Instructions For Form 720 - Quarterly Federal Excise Tax Return

on the basis of the strength of the chassis frame and the

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

axle capacity and placement. The seller may not take into

selling price of less than $12.50 per ton.

account any readily attachable components (such as tires

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

or rim assemblies) in determining the gross vehicle

imposed on taxable tires sold by the manufacturer,

weight. See Regulations section 145.4051-1(e)(3) for

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

more information.

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

The following four classifications of truck body types

pounds of the maximum rated load capacity over 3,500

meet the suitable for use standard and will be excluded

pounds. Figure the tax for each tire sold in each category

from the retail excise tax.

as shown in the chart below and enter the total for the

•

Platform truck bodies 21 feet or less in length.

quarter on the line for IRS No. 108, 109, or 113.

•

Dry freight and refrigerated truck van bodies 24 feet or

less in length.

Rate (for each 10

•

pounds of the

Dump truck bodies with load capacities of eight cubic

Taxable Tire

IRS No.

maximum rated load

yards or less.

Category

•

capacity over 3,500

Refuse packer truck bodies with load capacities of 20

pounds)

cubic yards or less.

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

Taxable tires other

$.0945

on page 832 of Internal Revenue Bulletin 2005-14 at

108

than biasply or super

single tires

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

Taxable tires, biasply

$.04725

equal to the amount of tax that has been imposed on

or super single tires

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

109

(other than super

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

single tires designed

for steering)

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

line 14a.

Taxable tires, super

$.0945

113

single tires designed

Ship Passenger Tax

for steering

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

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

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

vehicles if wholly or partially made of rubber and if

each passenger on a commercial passenger ship that

marked according to federal regulations for highway use.

has berth or stateroom accommodations for at least 17

A biasply tire is a pneumatic tire on which the ply cords

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

that extend to the beads are laid at alternate angles

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

substantially less than 90 degrees to the centerline of the

hours. The tax also applies to passengers on any

tread. A super single tire is a tire greater than 13 inches

commercial ship that transports passengers engaged in

in cross section width designed to replace 2 tires in a

gambling aboard the ship beyond the territorial waters of

dual fitment, but does not include any tire designed for

the United States. Enter the number of passengers for

steering.

the quarter on the line for IRS No. 29.

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

Other Excise Tax

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

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

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

obligations issued during the quarter, enter the principal

tax are shown on Form 6197.

amount of the obligation multiplied by the number of

One-time filing. If you import a gas guzzling

calendar years (or portion thereof) during the period

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

beginning on the issue date and ending on the maturity

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

date on the line for IRS No. 31.

following conditions:

•

Manufacturers Taxes

You do not import gas guzzling automobiles in the

course of your trade or business and

•

Do not include the excise tax on coal in the sales

You are not required to file Form 720 reporting excise

price when determining which tax rate to use.

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

filing.

CAUTION

To make a one-time filing:

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

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

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

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

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

IRS No. 36 the number of tons of underground mined

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

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

required.

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

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

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

employer identification number (EIN), enter your social

security number (SSN) or individual taxpayer

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

identification number (ITIN) on Form 720 and

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

Form 720-V in the space for the EIN.

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

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

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

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

guzzler tax.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2006 Page 5

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