How to File Section 40 Fuel Taxes Online with Simple720

Section 40 covers second-generation biofuels that are sold but not used for their qualified purposes. If misused, producers must recapture a $1.01-per-gallon excise tax, reported under IRS Number 51 on Form 720. The rule ensures that credits claimed are reversed when fuels aren’t used as prescribed.

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 Section 40 Fuels Excise Tax: From the left menu, open Form 720, select Part II, and then choose Section 40 Fuels (51) to proceed with your filing.

Step 5 - Enter Filing Information: The fuel type is prefilled as “Second Generation Biofuel,” since this category exclusively applies to that fuel. Now, enter the quantity in gallons to proceed with your filing.

Step 6 – Auto Calculation: The tax amount is automatically calculated and displayed on the portal based on the tax rate of $1.01 per gallon and the quantity entered.

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 Section 40 Fuels 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.

Conclusion

Filing your Section 40 fuel taxes through Simple720 ensures complete accuracy and quick IRS submission. With automated calculations and easy e-filing, producers can stay compliant without manual effort. The platform simplifies reporting and eliminates delays caused by paper filings. Stay compliant, save time, and file confidently with Simple720 - your trusted IRS-authorized e-file provider.

The IRS requires every filer to submit Form 720 electronically. File your Section 40 Fuel Taxes Online with Simple720 Portal today!