04-19-2024

Is the Tanning Tax Still in Effect?

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By law, Tanning Service Providers must pay a 10% federal excise tax from customers who use indoor tanning facilities. This tax is known as the tanning tax. Indoor tanning facilities have been used to get a cosmetic tan which entails utilizing an apparatus that produces UV light.

Is The Tanning Tax Still in Effect?

Yes, the tanning tax is still in effect. The indoor tanning services provider must submit quarterly Form 720 together with the entire tan tax payment to the IRS.

Tanning Tax Exemptions:

Services such as spray-on tanning, topical creams and lotions, and phototherapy administered on-site by a licensed medical practitioner are exempted from the tax. Under some conditions, "qualified physical fitness facilities" that provide tanning to members as an incidental service without charging a separate price are likewise eliminated.

Ways to File Tanning Tax - Manual/Online

Providers of indoor tanning services may submit Form 720 online or on paper manually.

To file the tanning tax form 720 online:

1. Create your account in Simple 720 Portal and login
2. Add your Business details and select the tax period
3. Select Part II then select Tanning Tax from the drop-down
4. Complete the Tax details and make the payment.

To file the tanning tax form 720 manually:

1. Fill out the form's top section with your details (name, address, etc.).
2. On page 2, enter the amount of tax paid (Part II, IRS No. 140).
3. Page 2's bottom has a date and a sign.
4. Mail Form 720 along with payment details and Form V to:

If you find Manual filings are cumbersome, file your Tanning Tax Online. IRS also recommends online filing.

Conclusion

Obamacare’s Tanning Tax is still in effect and it should be paid by salons, gyms, and resorts every quarter. Avoiding the tax may incur a form 720 penalty.

File your Tan Tax Online through Simple 720!