by Ariful | Aug 25, 2026 | US Updates
TITLE: 2026 US Tax Rules for International Sellers: 1099-K, Remittance Tax, and Form 5472 Updates
If you sell into the US from the UK or another country, several 2026 rules require immediate attention.
The federal Form 1099-K threshold has reverted. A new 1% remittance transfer tax applies to certain physical-money transfers. Foreign-owned US LLCs must also maintain accurate Form 5472 and foreign tax identification number records.
This daily update explains what has changed and what you should do next.
1. Form 1099-K threshold returns to $20,000 and 200 transactions
The One, Big, Beautiful Bill retroactively reinstated the previous federal threshold for third-party settlement organisations (TPSOs).
For 2026, a TPSO generally must issue Form 1099-K when both conditions apply:
- Gross reportable payments exceed $20,000.
- The number of reportable transactions exceeds 200.
This applies to many marketplace and payment network transactions, including certain Amazon, PayPal and other platform payments.
The IRS confirmed this position in Fact Sheet FS-2025-08 and its Form 1099-K FAQs.
Payment card transactions follow a different rule
Do not apply the $20,000 and 200-transaction test to payment card transactions.
Credit and debit card payments remain reportable for any amount. There is no federal minimum threshold or de minimis exception for payment card transactions.
This means a Shopify seller could receive a Form 1099-K for card payments even when the total is below $20,000.
State reporting may still use a $600 threshold
The federal threshold does not override state reporting rules. Some states continue to require reporting at much lower levels, including $600 thresholds.
Examples commonly relevant to international sellers include:
- Maryland
- Massachusetts
- Vermont
- Virginia
- Montana
- North Carolina
- District of Columbia
State requirements can change independently. A seller may therefore receive a Form 1099-K for state reporting even when the federal TPSO threshold is not met.
Example: UK Amazon seller below the federal threshold
Suppose your UK business sells $18,500 through a US marketplace in 240 transactions.
You may not receive a federal Form 1099-K because your gross payments do not exceed $20,000. However:
- The income is still taxable and must be included in your records.
- A state may apply a lower reporting threshold.
- Marketplace and payment statements must still be reconciled to your bookkeeping.
- Refunds, returns, fees and sales tax collections must be separated from gross revenue.
No Form 1099-K does not mean no reporting obligation. You must report all business income, whether or not a form is issued.
2. The 1% remittance transfer tax now applies to certain physical transfers
The IRS issued proposed regulations on 10 April 2026 under IR-2026-48.
The new tax applies from 1 January 2026 to certain remittances sent from the US to a foreign country.
The key point is the payment method. The tax applies when the sender provides a physical instrument such as:
- Cash
- A money order
- A cashier’s check
- A traveller’s check
- A similar physical instrument
The sender is legally liable for the tax. Remittance transfer providers must generally collect it, make semimonthly deposits and report it quarterly on Form 720.
The first semimonthly deposits were due on 29 January 2026. Notice 2025-55 provides limited relief from failure-to-deposit penalties for providers during the first three quarters of 2026.
Routine electronic transfers may be treated differently
Do not assume that every transfer from a US business bank account is subject to the 1% tax.
The proposed rules focus on covered remittance transfers where the sender provides cash or a similar physical instrument to the provider. The treatment of bank transfers, cards and checks can differ, so you should retain the payment method and provider records for every cross-border transfer.
Example: repatriating profits from a US entity
A US LLC owned by a UK company sends $50,000 to the UK through a remittance provider. If the sender uses a cashier’s check or cash, the potential tax is:
The sender remains liable, even though the provider normally collects the amount.
Record the transfer separately from ordinary operating expenses, owner distributions and intercompany payments. This will help you determine whether the transfer falls within the final rules and support your reporting position.
3. Form 5472 enforcement remains a major risk for foreign-owned US LLCs
A foreign-owned US disregarded entity can be treated as a reporting corporation for Form 5472 purposes.
