Hey guys so I am starting to try to get ready to file my taxes for the first time. I called my state Department of Revenue and was told that the excise tax only applied to vehicles. She said she had never heard of an excise tax on fishing rods. I felt like she did not know a lot to be honest though. Are some states not required to collect excise taxes? I was under the impression that it was a federal tax so everyone was required, I just wanted to make sure.

Also on the 720 form, do I just write in the amount of money I have collected for the tax in the 110# line? Also I have not been able to find a schedule for when exactly these are due. If anyone could help me with that as well I'd really appreciate it.

Thanks guys!

The Excise tax on rods is a Federal tax, not a state tax. No wonder your state tax person had never heard of it.

See the article in the library here on excise taxes. They are filed and paid quarterly.

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You will need a Federal EIN number in order to file a 720. Also read the 720 form instructions for 2015. This is a separate document. But the short answer to your question is yes the amount of tax you collected in the quarter. Enter the amount of excise tax you collected in box 110; box 2 (total); box 3; and I think box 10.

720 instruction states: 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.

And you better dang well report a zero return each quarter if you had no sales.. They are proud to send you a nasty gram.

The State will be concerned about sales tax. I can file in Missouri annually but some states require you to file it monthly or quarterly.

Welcome to the world of paperwork.

Gabe Neal

Neal's Custom Rods

gee
i just feel like I talked to my accountant I count not understand him either LOL

Bill - willierods.com

Thanks for all the replies guys this makes a lot more sense now!