However (for all excise taxes other than those on transportation
and communications), you are allowed an additional 10 days for filing
your return, if your return is accompanied by depositary receipts,
Form 537, showing timely deposits in full payment of the taxes due
for the quarter.

Unless already shown on the preaddressed form, enter at the right
of the space provided for the taxpayer's name, the ending month and
year of the calendar 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.

Where to file——Taxpayers whose principal place of business or
principal office or agency is located in Alabama, Florida, Georgia,
Mississippi, North Carolina, South Carolina, or Tennessee should file
the original of Form 720 with the Director, Internal Revenue Service
Center, 4800 Buford Highway, Chamblee, Georgia 30006. If the
principal place of business is located in a State other than those
mentioned, the return should be filed with the District Director of
Internal Revenue for the district in which the business is located.
If the business is located in Puerto Rico, the return should be filed
with the Director of International Operations, U.S. Internal Reve-
nue Service, Ponce de Leon Avenue and Bolivia Street, Hato Rey,
Puerto Rico 00917. If the taxpayer has no legal residence or princi-
pal place of business in any Internal Revenue district, the return
should be filed with the Director of International Operations, Inter-
nal Revenue Service, Washington, D.C. 20225.

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 on Form 843. Generally, a credit
may be taken with respect to all the taxes reported on Form 720 to
correct mathematical errors or to adjust payments of tax on trans-
actions, charges, or processing which are entitled to be made tax free.

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
return a statement explaining the basis for the credit and that the
required 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.

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.

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 he kept.
All records shall be maintained for a period of at least 3 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 imnosed by law for willful
failure to collect tax, pay tax, keep records, file returns, and for the
filing of false or fraudulent returns.

FACILITIES AND SERVICES

Club dues, initiation fees, life memberships.—The tax on these items
has been repealed. However, if a club or organization received club
dues, initiation fees, or life memberships which were exempt from
tax by reason of section 4243(b) (payments for capital improve-
ments) for any period prior to January 1, 1966, and if any such
amount is not expended for such purpose within 3 years after the
date of payment of such amount, the club or organization is liable
for the tax imposed by section 4241,

Policies issued by Foreign insu:

(1) Casualty insurance and indemnity bonds—Four cents on
each dollar, or fraction 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 insur-
ance, or annuity contract.

(8) Reinsurance——One cent on each dollar, 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.—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 fraction of 5 cents shall
be treated as 5 cents and a smaller fraction shall be ignored.

MANUFACTURERS
_ These taxes apply to the sale 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 | . here 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, ete. may not be anticipated. Adjustments 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 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.

PRODUCTS AND COMMODITIES

These taxes apply to the manufacture of manufactured sugar; the
retail sale or use of diesel fuel and special motor fuels; the sale of
gasoline, tread rubber, or the sale or lease of tires or inner tubes, by
the manufacturer, producer, or importer thereof; and the sale of
lubricating oils by the manufacturer or producer thereof. The
rates of tax not shown on the face of the form follow:

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 per gallon if sold for use or used as a fuel in a
highway vehicle, except that the tax is 2 cents per gallon if 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 hithwav.

(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 if
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 ease 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.

LAMINATED TIRES

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.

USS. GOVERNMENT PRINTING OFFICE : 1967—0-265-353


FORM 720 (Rov. July 1967)

Us, TREASURY DEPARTMENT QUARTERLY FEDERAL EXCISE TAX RETURN

. Total tax. Before making entries 1 t0 5, fill im applicable lines Below .....0.22-00ceceeeeeeeeeees s___
. Credits (See instructions)
. Net tax due (Item 1 minus Item 2). eee eee . senes
. This item is for the use Serial No. of Form “a7 | Date of Deposit Amount
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.

For Internal Revenue Service use

pepe

Make check or money order
Total of depositary receipts... . |g payable to Internal Revenue
e.

5. Balance of tax to be paid with this return (Item 3 minus Item 4)......0-s.sess ee $

Under penalties of periury, 1 declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief it
is true, correct, and complete,

IMPORTANT.—If the items on which you previously paid excise taxes are no longer included below, or if you no longer have a business operation subject

to excise taxes, please write “Final Return” here and return the form to your Internal Revenue Service Office.

