Instructions For Form 720 - Quarterly Federal Excise Tax Return

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

Rate (for each 10

pounds of the maximum

page 832 of IRB 2005-14 at

IRS No.

Taxable Tire Category

rated load capacity over

3,500 pounds)

Taxable tires other than

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

108

bias ply or super single

$.0945

equal to the amount of tax that has been imposed on each

tires

tire that is sold on or in connection with the first retail sale of

Taxable tires, bias ply or

a taxable vehicle reported on IRS No. 33. Claim the section

super single tires (other

109

$.04725

than super single tires

4051(d) tire credit on Schedule C, line 15a.

designed for steering)

Taxable tires, super single

Ship Passenger Tax

113

$.0945

tires designed 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 each

vehicles if wholly or partially made of rubber and if marked

passenger on a commercial passenger ship that has berth

according to federal regulations for highway use. A bias ply

or stateroom accommodations for at least 17 passengers if

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

the trip is over 1 or more nights. A voyage extends “over 1

the beads are laid at alternate angles substantially less than

or more nights” if it lasts longer than 24 hours. The tax also

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

applies to passengers on any commercial ship that

is a tire greater than 13 inches in cross section width

transports passengers engaged in gambling aboard the ship

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

beyond the territorial waters of the United States. Enter the

include any tire designed for steering.

number of passengers for the quarter on the line for IRS

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

No. 29.

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

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

tax are shown on Form 6197.

Other Excise Tax

One-time filing. If you import a gas guzzling

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

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

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

obligations issued during the quarter, enter the principal

conditions.

amount of the obligation multiplied by the number of

•

You do not import gas guzzling automobiles in the course

calendar years (or portion thereof) during the period

of your trade or business.

beginning on the issue date and ending on the maturity date

•

You are not required to file Form 720 reporting excise

on the line for IRS No. 31.

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

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

Manufacturers Taxes

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

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

Do not include the excise tax on coal in the sales

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

price when determining which tax rate to use.

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

identification number (EIN), enter your social security

CAUTION

number (SSN) or individual taxpayer identification number

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

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

EIN.

on underground mined coal is the lower of $1.10 per ton or

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

4.4% (.044) of the sales price. Enter on the line for IRS No.

guzzler tax.

36 the number of tons of underground mined coal sold at

$25 or more per ton. Enter on the line for IRS No. 37 the

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

total sales price for all sales of underground mined coal sold

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

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

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

•

Contains diptheria toxoid, tetanus toxoid, pertussis

bacteria, extracted or partial cell bacteria, specific pertussis

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

antigens, or polio virus;

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

•

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

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

B, chicken pox, rotavirus gastroenteritis, or human

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

papillomavirus;

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

•

Is any HIB (haemophilus influenzae type B) vaccine;

•

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

Is any meningococcal vaccine;

•

price of less than $12.50 per ton.

Is any conjugate vaccine against streptococcus

pneumoniae; or

•

Is any trivalent vaccine against influenza.

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

imposed on taxable tires sold by the manufacturer,

If any taxable vaccine is combined with one or more

additional taxable vaccines, then the tax is imposed on each

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

vaccine included in the combination.

case of a bias ply tire or super single tire) for each 10

pounds of the maximum rated load capacity over 3,500

Example. MMR contains three taxable vaccines:

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

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

$2.25 (3 x $.75).

shown in the following chart and enter the total for the

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

Add the tax for each taxable vaccine and enter the total

number of tires for each IRS No.

tax on the line for IRS No. 97.

-6-

Instructions for Form 720 (Rev. 7-2010)

Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2010 Page 6

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