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 less 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

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.

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, deposit it within three
banking days after the close of the semi-
monthly 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:

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.

Page 4

Instructions (Continued)

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.

Notes:
(1) If you use options 2, 3, or 4 to make

deposits you are not required to keep books
and records on a semimonthly basis.

(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, how-
ever, the unpaid balance is for communica-
tions 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.

Transportation and communications
taxes.—The tax computed on the basis of
amounts billed or tickets sold for a monthly
period is considered as collected during the
succeeding monthly period.

The tax computed for a semimonthly pe-
riod is considered as collected during the
second succeeding semimonthly period.

You must notify the Commissioner before
changing from one tax computation method to
another.

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 tex for the first time or
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 refunded
or applied to your next return. Show the ap-
propriate amount in the space provided in
item 8. Any amount shown there should be
entered in item 5 of your next return.

US. GOVERNMENT PRINTING OFFICE 1872—0-456-542

When to File

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

Trans. and
| comm, due
| on or before

All excise taxes |
other than trans. |

Quarter covered §— | other than

| or before
January, February, | 7

April 30 May 31
April, May, June | july 31 ‘August 31
July, August,

September October 31 November 30

October, November,

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.

Unless already shown on the preaddressed
form, enter at the right of the space pro-
vided for the taxpayer's name, the ending
month and year of the calendar quarter the
return is filed for.

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.

Where to File

If your principal business,
office or agency, or legal

residence in the ‘case of an
individual, is located in

a 4

Use this address

Vv

Internal Revenue Service

New York

enter
1040 Waverly Avenue
Holtsville, N.Y. 11799

«Internal Revenue Service

Connecticut,

Maine, Massachusetts,
New Hampshire,
Rhode Island, Vermont

310 Lowell Street

Andover, Mass. 01812

District of Columbia, Internal Revenue Service
Delaware, Maryland, Center
Pennsylvania, 11601 Re
New Jersey Philadel
Alabama, Florida,
Georgia, Mississippi,
South Carolina

velt Boulevard
Pa. 19155

Internal Revenue Service

enter
4800 Buford Highway
Chamblee, Georgia 30006

Michigan, Ohio Internal _ Revenue Service

Cincinnati, Ohio 45298

Arkansas, Kansas, Internal Revenue Service

Louisiana, New Mexico Center

Oklahoma, Texas 2051S. Interregional Hwy
Austin, Texas

Internal Revenue Service

‘Alaska, Arizona, Colorad
Idaho,’ Minnesota, Montana,
Nebraska, Nevada, North
Dakota, Oregon, South
Dakota, Utah, Washington,
Wyoming

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

Internal Revenue Service
Center

2306 E. Bannister Road

Kansas City, Mo. 64170

Internat Revenue Service

enter
5088 Fast Butler Avenue
Fresno, California 93730

Indiana, Kentucky, Internal Revenue Service
North Carolina, Tennessee, enter
Virginia, West’ Virginia 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.


corm 720
Deparment of the resury Quarterly Federal Excise Tax Return

Internal Revenue Service

1. Total tax. Before making entries 1 to 9, compute your total tax in Part II below
2. Adjustments (See instructions). . 2 2 2 ee ee ee
3. Tax as adjusted. (Item 1 minus item 2).

The Revenue Act of 1971 repealed the 7%
excise tax on passenger automobiles and auto-
mobile trailers, and the 10% excise tax on
certain light-duty trucks, buses, and trailers,
effective December 11, 1971. The Act also
contained provisions authorizing consumer
refunds and floor stocks refunds.

Final deposit made for quarter...

4. Total deposits for quarter (including final deposit made for quarter). - . . . - . 2. 2 ee
Note: If undeposited taxes due-et 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 and included
in item 4.

5. Overpayment from previous quarter

- Record of Federal Tax Deposits
| Date of Deposit | Amount

Total deposits (item 4 plus item 5). . - - + +

If item 6 is more than item 3, enter excess here Bm $

and check if you want it: [] applied to your next retu

rm, or [] refunded to you.

7. Undeposited taxes due (item 3 less item 6—this should be $100 or less). Pay to Internal Revenue Service
8.
9.

If not liable for returns in succeeding quarters write “FINAL” here B>

Under penaities of perjury, | declare tl

this return, including accompanying schedules and statements, and to the best of my knowled

and return this form to your Internal Revenue Service Center.

‘true, correct and complete.

Faci
Toll telephone service

Local telephone service

Title (Owner, ete.) Date
| i} | 1
ies and Services Rate | Tax IRs Products and Commodities Rate Tax | ies
Teletypewriter exchange service 22 | Sugar 60
Transportation of persons by air Diesel fuel and special motor fuels 61

Gasoline (manufacturers tax)
Use of international air travel facilities

Lubricating oil
i by
Transportation of property by air highway vehicle type
Tires | laminated
other

Policies issued by foreign insurers
Manufacturers

Pistols and revolvers Inner tubes

Truck, bus, and trailer chassis and bodies; Tread rubber (camelback)

tractors 10%
; ; Fuel used Fuel other
Other auto chassis and bodies, etc . | 7% in nonce: than gasoline
Parts or accessories for trucks, etc. 8% mercial
aviation Gasoline (retailers tax). | 3¢ gal.

