IRS Publishes Regulations on Tanning Tax

The Internal Revenue Service has issued regulations outlining how the 10 percent excise tax on indoor tanning services in the health care reform bill should be administered.

The tax goes into effect on July 1. 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, on a quarterly basis, when filing IRS Form 720, Quarterly Federal Excise Tax Return.

The tax does not apply to phototherapy services performed by a licensed medical professional on their own 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.

The IRS and the Treasury Department are asking for comments on the tax. They can be sent electronically via the Federal eRulemaking Portal at http://www.regulations.gov with reference to REG-112841-10.