How to File LUST Tax Online [with Simple720]

The Federal LUST (Leaking Underground Storage Tank) tax is an excise tax imposed on certain fuels, primarily to fund the cleanup of contamination caused by leaking underground storage tanks. It is collected from manufacturers, importers, and distributors of fuels like gasoline, diesel, and kerosene, although the cost is often passed on to consumers. 

The revenue generated from this tax goes into the LUST Trust Fund, which is managed by the EPA to finance the remediation of contaminated sites. The tax is generally set at a rate of around 0.1 cent per gallon of fuel, though it varies depending on the fuel type and specific IRS classifications. Certain exemptions exist, such as for fuels used in non-taxable situations or exports, but once the tax is paid, it is non-refundable.

This blog outlines the steps to file your LUST tax online using the IRS-authorized Simple720 portal. It also guides you through the filing process and helps ensure compliance with IRS requirements.

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 LUST Excise Tax: From the left menu, choose the relevant category under Fuel Taxes or Part 2:

• IRS Number 105 – Dyed Diesel, LUST Tax

• IRS Number 107 – Dyed Kerosene, LUST Tax

• IRS Number 119 – LUST Tax, Other Exempt Removals

• IRS Number 111 – Kerosene for Use in Aviation, LUST Tax on Nontaxable Uses

• IRS Number 125 – LUST Tax on Inland Waterways Fuel Use

Please note that IRS Number 125 is listed under Part 2, while the other tax categories are grouped under Fuel Taxes. Our portal is structured in the same way as Form 720, ensuring consistency and ease of navigation.

Step 5 - Enter Filing Information: Enter the Tax date and No. of gallons for your LUST tax filing.

Step 6 – Auto Calculation: The tax amount is automatically calculated and displayed on the portal.

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 LUST tax filing will be submitted within minutes.

You’ll receive instant confirmation as soon as the IRS approves—no more waiting weeks for updates.

WRAP:

Filing your LUST tax online with Simple720 is quick, efficient, and easy to navigate. By following these simple steps, you can ensure compliance with IRS regulations and make your tax submission hassle-free. 

Whether you’re a new or returning user, the platform streamlines the process, saving you time and effort. Get your filing done quickly, and receive instant approval once the IRS processes your submission.