Instructions For Form 720 - 2017 (Page 7 of 20) in pdf

Retail Tax

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

4051(d) tire credit on Schedule C, line 14a.

Truck, Trailer, and Semitrailer Chassis and

Ship Passenger Tax

Bodies, and Tractors (IRS No. 33)

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

The tax is 12% of the sales price on the first retail sale of

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

each unit. The tax applies to:

passenger on a commercial passenger ship that has berth or

Truck chassis and bodies, except truck chassis and

stateroom accommodations for at least 17 passengers if the

bodies suitable for use with a vehicle with a gross vehicle

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

weight (GVW) of 33,000 pounds or less;

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

Trailer and semitrailer chassis and bodies, except trailer

applies to passengers on any commercial ship that

and semitrailer chassis and bodies suitable for use with a

transports passengers engaged in gambling aboard the ship

vehicle with a GVW of 26,000 pounds or less; and

beyond the territorial waters of the United States. Enter the

Tractors of the kind chiefly used for highway transportation

number of passengers for the quarter on the line for IRS

in combination with a trailer or semitrailer, except tractors

No. 29.

that have a GVW of 19,500 pounds or less and a gross

combined weight of 33,000 pounds or less.

Other Excise Tax

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

Generally, gross combined weight means the weight of a

obligations issued during the quarter, enter the principal

tractor and the weight of its trailer(s).

amount of the obligation multiplied by the number of calendar

years (or portion thereof) during the period beginning on the

The tax imposed on parts and accessories sold on or in

issue date and ending on the maturity date on the line for IRS

connection with the units listed above and the tax imposed

No. 31.

on the separate purchase of parts and accessories for the

units listed above do not apply to an EPA-approved idling

Foreign Insurance Taxes

reduction device installed on a tractor or insulation that has

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

an R value of at least R35 per inch.

the amount of premiums paid during the quarter on policies

Idling reduction device. Any device or system of devices

issued by foreign insurers. Multiply the premiums paid by the

that provide the tractor with services, such as heat, air

rates listed on Form 720 and enter the total for the three

conditioning, and electricity, without the use of the main drive

types of insurance on the line for IRS No. 30.

engine while the tractor is temporarily parked or stationary.

The device must be affixed to the tractor and determined by

Section 4371(3) tax on foreign reinsurance premiums

the Administrator of the EPA, in consultation with the

no longer applies. The 1% tax no longer applies to

Secretary of Energy and Secretary of Transportation, to

premiums paid on a policy of reinsurance issued by one

reduce idling while parked or stationary.

foreign reinsurer to another foreign insurer or reinsurer, under

the situations described in Rev. Rul. 2008-15, 2008-12 I.R.B.

Figure the tax for each vehicle sold and enter the total for

633. See Rev. Rul. 2016-03, 2016-3 I.R.B. 282, at

the quarter on the line for IRS No. 33.

Who must file. The person who pays the premium to the

Gross vehicle weight. The gross vehicle weight (GVW)

foreign insurer (or to any nonresident person such as a

means the maximum total weight of a loaded vehicle.

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

Generally, this maximum total weight is the GVW rating

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

provided by the manufacturer or determined by the seller of

is insured under the policy, is required to pay the tax and file

the completed article. The seller's GVW rating must be

the return.

determined for excise tax purposes on the basis of the

Treaty-based return positions under section 6114.

strength of the chassis frame and the axle capacity and

Foreign insurers and reinsurers who take the position that a

placement. The seller may not take into account any readily

treaty of the United States overrules, or otherwise modifies,

attachable components (such as tires or rim assemblies) in

an internal revenue law of the United States must disclose

determining the GVW. See Regulations section

such position. This disclosure must be made once a year on

145.4051-1(e)(3) for more information.

a statement which must report the payments of premiums

The following four classifications of truck body types meet

that are exempt from the excise tax on policies issued by

the suitable-for-use standard and will be excluded from the

foreign insurers for the previous calendar year. This

retail excise tax.

statement is filed with the first quarter Form 720, which is due

Platform truck bodies 21 feet or less in length.

before May 1 of each year.

Dry freight and refrigerated truck van bodies 24 feet or less

in length.

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

Position Disclosure Under Section 6114 or 7701(b), as a

Dump truck bodies with load capacities of 8 cubic yards or

disclosure statement.

less.

Refuse packer truck bodies with load capacities of 20

At the top of Form 720, write “Section 6114 Treaty.” If you

cubic yards or less.

have no other transactions reportable on Form 720, complete

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

Form 720 as follows.

page 832 of I.R.B. 2005-14 at

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

2. Write “None” on lines 1 and 3.

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

3. Sign the return.

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

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

Instructions for Form 720 (Rev. 12017)

Instructions For Form 720 - 2017 Page 7

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