ERS |}
FACILITIES AND SERVICES Rate TAX No. || PRODUCTS AND COMMODITIES fate | TAX No.
Club dues, initiation fees, life memberships ..|@) Sar eee eee cece caer ees ro) 60
Toll telephone service ...
Teletypewriter exchange service ...........\|109% @) 61
Local telephone service |
Transportation of persons by air.......... 5% Gasoline . 2
Policies issued by foreign insurers ... 0) Lubricating oil ......... cs)
MANUFACTURERS
Pistols and revolvers ......0..02e0eee eee 10% highway vehicle type. .
Truck, bus and trailer chassis and bodies; Tires ) laminated. cd

TACOS eevee eee eee eee eee eeee vee 10% | 33 other...
Other auto chassis and bodies, etc 7% .| 34 |} Inner tubes o
Parts or accessories for trucks, etc .| 48 |] Tread rubber (camelback) . 68
Fishing rods, etc., and artificial lures, etc. .| 10% |.
TOTAL TAX (Enter in Item 1 above) .|...... is

Firearms, shells, and cartridges.......... {11% 'See instructions.
U.S. TREASURY DEPARTMENT POSTAGE AND FEES PAID

Internal Revenue Service INTERNAL REVENUE SERVICE

OFFICIAL BUSINESS

Your name,
address,
‘employer

identification
number and Employer Identification No,

calendar
quarter of >

canes L 4

Quarter ending 7

treat In accordance with

Postmaster: _ 1
change) Section 355.56 of Postal Manual.

PLEASE RETURN THIS FORM TO YOUR INTERNAL REVENUE SERVICE OFFICE
(See instructions on ‘Where to file")


Instructions for Use of Form720—Quarterly Federal Excise Tax Return

Name, address, and employer identification number.—After the first
filing of Form 720, a preaddressed return will be mailed to you every
3 months. Please use the preaddressed form for your return. If a
preaddressed form is lost, request another. 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.

PAYMENT OF TAX

Monthly deposits.—All taxes are due and payable without assess-
ment or notice. If you are liable in any month (except the third
month of a quarter) for more than $100 for all 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. For transportation and communications taxes, the tax com-
puted on the basis of amounts billed or tickets sold for a monthly
period shall be considered as collected during the succeeding monthly
period. Deposits for the third month of any quarter, and deposits
of $100 or less for the first or second month of a quarter, are per-
missible 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.

Semimonthly deposits—Taxes other than transportation, communi-
cations, sugar and policies issued by foreign insurers.—If any per-
son’s total liability for all excise taxes reportable on Form 720 for
any calendar month in the preceding calendar quarter exceeded
$2,000, such person is required to deposit the excise taxes in an
authorized local bank or a Federal Reserve bank on or before the
last day of the semimonthly period following the semimonthly period
for which the taxes are reportable.

Compliance with the rules above relating to semimonthly deposits
are met if—

(a) a deposit for such semimonthly period is not less than 90%
of the total amount of the excise taxes reportable for such period and
if such period occurs in a month other than the last month in a
calendar quarter a deposit for any underpayment for such month is
made by the last day of the following month; or

(b) a deposit for each semimonthly period in the month is not less
than 45% of the total amount of the excise taxes reportable for the
month and if such month is other than the last month in a cal-
endar quarter a deposit for any underpayment for such month is
made by the last day of the following month; or

(c)_ a deposit for each semimonthly period in the month is not less
than 50% of the total amount of the excise taxes reportable for the
preceding calendar month and if such month is other than the last
month in a calendar quarter a deposit of any underpayment for such
month is made by the last day of the following month.

Note.—A person who makes his deposits in accordance with the
provisions of (b) or (c) above will not be required to keep his books
and records on a semimonthly basis.

Options (b) and (c) above are not available to any such person
who normally incurs more than 75% of his total excise tax liability
for the month in the first semimonthly period in each month.

Semimonthly deposits—Transportation and communications—If
any person required to pay over taxes for transportation of persons
by air or toll telephone service, teletypewriter exchange service and
local telephone service which are collected for a calendar quarter,
and if such person’s total liability for all excise taxes reportable on
Form 720 for any calendar month in the preceding calendar quarter
exceeded $2,000, such person must deposit the excise taxes collected
within 3 banking days after the close of the semimonthly period
during which such taxes were collected.

Note.—Any person who computes amounts of tax required to be
paid over on the basis of amounts billed {tol telephone service, tele-
typewriter exchange service and local telephone service) or tickets
sold (transportation of persons by air), the tax so computed for a
semimonthly period shall be considered as collected during the second
succeeding Semimonthly period. A person must notify the Commis-
sioner before changing from one method of computing the tax to
another.

Compliance with the rules above relating to semimonthly deposits
are met if—

(a) a deposit for such semimonthly period is not less than 90% of
the total amount of the excise taxes collected by him during such
period and if such period occurs in a month other than the last
month in a calendar quarter a deposit for any underpayment for
such month is made by the last day of the following month; or

(b) a deposit for each semimonthly period in the month is not less
than 45% of the total amount of the excise taxes collected during

the month and if such month is other than the last month in a cal-
endar quarter a deposit for any underpayment for such month is
made by the last day of the following month; or

(c)_a deposit for each semimonthly period in the month is not less
than 50% of the total amount of the excise taxes collected during
the preceding calendar month, and if such month is other than the
last month in a calendar quarter a deposit for any underpayment for
such month is made for such month by the last day of the following
month,

Note.—A person who makes his deposits in accordance with the
provisions of (b) or (c) above will not be required to keep his books
and records on a semimonthly basis.

