Use Form 720: Excise Tax on indoor tanning tax due Jan. 31

Reminder: Excise Tax on indoor tanning tax is due by Jan. 31

Use IRS Form 720, Quarterly Federal Excise Tax Return to report and pay the indoor tanning tax due by Jan. 31. Act fast and report it electronically at www.TaxExcise.com

What is taxable indoor tanning service?

Taxable indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning

Who must pay the indoor tanning services tax?

Indoor tanning service providers are responsible for collecting the tax from the person paying for the service and in some situations, from the person receiving the service.What is taxable indoor tanning service?

Taxable indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning.

Who must report the tax to the government?

The person receiving the payment for the indoor tanning service must report the indoor tanning services tax on and remit the full amount of tax with a timely filed return.

How do I report the indoor tanning services tax?

Report the indoor tanning services tax on Form 720, Quarterly Federal Excise Tax Return electronically at www.TaxExcise.com and get it accepted by the IRS in minutes.

When is Form 720 due?

Form 720 is filed quarterly. The first return to report the indoor tanning services tax is due on October 31, 2010 for the third quarter period including July, August and September 2010. Service providers who do not file Form 720 and remit the tax by the due date may be subject to a penalty, as will any person who intentionally fails to collect and remit the tax. Quarterly return due dates for the remainder of the year are as follows:

For the months: Due by:
Jan., Feb., Mar. April 30
Apr., May, Jun. July 31
Jul., Aug., Sep. Oct. 31
Oct., Nov., Dec. Jan. 31

Is phototherapy service exempt from the indoor tanning services tax?

It is exempt from the indoor tanning services tax if performed by a licensed medical professional on the medical professional’s premises.

What is phototherapy service?

Phototherapy service is a service which exposes an individual to specific wavelengths of light for the treatment of dermatological conditions, sleep disorders, seasonal affective disorder or other psychiatric disorder, neonatal jaundice, wound healing, or other medical condition determined by a licensed medical professional to be treatable by exposing the individual to specific wavelengths of light.

If an indoor tanning service provider does not have an Employer Identification Number (EIN), what should they do?

All indoor tanning service providers who do not have an EIN must acquire an EIN in order to file and remit tax due on Form 720. Instructions on how to obtain an EIN are on IRS.gov. Indoor tanning service providers can apply for an EIN online or by phone, fax or mail.

How does the indoor tanning service provider pay the tax due for indoor tanning services?

The indoor tanning service provider must remit the full amount of tax with a timely filed Form 720. Excise tax deposits are not required for the tax on indoor tanning services.

More FAQ’s available at http://www.irs.gov/businesses/small/article/0,,id=224600,00.html#keypoint11

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