Starting Your Business

What are Business Expenses

Excise Taxes

This section explains the excise taxes you may have to pay and the forms you have to file if you:

• Manufacture, sell or use certain products,
• Operate certain kinds of businesses, or
• Receive payment for various kinds of services and facilities.
  

For more information on excise taxes, see Publication 510.

Form 720 The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories including:

• Environmental taxes,
• Communications and air transportation taxes,
• Fuel taxes,
• Tax on the first retail sale of heavy trucks, tractors and trailers,
• Luxury tax on passenger cars, and
• Manufacturers' taxes on the sale or use of a variety of different products.

Form 2290. There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. Report the tax on Form 2290, Heavy Vehicle Use Tax Return. For more information, see the Instructions for Form 2290.

Form 730. If you are in the business of accepting bets or running a betting pool or lottery, you may be liable for federal excise taxes on wagering. Use Form 730, Monthly Tax Return for Wagers, to figure the tax on the bets you receive.

Form 11-C. Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register any wagering activity and to pay the federal occupational tax on wagering.

ATF forms. If you produce, sell, or import guns, tobacco, or alcohol products, or if you manufacture equipment for their production, you may be liable for one or more excise taxes. Report these taxes on forms filed with the Alcohol and Tobacco Tax and Trade Bureau.

 

Important References:

Pub 225                               Farmer's Tax Guide
Pub 378                               Fuel Tax Credits and Refunds
Publication 510                   Excise Taxes
Publication 583                   Starting a Business and Keeping Records
Schedule C (Form 1040)   Profit or Loss from Business
Form 720                             Quarterly Federal Excise Tax Return
Form 2290                           Heavy Vehicle Use Tax Return
Form 4136                           Credit for Federal Tax Paid on Fuels
Form 730                             Monthly Tax Return for Wagers
Form 8849                           Claim for Refund of Excise Taxes
Form 11-C                           Occupational Tax and Registration Return for Wagering