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Businesses providing goods and services that are subject to excise tax must file a Form 720 quarterly to report the tax to the IRS.
What is excise tax?
Excise taxes are charged on a wide variety of goods,
services and activities. The tax may be imposed at the time of:
Many excise taxes go into trust funds earmarked for related capital projects, such as highway and airport improvements. Excise taxes are independent of income taxes. People pay excise taxes on things like gasoline, indoor tanning, airline tickets and tires.
Since the excise cost is usually included in the price, the seller or manufacturer is responsible for sending these tax payments to the IRS and filing Form 720.
When to file?
Businesses must file the form for each quarter of the calendar year. Here are the
due dates:
If the due date for filing a return falls on a Saturday, Sunday or legal holiday, the due date is the next business day.
How to file?
While the IRS still accepts paper Forms 720, they encourage businesses to file
electronically. To help excise taxpayers do this, the IRS posts the contact
information on IRS.gov of all approved e-file transmitters for excise forms. Businesses
can submit forms online 24 hours a day.
That said, not all excise forms can be filed electronically. Those that are available for electronic filing are:
When businesses file Form 720 electronically, they not only get confirmation the IRS received the form, but it reduces processing time and errors. To electronically file Form 720, business taxpayers will have to pay the provider’s fee for online submission.
More information:
Form 720 e-file providers page
2290 Modernized e-file Providers
8849 Modernized e-file Providers
Excise Tax Forms and Publication
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