Depositary Method of Payment

If you are liable in any calendar quarter
for more than $100 of excise taxes, you are
required to make semimonthly, monthly or
quarterly deposits with an authorized com-
mercial bank depositary or a Federal Reserve
bank, in accordance with specific instructions
below.

If you are liable for $100 or Jess of taxes
for a calendar quarter (or your total liability
for a calendar quarter, less any deposits for
the quarter, is $100 or less), you must either
pay the taxes with your quarterly return or
deposit them with an authorized commercial
bank or Federal Reserve bank.

Deposit Requirements

Record of deposits and liabilities.—If you
are required to make semimonthly deposits,
as discussed below, you must also record your
semimonthly tax liabilities in item 4, unless
you come within the exceptions discussed in
the section below headed “Important Notes.”
If you come within these exceptions, or are
liable only for monthly deposits, you may
record your liabilities in the monthly totals.

Monthly deposits.—If you are liable in any
month (except the last month of a calendar
quarter), for more than $100 of taxes re-
portable on Form 720 and you are not re-
quired to make semimonthly deposits, you
«must deposit the amount on or before the
last day of the next month. In the case of
transportation and communications taxes, the
tax computed on the basis of amounts billed
(communications) or tickets sold (transporta-
tion) for a monthly period is considered as
collected during the succeeding monthly
period.

Semimonthly deposits.—If you had more
than $2,000 in excise tax liability for any
month of a calendar quarter, you must deposit
taxes for the following calendar quarter
(regardless of amount) on a semimonthly
basis as follows:

(A) If the amount is for transportation or
communications taxes and the tax is com-
puted on the basis of amounts billed (com-
munications) or tickets sold (transportation),
the tax computed for a semimonthly period is
considered as collected during the second
succeeding semimonthly period, Deposit such
amount within three banking days after the
close of the semimonthly period for which it
was collected. A ‘‘semimonthly period” means
the first 15 days of a calendar month or
that part of the month after the 15th day.

(B) If the amount is for tax on sugar manu-
factured in the United States or on policies
issued by foreign insurers, deposit it:

a. On or before the first day of the next
month if the tax is for the first semi-
monthly period of a month, or

b. On or before the 15th day of the next
month if the tax is for the second
semimonthly period of a month.

(C) If the amount is for taxes other than
those described above in (A) or (B), deposit
it on or before the ninth day following the
semimonthly period for which it is reportable.

You meet the semimonthly deposit require-
ments if the amount you deposit for the semi-
monthly period is:

Page 4

Instructions (Continued)

1. Not less than 90% of the total tax col-
lected during (or reportable for) the
semimonthly period,

2. Not less than 45% of the total tax col-
lected during (or reportable for) the
month,

3. Not less than 50% of the total tax col-
lected during (or reportable for) the
second preceding month (first preceding
month for transportation and communi-
cations taxes), or

4. For manufacturer's and retailer's taxes
only—in the case of an amount you de-
posit for the second semimonthly period
in the month, when added to the de-
posit for the first semimonthly period,
not less than 90% of the total taxes
reportable for the month.

In addition, if the semimonthly period is in
either of the first two months of the quarter,
you must deposit the underpayment for the
month by the following date:

(a) The first day of the second month fol-

lowing such month in the case of tax

on sugar and foreign insurance
policies;

(b) The ninth day of the second month
following such month in the case of
manufacturer's and retailer's taxes,
and

(c) The last day of the following month
in the case of transportation or com-
munications taxes.

Important Notes:

(1) If you use options 2, 3, or 4 to meet
semimonthly deposit requirements, you may
not be required to keep books and records
(except as to deposits) on a semimonthly
basis or record your tax liability on a semi-
monthly basis in item 4. (See Sec. 48.6302
(c)-1 and Sec. 49.6302(c)—1 of the Regula-
tions.)

(2) You may not use options 2 or 3 if you
collect more than 75 percent of the trans-
portation or communications taxes or if you
incur more than 75 percent of the monthly
liability for other taxes in the first semi-
monthly period in each month.

Quarterly deposits.—If your excise tax lia-
bility for a quarter (reduced by any monthly
or semimonthly deposits for the quarter) is
more than $100, you must deposit the un-
paid balance on or before the last day of the
first month following the quarter. If however,
the unpaid balance is for communications or
transportation taxes only, deposit the unpaid
balance on or before the last day of the
second month following the quarter. You may
make deposits of $100 or less, but are not
required to do so.

