(19) Excise Tax

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. Form 720, Quarterly Federal Excise Tax Return, is available for optional electronic filing. Simply make your selection through an IRS-approved software provider and join millions of taxpayers enjoying the convenience and ease of online filing, immediate acknowledgement of receipt and faster service.

This webpage describes many of the excise taxes for which you may be liable.

Superfund Chemical Excise Taxes Reinstated

Effective July 1, 2022, excise taxes are reinstated on certain chemicals and imported chemical substances. The applicable tax rates and related provisions are also changed since the expiration of these taxes in 1995. (The Infrastructure Investment and Jobs Act (IIJA)).

Excise Tax on Coal

Internal Revenue Code 4121 imposes an excise tax on coal from mines located in the United States sold by the producer. The excise tax is deposited in the Black Lung Disability Trust Fund.

Kerosene Used in Aviation - Form 720 Tax Liability Reporting

Kerosene is generally taxed at $0.244 per gallon unless a reduced rate applies. The $0.244 per gallon rate applies to kerosene removals unless it is removed from a terminal or refinery (or a qualified refueler truck, tanker, or tank wagon that is treated as a terminal) directly into the fuel tank of an aircraft.

Expired Fuel Tax Credits

Several fuel tax credits expired as of December 31, 2021.

Sports Wagering

The Supreme Court ruled in 2018 that the Professional and Amateur Sports Protection Act was unconstitutional. As a result, each state may decide whether to allow sports wagering. Sports wagering, like wagering in general, is subject to federal excise taxes, regardless of whether the activity is allowed by the state.

Heavy Highway Vehicle Use Tax

Anyone who has registered, or is required to register in their name, a heavy highway motor vehicle with a taxable gross weight of 55,000 pounds or more must file Form 2290 and pay the Heavy Highway Vehicle Use Tax. The filing season for Form 2290 filers is July 1 through June 30. The filing deadline is based on the month the taxable vehicle was first used on public highways during the reporting period. For vehicles first used on a public highway in July, file Form 2290 between July 1 and August 31. The tax for the current filing season is prorated for vehicles first used on a public highway after July. File Form 2290 by the last day of the month following the month in which the vehicle is first used on a public highway.

Excise Tax on Indoor Tanning Services

Amounts paid for tanning services are subject to a 10 percent excise tax under the Affordable Care Act.

Excise Summary Terminal Activity Reporting System (ExSTARS)

ExSTARS is a fuel reporting system developed with the cooperation of the IRS, Department of Transportation, states, and motor fuel industry, which details the movement of any product into or out of an IRS approved terminal. A facility control number (FCN) designates a storage location within the motor fuel, or renewable fuel production or the bulk transfer / terminal system. Information regarding the use of FCNs was made public by an announcement in the Federal Register on April 12, 2010.

Publication 3536 - Motor Fuel Excise Tax EDI Guide

This publication is designed to provide the general requirements, specifications and procedures for the electronic filing of Internal Revenue Service (IRS) Form 720-TO, Terminal Operator Report and Form 720-CS, Carrier Summary Report. Excise Tax Electronic Data Interchange (EDI) Guides (Publication 3536)PDF.

637 Registration Program

Under the Code and regulations, each person that engages in certain specified activities relating to excise tax must be registered by the IRS before engaging in that activity.

Online Form 637 Registration Status Check

This web application provides the ability for businesses to confirm whether individuals or companies have a valid IRS registration.

Idling Reduction Devices Exempt from 12-percent Retail Excise Tax

The Environmental Protection Agency's list of devices that reduce highway tractor idling is now available. These devices may be exempt from the 12-percent retail excise tax provided they meet the criteria set forth in section 4053(9) of the Internal Revenue Code.