720 Form 2022 Printable, Fillable PDF – If you run a company that sells products and services that are subject to excise tax, you must file 720 Form with the Internal Revenue Service on a quarterly basis to report the tax.
An excise tax is a sort of sales tax levied by the federal government on particular categories of goods and services that is similar to a state sales tax in some respects. It’s possible that you’re not aware that you’re paying this tax since it’s frequently included in the price of commodities, such as the fuel you buy for your automobile, that you purchase. Businesses that sell excise-taxed goods and services must file a 720 Form with the Internal Revenue Service on a quarterly basis in order to submit the tax to the IRS.
What Information Should Be Included On Form 720?
There is a long list of items and services for which the federal government collects excise taxes, and the list is constantly expanding. A fee on indoor tanning, fuel you fill up your vehicle with, airline tickets, and a variety of coal goods are just a few of the more prevalent items and services subject to the excise tax. The seller or manufacturer is responsible for remitting the excise tax to the federal government and for submitting 720 Form since the cost of the excise tax is normally included in the price.
Is That The Person Who Submits Form 720?
A Quarterly Federal Excise Tax Return on 720 Form is required to be filed quarterly by manufacturers, retailers, airlines, and any other business that deals in goods for which excise taxes are due. You may be required to file 720 Form as many as four times per year, depending on the circumstances of your business.
The Internal Revenue Service (IRS) offers two criteria to determine if you are required to submit 720 Form at the end of each calendar quarter. A final excise tax return must be submitted if you collected any excise taxes during the current quarter, or if you were responsible for collecting excise taxes during any quarter of the year and have not yet filed a final excise tax report. Each quarter lasts three months and starts on the first of January of each year. After the conclusion of the quarter, 720 Form must be submitted on or before the last day of the next month. For example, 720 Form, for example, must be filed by April 30 in order to be considered for the quarter ending March 31.
Form 720 Must Be Completed
A separate line is provided on 720 Form for each sort of excise tax that you may be liable to pay. The vast majority of excise taxes are assessed on the basis of unit sales or weight.
Examples include certain forms of diesel fuel, which demand a payment of around 24 cents per gallon for each gallon purchased. For this sort of product, you just enter the number of gallons sold and multiply that figure by the rate per gallon of the product you are selling.
Making Your Excise Taxes A Priority
If you owe any excise tax, it is mandatory for you to use electronic funds transfer to pay any excise tax due when you submit 720 Form with the Internal Revenue Service. You must make certain that your payment reaches the IRS before the deadline in order to avoid fines. This necessitates the completion of the transfer by 8 p.m. (EST) on the day before the due date is reached. According to the Internal Revenue Service, these deposits must be made more regularly than the IRS requires you to submit a 720 Form.
Most excise taxes must be paid on a semi-monthly basis, which is the standard practice. However, if the amount of excise tax owed is less than a specific threshold, the IRS will enable you to defer payment until you have accumulated a sufficient amount of excise tax owed.