This provision does not extend the time for
depositing the taxes for the last semimonthly
period of the quarter, nor relieve you of pen-
alties for failure to make other required timely
deposits.

Federal Tax Deposit Form 504.—You must
deposit all excise taxes reportable on Form
720, in an authorized commercial bank or a
Federal Reserve Bank, with Federal Tax De-
posit Form 504, unless the total liability for
any calendar quarter less the amount of
taxes previously deposited, is $100 or less.
If you are paying a tax for the first time or

‘U.S. GOVERNMENT PRINTING OFFICE:1913—-O-475-881 48-0627165

need additional forms, contact the District
Director or the Director of a Service Center
(see “Where to File” below) in time to make
required deposits. Any tax due and not de-
posited must accompany the return.

Overpayment.—If you deposited more than
the correct amount of taxes for a quarter, you
may elect to have the overpayment applied to
your next return or refunded to you. Show the
appropriate amount in the space provided in
item 8. Any amount you elect to have applied
to your next return should be entered in item
5 of your next return.

When to File

A return must be filed for each quarter of
the calendar year as follows:

All excise taxes

| other than trans. | Trans. and

Quarter covered are nan ars | comm, due
‘or befor on or before
January, February,

March Aprit 30. May 31
April, May, June July 31 August 31
July, August,

September | October 31 November 30
October, November, |

December. | January 31 February 28

For all excise taxes other than those on
transportation and communications, you are
allowed an additional 10 days for filing your
return if it shows timely deposits in full pay-
ment of the taxes due for the quarter.

Where to File

Mf your principal business,
office or agency, or legal
residence in the case of an
individual, is located

New Jersey,
Ne

jew York City and counties ‘enter
of Nassau, Rockland, 1040 Waverly Avenue,
‘Suffolk, and Westchester Holtsville, N.Y. 11799
New York (all other counties), Internal Revenue Service
Connecticut, Maine, Center
Massachusetts, New Hamp- 310 Lowell Street
shire, Rhode Isiand, Vermont Andover, Mass. 01812
District of Columbia, Internal Revenue Service
Delaware, Maryland,
Pennsylvania

Use this address

Internal Revenue Service

Center
11601 Roosevelt Boulevard
Philadelphia, Pa. 19155

Internal Revenue Service
Center

4800 Buford Highway.

4 Chambiee, Georgia 30006

internal Revenue Service

‘Alabama, Florida,
Georgia, ‘Mississippi,
South Carolina

Michigan, Ohio
enter

Cincinnati, Ohio 45298
internal Revenue Service

Center
3681 S. Interregional Hwy.
Austin, Texas 78740
Internal Revenue Service

Center
1160 West 1200 South St.
Ogden, Utah 84405,

‘Arkansas, Kansas,
Louisiana, New Mexico,
Oklahoma, Texas

Alaska, Arizona, Colorado,
Idaho, Minnesota, Mi
Nebraska, Nevada, North
Dakota, Oregon, South
Dakota, Utah, Washington,
Meme

Internal Revenue Service

enter
2306 E. Bannister Road
Kansas City, Mo. 64170

Internal Revenue Service

Tows
Missouri, Wiseonsin

a Haw

1045 East Butler Avenue
Fresno, California "93730

Internal Revenue Service

entucky,
‘Tennessee,
rginia

3131 Democrat Road
Memphis, Tennessee 38110

If you have no legal residence, principal
place of business or principal office or agency
in any Internal Revenue district, file your re-
turn with the Internal Revenue Service Center,
11601 Roosevelt Boulevard, Philadelphia,
Pennsylvania 19155.

Ne
Virginia, We



rorm 720
Soret of the easy Quarterly Federal Excise Tax Return

Internal Revenue Service

1. Total tax. (Before making entries in items 1 to 9, compute your total tax in Part I! below.) .

2. Adjustments. (See instructions. Attach statement explaining adjustments.)
3. Tax as adjusted. (Item 1 plus or minus item 2.) wee ee
4. (a) Record of Tax Liability. (See instructions on page 4.) (b) Record of Federal Tax Deposits

Period Amount of Liability epost Amount
wig [ioe 1
Total for month ~ |W _ _

spent ncn -— ——E

Total for month IL MMM

Third cia oy | a =

Total for month lil YMVVHVZZZ7-3.
Le WMA

(c) Total Liability for Quarter.

(d) Final deposit made for quarter (see note under item 7) .
(e) Total deposits for quarter (including final deposit made for quarter) .

