At Least for Now, the Sun is Still Free

Source: IRS

IRS Issues Regulations on 10-Percent Tax on Tanning Services Effective July 1

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The Internal Revenue Service has issued regulations outlining the administration of a 10-percent excise tax on indoor tanning services that goes into effect on July 1. The regulations have been published today in the Federal Register.

In general, providers of indoor tanning services will collect the tax at the time the purchaser pays for the tanning services. The provider then pays over these amounts to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return.

The IRS announced that the tax does not apply to phototherapy services performed by a licensed medical professional on his or her premises. The regulations also provide an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee.