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Considered the Quarterly Federal Excise Tax Return, IRS Form 720 is meant to report federally administered excise taxes from companies. While it is commonly known for fuel and air transportation taxes, less familiar products such as coal, specific tires, or vaccines exert a profound influence over your filing requirements. These industry-based taxes affect various sectors from mining and manufacturing to healthcare.

Don't forget that your coal business must also consider the coal excise tax in Form 720. Domestic coal production is subject to this internal revenue code for sales or uses by the producers. It is levied on:

1. Any coal which has been extracted underground is taxed at \$1.10 per ton, or 

2. Any coal which has been extracted from the surface is taxed at \$0.55 per ton.

   each calculated to be 4.4% of its selling price.

As coal production scales, businesses must be vigilant about potential audit risks related to tonnage reporting and exemptions.

Tire Excise Tax: A Crucial Obligation for Tire Importers and Manufacturers

Once your business grafts tires onto road vehicles, businesses may be subject to excise tax for tires. This excise tax applies to the load-rated tires exceeding 40 psi, as are fitted to trucks, trailers, and buses.

This tax is levied on weight and use rating and, consequently, is quite important for international shippers who have to report the tax with the entry of the taxed goods into U.S. commerce. Correct product classification and customs compliance are essential. 

Implementing what appears to be lesser known is the vaccine excise tax under Form 720. The manufacturers of such vaccines that are branded taxable only by the VICP have to shell out $.75 per dose.

It is time to broaden the horizon while considering tax liabilities: The vaccine injury trust fund benefits some of the provisions and is imposed on protective vaccines like pneumococcal, flu shot, hepatitis A/B, polio, tetanus, chickenpox, and many others. The pharma and medical warehouses must be ready for the present listings and possibly update themselves whenever a new vaccine is added to the federal excise tax list, as this may potentially affect operations.

In consultation with the more conventional taxes, compliance in Form 720 puts a dragnet around the industrial, automotive, and healthcare sectors. Whether your trade involves natural resources, transportation products, or pharmaceuticals, knowledge on product-specific excise obligations equals correct filing, the avoidance of any IRS audit, and smooth fleet management.