Instructions For Form 720 - Quarterly Federal Excise Tax Return (Page 6 of 18) in pdf

on the separate purchase of parts and accessories for the

Manufacturers Taxes

units listed above do not apply to an idling reduction device

or insulation that has an R value of at least R35 per inch.

Do not include the excise tax on coal in the sales

price when determining which tax rate to use.

Idling reduction device. Any device or system of

CAUTION

devices that provide the tractor with services, such as heat,

air conditioning, and electricity, without the use of the main

Underground mined coal (IRS Nos. 36 and 37). The tax

drive engine while the tractor is temporarily parked or

on underground mined coal is the lower of $1.10 per ton or

stationary. The device must be affixed to the tractor and

4.4% (.044) of the sales price. Enter on the line for IRS No.

determined by the Administrator of the EPA, in consultation

36 the number of tons of underground mined coal sold at

$25 or more per ton. Enter on the line for IRS No. 37 the

with the Secretary of Energy and Secretary of

total sales price for all sales of underground mined coal sold

Transportation, to reduce idling while parked or stationary.

at a selling price of less than $25 per ton.

Figure the tax for each vehicle sold and enter the total for

Surface mined coal (IRS Nos. 38 and 39). The tax on

the quarter on the line for IRS No. 33.

surface mined coal is the lower of $.55 per ton or 4.4%

(.044) of the sales price. Enter on the line for IRS No. 38

Gross vehicle weight. The gross vehicle weight means

the number of tons of surface mined coal sold at $12.50 or

the maximum total weight of a loaded vehicle. Generally,

more per ton. Enter on the line for IRS No. 39 the total sales

this maximum total weight is the gross vehicle weight rating

price for all sales of surface mined coal sold at a selling

provided by the manufacturer or determined by the seller of

price of less than $12.50 per ton.

the completed article. The seller’s gross vehicle weight

rating must be determined for excise tax purposes on the

Taxable tires (IRS Nos. 108, 109, and 113). A tax is

imposed on taxable tires sold by the manufacturer,

basis of the strength of the chassis frame and the axle

producer, or importer at the rate of $.0945 ($.04725 in the

capacity and placement. The seller may not take into

case of a biasply tire or super single tire) for each 10 pounds

account any readily attachable components (such as tires or

of the maximum rated load capacity over 3,500 pounds.

rim assemblies) in determining the gross vehicle weight.

Figure the tax for each tire sold in each category as shown

See Regulations section 145.4051-1(e)(3) for more

in the following chart and enter the total for the quarter on

information.

the line for IRS No. 108, 109, or 113. Enter the number of

The following four classifications of truck body types meet

tires for each IRS No.

the suitable for use standard and will be excluded from the

Rate (for each 10

retail excise tax.

pounds of the maximum

•

IRS No.

Taxable Tire Category

Platform truck bodies 21 feet or less in length.

rated load capacity over

•

Dry freight and refrigerated truck van bodies 24 feet or

3,500 pounds)

less in length.

Taxable tires other than

•

Dump truck bodies with load capacities of 8 cubic yards or

108

biasply or super single

$.0945

less.

tires

•

Refuse packer truck bodies with load capacities of 20

Taxable tires, biasply or

cubic yards or less.

super single tires (other

109

$.04725

than super single tires

For more information, see Rev. Proc. 2005-19, which is on

designed for steering)

page 832 of Internal Revenue Bulletin 2005-14 at

Taxable tires, super single

113

$.0945

tires designed for steering

Section 4051(d) tire credit. A tax credit may be taken

equal to the amount of tax that has been imposed on each

A taxable tire is any tire of the type used on highway

tire that is sold on or in connection with the first retail sale of

vehicles if wholly or partially made of rubber and if marked

a taxable vehicle reported on IRS No. 33. Claim the section

according to federal regulations for highway use. A biasply

4051(d) tire credit on Schedule C, line 15a.

tire is a pneumatic tire on which the ply cords that extend to

the beads are laid at alternate angles substantially less than

Ship Passenger Tax

90 degrees to the centerline of the tread. A super single tire

is a tire greater than 13 inches in cross section width

Transportation by water (IRS No. 29). A tax is imposed

designed to replace 2 tires in a dual fitment, but does not

on the operator of commercial ships. The tax is $3 for each

include any tire designed for steering.

passenger on a commercial passenger ship that has berth

or stateroom accommodations for at least 17 passengers if

Gas guzzler tax (IRS No. 40). Use Form 6197, Gas

the trip is over 1 or more nights. A voyage extends “over 1

Guzzler Tax, to figure the liability for this tax. Attach

or more nights” if it lasts longer than 24 hours. The tax also

Form 6197 to Form 720. The tax rates for the gas guzzler

applies to passengers on any commercial ship that

tax are shown on Form 6197.

transports passengers engaged in gambling aboard the ship

One-time filing. If you import a gas guzzling

beyond the territorial waters of the United States. Enter the

automobile, you may be eligible to make a one-time filing of

number of passengers for the quarter on the line for IRS

Form 720 and Form 6197 if you meet all of the following

No. 29.

conditions.

•

You do not import gas guzzling automobiles in the course

Other Excise Tax

of your trade or business.

•

You are not required to file Form 720 reporting excise

Obligations not in registered form (IRS No. 31). For

taxes for the calendar quarter, except for a one-time filing.

obligations issued during the quarter, enter the principal

Follow the steps below to make a one-time filing.

amount of the obligation multiplied by the number of

calendar years (or portion thereof) during the period

1. File Form 720 for the quarter in which you incur

beginning on the issue date and ending on the maturity date

liability for the tax. See When To File on page 1.

on the line for IRS No. 31.

2. Pay the tax with Form 720. No deposits are required.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return Page 6

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