Options (b) and (e) above are not available to any such person
who normally collects more than 75% of his total excise taxes col-
lected during the month in the first semimonthly period in each
month.
jonthly deposits—Sugar and policies issued by foreign in-
.—If any person required to pay taxes for sugar and policies
issued by foreign insurers for a calendar quarter and if such per-
son’s total liability for all excise taxes reportable on Form 720 for
any calendar month in the preceding calendar quarter exceeded
$2,000, such person must deposit the excise taxes in an authorized
local bank or a Federal Reserve bank on or before the depositary
receipt date.

Compliance with the rules above relating to semimonthly deposits
are met if—

(a) a deposit for such semimonthly period is not less than 90%
of the total amount of the excise taxes reportable for such period
and if such period occurs in a month other than the last month in a
calendar quarter a deposit for any underpayment for such month is
made by the first day of the second month following such month; or

(b) a deposit for each semimonthly period in the month is not less
than 45% of the total amount of the excise taxes reportable for the
month and if such month is other than the last month in a calendar
quarter a deposit for any underpayment for such month is made by
the first day of the second month following such month; or

(c) a deposit for each semimonthly period in the month is not less
than 50% of the total amount of the excise taxes reportable for the
preceding calendar month and if such month is other than the last
month in a calendar quarter a deposit of any underpayment for such
month is made by the first day of the second month following such
month,

Note.—A person who makes his deposits in accordance with the
provisions of (b) or (c) above will not be required to keep his books
and records on a semimonthly basis.

Options (b) and (c) above are not available to any such person
who normally incurs more than 75% of his total excise tax liability
for the month in the first semimonthly period in each month.

Depositary receipt date.—With respect to the first semimonthly
period of a month, the “depositary receipt date” is the first day of
the month following such month. With respect to the second semi-
monthly period of a month, the “depositary receipt date” is the 15th
day of the month following such month.

Semimonthly period.—A “semimonthly period” means the first 15
days of a calendar month or the portion of a calendar month follow-
ing the 15th day of such month.

Form 537.—Each deposit is to be accompanied by Form 537, Depos-
itary Receipt for Federal Excise Taxes, which will be validated by
the Federal Reserve bank and returned to you. The validated re-
ceipts 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 District 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.
Please enter your employer identification number on all remittances.

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

All excise taxes other|
“than trans. & comm.
due on or before

Trans. &
comm. due
on or before
May 31
August 31
November 30
February 28

Quarter covered

(Continued on reverse of your copy)
U.S. GOVERNMENT PRINTING OFFICE :1967—0-265-353


FORM 720 (Rev. July 1967)
‘TREASURY DEPARTMENT
internal Revenue Service

QUARTERLY FEDERAL EXCISE TAX RETURN

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

Before making entries 1.t0 5, fill in applicable lines below

Berne

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
instructions.) Credit
for deposits will not be
allowed unless deposi-
tary receipts on Form
537 are enclosed.

5._ Balance of tax to be paid with this recurn (Item 3 minus Item 4)

Total of depositary receipts... .|§

$——___

IRS R

FACILITIES AND SERVICES Rate TAX No. || PRODUCTS AND COMMODITIES Rate TAX Ne
Club dues, initiation fees, life memberships ..) () |...----.--2---e----eeeee| 20 |] Sugars. ccc eterna ee ef 60
Toll telephone service ........0000c08s wee
Teletypewriter exchange service . 10% Diesel fuel and special motor fuels . 0) 61
Local telephone service H
Transportation of persons by air.......... 5% Gasoline 20.0.6... c cece eee eee eee 4¢ gal. 62
Policies issued by foreign insurers .........4 Lubricating oil ...... | 6¢ gal. 3)
MANUFACTURERS
Pistols and revolvers . -|109|_... | 32 highway vehicle type... 10¢ 1b.)
Truck, bus and trailer chassis and bodies; Tires } laminated... .. 1¢ Ib. 6

UACLONS voce eee ee cece cess 2]10% other... 6... eee eee eee 5¢ Ib.
Other auto chassis and bodies, etc......... 7% |... _| 34 || Inner cubes 2.20.00 e cece eee eee eee 10¢ Ib. 67
Parts or accessories for trucks, etc. 8% | 48 || Tread rubber (camelback) ............055 5¢ Ib. 68
Fishing rods, etc., and artificial lures, etc.. .| 10% |...

TOTAL TAX (Enter in Item 1 above) .|...... $

Firearms, shells, and cartridges ........... 119% |. 46 1See instructions,

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)