Generally, the entity must file Form 5472 with a pro forma Form 1120 when it has reportable transactions with its foreign owner or another related party.
Common reportable activity can include:
- Capital contributions
- Distributions
- Loans and repayments
- Payments to or from a foreign owner
- Related-party service charges
- Inventory or platform arrangements
- Formation, acquisition or dissolution transactions
A business does not avoid the filing requirement simply because it has no US income tax liability.
Understand the Form 5472 penalties
The IRS instructions provide for:
- $25,000 for each failure to file a complete and correct Form 5472 on time.
- An additional $25,000 for each 30-day period, or part of a period, when the failure continues more than 90 days after IRS notification.
- No maximum limit on continuation penalties.
- Separate exposure for different related parties and reporting corporations in applicable circumstances.
The IRS Form 5472 instructions also confirm that a substantially incomplete form can be treated as a failure to file.
An IRS notice should be treated as urgent. Responding quickly can help prevent the continuation penalty from increasing.
Example: foreign-owned Amazon FBA LLC
A UK owner operates a US LLC for Amazon FBA sales. During the year:
- The UK owner contributes $30,000 to fund inventory.
- The US LLC pays a US warehouse.
- The owner withdraws $20,000.
- The LLC pays related-party service fees to the UK company.
These transactions need to be reviewed and classified correctly. The LLC may have Form 5472 obligations even if Amazon collected the sales tax and the LLC paid little or no federal income tax.
4. Keep FTIN and W-8 documentation valid
Foreign owners and companies regularly provide Forms W-8BEN or W-8BEN-E to US payers and withholding agents.
For entities, the foreign tax identifying number (FTIN) is generally entered on Form W-8BEN-E, Part I, line 9b. If an FTIN is required but missing or invalid, the form may not support treaty benefits or the intended w
by Ariful | Aug 25, 2026 | UK Updates
TITLE: Companies House Identity Verification: A Practical Compliance Guide for Directors
Companies House identity verification is now a legal requirement for UK company directors and people with significant control (PSCs).
The regime began on 18 November 2025. Existing directors are moving through a 12-month transition period. For many UK Limited Companies, the next confirmation statement filed during this period will be the key compliance test.
Do not leave this until your filing deadline. Complete the identity check early, secure your personal code, and update your accounting compliance process at the same time.
Start with the Companies House identity verification checklist
Use this checklist to organise your next steps:
- Identify every company where you act as a director.
- Identify every company where you are registered as a PSC.
- Check each company’s next confirmation statement date.
- Complete identity verification through GOV.UK One Login or an authorised agent.
- Save your Companies House personal code securely.
- Provide the code separately for each director and PSC role.
- Update your accountant or filing provider.
- Review your accounts, Corporation Tax and VAT deadlines.
Companies House states that most people only need to verify their identity once. However, you must connect your verified identity to each role you hold.
Read the official guidance on verifying your identity for Companies House.
Verify your identity before your next confirmation statement
If you were already a director before 18 November 2025, you have a 12-month transition period.
You must verify your identity and provide your personal code when your company files its next confirmation statement within that period. In practical terms, this means many existing directors must complete the process before their next 2026 confirmation statement. The transition period runs to approximately November 2026.
Companies House will reject the confirmation statement if any director has not completed the required identity verification.
That rejection can disrupt your normal filing timetable. It can also create a wider compliance problem if you miss the statutory confirmation statement deadline.
Action point: check your company’s confirmation statement date now. Do not assume that your accountant or filing agent can complete the process without your code.
You can review the detailed timing rules in the official Companies House identity verification deadlines guidance.
Obtain and protect your personal code
After successful verification, Companies House issues an 11-character personal code.
This code belongs to you. It does not belong to your company or your accountant.
You may need to share it with a trusted professional who files documents for you. Treat it like your Unique Taxpayer Reference or other important company credentials.
Follow these steps:
- Complete the identity check using GOV.UK One Login, or use an authorised Corporate Service Provider (ACSP).
