What Are Other Excise Taxes?
Certain debt instruments - such as bearer bonds or obligations that are not recorded or tracked with the issuer - are considered non-registered. These instruments must be reported each quarter on Form 720 (Quarterly Federal Excise Tax Return), as required by federal excise tax regulations.
Understanding the Mandatory 1-Year Minimum Calculation Rule
For excise tax reporting, the IRS requires that every non-registered obligation be treated as if it has a minimum maturity of one full year, even when the actual term is shorter. Simple720Tax automatically builds this rule into the calculation process, helping you stay compliant, avoid errors, and submit an accurate Form 720 return without manual adjustments.
Who Must Report This Excise Tax?
You need to file Form 720 online for Other Excise Taxes if your business issues or handles:
- ✓Obligations that are not in registered form, including bearer bonds or comparable instruments
- ✓Debt instruments that are not recorded or tracked by the issuer as required under federal tax rules
- ✓This excise tax is determined by the maturity period of the obligation, not by how or when payments are made. If an instrument is non-registered, it generally falls under this reporting requirement.
What Information Do You Need Before Filing?
To file Form 720 through Simple720Tax, you'll need a few basic details ready:
- ✓Your business name and EIN
- ✓The amount of the obligation
- ✓When the obligation was issued and when it will mature
- ✓How long the obligation lasts (in years or part of a year)
What Info Must Be Reported About Your Obligation Data?
When e-filing Form 720 online:
- ✓Enter the issue date of the obligation
- ✓Provide the principal amount
- ✓Enter the actual number of calendar years from issuance to maturity
- ✓The system automatically calculates the tax by applying the IRS minimum 1-year rule (if applicable) and the correct tax logic defined in Form 720 instructions
Add Exemptions or Adjustments (If Applicable)
Some obligations may qualify for exemptions, including:
- ✓Certain government-issued obligations
- ✓Obligations that meet IRS registered-form requirements
- ✓If a tax was paid incorrectly, you may claim a refund or credit, and prior filings can be corrected using Form 720-X
What Should You Check Before Submitting Form 720?
Before submitting:
- ✓Verify the principal amount and maturity period
- ✓Check that the IRS one-year minimum rule has been applied correctly
- ✓Review the Form 720 summary for accuracy
- ✓E-file Form 720 securely through Simple720Tax
Pay and Save Your Records
With Simple720Tax, you can:
- ✓Pay excise taxes using secure integrated payment options
- ✓Save drafts and return later to complete your filing
- ✓Store all excise filings for at least three years
- ✓Access past filings, payment history, and receipts anytime
Need Guidance While Completing Your Filing?
If you're unsure about how IRS No. 31 applies to your obligation:
- ✓Use Simple720Tax help guides to understand registered vs. non-registered obligations
- ✓Refer to IRS Publication 510 for complete excise tax rules
- ✓Consult a tax professional for complex or large-value bond issuances
- ✓We're here to help you file Form 720 correctly every quarter.