Fishing rods, etc., and artificial lures, g

etc. 10%
Firearms . . |11% ____ TOTAL TAX (Enter in Item 1 above)
Shells and cartridges - (11% *See instructions.

Your name,

midress,

mployer Quarter ending

identification r 1
number, and

calendar Employer identification number
quarter of

return.

(If not

correctly

printed, LL J
please

change.)

Please return this form to your Internal Revenue Service Center
(See last item of instructions, ‘Where to File’’)

Form 720 (Rev. 3-72)


Instructions

Additional information on excise taxes is
contained in IRS Publication 510 which may
be obtained 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. If you must
use a non-preaddressed form, type or print
your name, address, and employer identifica-
tion number exactly as shown on previous re-
turns. Do not use an employer identification
number assigned to a prior owner.

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 that you have the required supporting
evidence. You must identify the IRS Numbers
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. Keep
these records at least three years from the
date the tax becomes due or the date the tax
is paid, whichever is later. If required, they
must be available for inspection by the In-
ternal Revenue Service.

Penalties and Interest

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

Page 2

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 4 of 1
percent 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 pre-
scribed by law.

Facilities and Services

Policies issued by foreign insurers:

(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).

Telephone service.—if payment is made
and tax collected by inserting coins in a tele-
phone, compute tax to the nearest multiple
of 5 cents. Treat one-half or a greater fraction
of 5 cents as 5 cents, and ignore a lesser
fraction.

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-

Yr ULS. GOVERNMENT PRINTING OFFICE : 1972—O-456-542

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 an
article is subject to tax when usec by the
manufacturer.

Products and Commodities

These taxes apply to the manufacturer 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:

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.

Laminated Tires

Laminated tires.—Laminated tires (not of
the type used on highway vehicles) which con-
sist wholly of scrap rubber from used tire
casings with an internal metal fastening agent.

(Continued on the back of your copy)


corm 720
Deparment f the Treasury Quarterly Federal Excise Tax Return

Internal Revenue Service

1. Total tax. Before making entries 1 to 9, compute your total tax in Part Il below... ee ee ee ee  P _

2. Adjustments (See instructions) .
3. Tax as adjusted. (Item 1 minus item 2)

Record of Feder:
Date of Deposit Amount

The Revenue Act of 1971 repealed the 7%
excise tax on passenger automobiles and auto-
mobile trailers, and the 10% excise tax on
certain light-duty trucks, buses, and trailers,
effective December 11, 1971. The Act also Joes
contained provisions authorizing consumer {-

|.
\

refunds and floor stocks refunds.

Final deposit made for quarter... . ee a

4, Total deposits for quarter (including final deposit made for quarter). . . . 2. 2 2 2. ee
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 and included
in item 4.

5. Overpayment from previous quarter 7
6. Total deposits (item 4 plusitem5). 2... 2 ee Se
7. Undeposited taxes due (item 3 less item 6—this should be $100 or less). Pay to Internal Revenue Service . . . . ~
8. If item 6 is more than item 3, enter excess here m $ and check if you want it: [] applied to your next
9. If not liable for returns in succeeding quarters write “FINAL” here and return this form to your Internal Revenue Service Center.
Facilities and Services Rate Tax jirs } Products and Commodities Rate Tax RS
Toll telephone service 1109 Ne
Teletypewriter exchange service 10% Sugar (*) 60
Local telephone service
Transportation of persons by air » 8% 26 | Diesel fuel and special motor fuels (*) 61
$2.00 Gasoline (manufacturers tax) | 4¢ gal. 62
Use of international air travel facilities mL ; |
person
Lubricating oil | 6¢ gal.
Transportation of property by air %
Port Property by 5% [ highway vehicle type ‘1o¢ Ib.
Policies issued by foreign insurers () Tires | laminated 1¢ Ib 66
Manufacturers, other 5¢ Ib.
Pistols and revolvers 10% -/32 | Inner tubes /10¢ Ib.
Truck, bus, and trailer chassis and bodies; Tread rubber (camelback) 5¢ Ib.
tractors 10% 33
9 Fuel used in ( Fuel other
Other auto chassis and bodies, etc T% nnn 34 | Fuel use than gasoline 69
Parts or accessories for trucks, etc. 8% 48 | mercial
aviation Gasoline (retailers tax) 3¢ gall 14
Fishing rods, etc., and artificial lures, ¢ gal,
etc. 10%
Firearms _ 1% TOTAL TAX (Enter in Item 1 above)
Shells and cartridges 11% *See instructions. -

YOUR COPY

Type or print in this space your name, address, and employer identification number Return for calendar quarter ending
as shown on original. (Enter month and year as on original)