Federal Excise Tax Form 720, 8849 & 2290
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Federal Excise Tax - Overview
Excise Taxes are imposed on the sale of certain goods or services. Qualifying goods and services include the purchase of fuel, heavy trucks and highway tractors, indoor tanning, tobacco, and much more. Federal Excise Taxes apply to trucks, tractors, truck trailers, and semi-trailers. They must be paid to the federal government after purchase, and the purchaser is liable for the Excise Tax.
This article discusses what Federal Excise taxes are and when and how to pay them. Keep reading to learn the ins and outs of Excise Taxes for the 2023-2024 tax year.
1.What is the Federal Excise Tax Form 720?
Anyone involved in the sales of goods or services, such as fuel, heavy trucks, and other goods in Part I and Part II of Form 720, must pay Excise Taxes using Form 720, Quarterly Federal Excise Tax. This form must be submitted for every quarter until you file a final return. The deadline to file Form 720 is the last day of the following month of the quarter’s end month.
Form 720 Deadlines
| Quarters | Deadline |
|---|---|
| Quarter 1 | April, 30 |
| Quarter 2 | July, 31 |
| Quarter 3 | Oct, 31 |
| Quarter 4 | Jan,31 |
Note: If the due date for filing a return falls on weekends or public holidays, the due date is the next business day.
2.How to claim tax credits on Federal Excise Tax using Form 8849?
Form 8849, Claim for Refund of Excise Taxes, is a tax form used to claim credits when a vehicle was stolen, destroyed, or sold. You also claim credits if you overpaid taxes mistakenly. There are six schedules available to be attached with Form 8849, and they are given below:
- Schedule 1 - Nontaxable Use of Fuels
- Schedule 2 - Sales by Registered Ultimate Vendors
- Schedule 3 - Certain Fuel Mixtures and the Alternative Fuel Credit
- Schedule 5 - Section 4081(e) Claims
- Schedule 6 - Other Claims
- Schedule 8 - Registered Credit Card Issuers
You must only attach the schedules on which you are claiming a refund. Keep in mind that you cannot file Schedules 2, 3, 5, and 8 with any other schedules on Form 8849. You must file each of these schedules with
a separate Form 8849.
ExpressTruckTax supports Schedule 6
If you want to claim refunds of excise taxes, use Form 8849 Schedule 6. Alternatively, you can use those funds to pay your taxes for the current year. When you e-file Excise Tax Form 2290, our system auto-generates Form 8849 Schedule 6 if your tax credits are greater than your HVUT.
3.Heavy Vehicle Use Tax Form 2290
Heavy Vehicle Use Tax (HVUT) is also a kind of excise tax paid to use heavy vehicles on public highways. The purchaser/truck owner must file Form 2290 and pay HVUT.
You can either file Form 2290 electronically or on paper. However, electronic filing is mandatory if you are filing for 25 or more trucks. E-filing is more convenient, and you will receive your Stamped Schedule 1 in a few minutes. If you file Form 2290 on paper, it will take weeks to get your stamped Schedule 1 back from the IRS. It’s always better to file excise tax Form 2290 online, regardless of how many trucks you are filing for.
Why wait? E-file your Form 2290 today and receive your stamped Schedule 1 in minutes.