- Locate your personal code through your Companies House account or the email issued after verification.
- Store the code in a secure company compliance record.
- Send it to your accountant or filing provider through a secure channel.
- Record which company roles have been connected to the code.
If you used an ACSP and cannot find your code, contact that provider first. The official personal code guidance explains where to find and manage it.
Provide your code separately if you are also a PSC
A director who is also a PSC has two compliance responsibilities.
You must provide your personal code:
- As a director, through the company’s confirmation statement.
- As a PSC, through the dedicated PSC identity verification service.
These are separate requirements. Completing one does not automatically complete the other.
For an existing PSC who is also a director, the PSC 14-day period starts on the day after the company’s confirmation statement date.
Use the official PSC identity verification service to submit the relevant information.
If you are a PSC but not a director, your 14-day period starts on the first day of your birth month. For example, a PSC whose birth month is January must act during the relevant 14-day period beginning on 1 January.
If you became a PSC after 18 November 2025, you can generally provide your code when added to the register or within 14 days of being added.
Do not combine these deadlines in your calendar. Create separate reminders for your director and PSC obligations.
Update your accounting compliance calendar
Identity verification is a Companies House requirement. It is not an accounting calculation. However, it affects the wider compliance workflow for your company.
Your accounting provider should maintain a calendar covering:
- Confirmation statement dates.
- Annual accounts deadlines.
- Corporation Tax payment dates.
- CT600 filing dates.
- VAT return deadlines.
- Payroll submissions.
- Identity verification and PSC code deadlines.
This is especially important if your business has several directors, overseas shareholders or a group structure.
A structured uk limited company accounting process helps you connect Companies House filings with your bookkeeping and tax records. It reduces the risk of treating each deadline as a separate task with no central oversight.
Prepare for separate accounts and Corporation Tax filings
The HMRC and Companies House joint filing service closed on 31 March 2026.
From 1 April 2026, you must file:
- Company accounts separately with Companies House.
- Your Company Tax Return and computations separately with HMRC.
HMRC requires compatible commercial software for Corporation Tax filing. The change does not move the statutory deadlines, but it does change the software and preparation process.
Review your current filing arrangement now. Confirm that your provider can:
- Prepare iXBRL accounts and computations.
- File the CT600 with HMRC using compatible software.
- File statutory accounts with Companies House.
- Reconcile the figures between both submissions.
- Retain evidence of successful filing.
Read the official guidance on the closure of the joint filing service.
This is a practical reason to review your accounting provider. Your accounts, Corporation Tax calculations and Companies House filing should come from consistent, reconciled records.
Track the main 2026/27 tax figures
Your compliance process should also reflect the current tax thresholds.
For the 2026/27 financial year, the standard Corporation Tax structure is:
by Ariful | Aug 24, 2026 | Banking
TITLE: Global SME Banking Trends: August 2026 Update on Multi-Currency Accounts, Embedded Finance, and Payout Tools
Global SME banking is moving beyond the traditional business current account. Payments, foreign exchange, cash management, lending, and accounting data are increasingly connected through one digital platform.
For UK ecommerce sellers, SaaS companies, agencies, and growing international businesses, the opportunity is clear: reduce conversion costs, access funds faster, and build a more accurate view of cash flow.
The challenge is control. You still need reliable records, clear reconciliations, and compliant VAT and tax reporting across every market where you trade.
August 2026 summary: banking is becoming operational infrastructure
This month’s main developments show five clear trends:
- Businesses can hold, convert, and pay out multiple currencies from payment platforms.
- Marketplace payout tools are giving merchants more control over where funds settle.
- Embedded finance is combining banking, payments, and lending inside business software.
- Cash management products are helping SMEs earn returns on surplus funds.
- Open Banking and AI-driven underwriting are changing how financial data is accessed and assessed.
For your business, this means your payment provider may now perform functions traditionally handled by several banks and finance teams. Review the benefits carefully. Also review the fees, risks, permissions, and accounting consequences.
