Important Changes

Excise taxes. New regulations relating to the time for filing Form 720, Quarterly Federal Excise Tax Return, and depositing excise taxes went into effect for calendar quarters beginning on or after October 1, 2001.

Filing Form 720. You must file the Form 720 by the last day of the month following the calendar quarter. The rule that allowed you to file by the last day of the second month following the calender quarter for communications, air transportation, and ozone-depleting chemical taxes no longer applies. For example, if you have to file a Form 720 for the fourth quarter of 2001, you have to file it by January 31, 2002.

Deposits. You do not have to deposit excise taxes for a calendar quarter if the net tax liability for the quarter is not more than $2,500. Previously, the amount was $2,000.

If you have to make excise tax deposits, you must deposit regular method taxes by the 14th day following the semimonthly period. Regular method taxes are taxes other than alternative method taxes used for communication and air transportation taxes. The previous deposit rules (9-day-rule, 14-day-rule, and 30-day rule) no longer apply. The deposit rules for alternative method taxes have not changed.

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