N

—>

5. Overpayment from previous quarter a
6. Total deposits (item 4(e) plus item5). . - . - oe
7. Undeposited taxes due (item 3 less item 6; this should be "$100 or fess). Pay to Internal Revenue Service... . —>

Note: If undeposited taxes due at the end of the quarter are more than $100, the entire balance
must be deposited. This deposit must be entered in the deposit schedule above in item 4(d).

8. If item 6 is more than item 3, enter excess here > $ and check if you want it: [] applied to your next return, or [] refunded to you

9. If not liable for returns in succeeding quarters, write “FINAL” here p> and return this form to your Internal Revenue Service Center.
Under penaities of perjury, I declare that | have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief itis true, correct and complete.

-.. Title (Owner, ete.).. =. Date...

Facilities and Services Rate Tax nS | Products and Commodities Rate Tax igs
Toll telephone service. . . + + +
Teletypewriter exchange service . . -f| 9% |. Sugar... 2. @
Local telephone service. - - + + + Diesel fuel and special motor fuels. . | (*)
Transportation of persons by air . Gasoline (manufacturers tax). . . . | 4¢ gal.
Use of international air travel facilities . rel used Fuel other.
; | in noncom: than gasoline . . . | 7¢ gal.
Transportation of property by air. . - | 5% mercial
Policies issued by foreign insurers. . . | (*) aviation Gasoline (retailers tax) | 3¢ gal. |_
Manufacturers Lubricating ol) . 2... eee | GE gal.
Truck, bus, and trailer chassis and bodies; high nice 104 16)
lghway vehicle type...
tractors. - + + ++ 110% Tires { laminated . eet
Parts or accessories for trucks, etc. . . | 8% other. . 1 1 1 ss ss | Selby
Inner tubes... eee ee | 10g Ibe 67
Fishing rods, etc., and artificial lures, etc. | 10% Tread rubber (camelback) sone ee | Selb. 68
Pistols and revolvers. . - - » + + |10%
Firearms . . + + +. + + + + | 11% TOTAL TAX (Enter in Item 1 above)
Shells and cartridges . woe ee we [11% *See instructions on page 2.
Your name, T
address, FF
employer im Quarter ending 7
identification FD
number, and FP
calendar Employer identification number
quarter of 1
return. T
(If not a
correctly
printed, L a)
please
change.)

Please return this form to your Internal Revenue Service Center
(See last item of instructions, ‘Where to File’) rorm 720 (Rev. 2-73)


Instructions

Additional information on excise taxes is
contained in IRS Publication 510 available
free from any Internal Revenue office.

Name, address, and employer identification
number.—After you first file Form 720, a pre-
addressed return will be mailed to you every
three months. Please use the preaddressed
form. If it is lost, request another. Unless al-
ready shown on the preaddressed form, enter
at the right of the space provided for the tax-
payer’s name, the ending month and year of
the calendar quarter for which the return is
filed. If you must use a non-preaddressed
form, type or print your name, address, and
employer identification number exactly as
shown on previous returns. Do not use an
employer identification number assigned to a
prior owner.

You must file a return for each quarter
whether or not you incurred any liability. If you
have no tax to report, enter “None” in item 3.

Adjustments.—Generally, an adjustment
may be allowed for all the taxes reported
on Form 720 to correct mathematical errors
or to adjust payments of tax on transactions,
charges, or processing that are entitled to be
made tax free.

Enter in item 2 the total of any adjust-
ments claimed. If you claim an adjustment,
attach a statement explaining the basis for it
and state that you have the required support-
ing evidence. You must identify the IRS Num-
bers being adjusted, and the amount of
adjustment claimed for each.

You may claim a refund on Form 843 (but
adjustment may not be allowed on Form 720)
to recover tax paid with respect to sugar ex-
ported, or any manufactured sugar or article
manufactured therefrom, used as or in the
production of livestock feed, for the distilla-
tion of alcohol, or for the production of alco-
hol (other than alcohol produced for human
food consumption).

Exemptions.—Some transactions involving
sales of taxable articles, payment for services
and facilities, and the sale, processing, or use
of products or commodities are exempt from
tax. As an illustration, certain exemptions are
provided for export transactions and for
transactions involving States, political subdi-
visions, and certain nonprofit educational
organizations.

