E-Filing Form 720: Understanding Its Features and Further Steps
Form 720 is one of the internal revenue service forms that involve reporting the federal excise taxes for businesses. Although the process of filing may appear to be daunting, e-filing makes the entire process easy and has other advantages such as reducing the time it takes to process the returns and decreasing the amount of paper used. To help you prepare and submit Form 720 electronically, this instruction will provide you with an E-filing tutorial for Form 720.
- What Is Form 720?
Form 720 is a federal form used for submission once in every three month period to cater for the payment of excise taxes levied on goods such as fuel and services such as air transport and indoor tanning services. Any business in the above categories has to submit it on quarterly basis.
- Benefits of E-Filing Form 720
E-filing has been embraced by many and it is the document that most people use for the Report Form 720 Tax returns that are owing to it having its ease of filling. This is the reason why a lot of businesses utilize it:
This has been attributed to the fact that, when you e-filed, it takes less time to process your form than if you file-papers.
Acknowledgment has to be accepted instantly after submission.
There is no requirement to utilize hard copies of documents where postal services are required internally. Hence no chance of misplaced documents.
Paper Waste Minimization: There are no printed documents that need to be distributed.
- Who Can E-File Form 720?
Many excise tax paying businesses accurately e-file Form 720. Alternatively, electronically you can use an IRS certified service provider. Some firms opt for tax experts or use computer programs with the capability of e-filing.
- What You Need Before E-Filing
When about to begin the e-filing process, ensure you possess the following:
Employer Identification Numbers (EIN): This is required while completing Form 720.
Excise Tax Information: This relates to the taxation system with respect to goods and/or services and rates of such taxes.
Records of Payments: You should have the record of the excise taxes that you have paid or any payments which have been made by you.
IRS-Approved E-Filing Provider: Choose an approved provider that supports Form 720 filing.
- Step-by-Step Guide to E-Filing Form 720
Step 1: Choose an IRS-Approved E-Filing Service
The preliminary step is to search for a supplier who is sanctioned by the IRS to enable e-filing. Many companies have takers where favorable data is inputted and form 720 submitted, the important one is excisetax.org.
Step 2: Create an Account
After the selection of the e-filing service provider, the next step is to open a business account with the provider. An account would be established and along these lines, the provisions include the EIN, business name, and contact details.
Step 3: Enter Excise Tax Information
Moving next, please enter the amount attributed to the excise taxes accurate information. This includes:
Goods taxed
The applicable rate per category
Amount of tax accumulation for that quarter
It is critical that this information is presented accurately as mistakes can cause taxes to be delayed out or even incur fines.
Step 4: Review Your Form
This Step entails that you check out every part of this form prior to submission so as to ensure all the provided instructions have been complied with. Make sure to review all information provided, including tax rates, payment amounts and the business information.
Step 5: Submit Form 720
For the last step you have to file the document as dissatisfaction of the stated details is not acceptable. On the screen of the computer follow the instructions where you are required to submit the executed form and when it was satisfied by the filing soft.
Step 6: Pay Any Due Taxes
In cases where excise taxes are generally billed, excise taxes can also be made through the IRS payment options via the IRS Electronic Of Federal Income Payment System. Many e-filing providers provide the same payment services, or IRS payment can also be done.
- What is Next After E-filing?
After completing the e-filing of Form 720, it is advisable to keep a copy of the confirmation and any tax records/templates. If you made any payments, keep the payment confirmation as well. You will require this in case of an audit or for use in future filings.
- Try to Avoid Making the Following Errors During E-filing of Form 720.
Keep these common mistakes in mind while filling the e-filing Form 720:
EIN Mistakes: Moving on, always confirm that you have the proper Employer Identification Number for the purposes of financing these businesses.
Tax Rates Mistakes: Make sure that the tax rates which you have levied on the goods/services are actually correct.
Constantly Missing Deadlines: Don’t be irresponsible and file after time, as this incurs penalties. Feed your calendar the quarterly cut-off dates.
- What is the Due Date for Filing Form 720?
Form 720 is a quarterly tax return filing. The delinquency days are:
April 30 for 1st Quarter
July 31 for 2nd Quarter
October 31 for 3rd Quarter
January 31 (next year) for 4th Quarter
These are the must make reference to dates if you don’t want to have to pay a late filing fee or a penalty.
Filing Form 720 electronically is the most straightforward procedure to file your excise taxes. This guide provides the necessary steps which when followed will help to reduce filing hitches and stay within the internal revenue service deadlines to avoid late filing penalties.