excluded whether the liability for such tax is imposed on the vendor
or the vendee. The circumstances under which adjustments may
be made and the evidence required to support such adjustments may
be ascertained by consulting your District Director.

Adjustment of the retail sale price may also be made in the case
of discounts, rebates, and other similar allowances granted to the
purchaser. However, such discounts, ete., may not be anticipated.
Adjustment may only be made if the purchaser has taken advantage
of the discount, etc., before the return is required to be filed.

Where the adjustments are made subsequent to the time the return
is filed or if the required evidence is obtained subsequent to that
time, the amount of tax involved may be considered an overpayment
and you may then take a credit for that amount on a subsequent
return or you may file a refund claim.

FACILITIES AND SERVICES

These taxes apply to the sale or lease of admissions, boxes, or
seats, and payments received for (1) public performance for profit
by roof gardens, cabarets, or other similar places, (2) club dues,
(8) telephone, telegraph, and radio facilities, (4) transportation of
persons, and (5) the use of safe-deposit boxes. The rates of tax
not shown on the face of the form follow:

Subject Rate
a. Admissions (except horse or dog races) .. --| 1¢ for each
10¢ or ma-
jor fraction
thereof in
excess of
$1
b. Admissions to horse or dog races... 1¢ for each
5¢ or ma-
jor fraction
thereof
*e. Roof gardens, cabarets, ete., including admission,
service, ete., charges | 10%
d. Ticket brokers—excess charges—except horse or
dog races... ---| 10%
Ticket brokers—excess charges—horse or dog
races -. ---| 20%
e. Leases, ete.—boxes and seats—except horse or
dog races. 10%
Leases, ete. 20%
f. General telephone servic: | 10%
**g. Toll telephone or radiotelephone message or
conversation for which there is a toll charge..| 10%
**h, Telegraph, cable, or radio dispatches or mes-
sages.. 10%
é. Wire mileage service, teletypewriter exchange
service and any other telephone service for
which no tax is payable under classifications
_ fg, h, and j- 10%
j. Wire and equipment service (including stock quo-
tations and information service, burglar or fire-
alarm services, and all similar services) .......| 8%

*A proprietor is responsible for collection of the tax from the concessionaire and
payment to the District Director of Internal Revenue.

The cabaret tax does not apply to “milk bars” which sell light refreshments and
provide space for dancing. To be entitled to this exemption, the following condi-
tions must be met: (1) No alcoholic beverage is served or permitted to be consumed;
(2) only light refreshments are served; (3) no charge is made for dancing; and
(4) any music provided or permitted is either instrumental or other music supplied
without any charge to the operator of the establishment, or mechanical music.

**Where payment is made and tax collected by inserting coins in a telephone, tax
should be computed to the nearest multiple of 5 cents. One-half or a greater frac-
tion of 5 cents shall be treated as 5 cents and a smaller fraction shall be ignored.

Life membership.—A life member can either pay tax equal to the
tax paid by members having privileges similar to his or he may elect
to pay a one-time tax on the cost of the life membership. Where
the first payment for life membership is made on or after July 1,
1959, election must be made no later than the day of the first pay-
ment for the life membership. Consult your District Director for
information as to how election may be made.

MANUFACTURERS

These taxes apply to the sale by the manufacturer, producer, or
importer of the articles listed. The rates of tax not shown on ‘the
face of the form are:

Refrigerators, freezers—5 percent.
Air conditioners—10 percent.

Cameras, lenses, and film—10 percent.
Projectors of household type—5 percent.
Mechanical pencils and pens—10 percent.

Mechanical lighters for cigarettes, cigars, and pipes—10 cents for
each lighter but not more than 10 percent of the price for which sold.

Basis for tax and adjustments.—Generally the tax is computed on
the price for which the taxable article is sold or leased. Where a
taxable article is leased or is sold under a conditional sales contract,
installment payment contract, or chattel mortgage arrangement, tax
must be computed and paid on each payment received during the
quarter covered by the return. For exclusion of: (1) finance
charges, and (2) local advertising charges from the sale price, con-
sult your District Director. Special rules apply to the lease of
any article; for further information, consult your District Director.

