Instructions For Form 720 - Quarterly Federal Excise Tax Return

Add the tax for each taxable vaccine and enter the total

Rate (for each 10

pounds of the

tax on the line for IRS No. 97.

Taxable Tire

IRS No.

maximum rated load

Category

Foreign Insurance Taxes

capacity over 3,500

pounds)

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

the amount of premiums paid during the quarter on policies

Taxable tires other

108

than biasply or super

$.0945

issued by foreign insurers. Multiply the premiums paid by

single tires

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

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

Taxable tires, biasply

Who must file. The person who pays the premium to the

or super single tires

foreign insurer (or to any nonresident person such as a

109

(other than super

$.04725

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

single tires designed

for steering)

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

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

Taxable tires, super

the return.

113

single tires designed

$.0945

Treaty-based return positions under section 6114.

for steering

Foreign insurers and reinsurers who take the position that a

treaty of the United States overrules, or otherwise modifies,

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

an Internal Revenue law of the United States must disclose

vehicles if wholly or partially made of rubber and if marked

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

according to federal regulations for highway use. A biasply

a statement which must report the payments of premiums

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

that are exempt from the excise tax on policies issued by

the beads are laid at alternate angles substantially less than

foreign insurers for the previous calendar year. This

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

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

is a tire greater than 13 inches in cross section width

due before May 1 of each year.

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

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

include any tire designed for steering.

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

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

disclosure statement.

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

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

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

have no other transactions reportable on Form 720,

tax are shown on Form 6197.

complete Form 720 as follows.

One-time filing. If you import a gas guzzling automobile,

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

you may be eligible to make a one-time filing of Form 720

2. Write “None” on lines 1 and 3.

and Form 6197 if you meet all of the following conditions.

3. Sign the return.

•

You do not import gas guzzling automobiles in the course

of your trade or business.

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

•

You are not required to file Form 720 reporting excise

EIN, see Employer Identification Number (EIN) on page 2.

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

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

attached Form 8833 or disclosure statement to: Internal

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

Revenue Service Center, Cincinnati, OH 45999-0009. Also,

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

see the Caution under Private Delivery Services on page 2.

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

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, or rotavirus gastroenteritis;

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

•

Is any HIB (haemophilus influenza type B) vaccine;

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

•

Is any conjugate vaccine against streptococcus

total on the line for IRS No. 110.

pneumoniae; or

•

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

Is any trivalent vaccine against influenza.

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

If any taxable vaccine is combined with one or more

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

additional taxable vaccines, then the tax is imposed on each

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

vaccine included in the combination.

on the line for IRS No. 42.

Example. MMR contains three taxable vaccines:

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

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

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

$2.25 (3 x $.75).

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

-6-

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2006 Page 6

Related Articles

Related forms

Related Categories