Excise Date Article For Free

BASIC CONCEPT: Excise Tax is a tax on the production, sale or consumption of a commodity in a country.

Form 720 is for businesses to report excise taxes paid on goods and activities listed in parts one and two of the form. In general, Form 720 is for businesses that owe excise taxes on: Fuel. Ozone-depleting chemicals.

What Is IRS Form 720? IRS Form 720: Quarterly Federal Excise Tax Return is a tax form designed to help businesses report and pay their federal excise taxes.

General fund excise taxes are imposed on many goods and services, the most prominent of which are alcohol, tobacco, and health insurance. Other general fund excise taxes include taxes on local telephone service, vehicles with low-mileage ratings (?gas guzzlers?), ozone-depleting chemicals, and indoor tanning services.

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks.

Form 720 ? Quarterly Federal Excise Tax return IRS Form 720, or the Quarterly Federal Excise Tax Return, is an IRS tax form that businesses must complete every quarter to report and pay federal excise taxes.

In general, an excise tax is a tax is imposed on the sale of specific goods or services, or on certain uses. Federal excise tax is usually imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco and other goods and services.

A business that only purchases the excise goods does not need to file a Form 720. However, certain companies ? such as those in farming, manufacturing, landscaping, and construction ? may see a fuel tax credit for federal fuel excise taxes passed onto them.

Who files Form 720? Whether you are a manufacturer, retailer, airline or any other business that deals in goods for which excise taxes are due, you have a responsibility to file a Quarterly Federal Excise Tax Return on Form 720 up to four times per year, depending on the circumstances.

Anyone involved in the sales of goods or services, such as fuel, heavy trucks, and other goods in Part I and Part II of Form 720, must pay Excise Taxes using Form 720, Quarterly Federal Excise Tax. This form must be submitted for every quarter until you file a final return.