Hold more currencies with new payment-led accounts
Stripe Treasury launches in Australia
Stripe has launched Stripe Treasury in Australia, giving eligible businesses a single platform to accept payments, hold and convert funds, and pay recipients globally from the Stripe Dashboard.
Australian businesses can receive and hold funds in AUD, USD, GBP, and EUR. Stripe also says users can convert between 10 supported currencies, including HKD, SGD, and NZD.
The practical benefits include:
- Faster access to revenue.
- Fewer external bank transfers.
- Reduced double conversion.
- Payments to suppliers and contractors in their local currency.
- Centralised visibility over payment and treasury activity.
This is particularly relevant if you sell from Australia to the UK, USA, Canada, or Europe. Instead of receiving revenue into one currency and converting it again to pay suppliers, you may be able to retain funds until the correct payment is due.
Do not assume the product is automatically available to every account. Stripe’s Australian Treasury offering has been described as a private preview, so check eligibility, supported currencies, fees, safeguarding arrangements, and account terms before relying on it operationally.
Razorpay adds a multi-currency EEFC option
Razorpay has launched a Multi-Currency EEFC Account for Indian exporters and international businesses.
The account supports settlements in:
The key benefit is that eligible export proceeds can remain in the original settlement currency rather than being converted into INR immediately. Razorpay promotes this as a way to avoid double FX charges and retain greater control over when conversion happens.
This model matters beyond India. It shows how payment providers are becoming part of the treasury function. If your business receives customer payments in one currency and pays suppliers in another, holding the original currency can reduce unnecessary conversion and improve cash planning.
Shopify gives larger merchants more payout flexibility
Shopify’s multi-currency payout tools are also developing. Current Shopify documentation indicates that eligible Advanced and Shopify Plus merchants can connect bank accounts for supported payout currencies.
The previous eight-account limit has been removed for eligible merchants, allowing one bank account per supported payout currency in the relevant region and plan.
This creates a more practical settlement structure for international sellers. For example, a UK-based merchant may prefer to retain GBP revenue in a UK account, EUR revenue in a euro account, and USD revenue in a US dollar account, subject to Shopify’s eligibility rules.
However, non-domestic payouts can carry additional fees. Current market reporting commonly places these fees at around 1% to 1.5%, depending on your country and plan. Check the exact charge inside your Shopify admin before making a decision.
Compare payout conversion with a multi-currency business account
Marketplace and payment platforms may apply automatic currency conversion margins of approximately 1.5% to 2.5%. A separate multi-currency business account may offer a lower effective cost, but the comparison must include all charges.
Review:
- FX spread or conversion fee.
- Incoming payment charges.
- Outgoing transfer fees.
- Monthly or account setup fees.
- Local account detail fees.
- SWIFT charges.
- Payout fees from the marketplace.
- Reconciliation and accounting effort.
Providers such as Wise Business, Airwallex, WorldFirst, and Payoneer all operate different pricing models. Wise, for example, promotes local account details in several currencies and the ability to hold more than 40 currencies. Your best option depends on your transaction corridors and settlement volumes.
Embedded finance is becoming the SME front door
Boost combines banking, payments, and financing in Malaysia
Boost has launched Boost SME, an integrated Malaysian platform combining digital business banking, payments, and financing.
Businesses can reportedly:
- Open an account digitally in around five minutes.
- Accept DuitNow QR, online, and card payments.
- Receive same-day DuitNow QR settlements.
- Access merchant financing.
- Apply for business loans through Boost Bank.
The platform illustrates an important shift. Transaction data is no longer used only to report what happened. It can also support faster settlement, cash-flow monitoring, and lending decisions.
The trend is visible in the UK too. Research from PSE Consulting, based on around 400 UK small businesses, found that embedded finance penetration doubled from 11% in 2024 to 23% in 2026. Offers of embedded payments through software platforms rose from 22% to 46%.
For you, embedded finance may appear inside:
- Ecommerce platforms.