Where charges for transportation, delivery, insurance, and in-
stallation are included in the manufacturer's sale price, the price
may be adjusted by deducting the actual amount paid or incurred
for such expenses. The circumstances under which adjustments
may be made and the evidence required to support such adjust-
ments may be ascertained by consulting your District Director or the
applicable regulations. Adjustment of the manufacturer's sale
price may also be made in the case of discounts, rebates, and other
similar allowances granted to the purchaser. However, such dis-
counts, etc., may not be anticipated. Adjustments may only be made
if the purchaser has taken advantage of the discount, ete., before
the return is required to be filed.

Where the adjustments are made subsequent to the time the
return is filed or if the required evidence is obtained subsequent to
that time, the amount of tax involved may be considered an over-
payment and you may then take a credit for that amount on a sub-
sequent return or you may file a refund claim.

Tax shall be computed on a price established by the Commissioner
of Internal Revenue where (1) an article is sold by the manufacturer
or producer at retail, on consignment, or otherwise than through
an arm’s-length transaction at less than the fair market price, or
(2) an article is subject to tax when used by the manufacturer.
A special rule is also provided for establishing constructive sales
price where an article is sold at retail to a retailer or to a “special
dealer” if certain conditions are met. A request for determination
as to application of the special rule should be made to the Com-
missioner.

PRODUCTS AND COMMODITIES

These taxes apply to the first domestic processing of coconut
oil, ete.; the manufacture of manufactured sugar; the retail sale
or’use of diesel fuel and special motor fuels; the sale of gasoline,
matches, or tread rubber, or the sale or lease of tires or inner tubes,
by the manufacturer, producer, or importer thereof; and the sale of
cutting oils and other lubricating oils by the manufacturer or pro-
ducer thereof. The rates of tax not shown on the face of the form

‘ollow:

Manufactured sugar:

(a) On all manufactured sugar testing by the polariscope 92
sugar degrees, the rate is 0.465 cent per pound, and for each addi-
tional sugar degree, 0.00875 cent per pound additional, and fractions
of a degree in proportion; and

(b) On all manufactured sugar testing by polariscope less than
92 sugar degrees, 0.5144 cent per pound of the total sugars therein.

Diesel fuel and special motor fuels:

(a) Four cents per gallon sold for use or used as a fuel in a
highway vehicle, except that the tax is 2 cents per gallon sold for
use or used in a highway vehicle (A) which, at the time of such 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 per gallon rate,
an additional tax of 2 cents per gallon is imposed on the user it
such fuel is used in a highway vehicle (A) which, at the time of
such 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) Special motor fuels sold for use or used as a fuel for the
propulsion of a motorboat, airplane, or motor vehicle other than a
highway vehicle, 2 cents per gallon.

Lubricating oil: Six cents per gallon.
Cutting oil: Three cents per gallon.

Laminated tires: Laminated tires (not of the type used on high-
way vehicles) which consist wholly of scrap rubber from used tire
casings with an internal metal fastening agent.

U.S. GOVERNMENT PRINTING OFFICE :1961—O-594154


‘Rev.

FORM 720 (Rev. June 1961)
U.S. TREASURY DEPARTMENT QUARTERLY FEDERAL EXCISE TAX RETURN

Internat Revenue Service

1. Total tax. Before making entries 1 t0 5, fill in applicable lines below For District Director's use
2. Credits (See instructions),

3. Net tax due (Item 1 minus Item 2)....... 0+. eeeeeeeeeeees

4. This item is for the use Serial No. of Form 537 | Date of Deposit Amount

of those taxpayers who
make deposits of Fed-

eral Excise Taxes. (See Tax .. $.
instructions.) Credit

for deposits will not be Pen...
allowed unless deposi- Ine...
tory receipts on Form Total. §

537 are enclosed. - a

Make check or money order
payable to Toteroal Revenue
service.

|S.

5. Balance of tax to be paid with this return (Item 3 minus Item 4)... wee IS

Total of depositary receipts.

