What does FET stand for in trucking?
In the trucking industry, FET stands for Federal Excise Tax, which is a tax imposed by the federal government on the sale of trucks and tractors. This tax applies to the first retail sale after a vehicle's manufacture or production, but it does not apply to resales or long-term leases.
Used trucks are generally exempt from this tax; however, if a used truck is exported to another country and later re-imported for sale, it is treated as a first sale and is therefore subject to the excise tax.
How much is the FET on Truck?
According to IRS Code Section 4051, a 12% tax is imposed on the sales price of truck chassis that exceed 33,000 pounds.
Read our blog on Federal Excise Tax on Trucks for more comprehensive understanding.
How to file Federal Excise Tax on trucks?
Federal Excise Tax is filed using Form 720. There are two methods available for filing Form 720:
Manual Filing: Manually complete Form 720 and send it to the IRS by mailing it to the designated IRS address.
Online Filing: Submit Form 720 electronically through any IRS-approved online portal.
Manual Excise Tax Filing for Trucks:
Download Form 720 from the official IRS website.
Fill in your name and address in the appropriate fields.
Select the correct taxable period that corresponds to the time frame for which you are filing.
Provide your business details, including your Employer Identification Number (EIN) and other relevant information.
Go to IRS Number 33 under Part 1 Fill the tax amount, which is 12% of the sales price for the truck.
Attach the necessary payment details, such as a check or money order, if applicable.
Review the form for accuracy and ensure all required fields are completed.
Sign and date the form before mailing it to the designated IRS address.
After completing Form 720, mail the signed and completed form to the IRS address specified in the Form 720 instructions. Be sure to include any required payment and supporting documents as indicated.
The manual filing process for Form 720 is often considered time-consuming and complex. As a result, the IRS encourages excise taxpayers to use the online filing method, which is more efficient, reduces the chances of errors, and ensures faster processing.
Online Excise Tax Filing for Truck:
This can be easily accomplished through any IRS-approved 720 online portal. For the best filing experience, choose our Simple720 platform, where the process is streamlined and user-friendly.
How to File Federal Excise Tax for Truck using Simple720?
Follow these simple steps to complete your Truck Tax filing using Simple720:
STEP 1: Add your business details, including your address and phone number.
STEP 2: Select the form type as Form 720, then enter the tax year and quarter for which you need to file your truck tax, and proceed.
STEP 3: From the left panel, under the Retail Tax section, select “Truck, Trailer, and Semitrailer Chassis and Bodies, and Tractor (33).”
STEP 4: Enter the tax date and sales price. Our portal will automatically calculate the tax amount (12% of the sales price). Proceed to IRS payment.
STEP 5: Choose your payment method. You have two options:
Electronic Funds Withdrawal (Direct Debit)
EFTPS (Electronic Federal Tax Payment System)
STEP 6: Complete the payment, and your Truck Tax filing is done!
WRAP:
After reading this blog, you'll have a clear understanding of what the Federal Excise Tax on trucks is, the applicable rate, and the two methods available for filing your tax. You'll also be well-informed about the benefits of choosing the smart online method for your Truck Tax filing.