Excise Taxes
2001 Changes

The following changes are effective for calendar quarters beginning after Semptember 30, 2001. For more information, see Publication 510, Excise Taxes for 2002.

Filing Form 720

You must file Form 720, Quarterly Federal Excise Tax Return, by the last day of the month following the calendar quarter for which the return is made. The rule that allowed you to file by the last day of the second month following the calendar quarter for certain taxes has been eliminated.

Deposit Threshold

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.

Deposit Due Dates

One deposit rule applies for all taxes that have to be deposited other than those deposited under the alternative method. You must deposit under the regular method by the 14th day following the semimonthly period. If the 14th day falls on a Saturday, Sunday, or legal holiday, you must deposit by the immediately preceding day that is not a Saturday, Sunday, or legal holiday. The deposit date for taxes deposited under the alternative method was not changed. The previous deposit rules (9-day rule, 14-day rule, and 30-day rule) have been eliminated.

Amount To Deposit and Safe Harbor Rules

Your deposit of taxes for a semimonthly period generally must be at least 95% of your net tax liability incurred during that period, unless the safe harbor rule applies. Previously, your deposit had to equal the amount of your net tax liability. The current liability safe harbor rule has been eliminated. However, for taxpayers depositing taxes that were in effect during the look-back quarter, the look-back quarter safe harbor rule still applies.

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