Motor Vehicle Excise Tax: Everything You Need to Know
of a Motor Vehicle Excise Tax which is levied by the Federal government to only those specific motor vehicles cut above 291 plus horsepower in the Country. Such development is based on willingness or stated intention of wanting to lease or acquire machinery that cheaply relates to the common vehicles in existence. In this guide, we’ll cover who needs to file, the company categories involved, how to file using Form 720, and how you can easily e-file with us for streamlined tax filing.
Motor Vehicles Excise Tax: What It Is and who pays it
The Motor Vehicle Excise Tax is levied on the first retail sale or use of certain specified motor vehicles. This type of tax is imposed to help support construction development and transport throughout the nation. Any heavy commercial vehicle and its accessories i.e. heavy trucks, trailers, tractors or if excluded, all commercial vehicles will be brought under the excise tax net.
Who Needs to File?
Motor Vehicle Excise Tax must be filed by:
- Motor Vehicle Manufacturers Hitching heavy duty trucks that manufacturers make and turn them over to wholesalers or consumers.
- Motor Vehicle Importers Imports of automotive devices in the United states for distribution or sales of such devices.
- Retailers and Dealers Autos trucks and other heavy motor vehicles that are excisable on sales of such vehicles by dealership establishments.
- Companies that manufacture, import or sell motor vehicles subject to the excise tax, must pay this tax.
Company Categories for Filing
The following categories of companies are required to file the Motor Vehicle Excise Tax:
- Vehicle Manufacturers: the definition of Vehicle Manufacturers covers within the ambit, Truck, Trailer or tractor, which is manufactured for a commercial application.
- Importers: firms, which buy motor vehicles for either retail purposes or commercial sale.
- Dealers and Retailers: enterprises, which sell motor vehicles, which fit in the excise taxable categories of the IRS.
However, different tax rates and requirements might be charged depending on the type of vehicle sold, and the degree of business involvement in supply chain.
Filing with Form 720
The form referred to as Form 720 used for recording Motor Vehicles Excise Tax is the Quarterly Federal Excise Tax Return, IRS Form 720, this is a broad range of the federal excise that are filed with regard to fuel, amusement devices and motor vehicles etc.
Key Information Required for Form 720:
- Tiles on TIN: Your Company's Internal Revenue’s Tax Identification number.
- Taxable Transactions: Information on the sale or use of motor vehicles that fall under the excise tax.
- Calculation of tax: This includes the tax which is due depending on the sales or use of vehicle for a given quarter.
Taxes for the company are lodged every quarter, and most importantly, there is a need to comply with the tax’s due dates in order to avoid incurring penalties and interest in filing tax late.
Filing Tax with Us
The use of e-filing in the payment of the Motor Vehicle Excise Tax is efficient in the sense that it is the most practical method of filing Form 720. When you e-file with us:
- Easy and Simple: There is no requirement for papers; you can submit the tax form print out online and it will be filed immediately.
- Probable Computation: Even though the tax computations are ready for you, your odds of making a mistake are negligible because our systems are high-quality.
- Safe Filing: We secure your company information electronically by using encryption so that data does not fall into the wrong hands.
The e-Filing services are employed to provide information that you have filed all the necessary federal documents within the appropriate time and eliminates all the time anticipation, so confirming submission of Form 720 in real time.
Why E-File?
- Turnaround: The e-Filing process reduces the time it takes to file tax forms as the acknowledgment will be received from the IRS almost immediately.
- Ease: The procedure can be done at any time and place.
- Monitoring: The filing status of the documents will be checked on the website rather than waiting for a response to avoid missing deadlines and penalties.
We e-file for you so that you do not have the stress of filing the Motor Vehicle Excise Tax yourself.