How to File Biodiesel Sold as Fuel But Not Used tax online

Step 1 - Create an Account: If you’re a new user, sign up for a free Simple720 account. Existing users can log in with their credentials.

Step 2 - Provide Business Details: For new users, the next step is to enter your business details. Click on “Add New Filings” and click on “Add New Business” and complete the required fields, including:

• Business Name

• Employer Identification Number (EIN)

• Business Type (select from the drop-down options)

• Business Contact Information

If you’re an existing user, simply select the stored business name from the database.

Step 3 - Choose Form Type: Select “Form 720 (Quarterly Federal Excise Tax)” as the form type. Accurately provide the tax year and quarter you are filing for, then click “Proceed.”

Step 4 - Select Biodiesel Sold as Fuel But Not Used Excise Tax: From the left menu, open Form 720, select Part II, and then choose Biodiesel Sold As But Not Used As Fuel (117) to proceed with your filing.

Step 5 - Enter Filing Information: Select the appropriate fuel type from the dropdown menu and enter the quantity in gallons accurately. Ensure the details match your biodiesel transactions to calculate the correct excise tax amount for Form 720 reporting.

Step 6 – Auto Calculation: The tax amount is automatically calculated based on the selected fuel type and the number of gallons entered. Each fuel type has a specific tax rate as defined by the IRS, and once the quantity is provided, the system determines the applicable excise tax to be reported on Form 720.

Step 7 - Choose a Payment Method: Review your information and choose one of the IRS payment methods:

• Electronic Funds Withdrawal (Direct Debit)

• EFTPS - Electronic Federal Tax Payment System

Step 8 - Complete Your Filing: Once the payment is completed, your Biodiesel Sold as Fuel But Not Used tax filing will be submitted within minutes.

You’ll receive instant IRS confirmation as soon as the IRS approves - no more waiting weeks for updates. The IRS requires every business to file federal excise taxes online.

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