Form 720 – Quarterly Federal Excise Tax return
Federal Excise tax is referred to indirect type of taxation imposed on the manufacture,
sale or usage of certain type of goods and products. However, excise taxes are included
in the price of the product, such as cigarettes or alcohol, also included in the
price of an activity, often gambling. They are imposed by both the federal and state
When to Report Quarterly Excise Taxes:
You are liable to file Form 720, the federal
excise taxes every quarter when you offer a service, sell a product or goods that
has an excise tax component. The Excise taxes are due for every quarter in a year
and the below table clearly indicates the actual due date. If the due date falls
on weekend or on a federal holiday, you should file on the next business day.
Take a look at the below tabular column to know when you got to file your excise
Jan, Feb, Mar
Apr, May, Jun
Jul, Aug, Sep
Oct, Nov, Dec
Part-I in Excise Tax Form 720
IRS excise tax form comprises of several sections and understanding them makes your
tax filing process smooth. Here’s a brief overview of the various sections involved
in Part I in IRS Form 720.
Dealers and sellers of; crude oil, imported petroleum products, and ODC’s are subjected
to file this excise tax return.
If you’re using local telephone services and teletypewriter exchange service, you’re
liable to file this Quarterly Federal Communication Tax.
Air Transportation Tax:
Air transportation Tax needs to be filed by the Airline Company, providing a consolidated
report about the passengers and the property handled through flights. Also, the
usage of transportation facilities should be reported in this excise tax form.
This involves the use and sell of diesel, kerosene, gasoline and LNG.
All manufacturers and sellers of highway vehicles such as bus, heavy trucks and
truck tractors should file under this category.
- Ship Passenger
The IRS imposes tax on certain ship voyages. This tax is applied annually on the
person organizing the voyage.
Foreign Insurance Tax:
Foreign issuers issuing policies such as indemnity bonds and casualty insurance
This IRS excise tax applies to the seller and manufacturers of coal. This tax also
involves one-time gas guzzler tax imposed on imported vehicles and vehicles driven
by gasoline or diesel fuel with a minimum gross weight of 6,000 lbs.
Part-II in Excise Tax Form 720
Yes, there is a part-II in form 720, which includes sports fishing equipment, arrow
shafts, fishing roles and poles, use of fuel on inland waterways, biodiesel sold
but not used, and electric outboard motors. On Dec 6, 2012 there was a new addition
in this section of the excise tax form, known as the ‘Patient-Centered Outcomes
The newly introduced ‘Patient-Centered
Outcomes Research Fee’, imposed by the ‘Affordable Care Act’ helps in funding
the patient-centered outcomes research institute. It is to be paid annually using
Form 720 during the second quarter.
The Part II in IRS excise tax form 720 also comprises of the Leaking Underground
Storage Tank Tax, mostly referred 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. Moreover,
the tax amount received helps fund the LUST trust fund responsible for handling
any clean-ups and repair.
In 2010, the Federal government imposed a new kind of tax return applicable to establishments
providing indoor tanning services.
This excise tax took effect from July 1, 2010 this tax is not imposed on fitness
offering tanning, as an additional amenity but do not charge any additional fees.
If you own saloon offering tanning facilities, you should file this excise tax return
every quarter on part II. However, this tax is not applicable to licensed medical
professionals such as dermatologists and psychologists offering tanning services.
Schedule A, T and C in Form 720
Schedule A in IRS form 720 helps you list the deductions, which includes various
categories of expenses such as medical and dental, charity gifts, theft losses,
and taxes. For easy and hassle-free, filing of Schedule A you should file it through
taxexcise.com and preserve the documents of the expenses made during the year in
your registered account.
Also known as the two-party exchange information reporting is imposed on diesel
fuel used in terminal, or delivered within a terminal. The same rule applies for
the usage of Kerosene, Gasoline, and Aviation Gasoline too.
To report loss or profit of the business you own or the profession you handle, you
need to file form 1040 in Schedule C. Here, you can explain your wages, expenses
along with income and deductions too.
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