As a business owner or tax professional, staying up to date with the latest changes and updates in tax regulations is crucial. One important area to keep an eye on is Form 720 e-filing, which is used to report excise taxes. Over the years, significant changes have been made to this form, and it’s important to know what they are to ensure accurate filing.
Let’s take a closer look at some of the recent updates to Form 720 and how they may impact your tax reporting process.
Effective July 1, 2013, the IRS implemented a mandate requiring the electronic filing of Form 720 for businesses that report $1,000 or more in quarterly excise tax liabilities. This mandate was put in place to streamline the tax filing process and reduce errors. If your business meets the threshold for electronic filing, it’s important to ensure you are set up to file electronically.
The Patient-Centered Outcomes Research Institute (PCORI) fee is an annual fee imposed on health insurance issuers and self-insured employers to fund research on patient-centered outcomes. The fee is reported on Form 720 and is due by July 31st of each year.
In recent years, there have been changes to the PCORI fee calculation and reporting requirements. For example, the fee amount increased from $1 to $2 for plan years ending on or after October 1, 2019, and before October 1, 2020. Additionally, the fee is no longer deductible as a business expense for tax purposes.
It’s important to stay up to date with these changes to ensure accurate reporting and avoid potential penalties.
The Affordable Care Act (ACA) introduced an excise tax on indoor tanning services. The tax was initially 10 percent of the amount paid for the service but was later decreased to 6 percent. The tax is reported on Form 720 and is due quarterly.
If your business provides indoor tanning services, it’s important to be aware of this tax and any changes to the rate or reporting requirements.
Staying up to date with changes and updates in Form 720 e-filing is crucial to ensure accurate tax reporting and avoid penalties. As regulations and requirements are subject to change over time, it’s important to regularly check for updates and seek the assistance of a tax professional if needed. With these updates in mind, you can ensure your tax filings are accurate and compliant with current regulations.