- Accounting software.
- Invoicing systems.
- Subscription platforms.
- Marketplaces.
- Inventory and payment management tools.
This can save time. But it also means you must understand which platform holds your money, who provides the regulated service, and how transaction data is transferred into your accounting records.
BOCHK and Ant International explore blockchain treasury solutions
by Ariful | Aug 24, 2026 | E-Commerce
TITLE: UK Marketplace VAT: Prepare for Platform-Level Changes and Strengthen Your Ecommerce Accounting
UK marketplace VAT rules are under review. At the same time, HMRC is using more platform data to test whether ecommerce records are complete and accurate. This week, you should focus on preparing your systems for greater platform-level VAT accountability while keeping growth decisions grounded in reliable accounting data.
Prepare now for proposed UK marketplace VAT changes
On 23 June 2026, HM Treasury and HMRC published a consultation on extending online marketplace VAT liability. The consultation closed on 18 August 2026, and the government response is pending.
The proposal would extend existing online marketplace rules to certain sales made by UK-based businesses where the goods are in the UK at the point of sale. The policy is aimed at reducing VAT non-compliance and creating a more consistent position between online sellers and high-street businesses.
The proposal is not yet law. However, sellers should prepare because the likely operational impact could be significant.
The consultation considers two main ways to reduce the impact on smaller businesses:
- A Minimum Platform Threshold (MPT). The lead proposal is £90,000 per platform.
- A possible VAT rate relief for UK businesses below the VAT registration threshold.
The proposed £90,000 MPT would apply separately to sales made through each platform. It would not replace the normal VAT registration rules. Your total taxable turnover would still need to be monitored across all sales channels.
Under the current HMRC VAT threshold guidance, you generally need to register for VAT when your taxable turnover exceeds £90,000 in a rolling 12-month period. The current optional deregistration limit is £88,000.
Understand the proposed deemed supply
For VAT-registered businesses, the consultation currently envisages a deemed zero-rated supply between the seller and the online marketplace for relevant sales. The marketplace would then charge VAT to the consumer at the applicable rate and account for it on its own VAT return.
This could change how you record marketplace sales.
You may no longer hold the output VAT collected on certain marketplace transactions before paying it to HMRC. Instead, the platform may collect and account for that VAT directly. This could affect:
- Your settlement reports.
- Your VAT return coding.
- Your cash-flow forecasts.
- Your treatment of marketplace fees.
- The way you reconcile sales to bank receipts.
The consultation does not propose changing the VAT rate applicable to the goods. If a product is already zero-rated, it would remain zero-rated. The proposed deemed zero-rated supply is an accounting mechanism between the seller and the platform. It is not a general zero-rating of all marketplace sales.
The government is also considering whether to exclude second-hand goods sold by businesses from the extended rules or include them while preventing marketplace sales from using the Second-hand Margin Scheme. No final decision has been made.
If you sell refurbished electronics, used clothing, collectibles, or other second-hand products, keep purchase evidence and margin calculations separately. This will help you respond quickly when the final rules are published.
Audit every platform before the rules change
Do not wait for a government response before checking your data. Start with a platform-by-platform review.
Build a complete seller data file
For every sales channel, record:
- Legal entity name.
- Trading name.
- Registered business address.
- VAT registration number.
- Marketplace account owner.
- Bank account details.
- Warehouse and inventory locations.
- Countries where customers are based.
- Whether the platform collects VAT, GST, or sales tax.
- Whether the platform reports gross sales, net settlements, or both.
Keep these details consistent. Differences between your accounting records, marketplace profile, VAT registration, and bank information can create avoidable questions during a compliance check.
Consolidate sales across all channels
Do not rely on splitting sales across Amazon, Shopify, eBay, Etsy, TikTok Shop, or other platforms to remain below a threshold. The consultation specifically recognises the risk of businesses disaggregating sales across multiple online marketplaces or accounts.
