Part II Excise Taxes

You must file Part II Excise Taxes if you sell, manufacture, or provide the following products or services, or if you engage in corporate stock repurchases: Sport Fishing & Archery Equipment (Other Manufacturer Taxes) • 41 – Sport Fishing Equipment • 110 – Fishing Rods & Poles • 114 – Fishing Tackle Boxes • 42 – Electric Outboard Boat Motors • 44 – Bows, Quivers, Broadheads, Points • 106 – Arrow Shafts Service-Based Excise Taxes • 140 – Indoor Tanning Services Other Fuel Taxes • 64 – Inland Waterways Fuel Use Tax • 125 – LUST Tax on Inland Waterways Fuel Use • 51 – Section 40 Fuels (see IRS instructions) • 117 – Biodiesel Sold As But Not Used As Fuel Other Environmental Taxes • 20 – Floor Stocks of ODCs Corporate Stock Transactions • 150 – Repurchase of Corporate Stock

Before filing, prepare: • Business details (name, address, EIN). • Type of product, service, or corporate transaction. • Sales records, passenger counts, gallons of fuel, or stock repurchase amounts. • Supporting documentation for exemptions, credits, or offsets.

When filing online, provide the following (fields vary by tax type): Tax Date – date of sale, service, fuel use, or stock repurchase. Sales Price ($) – for taxable equipment (fishing gear, bows, motors, tackle boxes). Total No. of Articles – required for sport fishing/archery items. Number of Arrow Shafts – required for IRS No. 106. Tax Amount ($) – system calculates based on IRS rates (auto-calculated where applicable). Total No. of Gallons – for fuel excise taxes (IRS Nos. 64, 125). Type of Fuel – identify specific fuel for Section 40 fuels or biodiesel. Benefited from Small Agri-Biodiesel Producer Credit – mark if applicable (IRS No. 117). Floor Stock Tax – enter stock levels for ODCs (IRS No. 20). Total Stock Repurchases ($) – for IRS No. 150 corporate buybacks. Exceptions / Offsets – for IRS No. 150 (e.g., stock issued or retirement plan contributions).

Exported or government sales may qualify for exemption. Small producer credits apply to certain biodiesel claims. Repurchases under $1 million annually are exempt from IRS No. 150. Refunds/credits require repayment to the buyer or written consent. Prior period corrections can be filed with Form 720-X.

Confirm IRS numbers match your products, services, or transactions. Double-check sales prices, gallons, stock repurchase amounts, and article counts. Ensure credits, exemptions, and offsets are properly applied. Submit Form 720 electronically after review.

Pay excise taxes securely through integrated payment gateways. Save partially completed filings and return later. Maintain copies of filed returns, invoices, and transaction records for at least three years. Access your past filings and payments in your dashboard.

Use the built-in help icons for field-level instructions. Refer to IRS Pub. 510 and Form 720 instructions for detailed rules. Contact a tax professional for complex biodiesel, floor stock, or corporate buyback cases.