Filing Federal Retail Excise Tax Online(Step by Step guide)

The Federal Retail Excise Tax (FRET) is a 12% tax applied to the first retail sale of certain heavy vehicles, including trucks, trailers, and tractors. It is mandated under IRS regulations to help fund highway and transportation projects. The tax typically applies when a vehicle’s gross weight exceeds specific thresholds or meets certain configuration criteria. Sellers are responsible for collecting and remitting the tax to the IRS, usually through Form 720 each quarter.

This blog is the step-by-step guide for filing your federal retail excise tax online using our IRS-Authorized online portal Simple720.

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 Retail Excise Tax Category
In the left panel under Form 720, navigate to the Retail Excise Tax section. Select “Truck, Trailer, and Semitrailer Chassis and Bodies, and Tractor” as your filing category. Ensure you confirm this selection by verifying the corresponding IRS Number 33 in Form 720 before proceeding.

Step 5 - Provide Tax Details
Based on your chosen category, the portal will prompt you to input applicable details such as:

• Sales price

• Tax dates

Fill in the above required information carefully to ensure accuracy.

Step 6 - Verify Tax Amounts
Simple720 automatically calculates the 12% Federal Retail Excise Tax based on the vehicle 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.

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 at your registered communication address.

Conclusion

Filing your Federal Retail Excise Tax online with Simple720 is fast, accurate, and hassle-free. By following these steps, you can ensure compliance, avoid penalties, and submit your Form 720 with confidence. Keep your records organized for future reference and stay on top of your quarterly tax obligations.