Form 720

Form 720 – Quarterly Excise Tax Returns

The excise taxes are usually imposed on the price of the products and specific activities like entertainment, gambling, etc., and both federal and state governments impose them. Form 720 is used to report the quarterly federal excise taxes on certain products like gasoline and aviation fuels and specific services like indoor tanning services and PCORI. These quarterly excise taxes are charged for every quarter of the year, and the taxpayers are liable to pay the quarterly excise tax for their respective products or services to the IRS using the form 720 within the appropriate deadlines.

Who should file the quarterly excise taxes using form 720?

Suppose you own a business or deal with the products and services under the quarterly federal excise taxes. In that case, you are automatically liable to pay your taxes using the form 720 for every quarter directly to the IRS. Form 720 has two parts, part I and part II, so you should check your part and category of your business/product and file the form 720 taxes accordingly.

Part – I in Federal Excise Tax Form 720

Form 720 comprises many categories that cover multiple services and products, so the IRS has segregated the form into two parts to avoid any turbulence for the taxpayers. Understanding these categories makes your tax e-filing smooth and simple.

• Environmental Tax – This section covers domestic petroleum oil spill tax, imported petroleum oil spill tax, ozone-depleting chemicals (ODCs), and ODC on imported products. The dealers and sellers of oil, petroleum, and ODCs are liable to pay the federal excise taxes under this section.
• Communications and Air Transportation Tax – This section covers local telephone service and teletypewriter exchange service, transportation of persons by air, transportation of property by air, and use of international air travel facilities. People availing these services, businesses, and dealers are liable to pay the form 720 taxes under this section.
• Fuel Taxes – This section covers all types of uses of diesel, kerosene, gasoline, and LNG. There are a lot of categories based on the type of fuels and their respective usages in this section. So please make sure that you identify the right category and file form 720 excise taxes.
• Retail Tax – This section covers the manufacturing of trucks, trailers, semitrailer chassis and bodies, and tractors. The manufacturers and sellers of trucks, trailers, and tractors are liable to pay their form 720 federal excise taxes under this section.
• Ship Passenger Tax – This section covers transport by water taxes. The IRS imposes excise taxes on certain ship voyages. The organizer of the ship voyage is liable to pay the form 720 under this section.
• Foreign Insurance Tax – This section covers the policies issued by the foreign insurers. It includes causality insurance and indemnity bonds, life insurance, sickness and accident policies, annuity contracts, and reinsurance.
• Manufacturer Tax – This section covers miners of coal and manufacturers of tires. This section also has many categories, so the taxpayers should ensure to identify the right category and file the form 720 accordingly.

Part – II in Federal Excise Tax Form 720

• Patient-Centered Outcomes Research Fee – This section is imposed by the ‘Affordable Care Act’ that helps fund the patient-centered outcomes research institute. This section has two parts, one is the specified health insurance policies, and the other one is applicable self-insured health plans. The taxpayers should identify and pay form 720 accordingly. This PCOR tax is paid annually.
• LUST Tax – The part-II of form 720 consists of Leaking Underground Storage Tank Tax, otherwise known as the LUST Tax. This excise tax is one percent per gallon of the excise tax levied on the taxable fuels sold in the U.S. The tax amount helps fund the LUST trust fund responsible for handling the clean-up and repair.
• Indoor Tanning Services Tax – The federal government started charging excise taxes for the businesses that provide indoor tanning services on July 1st, 2010. This excise tax is not applicable for fitness training offering tanning and other licensed medical professionals like dermatologists and psychologists offering tanning services. This excise tax applies only to the saloons offering tanning services.
• Other products and services that come under form 720 part – II are Sport fishing equipment, Fishing rods, and fishing poles, Electric outboard motors, Fishing tackle boxes, Bows, quivers, broadheads, and points, Arrow shafts, Inland waterways fuel use, and Biodiesel sold as but not used as fuel.

Schedule A, T, and C in Form 720

• Schedule A – The Schedule A in form 720 helps you list the deductions in your various expenses like medical, dental, charity, thefts, losses, and taxes. You should preserve the expense documents made in your registered account during the year. You can easily e-file schedule A smoothly at TaxExcise.com
• Schedule T – This is for two-party exchange information reporting applicable to diesel fuel used in a terminal or delivered within a terminal. This same rule applies to gasoline, kerosene, and aviation fuels.
• Schedule C – You need to file form 1040 Schedule C to report the profits and losses of your business or profession. You can also explain your wages and expenses with income and deductions.

When to report Form 720 Quarterly Excise Taxes

You know that you are liable to report and pay the federal excise taxes through form 720 every quarter, and the deadline falls on the last working day of the month next to the quarter. And if the due falls on a weekend or a public holiday, you should report your form 720 on the next business day.

Check the below table for the deadlines for every form 720 quarters.

E-file Form 720 Online at TaxExcise.com

TaxExcise.com is the perfect platform for all your form 720 e-filing needs. You can easily e-file form 720 in all the parts and categories for your businesses and services. Since form 720 is the quarterly excise tax and needs to be filed/reported every quarter within the deadline, e-filing form 720 at TaxExcise.com is the best way to do that. You don’t have to go to the IRS office and paper file every time. You can simply register at TaxExcise.com for free and e-file form 720 directly to the IRS in a few minutes. We also facilitate all the IRS-approved online tax payment gateways. We ensure the smooth transaction of your tax payments in our highly secure network.

You don’t have to worry about a thing on TaxExcise.com. You can e-file your quarterly excise tax form 720 on the go and stay ahead of your deadline. Once you become a part of the TaxExcise family, we will send you timely alerts and updates regarding your form 720 parts and categories to stay ahead of your schedule, never miss the deadline and stay updated on form 720 news and changes.