Instructions For Form 720 - 2017 (Page 10 of 20) in pdf

Floor Stocks Tax

Definition of indoor tanning services. Indoor tanning

service means a service employing any electronic product

Ozonedepleting chemicals floor stocks tax (IRS No.

designed to incorporate one or more ultraviolet lamps and

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

intended for the irradiation of an individual by ultraviolet

the amount from Form 6627, Part IV, line 4, column (d), on

radiation, with wavelengths in air between 200 and 400

the line for IRS No. 20. Attach Form 6627 to the Form 720

nanometers, to induce skin tanning. The term does not

that is due July 31 of each year.

include phototherapy service performed by, and on the

Part III

premises of, a licensed medical professional (such as a

dermatologist, psychologist, or registered nurse). See

Line 4. Report on Form 720, line 4, the total claims from

Regulations section 49.5000B-1 for more information and

Schedule C, line 15. See Schedule C. Claims, later.

special rules for qualified physical fitness facilities,

undesignated payment cards, and bundled payments.

Line 6. Include on line 6 the amount from line 11 of your

Enter the amount of indoor tanning services tax collected

previous return that you applied to this return and the amount

(or due for failing to collect the tax) for the quarter on the line

from Form 720X, line 5b.

for IRS No. 140.

Note. Include on line 6 of your next return the amount from

Other Part II Taxes

line 11 you want to have applied to that return.

If you owe other federal tax, interest, or penalty, the

Inland waterways fuel use tax (IRS No. 64). If you are

overpayment on line 11 and line 7 will first be applied

liable for the inland waterways fuel use tax, report the

to the unpaid amounts.

number of gallons subject to tax on the line for IRS No. 64.

CAUTION

Certain fuels must also be reported under IRS No. 125

Line 10. If line 3 is more than line 9, enter the difference in

(discussed next).

line 10. You do not have to pay if line 10 is under $1.00.

The inland waterways fuel use tax applies at the rate

You may pay the amount shown on line 10 by EFTPS,

listed on Form 720 ($.29, effective April 1, 2015).

check or money order, or, if filing electronically, electronic

This is in addition to all other taxes imposed on the

CAUTION

funds withdrawal (direct debit). If you pay by EFTPS or direct

sale or use of the fuel.

debit, do not file Form 720-V.

LUST tax on inland waterways fuel use (IRS No. 125).

If you do not deposit as required and, instead, pay

The leaking underground storage tank (LUST) tax must be

the taxes with Form 720, you may be subject to a

paid on any liquid fuel used on inland waterways that is not

penalty.

CAUTION

subject to LUST tax under section 4041(d) or 4081. For

Payment of Taxes

example, gallons of Bunker C residual fuel oil must be

reported under both IRS Nos. 64 and 125.

Generally, semimonthly deposits of excise taxes are

Section 40 fuels (IRS No. 51). An excise tax is imposed

required. A semimonthly period is the first 15 days of a

(recaptured) if you claim the second generation biofuel

month (the first semimonthly period) or the 16th through the

producer credit and you don't use the fuel for the purposes

last day of a month (the second semimonthly period).

described under Qualified Second Generation Biofuel

However, no deposit is required for the situations listed

Production in the Instructions for Form 6478, Biofuel

below. The taxes are payable with the return.

Producer Credit. When recapturing, you must pay a tax on

The net liability for taxes listed on Form 720, Part I, does

each gallon of second generation biofuel at the rate you used

not exceed $2,500 for the quarter.

to figure the credit.

The gas guzzler tax is being paid on a one-time filing. See

The tax rate for second generation biofuel is $1.01 per

Gas guzzler tax (IRS No. 40), earlier.

gallon. Fill in the number of gallons and the appropriate rate

The patient-centered outcomes research fee is being paid

in the Rate column on the line for IRS No. 51.

with a second quarter Form 720. See Patient-centered

Biodiesel sold as but not used as fuel (IRS No. 117).

outcomes research fee (IRS No. 133), earlier.

You must pay a tax (recapture) on each gallon of biodiesel or

The liability is for taxes listed on Form 720, Part II, except

renewable diesel on which a credit was claimed at the rate

the floor stocks tax, which generally requires a single deposit.

used to figure the credit if you:

Special rule for deposits of taxes in September 2016. If

Use it (including a mixture) other than as a fuel;

you are required to make deposits, see the chart below. The

Buy it at retail and use it to create a mixture;

special rule does not apply to taxes not required to be

Separate it from a mixture; or

deposited (see Payment of Taxes above). See Regulations

Use agri-biodiesel on which the small agri-biodiesel

sections 40.6302(c)-2 and 40.6302(c)-3 for rules to figure the

producer credit was claimed for a use not described under

net tax liability for the deposits due in September.

Qualified Agri-Biodiesel Production in the Instructions for

Form 8864, Biodiesel and Renewable Diesel Fuels Credit.

The tax is $1.00 per gallon of biodiesel, agri-biodiesel, and

renewable diesel. An additional $.10 is added if the

agri-biodiesel benefited from the small agri-biodiesel

producer credit. Fill in the number of gallons and the

appropriate rate in the Rate column on the line for IRS No.

117. If more than one rate applies, leave the Rate column

blank and attach a schedule showing the rates and number

of gallons taxed at each rate.

Instructions for Form 720 (Rev. 12017)

Instructions For Form 720 - 2017 Page 10

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