Prepare Quarterly Federal Excise Tax Returns Online 7

Form 720 Rev June 2025

Complete the Quarterly Federal Excise Tax Return (Form 720), specifically the section for the PCORI fee. We deliver world class services in variety of industrial segments. Get started today and take advantage of our 100% accurate, expert-approved guarantee. A Business Name refers to the official, registered name of a business or organization under which it operates. This name is used for legal, branding, and communication purposes. “Simple720 gave us our precious time back.We’re never going back to the manual filing chaos again.”

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So, you should understand the regulations of the IRS and report your form 720 taxes accordingly. You will get one month to report your form 720 excise tax returns when a quarter is over. You should file your 720 tax reports on or before the end of that month. While the return is filed quarterly, tax deposits are often due more frequently. For many excise taxes reported in Part I of the form, payments must be made on a semi-monthly basis.

Environmental taxes, such as those on ozone-depleting chemicals, discourage the use of harmful substances. The tax rate is based on the chemical’s ozone-depleting potential, with higher rates for more damaging substances. You should prefer delivery services like DHL Express, Federal Express or United Parcel Service for timely mailing/delivery requirements to report your form 720 federal excise taxes on time. Top Deposits of communications and air transportation taxes may be based on taxes included in amounts billed or tickets sold during a semimonthly period instead of on taxes actually collected during the period. Under the alternative method, the tax included in amounts billed or tickets sold during a semimonthly period is considered collected during the first 7 days of the second following semimonthly period.

• You can download the prepared IFTA tax reports and paper file them on or before July 31, 2023, for the second quarter.
• Businesses need accurate records to ensure compliance with these requirements.
• Learn about the basics of tax filing, mistakes your need to avoid, and go through our tax preparation checklist to have a smooth tax season.
• IRS Form 720 is known as the Quarterly Federal Excise Tax Return.

FAQs About Filing IRS Tax Form 720

Even though the IRS allows you to make delayed payments, it is better to be prepared beforehand to avoid deductions and penalties In the long run. This tax calendar gives the due dates for filing returns and making deposits of excise taxes. Also, see the instructions for Forms 11-C, 720, 730, and 2290 for more information.

An excise tax is one that the federal Prepare Quarterly Federal Excise Tax Returns Online government imposes on a certain kind of goods or services which are manufactured in or are imported into the United States of America. Form 7004 is used to request an automatic 6-month extension of time to file Form 1120. The term “legal holiday” means any legal holiday in the District of Columbia.

Summary Annual Report for employee benefit plans

Essentially, Part II will be reported accordingly based on the services and goods sold. It’s worth noting that the tax for health insurance is calculated differently than the other categories—using the average number of lives covered, as opposed to units sold or total sales. Here, you report any other types of excise taxes your business is subject to, which may include taxes on things like coal, tires, and certain types of vehicles.

Who Must File Top

If you are a sole proprietor, a partnership, or an S corporation, you can view your tax information on record with the IRS and do more with a business tax account. Robust accounting systems can streamline recordkeeping and improve accuracy. Enterprise Resource Planning (ERP) software, for instance, automates data collection and organizes information efficiently. Regular audits and reconciliations can detect discrepancies early, ensuring compliance and supporting better business decisions. At the end of Form 720, you’ll find Form 720-V, titled “Payment Voucher.” You’ll complete this information and the amount you’re paying to the United States Treasury.

Credits for overpayments can be carried forward to future quarters or refunded by filing Form 8849. If you overpay your excise tax, you can claim a credit on your next Form 720 or request a refund by filing Form 8849, Claim for Refund of Excise Taxes. Remember to consult the official IRS resources, such as their website and instructions for Form 720, to ensure you have the most up-to-date and accurate information regarding the filing process. Go to IRS.gov/Account to securely access information about your federal tax account. The following is a list and description of the primary employment tax forms you may need. This form is due on the 15th day of the 4th month after the end of the corporation’s tax year.

Generally, if a due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next day that isn’t a Saturday, Sunday, or legal holiday. The following is a list and description of the excise tax forms you may need. If you timely deposit in full the tax you’re required to report on Form 940, 941, 943, 944, or 945, you may file the return by the 10th day of the 2nd month that follows the end of the return period. This form is due on the 15th day of the 4th month after the end of your tax year. Form 4868 is used to request an automatic 6-month extension of time to file Form 1040 or Form 1040-SR.

Prepare Proper Documentation

• You should always reach out to a tax professional with your legal questions to ensure you’re filling out your form and paying the fees correctly.
• If you want a compliant, tax-advantaged health benefit for your employees, PeopleKeep by Remodel Health can help!
• If that date falls on a weekend or federal holiday, the PCORI fee is due on August 1.
• The summary annual report is an important document for employee benefit plans.
• Businesses are required to make excise tax deposits twice a month or as it’s called semi-monthly.

Sponsors of applicable insurance plans will pay a PCORI fee each July. For example, if you have a calendar year HRA plan that ended on December 31, 2024, you’ll pay a PCORI fee for that 2024 plan year in July 2025. Remember, staying informed and up-to-date with your tax obligations not only helps in avoiding penalties but also ensures the smooth running of your business. Remember, this schedule is crucial for keeping track of your tax obligations at different times in the quarter and ensuring that you’re paying the right amount at the right time. In Part III, you’ll summarize the taxes you’re liable for, based on the data you’ve already entered in Parts I and II of the form. This is where you consolidate all your tax information for the quarter including Schedule C if you filled that one too.

What are PCORI Fees?

If you are an IFTA taxpayer, prepare your IFTA reports accurately in our platform and file them before the last date. TaxExcise.com provides a convenient platform to e-file Form 720 directly to the IRS and prepare accurate IFTA reports online. The Annual PCORI fees are also paid using the federal excise tax Form 720 during the second quarter.