Records.—Keep on file at your principal
place of business or some other convenient
location, duplicate copies of your return and
accurate records and accounts of all trans-
actions. They must contain sufficient informa-
tion to indicate whether the correct amount of
tax has been computed and paid. Also, keep
records and information in support of all ad-
justments claimed and all exemptions. In the
case of most taxes reportable on Form 720,
keep your records at least four years from the
date: (1) the tax becomes due, (2) the tax is
paid, (3) an adjustment is claimed, or (4) a
claim for refund is filed, whichever is later. If
required, your records must be available for
inspection by the Internal Revenue Service.

Penalties and Interest

Avoid penalties and interest by correctly
filing, depositing and paying tax when due.

Page 2

The law provides a penalty of from 5 percent
to 25 percent of the tax for late filing unless
reasonable cause is shown for the delay. If
you are late filing a return or depositing tax,
send a full explanation with the return. Penal-
ties are provided for willful failure to col-
lect and pay tax, keep records, file returns,
and for filing false or fraudulent returns.

Penalties are also provided for late pay-
ment of tax and for not depositing the proper
amount of tax when due. Neither penalty ap-
plies if you can show reasonable cause for
failure to pay or deposit when due.

Taxes not deposited when due.—The pen-
alty for failure to make deposits when due is
5 percent of the amount of the underpayment,
without regard to how long the underpayment
continues.

Taxes not paid when due.—The penalty for
failure to pay taxes when due is 1 of 1 per
cent of the unpaid amount for each month
or part of a month it remains unpaid—up to
25 percent of the unpaid amount. The penalty
applies to any unpaid tax shown on a return.
It also applies to any portion of additional tax
shown on a bill if it is not paid within 10 days
from the date of the bill. This penalty is in
addition to the 6 percent interest charge on
late payments.

Facilities and Services

Policies issued by foreign insurers.—The
rates of tax not shown on the face of the
form are:

(1) Casualty insurance and indemnity
bonds.—Four cents on each dollar, or frac—
tional part thereof, of the premium paid on
the policy of casualty insurance or the
indemnity bond.

(2) Life insurance, sickness and accident
policies, and annuity contracts.—One cent
on each dollar or fractional part thereof, of the
premium paid on the policy of life, sickness
or accident insurance, or annuity contract.

(3) Reinsurance.—One cent on each dol-
lar, or fractional part thereof, of the premium
paid on the policy of reinsurance covering any
of the contracts taxable under (1) or (2).

Manufacturers

These taxes apply to the sale or use by the
manufacturer, producer, or importer of the
articles listed.

Basis for tax and adjustments.—Generally,
the tax is computed on the price for which the
taxable article is sold or leased. If a taxable
article is sold or leased under a conditional
sales contract, installment payment contract,
or chattel mortgage arrangement, compute
and pay tax on each payment received during
the quarter covered by the return. For ex-
clusion from the sale price of finance charges,
and local advertising charges, consult your
District Director. Consult him also on special
rules that apply to the lease of any article.

If charges for transportation, delivery, in-
surance, and installation are included in the
manufacturer's sale price, you may adjust
the price by deducting the actual amount paid
or incurred for such expenses. For the cir-
cumstances under which adjustments may be
made and about the evidence required to sup-
port such adjustments, consult your District
Director or the applicable regulations. Adjust-

ment of the manufacturer’s sale price may
also be made for discounts, rebates, and other
similar allowances granted to the purchaser.
But such discounts, etc., may not be antici-
pated. Adjustments may only be made if the
purchaser has taken advantage of the dis-
count, etc., before the return is required to be
filed.

If the adjustments are made or the re-
quired evidence is obtained after the return is
filed, the amount of tax involved may be
considered an overpayment and you may then
take a credit for that amount on a later
return, or file a refund claim.

Tax shall be computed on a price estab-
lished by the Commissioner of Internal Rev-
enue if an article is sold by the manufacturer
or producer at retail, on consignment, or
otherwise than through an arm’s-length trans-
action at less than the fair market price, or if
the article is used by the manufacturer or pro-
ducer in a manner subject to tax.

Products and Commodities

These taxes apply to the manufacture of
manufactured sugar; the retail sale or use of
diesel fuel, special motor fuels and fuel used
in noncommercial aviation; the sale of gaso-
line, tread rubber, or the sale or lease of tires
or inner tubes, by their manufacturer, pro-
ducer, or importer; and the sale of lubricating
oils by their manufacturer or producer.

The rates of tax not shown on the face of
the form are as follows:

Manufactured sugar.—On all manufactured
sugar, 0.53 cent per pound of the total sugars
therein.

