IRS Form 720, or the Quarterly Federal Excise Tax Return, is an IRS tax form that businesses must complete on a quarterly basis in order to report and pay federal excise taxes. An excise tax is a tax that the federal government imposes on specific goods or services that are manufactured in or imported into the U.S. Excise taxes are often included in the price of the product, like gasoline or alcohol, so you might not even realize you’re paying them. However, if your business sells a good or service that is subject to excise tax, then you are responsible for reporting and paying for those taxes—IRS Form 720, therefore, allows you to do just that.
2nd Quarter Excise Tax
The filing deadline for IRS Tax Form 720 is quarterly, needs to be completed and reported by the last day of the first month that follows the end of the prior quarter. July 31 is the last date to report and file the Federal Excise Taxes for 2nd Quarter of 2019.
The fees, required to be reported only once a year on the second quarter Form 720 and paid by its due date, July 31, is based on the average number of lives covered under the policy or plan. Payments are due no later than July 31 of the year following the last day of the policy or plan year. For example, a Form 720 that reported the fee on a health insurance policy for the year ending on Dec. 31, 2018, is required to be filed by July 31, 2019. Similarly, a return that reported the fee for a health plan for a plan year which ended on March 31, 2018, will be required to be filed by July 31, 2019.
INDOOR TANNING SERVICE
The Indoor Tanning Services Excise Tax is a flat 10 percent tax that is imposed on all revenues from indoor tanning. In most cases, the IRS imposes this tax on establishments that primarily earn revenue from offering tanning services through the use of tanning beds. Companies that offer spray-on tanning services or tanning lotion applications that are offered by trained medical personnel are exempt from this tax. The provisions of this tax do not apply to fitness centers that provide tanning as part of the available amenities without charging an additional fee. For 2nd Quarter of 2019, this excise tax falls due along with the IRS Tax Form 720 and July 31 is the last date.