I declare under the penalties of perjury that this return (including any accompanying schedules and statements) has been examined by me and to the best of my knowledge and belief
isa true, correct, and complete return,

Signature .... -. Date ....
PI 2:

RETAILERS MANUFACTURERS (Continued) Rate 5 Tax No
Luggage, etc Refrigerators, freezers, air conditioners.....{ (!) 39
Jewelry, etc. Sporting goods ........ 02.0000 000s ..| 10% 40
FUIS 0. eee eee eeeeeec ee ee eee ee ee een es . Fishing rods, etc., and artificial lures, etc...} 109% |. 41
Toilet preparations, etc 13 |} Electric, gas, and oil appliances...........] 5% 42
FACHITIES AND SERVICES . Business and store machines ............ 10% 43
Admissions .......0...0000.0cc ec eee ees Cameras, lenses, and film; projectors. . ¢) 44
Ticket brokers . Electric light bulbs and tubes . 10% 45
Leases, etc.... . Firearms, shells, and cartridges . . 11% 46
Roof gardens, cabarets, etc...........-.55 Mechanical pencils, pens, and lighters .... . 10} 47
Box office sales—excess over regular prices . PRODUCTS AND COMMODITIES

Club dues, initiation fees, life memberships . . Coconut ofl... 66sec cece eens ees ve. { 2¢ Ib. | 33

Telegraph, toll telephone, etc., messages ... Combinations of coconut oil & other sub-

Wire mileage service, wire and equipment stances 2¢ Ib.

service, CIC... 6. eee cece eee eee Sugar. . 10)
General telephone services Diesel fuel and special motor fuels O)
Transportation of persons, etc. Gasoline vee 4¢gal.
Use of safe deposit boxes... Lubricating oil, cutting oils. . Oy
MANUFACTURERS Matches {* fancy wooden 514¢M
Pistols and revolvers - ther. . 2¢ M?
Truck, bus and trailer chassis and. bodies; highway vehicle type. 10¢ Ib.

33 || Tires {si laminated. 1g Ib.
Other auto chassis and bodies, ete 34 other . ...| 5¢ Ib.
Parts or accessories for autos, trucks, etc. 35 || Inner eubes . becveeee ees 10¢ Ib.
Radio, TV sets, phonographs, components . . 36 || Tread rubber Ccamelback) 0... ee 5¢ Ib.
Phonograph records . . 37
Musical instruments . . | 38 TOTAL (Enter in Item 1 above) ..... cece lS
1See instructions. But not to exceed 10% of selling price.

U.S. TREASURY DEPARTMENT POSTAGE AND FEES PAID Please return this form in

VENUE SERVICE
INTERNAL REVENU! an envelope addressed to

District Director of Internal Revenue 3
ict Director shown

OFFICIAL BUSINESS
Return for calendar quarter.

Postmaster: This matter must be forwarded and delivered
. . . without payment of postage
Name, address, and identification number of taxpayer (If incorrect, show correction) treat In accordance with section 158.6, Postal Manual.



Instructions for Use of Form720—Quarterly Federal Excise Tax Return

Taxpayer's name, address, and identification number—After you
have once filed a return, your District Director of Internal Revenue
will mail you a preaddressed Form 720 every three months. This
form should be used in filing your return. Ifa preaddressed form is
lost, request another. If you must use a non-preaddressed form,
type or print your name and identification number exactly as shown
on previous returns. Do not use an identification number assigned
to a prior owner. If filing for the first time, consult your District
Director.

Payment of tax—monthly deposits.—All taxes are due and payable
without assessment or notice. If you are liable in any month (ex-
cept the third month of a quarter) for more than $100 of the taxes
listed on Form 720, you are required to deposit such taxes in an
authorized local bank or a Federal Reserve bank on or before the last
day of the next month. Deposits for the third month of any quarter,
and deposits of $100 or less for the first or second month of a quar-
ter, are permissible but not required. If you choose to make a
deposit for the last month of a quarter, do so in sufficient time to
enable the Federal Reserve bank to return the validated receipt to
you so that it can be attached to and filed with your quarterly return.

Each deposit is to be accompanied by Form 537, Depositary Receipt
for Federal Excise Taxes, which will be validated by the Federal Re-
serve bank and returned to you. The validated receipts are to be
listed in Item 4 of Form 720 and submitted with such return, together
with a remittance to pay the balance of tax shown in Item 5. Form
587 to accompany the initial deposit may be obtained from your Dis-
trict Director. Thereafter, the form will be mailed to you by the
Federal Reserve bank receiving your deposit.

Any tax due which is not deposited must be remitted with the
return.

Quarterly returns and due dates.—A return must be filed for each
quarter of the calendar year as follows

Due on or
Quarter covered before
January, February, March April 30
April, May, June... Tuly 31
July, August, September. _.| October 31
October, November, December... January 31

However, if your return is accompanied by depositary receipts,
Form 537, showing timely deposits in full payment of the taxes due
for each month of the quarter, you are allowed an additional 10 days
for filing your return.

