Instructions For Form 720 - Quarterly Federal Excise Tax Return

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Truck chassis and bodies except truck chassis and

Highway-type tires (IRS No. 66). The tax applies only

bodies suitable for use with a vehicle with a gross vehicle

to the following highway-type tires:

weight (GVW) of 33,000 pounds or less,

1. For tires weighing more than 40 pounds but not

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Trailer and semitrailer chassis and bodies except

more than 70 pounds —$.15 a pound for each pound

trailer and semitrailer chassis and bodies suitable for use

over 40 pounds.

with a vehicle with a GVW of 26,000 pounds or less, and

2. For tires weighing more than 70 pounds but not

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Tractors of the kind chiefly used for highway transpor-

more than 90 pounds —$4.50 plus $.30 a pound for

tation in combination with a trailer or semitrailer

each pound over 70 pounds.

regardless of GVW.

3. For tires weighing more than 90 pounds — $10.50

The sales price of a unit includes the sales price of

plus $.50 a pound for each pound over 90 pounds.

certain related parts and accessories sold on or in

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

connection with the sale of the unit.

the quarter on the line for IRS No. 66.

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

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

the quarter on the line for IRS No. 33.

Guzzler Tax, to figure the liability for this tax and attach it

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

each quarter to Form 720. The tax rates for the gas

taken equal to the amount of tax that has been imposed

guzzler tax are shown on Form 6197.

on each tire that is sold on or in connection with the first

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

retail sale of a taxable vehicle reported on IRS No. 33.

sale or use of a vaccine manufactured, produced, or

Claim the section 4051(d) tire credit on Schedule C,

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

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line 11a.

Contains diptheria toxoid, tetanus toxoid, pertussis

bacteria, extracted or partial cell bacteria, specific

Ship Passenger Tax

pertussis antigens, or polio virus;

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

Is against measles, mumps, rubella, hepatitus B,

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

chicken pox, or rotavirus gastroenteritis;

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each passenger on a commercial passenger ship that

Is any HIB (haemophilus influenza type B) vaccine; or

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has berth or stateroom accommodations for at least 17

Is any conjugate vaccine against streptococcus

passengers if the trip is over 1 or more nights. A voyage

pneumoniae.

extends “over 1 or more nights” if it lasts longer than 24

If any taxable vaccine is combined with one or more

hours. The tax also applies to passengers on any

additional taxable vaccines, then the tax is imposed on

commercial ship that transports passengers engaged in

each vaccine included in the combination.

gambling aboard the ship beyond the territorial waters of

Example. MMR contains three taxable vaccines:

the United States. Enter the number of passengers for

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

the quarter on the line for IRS No. 29.

is $2.25 (3 x $.75).

Add the tax for each taxable vaccine and enter the

Other Excise Tax

total tax on the line for IRS No. 97.

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

Foreign Insurance Taxes

obligations issued during the quarter, enter the principal

amount of the obligation multiplied by the number of

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

calendar years (or portion thereof) during the period

Enter the amount of premiums paid during the quarter on

beginning on the issue date and ending on the maturity

policies issued by foreign insurers. Multiply the premiums

date on the line for IRS No. 31.

paid by the rates listed on Form 720 and enter the total

for the three types of insurance on the line for IRS

Luxury Tax

No. 30.

Treaty-based return positions under section 6114.

The tax on sales of luxury passenger vehicles

Foreign insurers and reinsurers who take the position

expired after December 31, 2002.

that a treaty of the United States overrules, or otherwise

CAUTION

modifies, an Internal Revenue law of the United States,

must disclose such position. This disclosure must be

Manufacturers Taxes

made once a year on a statement which must report the

payments of premiums that are exempt from the excise

Do not include the excise tax on coal in the sales

tax on policies issued by foreign insurers for the previous

price when determining which tax rate to use.

calendar year. This statement is filed with the 1st quarter

CAUTION

Form 720, which is due before May 1 of each year.

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

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

tax on underground mined coal is the lower of $1.10 per

Return Position Disclosure Under Section 6114 or

ton or 4.4% (.044) of the sales price. Enter on the line for

7701(b), as a disclosure statement.

IRS No. 36 the number of tons of underground mined

How to file. At the top of Form 720, write “Section

coal sold at $25 or more per ton. Enter on the line for IRS

6114 Treaty.” Provided you have no other transactions

No. 37 the total sales price for all sales of underground

reportable on Form 720:

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

1. Check the one-time filing box on page 1 of Form

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

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

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

2. Write “None” on lines 1and 3.

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

3. Sign the return.

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

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

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

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

an EIN, use Form SS-4 to apply for one. See Employer

selling price of less than $12.50 per ton.

Identification Number (EIN) on page 3.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2003 Page 5

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