Filing Form 7208 for the stock repurchase excise tax is quite simple, especially if you opt for the online method. Our IRS-approved Excise Tax Online Submission portal makes the process more convenient and efficient.
Here's a step-by-step guide to help you easily complete your Form 7208 using Simple720. This streamlined approach saves time and ensures accuracy in meeting your tax obligations.Step 1 – Create or Login to Your Account:
If you're a new user, create a free account. Existing users can simply log in. Once you're in, click on "Add New Filings" to begin.
Step 2 – Enter Business Details:
Provide your business information, including the business name, type of business, Employer Identification Number (EIN), contact details, and the authorized signer’s information.
Step 3 – Select the Form Type:
Choose "Form 720" (Quarterly Federal Excise Tax) as the form type.
Step 4 – Select the Tax Year and Quarter:
For the tax year, select January 2024 – December 2024. Choose the tax quarter as July 2024 – September 2024. Note that only filings for the current quarter are accepted. If you attempt to choose an earlier period, the system will prompt an error message, informing you that previous periods cannot be selected.
Step 5 – Choose Stock Repurchase Option:
From the left-hand panel, under Part II, select "Repurchase of Corporate Stock (150)." Ensure that the correct tax year is chosen, then proceed.
Step 6 – Specify the Tax Period:
Indicate the tax period and provide the name and EIN of the repurchaser.
Step 7 – Select Stock Transaction Details:
Choose the stock transaction type and stock symbol from the dropdown list. You can also specify the stock symbol value, class of stock, and trading exchange.
Step 8 – Enter Share Information:
Input the number of shares repurchased and the total fair market value (FMV) of those shares, then proceed.
Step 9 – Review Calculations:
The system will automatically calculate the total stock repurchases subject to tax and display the excise tax on stock repurchases at 1% (0.01). Review this information in your dashboard before moving forward.
Step 10 – Make the Payment:
Choose your payment method:
Electronic Funds Withdrawal (Direct Debit)
EFTPS (Electronic Federal Tax Payment System)
Select your preferred payment option and complete the process.
Your stock repurchase excise tax filing has been completed using Simple720. Once the IRS approves your submission, you will receive an email acknowledgment.
WRAP:
After reading this blog, you will have a clear understanding of how to file your repurchase of corporate stock using the online method, and how to easily complete the process through Simple720.