How to File Federal LUST Tax Online

The Federal LUST Tax, or Leaking Underground Storage Tank Tax, is a federal excise tax applied at a rate of 0.1 cent per gallon on motor fuels sold across the United States. This tax generates revenue for the LUST Fund, a government fund dedicated to identifying, addressing, and cleaning up leaks from underground storage tanks, which pose environmental risks.

If your business utilizes motor fuels like gasoline, diesel, or kerosene, you may be subject to paying the LUST tax. Various entities, including manufacturers, retailers, and importers, are required to pay this tax, ensuring accountability for those involved in the fuel supply chain.

You can easily file your Federal LUST (Leaking Underground Storage Tank) Tax online through one of the IRS-approved portals. Finding the best portal can be challenging, but eFile720 is a trusted choice by many CPAs, making the filing process straightforward. Here’s how to file your Federal LUST Tax online using Efile720:

Step 1 – Create or Log into Your Account

• New User: Create a new account.

• Existing User: Log in with your existing account.

Step 2 – Enter Business Details

• New Users: Select “Add new business” and provide your business name, EIN (Employer Identification Number), business type, address, and phone number.

• Returning Users: Simply select the business name from your previous filings.

Step 3 – Select Form Type and provide tax year details

• Choose “Form 720 (Quarterly Federal Excise Tax).”

• Enter the tax year and the specific quarter you’re filing for.

Step 4 – Choose the Appropriate LUST Tax Category

The LUST tax applies to various fuel types, each with a unique IRS number. Select the one that aligns with your business operations:

• IRS No. 105 – Dyed diesel, LUST tax

• IRS No. 107 – Dyed kerosene, LUST tax

• IRS No. 119 – Other exempt removals, LUST tax

• IRS No. 111 – Kerosene for use in aviation, LUST tax on nontaxable uses

On the left panel under Form 720, choose "Fuel Tax" and select the appropriate IRS category for your business.

Step 5 – Provide Category-Specific Details

Depending on the category selected, you’ll be prompted to enter relevant information. For example, if you choose Dyed Diesel Fuel, LUST Tax (IRS No. 105), you’ll enter the tax date and the number of taxable gallons.

Step 6 – Review and Calculate

The portal will automatically calculate your tax amount based on the rate of 0.1 cent per gallon. Review this calculation before proceeding.

Step 7 – Submit Payment

Select a payment method from these options:

• Electronic Funds Withdrawal (Direct Debit)

• Electronic Federal Tax Payment System (EFTPS)

After your submission is approved by the IRS, you’ll receive an acknowledgment. With Efile720, your LUST tax filing can be completed online in just a few minutes.

File your federal lust tax online now using efile720!

Wrap-Up:

By the end of this blog, you’ll have a clear understanding of what the Federal LUST Tax is and how to file it online using IRS-approved portal - eFile720!