Diesel fuel and special motor fuels:

(a) Four cents a gallon if sold for use or
used as a fuel in a highway vehicle, except
that the tax is 2 cents a gallon if sold for use
or used in a highway vehicle (A) which, at the
time of sale or use, is not registered and is
not required to be registered for highway use
under the laws of any State or foreign country,
or (B) which, in the case of a highway vehicle
owned by the United States, is not used on
the highway.

(b) If fuel is sold subject to tax at the 2
cents a gallon rate, an additional tax of 2
cents a gallon is imposed on the user if the
fuel is used in a highway vehicle (A) which,
at the time of use, is registered or is required
to be registered for highway use under the
laws of any State or foreign country, or (B)
which, in the case of a highway vehicle owned
by the United States, is used on the highway.

(c) Two cents a gallon on special motor
fuels sold for use or used as a fuel in a motor
boat or other vehicle that is not a highway
vehicle.

A tax is imposed on aviation fuel sold for
use or used in noncommercial aviation. The
retailers tax on aviation gasoline is in addi-
tion to the manufacturers tax. If fuel was
taxed on its sale as a special motor fuel but
subsequently it is used as aviation fuel, the
tax on the user would be the difference be-
tween the 7¢ rate and the 4¢ or 2¢ rate
previously paid on the sale of the fuel to the
user.

(Instructions continued on page 4.)


Form 720

(Rev. Feb. 1973)
Department of the Treasury
Internal Revenue Service

Quarterly Federal Excise Tax Return

1. Total tax. (Before making entries in items 1 to 9, compute your total tax in Part II below.) . ee
2. Adjustments. (See instructions. Attach statement explaining adjustments.)
3. Tax as adjusted. (Item 1 plus or minus item 2.) : eo ee
4. (@) Record of Tax Liability. (See instructions on page 4.) (b) Record of Federal Tax Deposits
Period Amount of Liability Bete Amount
5 Ist-15th day V/353
Airst | aeth-tast day _
Total for month YhllMdU: _ ~
1st—15th day
Second |" léth-last dey | =. — _
Total for month QMolcclulu«
; Ist~15th day 7
noid 16th—last day =... oe 7
Total for month Yu clue:
(c) Total Liability for Quarter . MW
(@) Final deposit made for quarter (see note under item 7). | _
(e) Total deposits for quarter (including final deposit made for quarter) . a
5. Overpayment from previous quarter —_> “Aa
6. Total deposits (item 4(e) plus item 5) . —_ a
7. Undeposited taxes due (item 3 less item 6; this should be | $100 or less), Pay to Internal Revenue Service . ——> |

Note: If undeposited taxes due at the end of the quarter are more than $100, the entire balance
must be deposited. This deposit must be entered in the deposit schedule above in item 4(d).

8. If item 6 is more than item 3, enter excess here > $

and check if you want it: [] applied to your next return, or [1] refunded to you.

9. If not liable for returns in succeeding quarters, write “FINAL” here p>

and return this form to your Internal Revenue Service Center.

Title (Owner, ete.

ss of perjury, | declare that | have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief it is true, correct and complete.

__ Date... =

Facilities and Services Rate Tax RS | Products and Commodities Rate Tax Rs
Toll telephone service . . . . - -
Teletypewriter exchange service . . «|| 9% 22 | Sugar . Soe e)
Local telephone service . sone Diesel fuel and special motor fuels . c*)
Transportation of persons by air . 26 | Gasoline (manufacturers tax) . Ag gal.
Use of international air travel facilities . | 271 used Fuel other

in poneem: than gasoline 7¢ gal.
Transportation of property by air . 5% 28 | mercial
Policies issued by foreign insurers . “ 30 | aviation Gasoline (retailers tax) | 3¢ gal.
Manufacturers Lubricating oil . 6¢ gal.
Truck, bus, and trailer chassis and bodies;

wat 10% res | snug sence we

Parts or accessories for trucks, etc. 8% othe. 2 se ee

Inner tubes... we ee
Fishing rods, etc., and artificial lures, ete. | 10% Tread rubber (camelback). . . . +
Pistols and revolvers. . . . 10%
Firearms. 11% TOTAL TAX (Enter in Item 1 above)
Shells and cartridges . 11% *See instructions on page 2.

YOUR

Type or print in this space your name, address, and employer identification number

as shown on original.

COPY

Return for calendar quarter ending
(Enter month and year as on original)