August 2, 2021
Excise taxes are taxes that are imposed on various goods, services and activities. Such taxes may be imposed on the manufacturer, retailer or consumer, depending on the specific tax.
Some Excise Taxes and Forms You May Be Liable to File:
Kerosene Used in Aviation - Form 720 Tax Liability Reporting
Idling Reduction Devices Exempt from 12-percent Retail Excise Tax
The IRS encourages taxpayers who file federal excise taxes to file electronically:
"Due to the pandemic, we experienced delays in processing paper federal Excise tax forms, including Forms 720, 2290, 8849 and faxed requests for expedite copies of Form 2290 Schedule 1. Although the backlog of returns has been reduced, we are still working as quickly as possible to resolve the remaining inventory. Do not file duplicate forms, but for future filings we encourage taxpayers to consider the ease, convenience and speed of electronically filing Forms 720, 2290 and 8849."
The Excise Tax e-File project was started to satisfy the IRS requirement to provide electronic filing of Form 2290, Heavy Highway Vehicle Use Tax Return that was directed in the American Jobs Creation Act of 2004. Excise Tax e-File & Compliance (ETEC) Programs (Forms 720, 2290 and 8849) joined the growing number of tax forms and schedules that can be e-filed, providing millions of individuals and business owners with speed, reliability and other advantages.
Excise Forms That Can Be E-filed:
Form 720 - Quarterly Federal Excise Tax Return used to report your liability by IRS number and pay the excise taxes listed on the form
Form 2290 - Heavy Highway Vehicle Use Tax used to figure and pay the tax due on highway motor vehicles with a taxable gross weight of 55,000 pounds; to claim suspension from the tax when a vehicle is expected to be used 5,000 miles or less (7,500 miles or less for agricultural vehicles); to claim a credit for tax paid on vehicles that were destroyed, stolen, sold, or used 5,000 miles or less (7,500 miles or less for agricultural vehicles); or to report acquisition of a used taxable vehicle for which the tax has been suspended
Form 8849 - Claim for Refund of Excise Taxes Return (you can e-file schedules 1, 2, 3, 5, 6 and 8) used to claim a refund of excise taxes on some fuel related sales
Advantages of Excise E-file:
It's a secure, fast and convenient way to easily and accurately file your excise tax forms
When you e-file Form 720 you receive an acknowledgment of acceptance from the IRS
When you e-file Form 8849 you'll get your refunds faster than through paper filing.
When you e-file Form 2290 you'll receive your Schedule 1 - Schedule of Heavy Highway Vehicles almost immediately after the IRS receives it.
Excise Tax E-file Facts:
Only providers who have passed the IRS Assurance Testing System requirements for software developers of electronic IRS Excise returns are listed on the excise tax e-file providers’ pages.
Excise tax e-file providers charge a fee. The fee is not part of the excise tax payment. You must have an Employer Identification Number (EIN) to e-file your excise tax returns.
The service is available 24 hours a day.
You must e-file if you're reporting 25 or more trucks on Form 2290.
Paying the excise taxes completes the filing process, and there are multiple ways to pay any excise tax due, including electronic methods.
To file your excise forms electronically, you'll need to choose an IRS-approved software provider for the tax forms you want to file and pay the provider’s service fee for online submission.
Lists of Modernized e-File (MeF) Providers for Tax Year 2021:
Resources: Excise Tax e-file for Forms 720, 2290 and 8849 Frequently Asked Questions - Form 8849, Claim for Refund of Excise Taxes Frequently Asked Questions - Form 720, Quarterly Federal Excise Tax Return e-file FAQs for Truckers Who e-file