Instructions For Form 720 - Quarterly Federal Excise Tax Return

Rate (for each 10

Foreign Insurance Taxes

pounds of the

IRS No.

Taxable Tire Category

maximum rated load

Policies issued by foreign insurers (IRS No. 30). Enter

capacity over 3,500

the amount of premiums paid during the quarter on policies

pounds)

issued by foreign insurers. Multiply the premiums paid by

the rates listed on Form 720 and enter the total for the three

Taxable tires other than

types of insurance on the line for IRS No. 30.

108

biasply or super single

$.0945

tires

Who must file. The person who pays the premium to

the foreign insurer (or to any nonresident person such as a

Taxable tires, biasply or

foreign broker) must pay the tax and file the return.

super single tires (other

109

$.04725

Otherwise, any person who issued or sold the policy, or who

than super single tires

designed for steering)

is insured under the policy, is required to pay the tax and file

the return.

Taxable tires, super

Treaty-based return positions under section 6114.

113

single tires designed for

$.0945

Foreign insurers and reinsurers who take the position that a

steering

treaty of the United States overrules, or otherwise modifies,

an Internal Revenue law of the United States must disclose

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

such position. This disclosure must be made once a year on

vehicles if wholly or partially made of rubber and if marked

a statement which must report the payments of premiums

according to federal regulations for highway use. A biasply

that are exempt from the excise tax on policies issued by

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

foreign insurers for the previous calendar year. This

the beads are laid at alternate angles substantially less than

statement is filed with the 1st quarter Form 720, which is

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

due before May 1 of each year.

is a tire greater than 13 inches in cross section width

You may be able to use Form 8833, Treaty-Based Return

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

Position Disclosure Under Section 6114 or 7701(b), as a

include any tire designed for steering.

disclosure statement.

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

At the top of Form 720, write “Section 6114 Treaty.” If you

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

have no other transactions reportable on Form 720,

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

complete Form 720 as follows.

tax are shown on Form 6197.

1. If this is your final return, check the final return box.

2. Write “None” on lines 1 and 3.

One-time filing. If you import a gas guzzling

3. Sign the return.

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

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

You need an EIN to file Form 720. If you do not have an

conditions.

EIN, see Employer Identification Number (EIN) on page 3.

•

You do not import gas guzzling automobiles in the course

Where to file. All filers should mail Form 720 with the

of your trade or business.

•

attached Form 8833 or disclosure statement to:

You are not required to file Form 720 reporting excise

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

Department of the Treasury

Internal Revenue Service Center

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

Cincinnati, OH 45999-0009

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

Also, see the Caution under Private Delivery Services on

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

page 2.

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

Part II

3. If you are an individual and do not have an employer

identification number (EIN), enter your social security

Sport fishing equipment (other than fishing rods and

number (SSN) or individual taxpayer identification number

fishing poles) (IRS No. 41). The tax on sport fishing

(ITIN) on Form 720 and Form 720-V in the space for the

equipment is 10% (.10) of the sales price. The tax is paid by

EIN.

the manufacturer, producer, or importer. Taxable articles

4. Check the one-time filing box on the line for the gas

include reels, fly fishing lines (and other lines not over 130

guzzler tax.

pounds test), fishing spears, spear guns, spear tips, terminal

tackle, fishing supplies and accessories, and any parts or

Vaccine taxes (IRS No. 97). A tax is imposed on the sale

accessories sold on or in connection with these articles. See

or use of a vaccine manufactured, produced, or entered into

Publication 510 for a complete list of taxable articles. Add

the United States at $.75 per dose if it:

the tax on each sale during the quarter and enter the total

•

Contains diptheria toxoid, tetanus toxoid, pertussis

on the line for IRS No. 41.

bacteria, extracted or partial cell bacteria, specific pertussis

Fishing rods and fishing poles (IRS No. 110). The tax on

antigens, or polio virus;

•

fishing rods and fishing poles (and component parts) taxed

Is against measles, mumps, rubella, hepatitis A, hepatitis

at a rate of 10% will have a maximum tax of $10 per article.

B, chicken pox, rotavirus gastroenteritis, or human

The tax is paid by the manufacturer, producer, or importer.

papillomavirus;

Add the tax on each sale during the quarter and enter the

•

Is any HIB (haemophilus influenza type B) vaccine;

total on the line for IRS No. 110.

•

Is any meningococcal vaccine;

•

Electric outboard motors (IRS No. 42). The tax on an

Is any conjugate vaccine against streptococcus

electric outboard motor is 3% (.03) of the sales price. The

pneumoniae; or

•

tax is paid by the manufacturer, producer, or importer. Add

Is any trivalent vaccine against influenza.

the tax on each sale during the quarter and enter the total

on the line for IRS No. 42.

If any taxable vaccine is combined with one or more

additional taxable vaccines, then the tax is imposed on each

Fishing tackle boxes (IRS No. 114). The tax on fishing

vaccine included in the combination.

tackle boxes is 3% (.03) of the sales price. The tax is paid

by the manufacturer, producer, or importer. Add the tax on

Example. MMR contains three taxable vaccines:

each sale during the quarter and enter the total on the line

measles, mumps, and rubella. The tax per dose on MMR is

for IRS No. 114.

$2.25 (3 x $.75).

Bows, quivers, broadheads, and points (IRS No. 44).

Add the tax for each taxable vaccine and enter the total

The tax on bows is 11% (.11) of the sales price. The tax is

tax on the line for IRS No. 97.

paid by the manufacturer, producer, or importer. It applies to

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2007 Page 6

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