Your internal reporting should show:
- Total sales across all platforms.
- Sales by individual platform.
- Sales through your own website.
- Sales by customer location.
- Sales by inventory location.
- Tax collected by the platform.
- Returns, refunds, cancellations, and chargebacks.
An amazon seller accountant uk can help you separate Amazon settlements from underlying customer sales. A provider supporting shopify accounting uk can also help you distinguish Shopify order data, payment processor settlements, and actual bank receipts.
Reconcile VAT returns to platform reports
Your VAT return should be supported by records that explain the difference between:
- Gross customer orders.
- Discounts and promotions.
- Refunds and returns.
- Platform commissions.
- Fulfilment charges.
- VAT collected by the platform.
- Currency conversion adjustments.
- The final settlement paid to your bank.
This is central to effective ecommerce bookkeeping uk. A bank-feed balance alone is not enough. It does not show what was sold, where it was sold, or which tax was collected before settlement.
Expect more data-driven HMRC compliance checks
HMRC increasingly uses information from marketplaces and digital platforms to identify inconsistencies. Digital platform reporting also means that data held by platforms may be compared with information in tax returns and VAT records.
This does not mean every difference is an error. Timing, refunds, currency conversion, and platform fees can all create legitimate variations. However, you must be able to explain those variations.
Complete this weekly control:
- Download marketplace sales and settlement reports.
- Check that the legal entity and VAT number are correct.
- Match orders to settlement periods.
- Review unusual refunds and chargebacks.
- Confirm that platform VAT figures agree with your VAT working papers.
- Investigate unexplained differences before filing.
Maintaining this process will reduce year-end corrections and make any HMRC information request easier to manage.
Use weekly numbers to control growth
Good accounting does more than support compliance. It shows whether growth is creating value or simply increasing activity.
Review these measures every week.
Measure contribution margin by SKU, channel, and country
Revenue is not profit. Calculate the contribution margin after product cost, fulfilment, platform fees, advertising, payment fees, returns, and delivery costs.
Compare performance by:
- Product SKU.
- Amazon marketplace.
- Shopify store.
- Country.
- Fulfilment location.
- Advertising campaign.
This helps you identify products that generate sales but consume cash.
Monitor cash runway before buying
by Ariful | Aug 24, 2026 | US Updates
TITLE: US Tax and Nexus Changes in August 2026: What International Sellers Need to Know
If you sell from the UK, Canada, Australia or the EU into the USA, three August 2026 developments deserve attention:
- IRS interest rates remain unchanged for the fourth quarter of 2026.
- Kentucky has removed its 200-transaction economic nexus test.
- The 2026 Form 720 includes new compliance requirements for certain excise-tax and remittance-transfer activities.
These changes will not affect every ecommerce or digital business in the same way. The key is to separate ordinary sales tax compliance from federal information returns, excise taxes and withholding obligations.
Review the IRS rates before a balance becomes expensive
The IRS has confirmed that the fourth-quarter 2026 interest rates will hold at the third-quarter levels.
For 1 October to 31 December 2026, the published rates are:
- 7% for standard corporate and non-corporate underpayments.
- 7% for non-corporate overpayments.
- 6% for corporate overpayments.
- 4.5% for the portion of a corporate overpayment exceeding $10,000.
- 9% for large corporate underpayments.
- 4% for IRC section 6603 deposits.
The IRS compounds these rates daily. This means a late balance can grow steadily even when the original error appears small.
For example, if an international seller has a $10,000 federal underpayment outstanding, the annual rate is 7% before daily compounding and any applicable penalties. A delayed reconciliation can therefore create a larger payment obligation than expected.
The rates apply to qualifying federal tax liabilities, including liabilities connected with Form 720. They do not create a separate interest-rate regime for overseas businesses.
Read the IRS quarterly interest rates and Revenue Ruling 2026-15 when reviewing a balance or payment plan.
Recheck Kentucky nexus after the August rule change
Kentucky changed its remote-seller and marketplace-provider rules from 1 August 2026.
