reported online using http://www.TaxExcise.com, an IRS authorized e-file provider for the Excise Tax return since 2007. This website is the 1st to be certified by the IRS as e-file provider for Excise Tax returns and rated #1 by the excise tax payers across USA.

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