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Business taxes: Excise taxes
 Depending
on what they manufacture and sell, how they operate or the equipment
they use, some businesses must pay excise taxes. An excise tax is
paid to the federal government for a privilege, or on the consumption,
sale or manufacture of a commodity. For example, you would use Form
720 to report on the following taxes:
- Environmental taxes.
- Communications taxes.
- Fuel taxes.
- Tax on the first retail sale of heavy trucks and
trailers.
- Luxury tax on passenger cars.
- Manufacturers' taxes on the sale or use of a variety
of different products.
Use Form 2290 to report federal excise tax on trucks,
truck tractors and buses with a gross weight of 55,000 pounds that
use public highways.
Excise taxes must be reported quarterly, but may have
to be paid before the quarter. For more information on excise taxes,
see Publication 510.
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