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Anne
Anne, Master Tax Preparer
Category: Tax
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Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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In PA the gasoline distributor is liable for collecting and

Customer Question

In PA the gasoline distributor is liable for collecting and remitting tax. In case of federal exicse tax, does a retail gas station owner OR gasoline distributor have to file form 720 (Quarterly federal excise tax return)? thanks
Submitted: 1 year ago.
Category: Tax
Expert:  Anne replied 1 year ago.
Hi

Thank you for your question. The answer to your question is yes, you must file Form 720 quarterly.

There is an extensive list of goods and services that the federal government collects excise taxes on. Some of the more common products and services subject to the excise tax include a surcharge on indoor tanning, the gasoline you pump into your car, airline tickets and an array of coal products. Since the cost of the excise tax is usually included in the price, the seller or manufacturer is responsible for remitting these tax payments to the federal government and filing Form 720.


Who files Form 720?

Whether you are a manufacturer, retailer, airline or any other business that deals in goods for which excise taxes are due, you have a responsibility to file a Quarterly Federal Excise Tax Return on Form 720 up to four times per year.

 

 

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Customer: replied 1 year ago.

In case of federal exicse tax, does a retail gas station owner OR gasoline distributor have to file form 720 (Quarterly federal excise tax return)? I am a gas station owner. Do gasoline distributors have to file form 720 (Quarterly federal excise tax return)?

Expert:  Anne replied 1 year ago.
I'm not completely sure I understand your question.

If you're the owner of a gas station , then you are responsible for filing the form 720.

Both manufacturers and retailers must file the 720 form (and yes, I realize that you could both be paying on the same gas)
Customer: replied 1 year ago.


I am a bit confusing. if distributor files and pays fuel tax with form 720, why dose a ratailer rerport form 720? thanks

Expert:  Anne replied 1 year ago.

I wish I had a better answer for you, since I understand what you're saying. Its double taxation........I agree with you.......but then there's alot of double taxation out there.....

I learned a long time ago that our taxation process is not always fair, includes double taxation , and is NOT logical. I'm not being funny here...........in my 26 years as a tax pro, I've run into many situations where I literally wonder what were the boys on Capital Hill thinking?


The only thing I can tell you for sure is that you have to pay it, but you can also deduct it as taxes paid on your business tax return.

I hope this helps

 

I'm heading out of the forum for the night. If you have follow up questions, I'll be happy to assist you tomorrow.....probably after 11 (I have an appt early in the AM.

Customer: replied 1 year ago.


I confirmed it with IRS and prior owner. I think you seem to be not familiar with gas station industry.


The gasoline retailer is required to pay the taxes to the wholesale supplier. Accordingly, the wholesaler is required to submit form 720. A retailer (retail sales only) is not required to report the tax or submit form 720. Gasoline retailers are not included in the definitions or required filers in the instructions for form 720 for this reason. You can see the instructions for form 720 at the IRS web site www.irs.gov

Customer: replied 1 year ago.


I confirmed it with IRS and prior owner. I think you seem to be not familiar with gas station industry.


The gasoline retailer is required to pay the taxes to the wholesale supplier. Accordingly, the wholesaler is required to submit form 720. A retailer (retail sales only) is not required to report the tax or submit form 720. Gasoline retailers are not included in the definitions or required filers in the instructions for form 720 for this reason. You can see the instructions for form 720 at the IRS web site www.irs.gov

Expert:  Anne replied 1 year ago.
I am happy that you received the right answer, and that I also learned alot from this question.

If we can learn from our mistakes, then we are better for making them. I thank you for sharing the correct answer with me.

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