Air Transportation Excise Tax Online Filing Guide
What is Air Transportation Excise Tax?
The air transportation excise tax is a federal tax imposed on amounts paid for air travel services in the United States. It is governed under Internal Revenue Code Sections 4261 and 4271 and detailed in IRS guidance.
The tax applies to the transportation of passengers and property by air, including domestic and international travel, and may include percentage-based and fixed charges depending on the service. Businesses must also identify the correct IRS category (such as transportation of persons or property by air, Use of international air travel facilities) when reporting.
Air Transportation Excise Tax - Step-by-Step Online Filing Guide(with QuickFile720)
Step 1: Registration/Login
- New Users: Click on the Register button and enter your basic details to create an account. Once registered, log in with your credentials.
- Existing Users: Simply log in using your existing credentials to access your account.
Step 2: Add New Business (For New Users)
Click on Add New Business and enter your business details:
- Business Name
- Employer Identification Number (EIN)
- Business Type
- Address (with Zip Code) and Phone Number
- Signing Authority Information (Name, Title, Country, and Phone Number)
Your business information will be securely stored in our database for future filings.
- Existing Users: Select your pre-registered business from the dropdown list.
Step 3: Select Form Type
- From the dropdown menu, choose Form 720.
- Enter the Tax Year and select the correct quarter for your filing.
Step 4: Choose Filing Options
Select any applicable options, such as:
- Final Return
- Address Change
- Zero Liability
- One-Time Filing
Choose the options that best apply to your situation, and proceed to the next step.
Step 5: Select Air Transportation Tax Category
Select the applicable tax category based on your filing requirement. The air transportation excise tax categories include:
- Transportation of persons by air (IRS No. 26)
- Use of international air travel facilities (IRS No. 27)
- Transportation of property by air (IRS No. 28)
Step 6: Provide Tax Details
Based on your selected tax category, you will be asked to provide specific details to calculate your tax amount. For Transportation of Property by Air (28) you need to enter Date of amounts billed, Date of collection(Assumed)
Please review the details carefully, as the tax amount will be calculated based on the information you provide.
Step 7: Tax Calculation
- Our platform will automatically calculate your air transportation excise tax amount based on the current tax rate for the category selected.
- Review the calculated tax amount displayed on the screen.
Step 8: Claim Refunds (If Applicable)
- If you're eligible for any refunds, you will have the option to claim your refund at this stage.
- If you are not eligible for a refund, simply skip this step and proceed to payment.
Step 9: Calculate Deposits or Overpayments for Payment Adjustment (If Applicable)
In this step, you will have the option to calculate any deposits or overpayments that may apply to your filing. If applicable, you can use these amounts to adjust your payment accordingly. If you are not eligible for any adjustments, simply skip this step and proceed to the next stage of the filing process.
Step 10: Payment Options
Choose one of the following secure payment methods to complete your filing:
- DIRECT DEBIT (Electronic Funds Withdrawal)
- EFTPS (Electronic Federal Tax Payment System)
Step 11: Final Summary
Review the final summary of your filing, which will include:
- All options selected
- The tax amount calculated
Once you’ve verified the details, proceed to complete your payment.
Step 12: IRS Submission and Instant Acknowledgement
Once your payment is processed, your Air transportation excise tax filing will be successfully submitted to the IRS. Upon approval, you will receive an instant acknowledgment. In most cases, the IRS will approve your filing within a few hours.
This process helps ensure your air transportation excise tax is filed correctly, securely, and on time. If you need assistance, our support team is here to guide you at every step. E-filing Air Transportation Excise Tax makes the process faster and more convenient.
Why Choose QuickFile720 for your Air Transportation Excise Tax Filing? Our Exceptional Features
1. IRS-Authorized Platform – File with confidence on a trusted IRS-authorized e-filing platform that ensures full compliance, data security, and reliable processing for your tax returns.
2. Affordable & Transparent Pricing – Enjoy cost-effective filing with a clear, upfront fee of just $35.95 per return, with no hidden costs or surprises.