House Bill 757 removed the economic nexus test based on 200 or more sales transactions. The $100,000 gross-receipts threshold remains the key economic nexus measure for remote retailers and marketplace providers under the updated rules.
This matters because transaction volume alone will no longer trigger Kentucky registration under the repealed test. However, a seller can still have an obligation if its Kentucky gross receipts reach the applicable threshold or if it has another form of nexus, such as inventory or other physical business activity.
Practical example for an international Amazon seller
Imagine a UK Limited Company selling through Amazon FBA:
- Kentucky sales are $120,000 during the current calendar year.
- The business has 140 Kentucky orders.
- Amazon collects tax on marketplace transactions where required.
The business is below the former 200-transaction test but above the $100,000 sales threshold. It should therefore reassess its Kentucky registration, filing and recordkeeping position.
Marketplace collection does not automatically remove every seller obligation. You should reconcile:
- Marketplace-facilitated sales.
- Direct Shopify or WooCommerce sales.
- Returns and refunds.
- Kentucky destination receipts.
- Tax collected by the platform.
- Any inventory stored or moved within the state.
The Kentucky Department of Revenue’s 2026 SSUTA recertification confirms the removal of the 200-transaction registration standard and the related August changes.
Check whether Form 720 applies to your business
Form 720 is the Quarterly Federal Excise Tax Return. It is not a routine form for every international ecommerce seller.
You generally need to consider Form 720 if your business is liable for, or responsible for collecting, one of the federal excise taxes listed in Parts I or II of the form.
The current Form 720, revised June 2026, includes several important updates.
New 1% remittance-transfer excise tax
The 2026 instructions explain that the One Big Beautiful Bill Act created section 4475. This imposes a 1% excise tax on certain remittance transfers occurring after 2025.
This is mainly relevant to businesses operating as remittance-transfer providers or handling qualifying money-transfer transactions. It is not a new tax on every payment made by a UK, Canadian, Australian or EU seller to a US supplier.
If the rule applies to your business, you may need to:
- Identify qualifying transfers.
- Calculate and collect the tax where required.
- Track transactions and supporting records.
- Make required electronic deposits.
- Report the liability on Form 720.
The IRS instructions also mention limited penalty relief for certain remittance-transfer tax deposits for the first three quarters of 2026. Review the latest IRS guidance before relying on relief.
Updated excise-tax amounts
The 2026 Form 720 instructions also include inflation-adjusted amounts for specific excise taxes, including:
- $0.65 per qualifying arrow shaft.
- $5.30 for each domestic segment of taxable air transportation.
- $23.40 per person for the use of international air travel facilities on flights beginning or ending in the USA.
These changes are sector-specific. They will generally matter more to manufacturers, importers, airlines, transport businesses and specialist operators than to ordinary Amazon or Shopify sellers.
Form 720 deadlines and deposits
Form 720 is filed quarterly:
- January–March: 30 April.
- April–June: 31 July.
- July–September: 31 October.
- October–December: 31 January.
Weekend and legal-holiday rules can affect the practical filing date.
Where required, excise-tax deposits are generally made electronically and may be due semi-monthly. The Form 720 return then reports and reconciles the liability. Keep the following records for at least four years, as required by the instructions:
- Taxable transactions.
- Calculation schedules.
- Deposits and payment confirmations.
- Claims and credits.
- Supporting invoices and import documentation.
Do not assume that a low quarterly liability removes every filing requirement. Check the current Form 720 instructions for the relevant tax type, deposit method and exception.
Protect your business from Form 5472 penalties
Form 5472 is separate from Form 720. It applies to a reporting corporation, including:
- A 25% foreign-owned US corporation.
- A foreign corporation engaged in a US trade or business.
- A foreign-owned US disregarded entity in relevant circumstances.
The form reports certain transactions with foreign or domestic related parties. Common examples can include owner funding, distributions, loans, service payments, rent and other reportable transactions.