Unless already shown on the form received from the District
Director, enter at the right of the space provided for the taxpayer’s
name the months and year of the quarter for which the return is
filed.

A return must be filed for each quarter whether or not liability
is incurred. If you have no tax to report, enter “None” in Item 5.
If you no longer have a business operation subject to tax reportable
on Form 720, write “Final Return” at the top of your last return.

Where to file——Form 720 is printed in duplicate. Send the orig-
inal to the District Director for the Internal Revenue district in
which your principal place of business is located and keep the du-
plicate. If your business is located in Puerto Rico, file this return
with the U.S. District Director of Internal Revenue, 1105 Fernandez
Juncos Avenue, Stop 17, Santuree, P.R. If you have no principal
place of business in an Internal Revenue district of the United
States, file your return with the Director of International Opera-
tions, Internal Revenue Service, Washington 25, D.C.

Credits.—Where more than the correct amount of tax has been
paid on any previous return, the overpayment may be taken either
as a credit on any subsequent Form 720 or may be made the subject
of a separate claim for refund (in which case ask your District
Director for Form 843). Generally, a credit may be taken with
respect to all the taxes reported on Form 720 to correct mathe-
matical errors or to adjust payments of tax on transactions, charges,
or processing which are entitled to be made tax free. Information
and instructions covering credits and the evidence required to sup-
port such credits may be obtained by consulting your District
Director or the regulations covering the specific tax involved.

The total of all credits taken should be entered in Item 2 of Form
720. Where a credit is taken there should be submitted with the re-
turn a statement explaining the basis for the credit and that the re-
quired supporting evidence is in your possession.

Refunds may be claimed as provided by law (but credit may not

be taken) to recover tax paid with respect to sugar exported, or
used as livestock feed, or in the distillation of alcohol, or to recover
tax paid with respect to the first domestic processing of oils subse-
quently exported.

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 illustra-
tion, certain exemptions are provided for export transactions and
for transactions involving States, political subdivisions, and certain
nonprofit educational organizations. For information and instruc-
tions relating to transactions exempt from tax, the procedure to be
followed, and the type of evidence required to support such exemp-
tions, consult your District Director or the regulations applicable to
the tax involved.

Records.—Keep on file at your principal place of business or some
other convenient location, duplicate copies of your return and accu-
rate records and accounts of all transactions containing sufficient
information to indicate whether the correct amount of tax has been
computed and paid. Records and information in support of all
credits taken and all exemptions and adjustments must also be kept.
All records shall be maintained for a period of at least 4 years from
the date the tax was paid. Such records shall be available for in-
spection by the Internal Revenue Service.

Penalties and interest.—Avoid penalties and interest by filing cor-
rect returns on time, making timely deposits of tax, and by paying
the correct tax due with the returns. The law provides a penalty of
from 5 percent to 25 percent of the tax for late filing unless reason-
able cause is shown for the delay. In the event you are late in
filing a return or in making a deposit of tax, send a full explanation
with the return. Penalties are also imposed by law for willful
failure to collect tax, pay tax, keep records, file returns, and for the
filing of false or fraudulent returns.

RETAIL DEALERS

These taxes apply to the sale of the following articles at retail:

Luggage includes (1) trunks, valises, traveling bags, suitcases,
satchels, overnight bags, hatboxes for use by travelers, beach bags,
bathing suit bags, briefcases regardless of material of which made,
and salesmen’s sample and display cases, (2) purses, handbags,
pocketbooks, wallets, billfolds, and card, pass, and key cases, (3)
toilet kits and cases and other cases, bags, and kits that are listed
in the law.

Jewelry includes articles commonly or commercially known as
jewelry whether real or imitation; certain stones by whatever name
called whether real or synthetic such as a diamond, emerald, ruby,
sapphire, jade or pearls (natural and cultured), and a number of
other stones that are specifically named in the law; articles made of,
or ornamented, mounted, or fitted with precious metals or imitations
thereof; watches and clocks and cases and movements therefor; gold,
gold-plated, silver, or sterling flatwear or hollow ware and silver-
plated hollow ware; opera glasses, lorgnettes, marine glasses, and
binoculars. Articles not subject to tax as jewelry are those used
for religious purposes; surgical instruments; frames or mountings
for spectacles or eyeglasses; and fountain pens, pipes, and mechan-
ical pencils, if the only parts of the article which consist of precious
metals are essential parts not used for ornamental purposes.

