Are you looking for form 720 quarterly federal excise tax return? This blog will explain why SIMPLE720 is one of form 720 quarterly federal excise tax return providers in the USA.
FORM 720 QUARTERLY FEDERAL EXCISE TAX RETURN
Form 720 is a quarterly federal excise tax return. It is used to report and pay excise taxes on certain goods and services. Excise taxes are taxes imposed on the manufacture, sale, or consumption of certain goods and services. Examples of excise taxes include taxes on gasoline, alcohol, and tobacco products.
excise tax is computed by multiplying the applicable tax rate by the number of units sold. For example, if the excise tax rate on gasoline is $0.18 per gallon, and you sell 100 gallons of gasoline, you would owe $18 in excise taxes.
Quarterly excise taxes must be paid by the last day of the month following the end of the quarter. For example, if you are filing a return for the first quarter of 2020 (January 1 – March 31), your return and payment must be received by April 30, 2020.
If you do not file a return or pay your quarterly excise taxes on time, you may be subject to late filing and/or failure to pay penalties. Additionally, you are required to keep records of all transactions that are subject to excise tax. These records must be kept for at least three years from the date the return was due or filed, whichever is later.
Instructions for Form 720
Form 720 is the quarterly federal excise tax return. Businesses that are required to file Form 720 must do so by the last day of the month following the end of each quarter.
The instructions for Form 720 quarterly federal excise tax return vary depending on the type of business. For instance, different instructions apply to:
– Sole proprietorships
– Partnerships
– Corporations
– S corporations
– trusts
– estates
When filing Form 720, businesses will need to report information such as:
– The total amount of excise taxes due for the quarter
– The type of excise taxes paid during the quarter (e.g., fuel tax, environmental tax, etc.)
– The method used to pay the excise taxes (e.g., check, money order, electronic funds transfer, etc.)
Depending on the type of business, additional information may be required. For example, sole proprietorships will need to provide their social security number or employer identification number, while partnerships will need to provide their partnership identification number. Trusts and estates will need to provide their tax identification number.
Who Must File Form 720
Businesses that are engaged in certain types of activities are required to file Form 720, Quarterly Federal Excise Tax Return. These activities include manufacturing, selling, or distributing certain products and services, as well as engaging in certain types of transactions.
The products and services that are subject to excise tax are called ‘taxable commodities.’ Examples of taxable commodities include alcohol, tobacco, firearms, and ammunition. Transactions that are subject to excise tax include the sale of long-distance telephone service and the use of certain types of equipment.
Form 720 must be filed on a quarterly basis. The due date for each quarter is the last day of the month following the end of the quarter. For example, the due date for the first quarter (January-March) is April 30th.
If you fail to file Form 720 on a timely basis, you may be subject to penalties and interest. In addition, if you do not file Form 720 at all, you may be subject to criminal penalties.
When To File Form 720
Form 720 is a quarterly federal excise tax return that must be filed by businesses that manufacture, sell, or import certain taxable products and services. The due date for filing Form 720 is the last day of the month following the end of each quarter. For example, You are required to file Form 720 for the first quarter of 2020, the due date would be April 30, 2020.
If required to file Form 720 and do not do so, you may be subject to penalties. If you fail to file Form 720 for three consecutive quarters, you may be subject to a penalty of $10,000. In addition, if you do not timely pay the taxes owed on Form 720, you may be subject to interest and penalties.
Form 720 is not required to be filed if your business had no activity during the quarter.
However, if your business had no activity, you must file Form 720 quarterly federal excise tax return if you are registered for any of the following taxes:
-Manufacturers’ excise tax
-Communications and air transportation tax
-Sales tax on highway motor vehicles
-Diesel fuel tax
-Luxury tax
Where To File Form 720
Form 720 can be filed electronically or by paper. To file electronically, you must have tax software that supports the electronic filing of Form 720.
If you file by paper, you need to send Form 720 to the address listed in the instructions. The address will depend on whether you are filing a quarterly or annual return.
Excise Taxes
The Federal excise tax is imposed on the manufacture, sale, or use of certain products and commodities. The tax is generally passed on to the consumer in the form of higher prices. The following are some of the major excise taxes currently imposed:
* Fuel taxes: There is a federal excise tax on gasoline of 18.4 cents per gallon, as well as state and local fuel taxes. These taxes are used to fund the construction and maintenance of highways.
