Unlike other taxes, the Internal Revenue Service implies excise tax on manufacturers and businesses involved in the sale of goods and services. Filed on quarterly basis, this IRS form consists of two sections i.e. Part-I and II therefore, tax filers should make the right choice when filing the tax return. Many people hardly realize that they are paying excise tax, as the amount is deducted from the goods they purchase. When filing excise tax form 720, it is advisable to opt for online service through an authorized e filing service provider to ensuring a hassle and error free filing. One of the convenient options is ThinkTrade Inc., the first IRS certified e file service provider. Read below for additional information on IRS form 720.
Who Should File Form 720:
Business entities and manufacturers involved in the sale of products listed in either Part I or II is liable to file form 720. Part I in the excise tax form includes several things such as petroleum spill tax, air transportation tax, gasoline and kerosene tax, ozone-depleting chemical tax, and coal and tire manufacturing tax. However, the Part II in IRS tax form 720 includes taxes related to the manufacturing of sports and fishing equipment, indoor tanning services, patient centered outcomes research fee (which has be filed annually), etc. We shall discuss about each of the part in detail in the next blog.
It is important for excise tax filers to keep their documents handy along with the essential receipts to ensure the IRS that they made the payments. Moreover, it is advisable to keep the essential records at least for four years to avoid unnecessary hassles and enable smooth verification process.
When to File Form 720:
Federal excise tax form 720 should be filed quarterly except ‘Patient Centered Outcomes Research Fee’ that has to be filed annually and filing before the due date can save one from paying any penalties to the IRS. The due date for paying the tax due has been explained below:
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How to File IRS Form 720:
Excise taxpayers can choose to paper file or e file form 720. However, those choosing to paper file should ensure filing before time and get the acknowledgement receipt before the due date ends, unlike e filing, which gives the option to file even at the last minute although, filing on time is always recommended. Filing with IRS authorized service provider has its own added advantages and one among the favorite choice is Taxexcise.com (A product of ThinkTradeInc.com). Our team of seasoned tax experts can assist you during the e filing process and help you solve any queries. You can always reach us @ +1 – 866 – 245 – 3918 or send a mail to email@example.com for any queries or suggestion, we are all ears.