It is July and the federal excise taxes falls due this month and has to be reported and paid to the IRS.

Quarterly Federal Excise Tax Form 720:

Form 720 is used to report and pay your federal excise tax liability for certain products that are manufactured, produced or imported like fuel as well as services such as airline travel. Excise taxes are also taxes levied on the purchase of particular items such as automobiles. You may also pay excise taxes on certain activities, such as highway usage, telephone service or gambling.

Some of the excise taxes reported on this form 720 are;

Fuel Taxes

Environmental Taxes

Communications Taxes

Air Transportation Taxes

Communications and Air Transportation Taxes

Retail Tax

Ship Passenger Tax

Other Excise Tax

Foreign Insurance Taxes

Manufacturers Taxes

Indoor Tanning Services Tax

Gas guzzler tax

LUST tax

Floor Stocks Tax 

Patient-Centered Outcomes Research Fee

IFTA Fuel Use Tax:

The International Fuel Tax Agreement (or IFTA) is an agreement between the lower 48 states of the United States and the Canadian provinces, to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction.

So basically when you buy fuel you pay a fuel tax at the pump.  The problem comes in when you buy fuel in one jurisdiction then drive into another jurisdiction.  The tax money is used to keep up the roads and hi-ways.  So if your truck travels through a jurisdiction and don’t buy any fuel there then they don’t get any tax revenue.  What IFTA does is take the total miles driven in each jurisdiction and applies the appropriate tax rate for that jurisdiction to those miles. Then it takes the fuel gallons purchased in each jurisdiction and gives back a credit in some jurisdictions and gives you a balance due in others.  IFTA is designed to make sure that each jurisdiction that you operate your commercial vehicle in gets their share of the fuel use taxes.

You need an IFTA license if you

• Operate your commercial vehicles in more than one jurisdiction
• Have 2 axles and a GVW of more than 26,000 pounds
• Have 3 or more axles regardless of weight

2nd Quarter  IFTA Fuel Tax is due this July and has to be reported with the  base jurisdictions before the  end of the month. Prepare your IFTA tax returns online and print “Ready to Print” pdf forms. Accurate IFTA math and easy completion of the form.

Form 2290 Heavy Vehicle Use Tax :

The Heavy Vehicle User Tax or HVUT is an annual federal highway use tax paid, use IRS Form 2290 and Schedule 1 must be filed each year for all taxable highway vehicles that are registered, or required to be registered, in your name under state, District of Columbia, Canadian, or Mexican law. If you’re a trucker with a vehicle that has a taxable gross weight of 55,000 pounds or more, you are required to electronically file HVUT Form 2290 to get a stamped copy of your Schedule 1.