Ozone-Depleting Chemicals excise tax
Businesses that make import or sell ozone depleting chemicals face a specific federal levy that is reported each quarter. The Ozone-Depleting Chemicals excise tax exists to discourage use of harmful substances and to ensure fair compliance across industries like refrigeration foam manufacturing solvents propellants and fire suppression. If you handle listed chemicals or products made with them you may owe tax on sales uses or imports. This page explains who is liable what data you need and how to file online quickly with eFileExcise form 720 so you can stay compliant with confidence.
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Who must pay and when
Liability is tied to the sale, use or import of listed ozone depleting chemicals and certain products manufactured using them. Manufacturers, importers, retailers and large end users can be liable when a taxable event happens. Timing matters because the tax is reported quarterly and payment is due with the return for that period. Missing a due date can lead to interest or penalties. The law includes special rules for recycled or reclaimed material and for mixtures so you should review your supply chain and contracts to see where the tax applies.
What counts as an ODC event
Common taxable events include first sale by a manufacturer in the United States, first use after import and use of an ODC as a raw material. Imported products made with listed chemicals can trigger tax at the time of entry or first sale in the country. Records must prove quantities, chemical types, dates and counterparties. Good records support your calculation and reduce audit risk.
What to prepare before you file
Accurate reporting starts with a simple checklist. Gather purchase invoices bills of lading product specifications inventory reports and sales documents. Note the date of each taxable event, the product code, the quantity, the country of origin and whether the item is recycled, virgin or reclaimed. If you sell mixtures, record the percent of each chemical. Keep carrier and customs documents to support import entries. Organize these records by quarter so you can complete your return faster.
How eFileExcise720 makes filing simple
eFileExcise720 is an IRS authorized platform that lets you prepare and submit your quarterly return online with ease.
- Create a free account and use a clean dashboard to enter your data review totals and transmit securely.
- Our system supports every category tied to ODC activity and it also supports amendments when you need to correct a prior period.
- Data is protected with strong security so your business details stay safe.
- Dedicated support helps you move from setup to submission without stress.
Step by step to e-file today
Follow this short path to complete your filing on time.
- Create your account on eFileExcise720 and open a new return for the quarter.
- Add company details including legal name address EIN and contact person.
- Enter ODC event data by product quantity date and counterparty then review totals.
- Pay any balance due through the secure payment options and transmit the return.
- Save the stamped copy in your records and set reminders for next quarter.
Pricing calculations and records to keep
Your calculation depends on the chemical type, the weight and the nature of the event. Many businesses use a standard worksheet that ties quantities to rates then rolls up a quarterly total. Keep copies of supplier statements, product specs, customs entries and internal logs that show how you measured each amount. Strong documentation supports your numbers during any review. If you discover an error later you can correct it with an amendment for the affected quarter. ODC rules sit within the Environmental Tax section of the return.
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The final person I talked to was able to really help me and stayed on the line until the issue was resolved. I was about to end the call but she convinced me that she knew what i needed to do. A very good customer service person. Superior!.
The final person I talked to was able to really help me and stayed on the line until the issue was resolved. I was about to end the call but she convinced me that she knew what i needed to do. A very good customer service person. Superior!.
Frequently Asked Questions
Conclusion
The Ozone-Depleting Chemicals excise tax applies when listed chemicals or products move through key points in your business. With organized records, clear dates and careful calculations you can file with speed and accuracy. eFileExcise720 gives you an IRS-authorized e-filing path to prepare, submit and store your return online. Create your free account and finish your filing today so your team can focus on operations instead of paperwork. Start now with eFileExcise720 and file confidently online.