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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
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Contains diptheria toxoid, tetanus toxoid, pertussis
bacteria, extracted or partial cell bacteria, specific pertussis
antigens, or polio virus;
•
Is against measles, mumps, rubella, hepatitis A, hepatitis
B, chicken pox, rotavirus gastroenteritis, or human
papillomavirus;
•
Is any HIB (haemophilus influenza type B) vaccine;
•
Is any meningococcal vaccine;
•
Is any conjugate vaccine against streptococcus
pneumonia; or
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Any trivalent vaccine against seasonal influenza or any
other vaccine against seasonal influenza.
The effective date for the tax on any other vaccine against
seasonal influenza is the later of August 1, 2013, or the date
the Secretary of the Department of Health and Human
Services lists a vaccine against seasonal influenza for
purposes of compensation for any vaccine-related injury or
death through the Vaccine Injury Compensation Trust Fund.
If any taxable vaccine is combined with one or more
additional taxable vaccines, then the tax is imposed on each
vaccine included in the combination.
Example. MMR contains three taxable vaccines:
measles, mumps, and rubella. The tax per dose on MMR is
$2.25 (3 x $.75).
Add the tax for each taxable vaccine and enter the total
tax on the line for IRS No. 97.
Part II
Patient-centered outcomes research (PCOR) fee (IRS
No. 133). The PCOR fee is imposed on issuers of specified
health insurance policies (section 4375) and plan sponsors of
applicable self-insured health plans (section 4376) for policy
and plan years ending on or after October 1, 2012. Generally,
references to taxes on Form 720 include this fee.
Specified health insurance policies. For issuers of
specified health insurance policies, the fee for a policy year
ending on or after October 1, 2023, but before October 1,
2024, is $3.22 (line 133(b)) ($3.00 for a policy year ending on
or after October 1, 2022, but before October 1, 2023
(line 133(a)), multiplied by the average number of lives
covered under the policy for that policy year. Generally,
issuers of specified health insurance policies must use one of
the following four alternative methods to determine the
average number of lives covered under a policy for the policy
year.
1. The actual count method.
2. The snapshot method.
3. The member months method.
4. The state form method.
Applicable self-insured health plans. For plan sponsors
of applicable self-insured health plans, the fee for a plan year
ending on or after October 1, 2023, but before October 1,
2024, is $3.22 (line 133(d)) ($3.00 for a policy year ending on
or after October 1, 2022, but before October 1, 2023
(line 133(c)), multiplied by the average number of lives
covered under the plan for that plan year. Generally, plan
sponsors of applicable self-insured health plans must use
one of the following three alternative methods to determine
the average number of lives covered under a plan for the plan
year.
1. Actual count method.
2. Snapshot method.
3.
Form 5500 method.
Reporting and paying the fee. File Form 720 annually to
report and pay the fee on the second quarter Form 720 no
later than July 31 of the calendar year immediately following
the last day of the policy year or plan year to which the fee
applies. Because the rate used to determine the fee varies
from year to year, you should determine the fee using the
instructions for the second quarter Form 720. If you file Form
720 only to report the fee, don't file Form 720 for the first,
third, or fourth quarter of the year. If you file Form 720 to
report quarterly excise tax liability for the first, third, or fourth
quarter of the year (for example, filers reporting the foreign
insurance tax (IRS No. 30), don't make an entry on the line for
IRS No. 133 on those filings).
Deposits aren't required for this fee, so issuers and plan
sponsors aren't required to pay the fee using EFTPS.
However, if the fee is paid using EFTPS, the payment should
be applied to the second quarter. See
Electronic deposit
requirement under Payment of Taxes, later.
Report the average number of lives covered in column (a).
Apply the applicable rate (
(b) Rate for avg. covered life) and
enter the fee in column (c).
Combine the fees for specified health insurance policies
and applicable self-insured health plans and enter the total in
the tax column on the line for IRS No. 133.
More information. For more information, including
methods for calculating the average number of lives covered,
see sections 4375, 4376, and 4377.
Sport fishing equipment (other than fishing rods and
fishing poles) (IRS No. 41). The tax on sport fishing
equipment is 10% of the sales price. The tax is paid by the
manufacturer, producer, or importer. Taxable articles include
reels, fly fishing lines (and other lines not over 130 pounds
test), fishing spears, spear guns, spear tips, terminal tackle,
fishing supplies and accessories, and any parts or
accessories sold on or in connection with these articles. See
Pub. 510 for a complete list of taxable articles. Add the tax on
each sale during the quarter and enter the total on the line for
IRS No. 41.
Fishing rods and fishing poles (IRS No. 110). The tax on
fishing rods and fishing poles (and component parts) taxed at
a rate of 10% will have a maximum tax of $10 per article. The
tax is paid by the manufacturer, producer, or importer. Add
the tax on each sale during the quarter and enter the total on
the line for IRS No. 110.
Electric outboard motors (IRS No. 42). The tax on an
electric outboard motor is 3% of the sales price. The tax is
paid by the manufacturer, producer, or importer. Add the tax
on each sale during the quarter and enter the total on the line
for IRS No. 42.
Fishing tackle boxes (IRS No. 114). The tax on fishing
tackle boxes is 3% of the sales price. The tax is paid by the
manufacturer, producer, or importer. Add the tax on each sale
during the quarter and enter the total on the line for IRS No.
114.
Bows, quivers, broadheads, and points (IRS No. 44).
The tax on bows is 11% of the sales price. The tax is paid by
the manufacturer, producer, or importer. It applies to bows
having a peak draw weight of 30 pounds or more. The tax is
also imposed on the sale of any part or accessory suitable for
inclusion in or attachment to a taxable bow and any quiver,
broadhead, or point suitable for use with arrows described
Instructions for Form 720 (Rev. 06-2024)
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