Indoor Tanning Service Providers Must File a Federal Excise Tax Return

IRS Form 720 can be used to report an excise taxes on Indoor Tanning Service, 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. 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. The person receiving the payment for the indoor tanning service must report the indoor tanning services tax on and remit the full amount of tax with a timely filed return.

A tax applies to indoor tanning services paid for after June 30, 2010. The tax is 10% of the amount paid for the services. The tax is paid by the person paying for the services and is collected by the person receiving payment for the services.

File Form 720.   The person who receives payment for indoor tanning services (collector) must file Form 720, and remit the tax for any quarter in which the collector receives payment for the services. The collector is not required to make semimonthly deposits of the tax. If the collector fails to collect the tax, the collector is still liable for the tax.

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