If you are responsible for filing the taxes of a business that sells products and services with an excise tax, then Form 720 is how you take care of the required Quarterly Federal Excise Tax Return. While consumers may not be aware they are paying excise taxes, as they are usually included in the price of goods, businesses must keep the IRS happy with quarterly reporting.
The most common products and services imposed with an excise tax are tobacco, alcohol and gambling. Excise taxes are also included with fuel, airline tickets, semi-trailers, cruises, coal production, indoor tanning and sport fishing equipment – all things considered to have a higher social cost.
Reporting and Paying for Excise Taxes
On a quarterly basis, you are required to report and pay excise taxes to the IRS via Form 720. Schedule A of Form 720 is used to show the total amount of excise taxes you must pay for the quarter.
At the end of each quarter, you have one month to file and pay your excise taxes:
- 1st quarter (January-March) due by April 30
- 2nd quarter (April-June) due by July 31
- 3rd quarter (July-September) due by October 31
- 4th quarter (October-December) due by January 31
You can send your completed Form 720 by mail or online through an IRS-approved software provider. To keep track of your excise taxes, the best and easiest way is to utilize a bookkeeping service such as ours.
Work with the Experts
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This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. 1-800Accountant assumes no liability for actions taken in reliance upon the information contained herein.