Instructions For Form 720 - 2017 (Page 9 of 20) in pdf

(line 133(a)), multiplied by the average number of lives

accessories sold on or in connection with these articles. See

covered under the policy for that policy year. Generally,

Pub. 510 for a complete list of taxable articles. Add the tax on

issuers of specified health insurance policies must use one of

each sale during the quarter and enter the total on the line for

the following four alternative methods to determine the

IRS No. 41.

average number of lives covered under a policy for the policy

Fishing rods and fishing poles (IRS No. 110). The tax on

year.

fishing rods and fishing poles (and component parts) taxed at

1. The actual count method.

a rate of 10% will have a maximum tax of $10 per article. The

tax is paid by the manufacturer, producer, or importer. Add

2. The snapshot method.

the tax on each sale during the quarter and enter the total on

3. The member months method.

the line for IRS No. 110.

4. The state form method.

Electric outboard motors (IRS No. 42). The tax on an

electric outboard motor is 3% of the sales price. The tax is

Applicable self-insured health plans. For plan

paid by the manufacturer, producer, or importer. Add the tax

sponsors of applicable self-insured health plans, the fee for a

on each sale during the quarter and enter the total on the line

plan year ending on or after October 1, 2015, but before

for IRS No. 42.

October 1, 2016, is $2.17 (line 133(d)) ($2.08 for a policy

year ending on or after October 1, 2014, but before October

Fishing tackle boxes (IRS No. 114). The tax on fishing

1, 2015 (line 133(c)), multiplied by the average number of

tackle boxes is 3% of the sales price. The tax is paid by the

lives covered under the plan for that plan year. Generally,

manufacturer, producer, or importer. Add the tax on each

plan sponsors of applicable self-insured health plans must

sale during the quarter and enter the total on the line for IRS

use one of the following three alternative methods to

No. 114.

determine the average number of lives covered under a plan

Bows, quivers, broadheads, and points (IRS No. 44).

for the plan year.

The tax on bows is 11% of the sales price. The tax is paid by

1. Actual count method.

the manufacturer, producer, or importer. It applies to bows

2. Snapshot method.

having a peak draw weight of 30 pounds or more. The tax is

3. Form 5500 method.

also imposed on the sale of any part or accessory suitable for

inclusion in or attachment to a taxable bow and any quiver,

Reporting and paying the fee. File Form 720 annually to

broadhead, or point suitable for use with arrows described

report and pay the fee on the second quarter Form 720 no

below. Add the tax on each sale during the quarter and enter

later than July 31 of the calendar year immediately following

the total on the line for IRS No. 44.

the last day of the policy year or plan year to which the fee

Arrow shafts (IRS No. 106). The tax on arrow shafts is

applies. Because the rate used to determine the fee varies

$.50 per arrow shaft. The tax is paid by the manufacturer,

from year to year, you should determine the fee using the

producer, or importer of any arrow shaft (whether sold

instructions for the second quarter Form 720. If you file Form

separately or incorporated as part of a finished or unfinished

720 only to report the fee, do not file Form 720 for the first,

product) of a type used in the manufacture of any arrow

third, or fourth quarters of the year. If you file Form 720 to

which after its assembly meets either of the following

report quarterly excise tax liability for the first, third, or fourth

conditions.

quarter of the year (for example, filers reporting the foreign

It measures 18 inches or more in overall length.

insurance tax (IRS No. 30)), do not make an entry on the line

It measures less than 18 inches in overall length but is

for IRS No. 133 on those filings.

suitable for use with a taxable bow, described earlier.

Deposits are not required for this fee, so issuers and plan

Exemption for certain wooden arrows. The tax does

sponsors are not required to pay the fee using Electronic

not apply to any shaft made of all natural wood with no

Federal Tax Payment System (EFTPS). However, if the fee is

laminations or artificial means of enhancing the spine of such

paid using EFTPS, the payment should be applied to the

shaft (whether sold separately or incorporated as part of a

second quarter. See Electronic deposit requirement under

finished or unfinished product) and used in the manufacture

Payment of Taxes, later.

of any arrow which after its assembly meets both of the

Report the average number of lives covered in column (a).

following conditions.

Apply the applicable rate ((b) Rate for avg. covered life) and

It measures

of an inch or less in diameter.

enter the fee in column (c).

It is not suitable for use with a taxable bow, described

earlier.

Combine the fees for specified health insurance policies

and applicable self-insured health plans and enter the total in

Add the tax on each sale during the quarter and enter the

the tax column on the line for IRS No. 133.

total on the line for IRS No. 106.

More information. For more information, including

Indoor Tanning Services Tax

methods for calculating the average number of lives covered,

see sections 4375, 4376, and 4377; also see T.D. 9602,

Indoor tanning services (IRS No. 140). The tax on indoor

which is on page 746 of I.R.B. 2012-52 at

tanning service is 10% of the amount paid for that service.

2012-52_IRB/ar11.html.

The tax is paid by the person paying for the indoor tanning

service and is collected by the person receiving payment for

Sport fishing equipment (other than fishing rods and

the indoor tanning services.

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

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

Who must file. The person receiving the payment for indoor

manufacturer, producer, or importer. Taxable articles include

tanning services (collector) must collect and remit the tax and

reels, fly fishing lines (and other lines not over 130 pounds

file the return. If the tax is not collected for any reason, the

test), fishing spears, spear guns, spear tips, terminal tackle,

collector is liable for the tax.

fishing supplies and accessories, and any parts or

Instructions for Form 720 (Rev. 12017)

Instructions For Form 720 - 2017 Page 9

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