Who must file the Form 720?
Business organizations as well as the separate individuals residing in the United States of America are required to file tax with the federal government as stipulated by the governing laws. Different kinds of forms are required on the basis of the varying circumstances of a particular company or individual tax payer.
Purpose of the Form 720:
The Quarterly Federal Excise Tax Return or IRS Form 720 is particularly used for filing and paying excise dues on quarterly basis for keeping the liabilities under control. There are only few selective companies which are required to make tax payments to the federal government. This however, entirely depends on the type of business they are engaged in. The business organizations which are engaged with the sale of tobacco, gasoline, indoor tanning are required by the governing laws of the land to file the tax return.
The Different Kinds of Excise Tax:
The payments which are made to overseas companies are liable to 1% excisetax and the payments must be paid to the federal government. There are many other kinds of excise tax included such as the environmental taxes, the imported oil spill petroleum products taxes etc. Claims must be made on airtransportation and select communications taxes as well. There are also ship passenger tax, retail tax and fuel tax.
When Are The Payments Supposed To Be Made?
Quarterly Federal Excise Tax Return or the IRS Form 720, as the name suggests must be paid four times in a year as follows:
Quarter covered | Due by |
| Jan., Feb., Mar. | April 30 |
| Apr., May, June | July 31 |
| July, Aug., Sept. | October 31 |
| Oct., Nov., Dec. | January 31 |
Pay Attention to the Tax Filing:
It is important that the Form 720 gets submitted, irrespective of the tax liability which remains due in each of the quarters when the form is used typically.
- If you are not reporting a tax that you normally report, enter a Zero Value on the appropriate line(s) of Form 720.
- File a final return if you have been filing Form720 and you:
2. Will not owe excise taxes that are reportable on Form 720 in future quarters.
If you are only filing to report zero tax and you will not owe excise tax in future quarters, check the ‘final return’ box at the top of the Form 720.Modifications before filing must be done in a different form, which is Form 720X. All the paperwork must accompany signature as well as the employee identification number or EIN.
- E-file:
Advantages of E-filing:
1. It is paperless, no EFIN requirements.
2. Reduced processing time and errors.
3. Results available typically within minutes.
- Paper File:
IRS Center, Cincinnati, OH, 45999-0009
Record Keeping:
Keep copies of your tax return, records, and accounts of all transactions to show that the correct tax has been paid. Keep records to support all claims and all exemptions at least 4 years from the latest of the date:
Why Penalties and Interest?
Keep copies of your tax return, records, and accounts of all transactions to show that the correct tax has been paid. Keep records to support all claims and all exemptions at least 4 years from the latest of the date:
- The tax became due,
- You paid the tax, or
- You filed a claim.
Why Penalties and Interest?
The law provides penalties for filing a return late; depositing taxes late; paying taxes late; willfully failing to collect and pay tax or file a return; negligence; and fraud. These penalties are in addition to the interest charged on late payments.
Avoid penalties and interest by filing returns and depositing and paying taxes when due.
The penalty for filing a return late will not be imposed if you can show that the failure to file a timely return is due to reasonable cause. Those filing after the due date must attach an explanation to the return to show reasonable cause.
Q. When can I e-file Forms 720?
A. IRS is currently accepting electronically-filed Forms 720. Forms can be submitted online 24 hours per day.
A. IRS is currently accepting electronically-filed Forms 720. Forms can be submitted online 24 hours per day.
Q. How will e-file of Form 720 improve results?
A. Electronic filing of Form 720 will allow IRS to provide expedited and improved service and reliability to taxpayers while reducing processing time and errors.
A. Electronic filing of Form 720 will allow IRS to provide expedited and improved service and reliability to taxpayers while reducing processing time and errors.
Yes you read it right. You can try the rich filing experience on our website for no cost and pay only when you are satisfied and want to finish the filing process. To start, kindly log on to our website www.tax720.com and sign-up with us. Our contextual support text all over the place will guide you through the process step by step. If you have issues, our Tax Experts are always happy to help you get through the filing process.
www.Tax720.com /www.TaxExcise.com is a certified, IRS authorized, e-file service provider for Form 720. Tax720 is a product of ThinkTrade, Inc and a part of TaxExcise.com. We are a BBB accredited company with A+ certification.
For any further information regarding Form 720 please reach us at 1-866-245-3918 or simply write to us at support@taxexcise.com
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