Tan Tax Filing Info: Is your salon EFTPS- and EIN-ready?

Recently we shared news that the IRS has released an updated version of Form 720 with space for the tan tax (Part II, Line 140).

Also of note: the first quarter filings for July-September were said to be due by Oct. 31, 2010. Since that's a Sunday, that date has been extended to November 1.

To report and pay the tax, a business must have an Employer Identification Number (EIN) assigned by the IRS and must file IRS Form 720, Quarterly Federal Excise Tax Return. Businesses that do not already have an EIN can apply for one at www.irs.gov.

The IRS is currently considering a proposal that all salons must enroll in an automated payment system (EFTPS - Electronic Federal Tax Payment System) by Jan. 1, 2011. There are 10 excise taxes impacted by this proposal, including UV tanning. The payment system is free to use, but does require an EIN. Nearly all federal tax deposits are now collected electronically, so it’s very likely this will go through for tanning. Salon owners are encouraged to set up these systems now to avoid any last-minute glitches when the first tax payment comes due.

As EFTPS is the IRS’ preferred method for payments, taxpayers can enroll at any time and begin using the technology for their November 1 payment. Salon owners wishing to make estimated payments for the excise tax in advance of the quarterly deadlines are welcome to do so. 

Finally, don’t miss a new educational video designed to set your mind at ease in the event of an audit, Your Guide to an IRS Audit.  

We’ll continue to keep you abreast of the latest tan tax developments from the IRS.