The clock is ticking fast, you’re just left with minimal time to have your 2nd Quarter Federal Excise Tax Returns reported across. If you owe taxes on top of the monthly deposits made and that has to be paid on or before July 31. Essentially, Form 720 needs to be completed by the last day of the first month that follows the end of the prior quarter (e.g. the second quarter ends on June 30, so the form is due by July 31). If the due date for filing Form 720 falls on a Saturday, Sunday, or legal holiday, you can file the return by the next business day. This month it falls on a week day so no buying time here.
Who must file Form 720?
You must file Form 720 if you were liable for, or responsible for collecting, any of the federal excise taxes listed on Form 720, Parts I and II, for a prior quarter or for the current quarter and you haven’t filed a final return.
In other words, if you own a business that deals in goods and services subject to excise tax, you must prepare a Form 720 quarterly to report the tax to the IRS. The federal government charges an excise tax on specific types of products and services, which has to be collected and paid to IRS at regular intervals, quarterly.
How to file Form 720?
IRS Tax Form 720 can be prepared with simple probing questions and pay any liabilities online through TaxExcise.com. E-filing is always available, prepare a return anytime from anywhere and report it online directly to the IRS. E-file could get you error free returns, you won’t miss out anything that is required to report excise taxes. Express service, faster processing of tax returns, and acknowledgement in minutes. Record keeping is easy, download your Form 720 PDF any time.
E-file is the most preferred option of reporting excise taxes with the IRS. However you can also take a print out of the complete Form 720 PDF and file it manually or mail it across to the IRS as specified in the form. Efiling or electronic filing is submitting your federal excise tax returns online to the IRS directly from TaxExcise.com website. There are two ways to filing your federal excise tax returns. The traditional way is the offline way, where you manually fill in directly or through a tax preparer you file your returns. The other way is when you e-file through the internet. E-filing has become popular because it is easier, doesn’t require prints of documents, and can be done in less time!
Know more about biweekly or semimonthly deposits
However, although IRS Form 720 only needs to be filed quarterly, payments for excise taxes must be made semimonthly. The IRS considers a semimonthly period as the first 15 days of the month (first semimonthly period) or the 16th through the last day of the month (second semi-monthly period). If your business is paying excise taxes for communications or air transportation, you have the option to pay according to an alternative schedule, again, as dictated by the Form 720 instructions.
Excise tax deposits must be made to the IRS by electronic transfer (aka an ACH deposit) and submitted at least one day before the date the deposit is due—so if the due date to make a deposit for 1st Quarter is January 15, the payment must be submitted by January 14. Just like with filing Form 720, if a due date falls on a weekend or legal holiday, the next business day becomes the de facto deadline.
Still owe tax then it can be paid using EFTPS or EFW options have the instructions shared with the IRS while it is processing your tax return for the quarter.
TaxExcise.com has better ways to handle your Federal Excise Tax filing worries, being an expert and the most experience e-file service provider for all Federal Excise Tax Forms since 2007 we have the e-filing advantages and know your expectations. More over we’re the 1st IRS Authorized e-file service provider for all excise tax forms.