How to File Tire Excise Tax Online: A Step-by-Step Guide

The Federal Tire Excise Tax applies to the sale of certain tires used on highway vehicles. The tax rate is based on the tire's load capacity, with standard tires taxed at $0.0945 per 10 pounds, and bias-ply or super single tires taxed at $0.04725 per 10 pounds (source: IRS).

The tax is typically paid by manufacturers, producers, or importers at the time of sale. FET must be filed using IRS Form 720, with payments due quarterly. Businesses may also be eligible for credits or refunds under specific circumstances, such as exporting tires or selling to tax-exempt organizations.

Step 1 - Create an Account
If you are a new user, begin by creating a free account on the Simple720 portal. Existing users can log in directly using 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 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 - Select the Form Type
Choose “Form 720 (Quarterly Federal Excise Tax)” from the list of form options. Then, specify the tax year and quarter for which you are filing.

Step 4 - Choose Tire Excise Tax Category
In the left panel under Form 720, navigate to the Manufacturer’s Excise Tax section. Choose the appropriate category based on your filing requirements:

1. IRS Num 108 – Taxable tires other than bias ply or super single tires

2. IRS Num 109 – Taxable bias ply or super single tires (excluding super single tires designed for steering)

3. IRS Num 113 – Taxable super single tires designed for steering

Ensure that you select the correct category to accurately report the applicable Tire Excise Tax for your filing.

Step 5 - Provide Tax Details
For your Tire Excise Tax filing, please provide the following details after selecting ‘Load capacity of the tire’ option from the dropdown:

• Tax Date: Specify the date of the tax liability for the tires being reported.

• Load Capacity of the Tire: Indicate the maximum rated load capacity of the tire, measured in 10-pound increments.

• Number of Tires: Enter the total number of tires subject to the excise tax.

Ensure all information is accurate to comply with IRS regulations and to calculate the tax correctly.

Step 6 - Verify Tax Amounts
Simple720 automatically calculates the Tire Excise Tax based on the details you’ve provided. The total tax amount is clearly displayed in your dashboard for review. Carefully check this summary to ensure all figures are accurate before moving to the next step.

There is an additional option for Tire Excise Tax filing where users can select the 'Tax Amount' from the dropdown menu. Provide tax date, no. of tires and manually enter the tax amount for their filing.

Step 7 - Make Your Payment
Choose your preferred payment method to complete the filing. Available options include:

• Electronic Funds Withdrawal (Direct Debit)

• EFTPS (Electronic Federal Tax Payment System)

Once your payment is processed, your Fuel Excise Tax filing is complete.

IRS Approval and Acknowledgment
After submitting your form, the IRS will review your filing. Once approved, you’ll receive an acknowledgment in a few minutes. 

Conclusion

Filing the Tire Excise Tax online through Simple720 is a straightforward process, ensuring compliance with IRS regulations. By following the step-by-step guide, you can easily submit your Form 720 and manage payments. Keep accurate records and review tax amounts to avoid errors. Ensure timely submission to stay up-to-date with your tax obligations and avoid penalties.

File your Tire Excise Tax Online with IRS Authorized Simple720 FET Portal!