One of the tax components which many people accept when flying domestically, and those flying from the US are the Airline Ticket Excise Tax. One of the tax policies which pose a threat or an obligation for you is the Airline Ticket Excise Tax if you run an airline, a charter service or any type of business that involves provision of air transportation services. This report covers the basics of the Airline Ticket Excise Tax including who is obliged to file, types of companies and clear methods of electronic filing including the filing requirements of e-filing.
What is the tax referred to as the Airline Ticket Excise Tax?
The Airline Ticket Excise Tax is a federal charge that is levied on airline tickets sold in establishment of the revenue upon these. It raises funds meant for the Federal Aviation Affairs (FAA) department as well as aids improvements in the traffic control systems and construction of airports. The tax is levied on percentage of the fare, and other surcharges may occur depending on the nature of the flight and services.
- Excise Tax on Domestic Flights: A 7.5% fet ie. excise duty is imposed on air tickets within the USA.
- Excise Tax on International Flights: There includes a specific excise tax for these international journeys, together with the domestic excise tax, both for departures out of the mainland US or any of US' possessions.
- Segment Charges: Additionally, for domestic travel on an airline for short-haul flights that consist of multiple internal segments, there is usually an amount tacked on for each segment.
Who Should Pay Airline Ticket Excise Tax?
All the following businesses need to collect and remit Airline Ticket Excise Tax:
- Commercial Airlines: Airlines floating with flights both domestic and international are required to charge and remit evict tax on each ticket sold.
- Charter Services: Companies engaged in air chartering should charge through ticket excise tax or on sale of flight services based on the nature of the trip.
- Travel Agents: Commissioned or reached other vendors which handle sales of air cargo must see to it that excise throughout each taxable sale is covered.
- Private Aircraft Operators: Providers of a charter public air transport service also covered in this report are operators of the Air ticket excise tax.
Airline Ticket Excise Tax Filing Company Categories Various categories of people are engaged in an activity that requires the filing of Airline Ticket Excise Tax. These are as follows:
- Commercial Airlines: Scheduled air transport service of both major and minor commercial carriers is subject to 7.5% on domestic ticket sales and on the income received from international travel reimbursement.
- Charter Companies: It is also the case with air charter business companies which are specialised in one-on-one flight services of customers in off-scheduled flight routes.
- Travel Agents and Ticket Sellers: Travel offices which sell air travel ticket on behalf of any airlines should also keep track of the certain excise taxes and ensure the same is filed.Private Air Operators: Private Air Operators who also provide public transport may be required to charge excise tax if the situation warrants.
Form 720: Federal Excise Tax Return
Airline Ticket Excise Taxes are submitted on a monthly basis using 720F (Quarterly Federal Excise Tax Return). This 720F is meant for other excise taxes apart from Air Transport Excise Tax. Businesses that earn income from Airline Ticket Excise Tax are also required to submit Form 720 in order to comply with tax codes set by IRS these fore in the proper settlement of claims.
Filing Deadlines
Form 720 should be filed at least not later than the last day of the month which is the three month anniversary of the last quarter. That would be for the first quarter of 31 March 2016 for example 30 April.
E-file Your Airline Ticket Excise Tax with Us
Submitting an application for filling Airline Ticket Excise Tax on Time does not have to be laborious. With our e-filing service, you will file IRS form 720 with the IRS in the right form in a short time. Here is how we make sure this happens.
- Simple Online Filing: All your excise tax filing is done within the shortest time possible using our online tax and pay without requiring any paperwork.
- Integrated Radio Checks: Our system makes it easier for you to avoid mistakes by examining common mistakes in your form, helping to submit all necessary papers without any mistakes, and hence avoid penalties or delays.
- Prompt Verification: Reimbursement of any Taxes incurred to the IRS (income tax) will be effectively addressed through graphical description of the tax submission through time-line that ends with HST filing’s efficacy victory report.
- Written and Fast: All tax submissions are done on online platforms that are quick, reliable and secure to the users without the risk of time wasting.
- Any time from any place: Submit your forms for excise tax from any location 24/7 which makes it easier to keep up with the requirements and concentrate on running your operations.
Why E-filing of Airline Ticket Excise Tax Documentation?
E-filing of your Airline Ticket Excise Tax takes away the hassle of paper reporting since you are assured of clean and on-time submission. Due to this our clients do not have to receive multiple submissions which are unnecessary by assuring them that their filing is effective, correct and submission is within time.