Sep 22 ,2025

File Inland Waterways Fuel Use Tax Online - A Quick Guide

A recap on Inland Waterways Fuel Use Tax

The Inland Waterways Fuel Use Tax is a federal tax applied to fuel used in commercial vessels operating on U.S. inland waterways. The tax helps fund the Inland Waterways Trust Fund, which supports the maintenance and improvement of the nation’s inland waterways infrastructure. The tax rate varies depending on the type of fuel, and businesses must file reports and pay taxes via the IRS-Authorized 720 e-file portal or paper methods. Exemptions may apply in specific cases, such as certain types of fuel usage or vessel operations.

In this blog, we will guide you through the process of filing the Inland Waterways Fuel Use Tax using the IRS-Authorized online portal, Simple720, providing clear, step-by-step instructions to ensure a smooth and efficient filing experience.

Step by step guidance for filing with Simple720

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 Inland Waterways Fuel Use Tax: From the left menu, select the appropriate category under Part 2 Section based on your filing requirement: "Inland waterways fuel use tax (64)” or "LUST tax on inland waterways fuel use (125)”. Choose the option that best aligns with the items you're reporting for accurate tax filing.

Step 5 - Enter Filing Information: Enter the Total number of gallons applicable to your filing. Ensure that the details are accurate to calculate the correct excise tax.

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 Inland Waterways Fuel Use Tax filing will be submitted within minutes.
You’ll receive instant confirmation as soon as the IRS approves—no more waiting weeks for updates.

The IRS now requires all businesses to file Form 720 electronically. Online filing is not only mandatory but also ensures faster processing, fewer errors, and timely compliance with federal tax regulations.

WRAP:
Filing the Inland Waterways Fuel Use Tax with Simple720 is a straightforward process that ensures compliance and saves time. With automated calculations, easy navigation, and secure payment options, you can efficiently complete your filing online, eliminating the hassle of traditional methods. Get instant confirmation and ensure your business stays on track with IRS regulations.
File your Inland Waterways Fuel Use Tax Online with us today!!

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