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