Firearms and Ammunition Excise Tax: Need-to-Know Aspects
FAET or Firearms and Ammunition Excise Tax is the tax charged by the federal government on the business of selling weapons and ammunition situated in the US. In addition, if your business is related to the manufacturing, production or import of firearms and ammunition, then you are liable to file and pay this particular excise tax. In addition, this guide touches on filing responsibilities, who must file, types of companies and the options of using e-filing with us in order to ease your filing work.
What is the Firearms and Ammunition Excise Tax (FAET)?
FAET is a form of income tax put on the manufacturing, production and or importation of guns and ammunition. This tax also contributes to funding efforts to restore wildlife and their habitats systems for instance through programs like Federal Aid in Wildlife Restoration Act also known as Pittman-Robertson Act.
- Tax on Firearms: A 10% tax is charged for the sale of revolvers and pistols while a tax at the rate of 11% applies to the sale of the rest of the firearms including rifles and shotguns.
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Tax on Ammunition: There is a tax at the rate of 11% on the sale of shells and cartridge
Who is obligated to submit Firearms and Ammunition Excise Tax?
In respect of Firearms and Ammunition Excise Tax, the following types of businesses are required to collect and file firearms and ammunition excise tax:
- Manufacturers: If your company is involved in the production of firearms or ammunition and offers them for sale on the territory of the United States, it clearly has to charge and submit excise tax.
- Producers: Businesses producing firearms or ammunition are required to pay FAET on all items sold domestically.
- Importers: Companies which bring firearms or ammunition within the United States will have to pay and recover any excise tax due as based on sales.
Firearms and Ammunition Excise Tax Filing Company Categories
Different types of companies involved in the sale of firearms and ammunition are subject to FAET. Below are the key filing company categories:
- Firearms Manufacturers: If your business is active in the production of assault weapons, machine guns, hand grenades and other tools of criminality, there is a law obliging you to file FAET.
- Ammunition Manufacturers: Companies engaged in sales of ammunition and its components and hence acquire legal responsibility to also pay excise tax.
- Firearms and Ammunition Importers: Such importers of firearms or ammunition into the United States are obliged to report their tax returns on and such imports and revenue earned there from.
- Component Assemblers: Should your company manufacture indeed dares in order to be ready for sale or does manufacture the nature of the components to the products, the unit level excise tax would be remitted also.
IRS Form 720: Federal Excise Tax Return
As stated before, effects of Firearms and Ammunition Excise Tax is reported on quarterly returns management tax Form 720. This form is meant for all excise taxes including the firearms and ammunition ones. Thus you cannot take any chance on this and make sure you file form 720 to avoid any penalties and interest in unpaid taxes.
Filing Reminders
The deadline for each Form 720 is on the last day of the month following the end of every quarter. For instance, the first quarter January - March Form 720 will be due on April 30th.
E-File Firearms & Ammunition Excise Tax With No Hassle.
Our e-filing services are designed to ensure timely and accurate submission of the Firearms and Ammunition Excise Tax without any hassles. We provide a safe and fast system that takes the complexity out of filing for companies in the firearms and ammunition business.
- Super Fast Filing: Use our online system to fill out and submit Form 720 in minutes and not hours.
- More Features: The system will check your submission automatically for errors when filing and hence ensure that you do not get penalties due to wrong filings.
- Instant Acknowledgment: Once you fill up and submit your Firearms and Ammunition Excise Tax form to the IRS, you get a confirmation almost immediately.
- Safe and Secure: Our company can guarantee your business’s privacy and confidentiality when making tax filings since all returns are done in a safe and secure environment.
- File 24/7 Anytime, Anywhere: Because of our online e-filing system, you are able to file your excise tax return at any time and from any location.
What warm reasons occupied the cores of e-filing the Firearms and Ammunition Excise Tax?
Filing your Firearms and Ammunition Excise Tax with e-file with us has more than one benefit:
- Quick Filing: Get rid of all paperwork. Do your filing on the net.
- Fewer Mistakes: Decrease the number of errors that may yield problems such as detention or fines.
- Deadline: Through our reminder and tracking feature, you do not have to worry whether you will miss out on your quarterly deadlines.
- Benevolence: Our service can be used at any hour of the day, therefore one can fill in the forms at any time.