How Do You Pay Excise Tax Online?


Quick Answer

You can pay federal excise tax online by filing Form 720 using an IRS vendor found on the IRS 720 e-file page of the IRS website, the IRS explains. Payment is made through the electronic federal tax payment system. Some municipalities, such as the city of Worcester in Massachusetts, offer online excise payment through their tax collector or revenue office's website.

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Full Answer

An excise tax is a tax imposed on the use or consumption of select products, About.com notes. Sometimes these taxes are included in the price of a product, such as alcohol, cigarettes and gasoline. Activities may have excise taxes, such as gambling. Excise taxes are imposed by a state or the federal government.

Federal excise tax is considered a trust fund tax, meaning the tax is collected by the business selling the product or producing the service, then held in trust until payment is to be made, About.com explains. Form 720 is the form the business files quarterly with the government, using Schedule A to show the amount of excise tax liability for each quarter. Taxes are due by April 30 for the first quarter of the year, July 31 for the second quarter, Oct. 31 for the third quarter, and Jan. 31 for the last quarter of the year.

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