File Part II Excise Taxes Online With Accuracy & Confidence

Part II Excise Taxes on Form 720 apply to a wide range of products, fuels, services, and corporate transactions. These taxes are reported every quarter and require precise entry of gallons, units, sales amounts, and repurchase totals.

Check If You Need to File

You must file Part II of Form 720 if your business manufactures, sells, provides, or uses any of the items listed below. These are the only categories included in Part II according to IRS instructions:

• ✓Sport Fishing & Archery Equipment: 41 – Sport fishing equipment, 110 – Fishing rods and fishing poles, 42 – Electric outboard motors, 114 – Fishing tackle boxes, 44 – Bows, quivers, broadheads, and points, 106 – Arrow shafts
• ✓Indoor Tanning Services: 140 – Indoor tanning services. Businesses offering UV tanning must report a 10% excise tax on the amount billed.
• ✓Fuel Use on Inland Waterways: 64 – Inland waterways fuel use tax, 125 – LUST tax on inland waterways fuel use. These apply to operators using fuel in taxable inland waterway transportation.
• ✓Biodiesel Not Used as Fuel: 117 – Biodiesel sold as but not used as fuel. Tax applies when biodiesel is sold for non-fuel purposes.
• ✓Floor Stocks Tax: 20 – Floor stocks tax. Applies when holding certain taxable products on specified dates defined by the IRS.
• ✓If you engage in any of the activities above, you are required to file Part II quarterly.

Prepare the Information You Will Need

Before starting your return, gather the following details:

• ✓Business information (legal name, EIN, address)
• ✓Type of product, fuel, or service you sell or use
• ✓Gallons, units, articles, or revenue amounts
• ✓Invoices or sales records for the period
• ✓Documents for exemptions, credits, or repurchases
• ✓Having these details ready will speed up your filing and reduce errors.

Details Required for Accurate Part II Filing

When completing Part II online, Simple720Tax guides you through the specific fields required for each IRS line. The information you enter will depend on the type of product, service, or fuel activity you are reporting. Here's what you may need to provide:

• ✓Taxable Date – The date the sale occurred, service was performed, or fuel was used.
• ✓Sales Price ($) – Required for taxable fishing gear, tackle boxes, bows, motors, and other equipment.
• ✓Number of Taxable Articles – Needed for sport fishing and archery items such as rods, poles, and specific equipment categories.
• ✓Arrow Shaft Count – Mandatory for reporting under IRS No. 106.
• ✓Amount Billed for Services – Used when reporting indoor tanning services under IRS No. 140.
• ✓Gallons of Fuel Used on Inland Waterways – Needed for IRS Nos. 64 and 125, which apply to fuel usage in inland waterway operations.
• ✓Biodiesel Sold but Not Used as Fuel – Enter gallons or amounts for IRS No. 117 when biodiesel is sold for non-fuel purposes.
• ✓Floor Stocks Quantity – Provide inventory counts for IRS No. 20 when a floor stocks tax event is active.
• ✓Simple720Tax automatically applies the correct IRS rate based on the line you are filing, helping you avoid manual miscalculations.

Claim Credits, Refunds, or Exemptions (If Eligible)

Some Part II items may qualify for credits or adjustments:

• ✓Returned or unused taxable products may allow a credit for previously reported tax.
• ✓Canceled or refunded indoor tanning services may reduce the tax owed.
• ✓Fuel used on inland waterways may qualify for adjustments if certain non-taxable conditions apply.
• ✓Biodiesel sold but later returned or not used as intended may allow an adjustment under IRS No. 117.
• ✓Corrections for earlier quarters must be filed using Form 720-X.
• ✓Simple720Tax guides you through any eligible exemptions or credits based on your entries.

Review Your Information Before Filing

Before submitting your return, review all entries to ensure accuracy:

• ✓Confirm the IRS line numbers match the correct Part II items you are reporting.
• ✓Double-check article counts, sales amounts, tanning service totals, and fuel gallons.
• ✓Make sure any eligible credits or adjustments have been applied correctly.
• ✓Once everything looks correct, submit your Form 720 electronically through Simple720Tax.
• ✓This final review helps prevent errors and ensures a smooth IRS acceptance.

Pay and Store Your Records

Simple720Tax makes it easy to finish your filing and manage your records:

• ✓Pay your excise tax securely using our integrated payment options.
• ✓Save your progress anytime and return to complete your filing later.
• ✓Keep copies of your filed returns, invoices, and documentation for the IRS-recommended retention period.
• ✓View past filings, payments, and receipts anytime from your dashboard.
• ✓This ensures your records stay organized and accessible whenever you need them.

Need Help?

Simple720Tax includes:

• ✓Step-by-step tooltips for every Part II IRS line
• ✓Links to IRS Pub. 510 and Form 720 instructions
• ✓Guidance for complex categories like corporate buybacks, dyed diesel violations, and ODC floor stocks
• ✓Expert support for tricky filing situations