Furs are articles made of fur on the hide or pelt and articles of
which such fur is worth more than three times as much as the next
most valuable component.

Toilet preparations include perfumes, essences, extracts, toilet
water, cosmetics, petroleum jellies, hair oils, pomades, hairdress-
ings, hair dyes, toilet powders, and any similar substances, articles,
or preparations used or applied or intended to be used or applied
for toilet purposes.

Basis for tax and adjustments.—The tax is computed on the price
for which the taxable article is sold at retail. Where a taxable
article is leased or is sold under a conditional sales contract, install-
ment payment contract, or chattel mortgage arrangement, tax must
be computed and paid on each payment received during the quarter
covered by the return. For exclusion of finance charges see your
District Director. Where charges for transportation, delivery, in-
surance, and installation are included in the retail price, the price
may be adjusted by deducting the actual amount paid or incurred
for such expenses. If stated by a separate charge, the amount of
any retail sales tax imposed by a State or municipality may be

(Continued on reverse of duplicate)



FORM 720 (Rev. June 1961)
U.S. TREASURY DEPARTMENT
Internal Revenue Service

QUARTERLY FEDERAL EXCISE TAX RETURN

1. Total tax. Before making entries 1 to 5, fill in applicable lines below

2. Credits (See instructions)........
. Net tax due (Item 1 minus Item 2).

4. This item is for the use Serial No. of Form 537

| Date of Deposit

of those taxpayers who
make deposits of Fed-
eral Excise Taxes. (See
instructions.) Credit
for deposits will not be |--
allowed unless deposi-
tary receipts on Form
537 are enclosed.

Total of depositary receipts... ./§——____

5. Balance of tax to be paid with this return (Item 3 minus Item 4)........... als
RETAILERS Rate s MANUFACTURERS (Continued) Rate Tex ih
Luggage, etc 10% Refrigerators, freezers, air conditioners .....} (1)
Jewelry, etc. 10% Sporting goods . 10%
Furs... -|10% Fishing rods, etc., and artificial lures, etc...| 10%
Toilet preparations, ctc...... 22... eseeeee 10% Electric, gas, and oil appliances...........] 5%
FACILITIES AND SERVICES Business and store machines . ...| 10%
Admissions ..........00-0e0eceeeee eens Cameras, lenses, and film; projectors.......| @)
Ticket brokers Electric light bulbs and tubes .. 10%
Leases, etc... Firearms, shells, and cartridges . 2 | 11%
Roof gardens, cabarets, etc. weer @ Mechanical pencils, pens, and lighters ..... 0)
Box office sales—excess over regular prices . .| 50% PRODUCTS AND COMMODITIES
Club dues, initiation fees, life memberships . .] 20% Coconut oil... .. cecevceeecceenioeeee 2¢ Ib.
Telegraph, toll telephone, etc., messages ...| (") Combinations of coconut oil & other sub-
Wire mileage service, wire and equipment stances. seve] 2¢ Ib.
service, CC... cece ee cece vere O) Sugar... 0. .cececeee ec ee eee ee eee eeees 0)
General telephone services -|10% Diesel fuel and special motor fuels . ¢)
Transportation of persons, etc + {10% Gasoline ....... 4¢ gal,
Use of safe deposit boxes ........ -|10% Lubricating oil, cutting oils. ..

MANUFACTURERS.

Pistols and revolvers ......... biveeees

Truck, bus and trailer chassis and bodies;
THACLOTS eee eee ee :

Other auto chassis and bodies, etc.

Parts or accessories for autos, trucks, etc...
Radio, TV sets, phonographs, components ..
Phonograph records ............0.0.000
Musical instruments ....... 002.000.0005

-| 32

33
34
35
36
7
38

fancy wooden. .
Matches
other... . .

highway vehicle type .|10¢ Ib.
Tires } laminated. . 1¢ Ib.

other . 5¢ Ib.
nner tubes ....2.. |Log Ib. |
Tread rubber (camelback) 5¢ Ib.

TOTAL (Enter in Item 1 above) ..... fs

1See instructions. ? But not to exceed 1

0% of selling price.

‘Type or print in this space your name, address, and identification number as shown on

original.

OUR COPY

Return for Calendar Quarter.
(Enter months and year as on original)