3. Easy Filing Process – Complete your Form 720 quickly with a simple, step-by-step process designed to make filing smooth and hassle-free.
4. Dedicated Customer Support – Our support team is always ready to assist you at every stage, ensuring a seamless and stress-free filing experience.
Air Transportation Excise Tax Due Dates
According to the IRS, the air transportation excise tax must be reported and paid quarterly on IRS Form 720, Quarterly Federal Excise Tax Return. The due dates for each quarter are as follows:
Quarterly Form 720 Due Dates below:
| Quarter | Tax Period Covered | Form 720 Due Date |
|---|---|---|
| Q1 | January 1 – March 31 | April 30 |
| Q2 | April 1 – June 30 | July 31 |
| Q3 | July 1 – September 30 | October 31 |
| Q4 | October 1 – December 31 | January 31 (following year) |
Important Notes:
- If the due date falls on a weekend or federal holiday, the deadline moves to the next business day.
- Form 720 must be filed even if you only have liability for one quarter during the year.
- Many businesses choose e-file Air Transportation Excise Tax to avoid delays and receive faster IRS acknowledgment.
This schedule helps businesses stay compliant with IRS quarterly excise tax reporting requirements.
Air Transportation Excise Tax Penalties (IRS Rules)
The penalties associated with the air transportation excise tax are identical to those for Form 720, as the tax is reported on the IRS Form 720, Quarterly Federal Excise Tax Return .
Below are the common penalties applicable to Form 720 filings.
| Penalty Type | Description | Penalty Amount |
|---|---|---|
| Late Filing Penalty | If Form 720 is filed after the due date and there is unpaid tax. | 5% of the unpaid tax per month (or part of a month), up to 25% of the total unpaid tax. |
| Late Payment Penalty | If the excise tax due is not paid by the filing deadline. | 0.5% of the unpaid tax per month, up to 25% of the unpaid tax. |
| Interest on Unpaid Taxes | Interest is charged on unpaid taxes and penalties until the balance is fully paid. | Interest accrues from the due date of the return until payment is made. |
| Failure to Deposit Penalty | If required excise tax deposits (such as semimonthly deposits) are not made correctly. | The penalty amount varies depending on how late the deposit is made. |
Important Notes:
- The late filing penalty and late payment penalty can apply simultaneously, although the filing penalty may be reduced when both apply in the same month.
- Interest continues to accrue until the entire tax balance and penalties are paid.
- Businesses with larger excise tax liabilities may also be required to make regular tax deposits, and failing to deposit as required can lead to additional penalties.
How to Avoid Air Transportation Excise Tax - Form 720 Penalties
To avoid penalties and extra charges:
- Ensure timely filing of your air transportation excise tax by the quarterly due date.
- Pay the full tax amount on time to avoid interest and penalties.
- Make any required excise tax deposits promptly if applicable.
- Opt for electronic filing and payments to minimize processing delays and reduce errors.
- Double-check your tax category selections to ensure accurate reporting of transportation services.
- Keep accurate records of all flight-related transactions, including passenger and property services, for smooth audit compliance.
Key Points to Remember:
- Tax Coverage: Excise tax applies to amounts paid for transportation of persons or property by air in the U.S. and certain international travel that begins or ends in the U.S.
- Tax Rates: For transportation of persons, a percentage tax (7.5% of the ticket price) plus a domestic segment fee applies; for property, a percentage (6.25%) of amounts paid is used; international travel facilities tax is a fixed per‑passenger amount.
- What’s Taxable: Payments for airline tickets, charter flights, and air cargo services fall under excise tax if they meet taxable transportation definitions.
- Who Must Collect: Airlines, charter operators, and other air transportation providers generally collect the excise tax from customers and remit it to the IRS.
- Reporting & Payment: The tax is reported and paid quarterly by the provider using IRS Form 720, Quarterly Federal Excise Tax Return.
- Recordkeeping: Providers should maintain accurate records of tickets sold, segments flown, and property transported to support proper excise tax reporting and compliance.