* Alcohol taxes: There are federal excise taxes on beer, wine, and distilled spirits. These taxes vary depending on the type of alcohol and the amount produced. The revenue from these taxes is used for a variety of purposes, including addiction prevention and treatment programs.
* Tobacco taxes: There are federal excise taxes on cigarettes, cigars, and other tobacco products. These taxes are used to fund public health initiatives, such as smoking cessation programs.
* Telecommunications excise tax: There is a 3% federal excise tax on long-distance telephone service. This tax is used to fund universal service programs, such as Lifeline (a program that provides discounts on telephone service for low-income households).
* Luxury taxes: There are federal excise taxes on certain luxury items, such as automobiles, boats, aircraft, and furs. The revenue from these taxes is used for a variety of purposes, including deficit reduction.
What are Excise Taxes?
Excise taxes are taxes imposed on the manufacture, sale, or consumption of certain products. In the United States, excise taxes are imposed on a wide range of products, including alcohol, tobacco, gasoline, and firearms.
Excise taxes are typically imposed by the federal government, but they can also be imposed by state and local governments. Excise taxes are sometimes also referred to as sin taxes because they are often imposed on products that are considered to be harmful to people’s health, such as cigarettes and alcohol.
While excise taxes are typically imposed on specific products, they can also be imposed on activities or transactions. For example, an excise tax might be imposed on the sale of tickets to a concert or sporting event.
Excise taxes are generally passed on to consumers in the form of higher prices for the taxed product. For example, if the federal government imposes a $1 per gallon excise tax on gasoline, gas stations will typically pass that cost on to consumers in the form of higher prices at the pump.
Some excise taxes are earmarked for specific purposes. For example, the federal excise tax on gasoline is used to fund highway construction and maintenance projects.
While excise taxes can be unpopular because they result in higher prices for consumer goods, they can also be an important source of revenue for governments.
How are Excise Taxes Computed?
Excise taxes are computed by multiplying the tax rate by the quantity of the product sold. For example, if the excise tax on gasoline is $0.20 per gallon and you sell 100 gallons of gasoline, you would owe the government $20 in excise taxes.
Excise taxes are often included in the price of the product so that the consumer pays the tax without realizing it. In other cases, the excise tax is separately stated on the invoice or receipt.
Depending on the product, there may be different rates for different sizes or quantities of the product. For example, cigarettes are taxed at a higher rate than cigars, and large trucks are taxed at a higher rate than passenger cars.
Payment of Quarterly Excise Taxes
business taxpayers who are engaged in certain types of businesses are required to pay a quarterly excise tax. The businesses that are subject to this tax include manufacturers, producers, and importers of certain products, as well as those engaged in certain types of activities, such as telecommunications and air transportation.
The excise tax is reported on Form 720, Quarterly Federal Excise Tax Return. This form must be filed by the end of the month following the end of each quarter. For example, if you are required to file a return for the first quarter of the year (January 1 – March 31), you would file your return by April 30.
The excise tax is paid in two ways. First, you must pay the tax on the products you have manufactured, produced, or imported during the quarter. This is known as the ‘use tax.’ Second, you must pay the tax on the activities you have engaged in during the quarter. This is known as the ‘privilege tax.’
If you are required to pay the excise tax, you will need to file Form 720 and make your payment by the due date.
Records
All businesses that are required to file Form 720 quarterly federal excise tax return must keep records of their transactions for at least 3 years. These records must include information on the purchaser, seller, date of sale, and description and value of the item sold.
Late Filing Penalty
If you don’t file Form 720 by the due date, you may have to pay a late filing penalty. The penalty is $10 per day, up to a maximum of $5,000.
Failure to Pay Penalty
If you don’t pay your federal excise tax, you may be subject to a failure to pay penalty. This penalty is equal to 2% of the unpaid tax amount for each month or part of a month that the tax remains unpaid, up to a maximum of 25% of the unpaid tax.
Keeping Records for Form 720
To keep track of your form 720 quarterly federal excise tax return, you must maintain records of your transactions, including:
-The name, address, and identification number of the person or business to whom you sold the goods or services
-A description of the transaction
-The date of the transaction
-The amount of the transaction
You must also keep records of your expenses, including:
Your cost of goods sold, advertising and promotion expenses, travel expenses, payroll and employee benefits expenses, rent or lease expenses, utility expenses, and other business expenses