Instructions For Form 720 - Quarterly Federal Excise Tax Return

must disclose such position. This disclosure must be

the manufacturer, producer, or importer of any

made once a year on a statement which must report the

component used in the manufacture of any arrow that

payments of premiums that are exempt from the excise

after assembly measures 18 inches or more in overall

tax on policies issued by foreign insurers for the previous

length or is less than 18 inches long but is suitable for

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

use with a bow that has a draw weight of 10 pounds or

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

more. Add the tax on each sale during the quarter and

enter the total on the line for IRS No. 102.

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

Return Position Disclosure Under Section 6114 or

Alcohol sold as but not used as fuel (IRS No. 51). An

7701(b), as a disclosure statement.

excise tax is imposed if the credit was claimed on Form

6478, Credit for Alcohol Used as Fuel, and any person

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

later:

6114 Treaty.” Provided you have no other transactions

1. Uses a mixture or straight alcohol for a purpose

reportable on Form 720:

other than fuel,

1. Check the one-time filing box on page 1. If this is

2. Separates the alcohol from the mixture, or

your final return, check the final return box.

2. Write “None” on lines 1and 3.

3. Mixes the straight alcohol.

3. Sign the return.

Use the following table to determine the tax for each

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

gallon of alcohol. Fill in the number of gallons and the

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

appropriate rate in the Rate column on the line for IRS

Identification Number (EIN) on page 3.

No. 51. If more than one rate applies, leave the Rate

column blank and attach a schedule showing the rates

Where to file. Mail the Form 720 with the attached

and number of gallons taxed at each rate.

statement to: Internal Revenue Service Center, P.O. Box

21086, Philadelphia, PA 19114. Also, see the Caution

THEN the tax rate

under Private Delivery Services on page 2.

IF the alcohol is...

AND...

per gallon is...

•

at least 190 proof

is ethanol

$ .53

Exception. If you are reporting liabilities in Parts I or II

•

is methanol

.60

(Form 720), follow the instructions above for How to file,

•

except mail the Form 720 to: Internal Revenue Service

benefited from the

.63

small ethanol

Center, Cincinnati, OH 45999-0009.

producer credit

•

at least 150 proof but

is ethanol

$ .3926

Part II

•

less than 190 proof

is methanol

.45

Sport fishing equipment (IRS No. 41). The tax on sport

•

benefited from the

.4926

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

small ethanol

is paid by the manufacturer, producer, or importer.

producer credit

Taxable articles include fishing rods and poles (and

component parts), reels, fly fishing lines (and other lines

not over 130 pounds test), fishing spears, spear guns,

Floor Stocks Tax

spear tips, terminal tackle, fishing supplies and

Ozone-depleting chemicals floor stocks tax (IRS No.

accessories, and any parts or accessories sold on or in

20). Use Form 6627 to figure the liability for this tax.

connection with these articles. See Pub. 510 for a

Enter the amount from Form 6627, Part III, line 4, column

complete list of taxable articles. Add the tax on each sale

(d) on the line for IRS No. 20. Attach Form 6627 to Form

during the quarter and enter the total on the line for IRS

720 that is due July 31 of each year. Deposit the

No. 41.

payment by June 30 at an authorized financial institution.

Electric outboard motors and sonar devices (IRS No.

See How To Make Deposits on page 7.

42). The tax on an outboard motor or a sonar device for

finding fish is 3% (.03) of the sales price. The tax is paid

Part III

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

limited to $30 for each sonar device. Sonar devices for

Line 4. Report on line 4 of Form 720 the total claims

finding fish do not include graph recorders, digital types,

from line 12 of Schedule C. See the instructions on

meter readouts, or combination graph recorders or

page 8.

combination meter readouts. Add the tax on each sale

during the quarter and enter the total on the line for IRS

The computation in Part III has changed. The

No. 42.

references below to specific line numbers are

different from those on prior period returns.

Bows (IRS No. 44). The tax on bows is 11% (.11) of the

CAUTION

sales price. The tax is paid by the manufacturer,

producer, or importer. It applies to bows having a draw

Lines 6 and 7. Include on line 6 the amount from line 10

weight of 10 pounds or more. The tax is also imposed on

of your previous return that you applied to this return and

the sale of any part or accessory suitable for inclusion in

the amount from line 7. Use line 7 to report an amount

or attachment to a taxable bow and any quiver suitable

from line 5b of Form 720X.

for use with arrows described below. Add the tax on each

Note: Include on line 6 of your next return the amount

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

from line 11 you want to have applied to that return.

IRS No. 44.

If you owe other Federal tax, interest, or penalty,

Arrow components (IRS No. 102). The tax on any

the overpayment on line 11 and line 7 will first be

shaft, point, nock, or vane is 12.4% (.124) of the sales

applied to the unpaid amounts.

CAUTION

price for which the component is sold. The tax is paid by

-6-

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2002 Page 6

Related Articles

Related forms

Related Categories