Indoor tanning services tax center

Many businesses offering indoor tanning services are required to collect a 10 percent excise tax on the indoor tanning services they provide. The provider must pay the excise tax to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return. The following information is designed to help indoor tanning services providers understand how to collect, file and pay the tax.

Collect the tax

In general, providers of indoor tanning services should collect the 10 percent tax at the time the purchaser pays for the indoor tanning services.

File the tax return

Indoor tanning services providers must report the tax on Form 720 and pay the excise tax on a quarterly basis.

Form 720 is used to file many types of excise tax, including the indoor tanning services excise tax. If the only excise tax you need to report is for indoor tanning services:

1. Complete your information at the top of the form (name, address, etc.)
2. Enter the amount of tax paid on page 2 (Part II, IRS No. 140.)
3. Sign and date at the bottom of page 2.

File and pay Form 720 by:

• April 30 to report tax collected in January, February and March
• July 31 to report tax collected in April, May and June
• October 31 to report tax collected in July, August and September
• January 31 to report tax collected in October, November and December of the prior year

If any due date for filing a return falls on a Saturday, Sunday, or legal holiday, you may file the return on the next business day.

If you do not have an Employer Identification Number you must acquire one before filing your first Form 720, Quarterly Federal Excise Tax Return. You can apply for and receive an EIN online.

Indoor tanning services providers may file Form 720 electronically, or on paper.

For paper returns, enclose payment with Form 720 and send to:

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0009

Pay the tax

The 10 percent tax on indoor tanning services must be paid quarterly with Form 720. For electronic filers, the tax may be paid via electronic funds transfer through the Form 720 e-file partner's page or a tax professional.

Indoor tanning services providers may also pay the tax via the free, secure Electronic Federal Tax Payment System. Visit EFTPS to enroll or call 800-555-4477 for information.

To pay the tax with a paper Form 720, use EFTPS or enclose a check or money order (made out to "United States Treasury") and Form 720-V, Payment Voucher, with the timely-filed Form 720. The payment voucher and instructions are on the final page of Form 720.

For more information, call the toll-free Business and Specialty Tax Line 800-829-4933, available Monday-Friday from 7 a.m. to 10 p.m. local time, or visit the resources shown below.

Exemptions

The tax does not apply to spray-on tanning services, topical creams and lotions or to phototherapy services performed by a licensed medical professional on his or her premises. There is also an exemption for "qualified physical fitness facilities" that meet specific criteria and offer tanning as an incidental service to members without a separately identifiable fee.