IRS releases Form 720 for tanning excise tax
by AccountingWEB on
The Internal Revenue Service recently released Form 720 for the excise tax on indoor tanning services imposed by the Patient Protection and Affordable Care Act. The 10 percent excise tax became effective July 1.
Indoor tanning establishments collect the tax at the time the purchaser pays for the services. The provider then pays over these amounts to the government, along with Form 720.
If the customer fails to pay the excise tax, the tanning service provider is liable for the tax, according to the IRS. Tanning service providers must report and pay the excise tax on a quarterly basis.
The tax does not apply to phototherapy services performed on the premises by licensed medical professionals or to spray-on tanning services. The regulations also provide an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separate fee.
To pay the tax, businesses must file IRS Form 720 using an Employer Identification Number (EIN) assigned by the IRS. Businesses that don’t already have one can apply for an EIN online at IRS.gov.
Additional instructions for the new tax and accompanying form can be found here.
You may like these other stories...
Every career professional today potentially faces unrelenting time pressure. This is true across the board, for newbies as well as for veterans in the workplace, for CEOs and for cashiers. How can this be so?Independent of...
In the 12 years Virginia Hilton has been teaching yoga, she has heard from countless CPAs who are intrigued by the idea of practicing the ancient discipline, but think they're not flexible enough, or that yoga might be a...
On any normal day Katie Bailey, audit manager at CPA firm Dauby O'Connor & Zaleski, LLC (DOZ) in Carmel, Indiana, would definitely consider herself an active person. She runs 20-plus miles a week, logs lunch hours in...
Upcoming CPE Webinars
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.