IRS Form 720 is a very important document for particular businesses that have an obligation of reporting and paying the excise tax. Such excise taxes are mainly levied in sectors like air transport, fuel selling, and health care. However, to escapes from the IRS punishments it is important to always fill and submit on time respect the tax clock.
Key Deadlines for Filing Form 720
Form 720 is also submitted every three months and the date by which it should be submitted looms over the last day of the month succeeding the end of the quarter. Below are the exact dates for the ….
First Quarter (January 1 – March 31): Due by April 30
Second Quarter (April 1 – June 30): Due by July 31
Third Quarter (July 1 – September 30): Due by October 31
Fourth Quarter (October 1 – December 31): Due by January 31 the next year
These due dates make it certain that you remain current in excise tax payments through the year.
Steps to Ensure You File Form 720 on Time
Assess the Need to File Form 720
Firstly you have to know if your business will incur excise tax. Companies requiring the completion of Form 720 are commonly those who manufacture or sells certain items, offer transportation services, and/or insurers (offers services of health insurance).
Fetch the Required Data
Get details surrounding your excise taxes, tax liabilities required and other information about taxable turnover made by the business in the quarter in consideration. These are documents of sales, services, and activities taxed with excise duty.
Fill in the Details of Form 720
The next step is to prepare Form 720 and fill in relevant details pertaining to the excise taxes due. Including what type of taxes your company pays and amounts per tax type.
Be Careful to Submit It Before the Due Date
Make sure the form is submitted on or before a specific quarterly deadline in order to avoid fines and interests on the forms. Such procedures would assist in e-filling in a way that deadlines will not be missed.
Advantages of E-Filing Form 720
E-filing makes it easier and faster to fill out and submit Form 720. It allows the companies to easily monitor the submissions, cut down on documentation, and file the right taxes. E-filing is preferred by a number of businesses prepares for hassle free tax return, which could have legal ramifications or lead to a time wastage.
What Happens If Deadline Is Over?
Should you fail to file Form 720 within the due date, it is likely that the IRS will charge a tax penalty and interest on the amount of taxes that remains unpaid. The longer the wait, the bigger the fines. If the deadline has already lapsed and you need to file as soon as possible to recover as much as you can and pay as little in fines as possible.
Submitting Form 720 in a timely manner is crucial in adhering to IRS regulations on excise tax. You can prepare your business to avoid incurring penalties and efficiently meet tax requirements by knowing deadlines, being organized and filing online.