Instructions For Form 720 - Quarterly Federal Excise Tax Return

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Is against measles, mumps, rubella, hepatitis A,

Rate (for each 10

pounds of the

hepatitis B, chicken pox, or rotavirus gastroenteritis;

Taxable Tire

•

IRS No.

maximum rated

Is any HIB (haemophilus influenza type B) vaccine;

Category

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load capacity over

Is any conjugate vaccine against streptococcus

3,500 pounds)

pneumoniae; or

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Is any trivalent vaccine against influenza.

Taxable tires other

$.0945

If any taxable vaccine is combined with one or more

108

than biasply or

super single tires

additional taxable vaccines, then the tax is imposed on

each vaccine included in the combination.

Taxable tires,

$.04725

Example. MMR contains three taxable vaccines:

biasply or super

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

single tires (other

109

is $2.25 (3 x $.75).

than super single

tires designed for

Add the tax for each taxable vaccine and enter the

steering)

total tax on the line for IRS No. 97.

Taxable tires, super

$.0945

Foreign Insurance Taxes

113

single tires designed

for steering

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

Enter the amount of premiums paid during the quarter on

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

policies issued by foreign insurers. Multiply the premiums

vehicles if wholly or partially made of rubber and if

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

marked according to federal regulations for highway use.

for the three types of insurance on the line for IRS

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

No. 30.

that extend to the beads are laid at alternate angles

Who must file. The person who pays the premium to

substantially less than 90 degrees to the centerline of the

the foreign insurer (or to any nonresident person such as

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

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

in cross section width designed to replace 2 tires in a

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

dual fitment, but does not include any tire designed for

who is insured under the policy, is required to pay the tax

steering. Super single tires designed for steering are

and file the return.

taxable at the rate of $.0945, retroactive to

Treaty-based return positions under section 6114.

January 1, 2005.

Foreign insurers and reinsurers who take the position

that a treaty of the United States overrules, or otherwise

Taxpayers must file Form 720X to report the

modifies, an Internal Revenue law of the United States,

$.04725 tax rate increase on super single tires

must disclose such position. This disclosure must be

designed for steering, reported on Forms 720 for

CAUTION

made once a year on a statement which must report the

the first and second calendar quarters of 2005.

payments of premiums that are exempt from the excise

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

tax on policies issued by foreign insurers for the previous

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

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

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

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

tax are shown on Form 6197.

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

One-time filing. If you import a gas guzzling

Return Position Disclosure Under Section 6114 or

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

7701(b), as a disclosure statement.

of Form 720 and Form 6197, Gas Guzzler Tax, if you

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

meet all of the following conditions:

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6114 Treaty.” Provided you have no other transactions

You do not import gas guzzling automobiles in the

reportable on Form 720:

course of your trade or business and

•

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

You are not required to file Form 720 reporting excise

2. Write “None” on lines 1 and 3.

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

3. Sign the return.

filing.

To make a one-time filing:

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

an EIN, see Employer Identification Number (EIN) on

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

page 3.

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

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

Where to file. Mail the Form 720 with the attached

required.

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

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

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

employer identification number (EIN), enter your social

under Private Delivery Services on page 2.

security number (SSN) or individual taxpayer

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

identification number (ITIN) on Form 720 and

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

Form 720-V in the space for the EIN.

except mail the Form 720 to: Internal Revenue Service

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

Center, Cincinnati, OH 45999-0009.

guzzler tax.

Part II

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

sale or use of a vaccine manufactured, produced, or

Sport fishing equipment (other than fishing rods and

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

fishing poles) (IRS No. 41). The tax on sport fishing

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Contains diptheria toxoid, tetanus toxoid, pertussis

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

bacteria, extracted or partial cell bacteria, specific

by the manufacturer, producer, or importer. Taxable

pertussis antigens, or polio virus;

articles include reels, fly fishing lines (and other lines not

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

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