Excise Tax on Indoor Tanning Services Frequently Asked Questions

What is taxable indoor tanning service?

A. Taxable indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning.

What are the requirements for keeping records for indoor tanning services?

A. As with any other tax return, the tanning service provider must maintain adequate books and records showing the amount of revenue received for indoor tanning services.

What is phototherapy service?

A. Phototherapy service is a service which exposes an individual to specific wavelengths of light for the treatment of dermatological conditions, sleep disorders, seasonal affective disorder or other psychiatric disorder, neonatal jaundice, wound healing, or other medical condition determined by a licensed medical professional to be treatable by exposing the individual to specific wavelengths of light.

Is phototherapy service exempt from the indoor tanning services tax?

A. It is exempt from the indoor tanning services tax if performed by a licensed medical professional on the medical professional’s premises.

Who must pay the indoor tanning services tax?

A. Indoor tanning service providers are responsible for collecting the tax from the person paying for the service and in some situations, from the person receiving the service.

When is Form 720 due?

A. Form 720 is filed quarterly. The first return to report the indoor tanning services tax was due on October 31, 2010 for the third quarter period including July, August and September 2010. Service providers who do not file Form 720 and remit the tax by the due date may be subject to a penalty, as will any person who intentionally fails to collect and remit the tax. Quarterly return due dates for the remainder of the year are as follows:

 For the months: Due by:
 Jan, Feb, Mar April 30
 Apr, May, Jun July 31
 Jul, Aug, Sep Oct. 31
 Oct, Nov, Dec Jan. 31

For more information about the indoor tanning tax, you may call IRS toll-free at (866) 699-4096 from 8 a.m. until 6 p.m. Eastern Time. Check out more FAQ’s at IRS.gov