In the United States, it is mandatory that Individuals and companies doing business need to file taxes with the Federal Government. Based on the circumstance of the company or taxpayer there are a multiplicity of forms available for filing tax. Another way Form 720 is Quarterly Federal Excise Tax Return.
What is the purpose for filing IRS Form 720?
IRS form 720 is utilized to file and disburse excise taxes due on a quarterly basis in order to keep liabilities well under control. Depending on their business model, select companies are requisite to pay excise tax to the federal government. Businesses involving trade of gasoline or tobacco or in services including indoor tanning are required by law to file an excise tax return.
What are the types of Excise Tax?
Foreign insurance companies related payments are subject to one percent excise tax which needs to be paid to the federal government.
Excise taxes include:
- Environmental Taxes – such as an imported petroleum products oil spill tax
- Communication Taxes
- Air Transportation Taxes
- Fuel Taxes
- Retail Taxes
- Ship Passenger Taxes
What is the payment schedule?
IRS Form 720 tax return is a quarterly tax payment and needs to be paid four times per calendar year. Return needs to be filed within a month quarter’s last day and needs to include all appropriate taxes due. First quarter of the year includes January, February and March. As per IRS regulations, the tax return for this first quarter is due on April 30.
What are norms for filing?
For every quarter, each tax liability must be broken down and calculated on separate lines of the Form 720 as instructed by the IRS. It is very essential to file and submit the form despite of tax liability due each quarter in case the form is typically used. A separate form called Form 720X needs to be used for adjustments to prior filing. All paper work should be accompanied with a name, EIN (employee identification number) and signature.
What are the Penalties?
Persons filing IRS Form 720 tax Return should do it by the due date quarterly, otherwise penalties are incurred. Late fees and interest charges are collected by Federal Government on late payments, late filing, and fraudulent returns. IRS requires that any late return must include an explanation for late filing.
Form 720 can now reported online with www.Tax720.com, it is simple, easy and quick. Do it online and claims can also be filed online at www.Tax8849.com. TaxExcise.com is the only online application to do all Excise Tax from one place.