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The Quarterly Federal Excise Tax Return, or ax form 720, is used to compute and pay excise taxes on certain types of income and assets.
Excise taxes are levied when a certain product is purchased. The majority of excise taxes are similar to state sales taxes in some aspects. They are paid when particular things are purchased. Because excise tax is generally incorporated in the price of items, you may not even realize you’re paying it as a consumer.
How Often Should You Fill Out Form 720 for Excise Taxes?
If you own a company that sells excise-taxed goods or services, you must file a quarterly IRS form. Excise tax is often owed by businesses whose operations fall into the following categories:
Automobile gasoline containing alcohol
Tickets for flights
Use of the highway
tanning in a controlled environment
Products containing tobacco
Goods and services related to health
Excise tax Form 720 should be completed and sent to the IRS on a quarterly basis. The quarterly federal excise tax return is another name for this form.
Who is responsible for filling out Form 720?
If your company sells goods that are subject to excise taxes, you must file Form 720.
Furthermore, some foreign taxpayers would complete Form 720. For example, an expat taxpayer with an interest in a specific type of foreign life insurance plan must report the excise taxes on that interest using IRS form 720.
What Is the Best Way to Fill Out IRS Form 720?
You’ll see a line on IRS Form 720 for each type of excise tax you may owe, which is normally based on unit sales or weight IRS Forms.
Paying Your Federal Excise Taxes on a Quarterly Basis
Excise taxes can be paid electronically by you or your tax professional by the quarterly deadlines.
Each quarter lasts three months and starts on the first of the year. The Form 720 must be submitted on the last day of the month after the quarter’s conclusion. For the quarter ending on March 31, for example, you must file a Form 720 by April 30.
Rather than paying quarterly, many excise taxes should be paid semi-monthly. However, if the sum is below specified criteria, the IRS will enable you to postpone payment until you have accumulated enough tax liability.
More Guidance on IRS Form 720
H&R Block can assist you if you need to file IRS Form 720 as a business. We can assist you with not only your personal taxes, but also your business tax issues, thanks to our specialized small business services.
Source: 720 Form
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