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.
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3 weeks 2 days ago by mucar1990