What Excise Taxes Need to be Reported Quarterly on Form 720
What is Form 720?
Form 720, the Quarterly Federal Excise Tax Return, is an IRS form businesses use to report and pay excise taxes on specific goods, services, and activities.
What are Excise Taxes?
Excise taxes are specific taxes imposed by the federal government (and sometimes state governments) on particular goods, services, and activities.
- Unlike general sales taxes, which apply to most goods, excise taxes apply only to specific items or activities
Excise taxes help generate revenue for specific government programs and public services like road maintenance, public health, and environmental protection.
Form 720 Quarterly Deadlines
Form 720 must be filed quarterly, allowing businesses to stay current on excise tax payments and meet the required tax obligations on applicable goods and services.
- Filing quarterly helps ensure the IRS and businesses maintain up-to-date records on excise taxes, reducing the risk of errors and issues at the end of the tax year.
Form 720 Submission Deadlines
- 1st Quarter January-March: Due April 30
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2nd Quarter April-June: Due July 31
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3rd Quarter July-September: Due October 31
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4th Quarter October-December: Due January 31
Form 720 may be filed electronically or by paper, depending on the business’s preference.
What information is included in Form 720
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The types of goods or services subject to excise tax
- The amount of tax owed based on sales or activities
- Any relevant adjustments or credits
What is the Employer Filing Process?
1. Identify Excise Tax Obligations:
Which goods, services, or activities are subject to federal excise tax?
2. Complete Form 720:Report the type and quantity of taxable activities, the excise tax rate, and the total tax owed.
3. Submit the Form to the IRS:Submit Form 720 with the IRS by the quarterly deadline, either electronically or by mail
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