Instructions For Form 720 - Quarterly Federal Excise Tax Return

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

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

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

have no other transactions reportable on Form 720,

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

complete Form 720 as follows.

tax are shown on Form 6197.

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

One-time filing. If you import a gas guzzling

2. Write “None” on lines 1 and 3.

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

3. Sign the return.

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

conditions.

•

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

You do not import gas guzzling automobiles in the course

EIN, see Employer Identification Number (EIN) on page 2.

of your trade or business.

•

You are not required to file Form 720 reporting excise

Where to file. All filers should mail Form 720 with the

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

attached Form 8833 or disclosure statement to:

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

Department of the Treasury

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

Internal Revenue Service

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

Cincinnati, OH 45999-0009

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

Also, see the Caution under Private Delivery Services on

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

page 2.

identification number (EIN), enter your social security

number (SSN) or individual taxpayer identification number

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

Part II

EIN.

Sport fishing equipment (other than fishing rods and

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

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

guzzler tax.

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

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

the manufacturer, producer, or importer. Taxable articles

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

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

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

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

•

Contains diptheria toxoid, tetanus toxoid, pertussis

tackle, fishing supplies and accessories, and any parts or

bacteria, extracted or partial cell bacteria, specific pertussis

accessories sold on or in connection with these articles. See

antigens, or polio virus;

Publication 510 for a complete list of taxable articles. Add

•

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

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

B, chicken pox, rotavirus gastroenteritis, or human

on the line for IRS No. 41.

papillomavirus;

•

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

Is any HIB (haemophilus influenza type B) vaccine;

•

fishing rods and fishing poles (and component parts) taxed

Is any meningococcal vaccine;

•

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

Is any conjugate vaccine against streptococcus

pneumoniae; or

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

•

Is any trivalent vaccine against influenza.

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

total on the line for IRS No. 110.

If any taxable vaccine is combined with one or more

additional taxable vaccines, then the tax is imposed on each

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

vaccine included in the combination.

electric outboard motor is 3% (.03) of the sales price. The

Example. MMR contains three taxable vaccines:

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

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

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

$2.25 (3 x $.75).

on the line for IRS No. 42.

Add the tax for each taxable vaccine and enter the total

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

tax on the line for IRS No. 97.

tackle boxes is 3% (.03) of the sales price. The tax is paid

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

Foreign Insurance Taxes

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

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

for IRS No. 114.

the amount of premiums paid during the quarter on policies

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

issued by foreign insurers. Multiply the premiums paid by

The tax on bows is 11% (.11) of the sales price. The tax is

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

paid by the manufacturer, producer, or importer. It applies to

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

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

Who must file. The person who pays the premium to

tax is also imposed on the sale of any part or accessory

the foreign insurer (or to any nonresident person such as a

suitable for inclusion in or attachment to a taxable bow and

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

any quiver, broadhead, or point suitable for use with arrows

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

described below. Add the tax on each sale during the

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

quarter and enter the total on the line for IRS No. 44.

the return.

Treaty-based return positions under section 6114.

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

Foreign insurers and reinsurers who take the position that a

$.43 per arrow shaft. The tax is paid by the manufacturer,

treaty of the United States overrules, or otherwise modifies,

producer, or importer of any arrow shaft (whether sold

an Internal Revenue law of the United States must disclose

separately or incorporated as part of a finished or unfinished

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

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

a statement which must report the payments of premiums

which after its assembly meets either of the following

that are exempt from the excise tax on policies issued by

conditions.

•

foreign insurers for the previous calendar year. This

It measures 18 inches or more in overall length.

•

statement is filed with the 1st quarter Form 720, which is

It measures less than 18 inches in overall length but is

due before May 1 of each year.

suitable for use with a taxable bow, described earlier.

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

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

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

total on the line for IRS No. 106.

disclosure statement.

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Instructions For Form 720 - Quarterly Federal Excise Tax Return - 2008 Page 6

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