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For many tanning salon owners or Gym owners, taxes are the last thing on their mind. Between managing clients, equipment, and memberships, the business already feels full. Then comes an unexpected letter from the IRS about an excise tax they didn’t even know existed. It catches many first-time owners off guard.

The 10% indoor tanning tax applies to every paid session, whether it’s a single visit or part of a package. What seems like a small detail can turn into missed filings, penalties, and stress at the end of each quarter. 

Form 720 is the official document the IRS uses to collect excise taxes from businesses in specific industries. For indoor tanning providers, it acts as a quarterly report showing how much tax was collected and paid to the government. Understanding whether you need to file this form is the first step to staying compliant and avoiding penalties.

Any business that offers indoor tanning services for a fee must file Form 720. This includes:

• Tanning salons that charge per session or membership.
  
  

• Gyms, spas, or wellness centers that offer tanning as an additional service.
  
  

• Independent contractors or booth renters who operate tanning equipment and collect payments directly from clients.
  
  

If your customers pay you for tanning, the IRS expects you to charge and remit the 10% excise tax. You do not have to file if you only sell tanning lotions or cosmetic products without offering tanning access.

Form 720 must be filed every quarter, even if your tanning revenue is small or zero for that period. It’s better to file a zero return than skip filing altogether, since the IRS can still assess penalties for missing returns.

If you owe the excise tax for your indoor-tanning services, you must file IRS Form 720 quarterly. Use the following table to track when each quarter ends and when your return is due.

Once you know you fall under the indoor tanning excise tax, the next step is filing it correctly every quarter through Form 720. You can do this in two ways. Some businesses still prefer the old manual method, while many have moved to online filing for convenience. 

Here is how both methods work so you can choose what fits your business better.

If you choose to file on paper, the IRS still accepts Form 720 by mail. Here is what the manual process looks like from start to finish.

1. Download the form
Go to the IRS website and download Form 720.
Official link: https://www.irs.gov/forms-pubs/about-form-720

2. Complete Part II for indoor tanning
Scroll to Part II of the form. You will find “Indoor Tanning Services” under IRS No. 140. Enter the tax amount you owe for the quarter.

3. Attach payment
Calculate the 10 percent tax on tanning services for the quarter. Include your check or money order with the form. Ensure your EIN, tax period, and business name are written on the payment.

4. Mail it to the IRS
Send the form to the IRS address listed in the instructions.
IRS instructions: https://www.irs.gov/pub/irs-pdf/i720.pdf

Keep in mind that mailing takes time. Delivery delays, processing delays, and postal issues are common, which means your form may reach the IRS later than expected.

Most tanning salons prefer online filing because it is faster and reduces chances of errors. The IRS encourages e-filing for Form 720.

1. Prepare your tanning income details
Add up all payments you received for tanning sessions, packages, and memberships during the quarter. This is the amount on which the 10 percent tax is calculated.

2. Visit an IRS-approved e-file provider
You can file Form 720 electronically through any IRS-authorized platform like eFile720. These systems follow the official IRS format and guide you through the required fields.

3. Enter your business details
Fill in your EIN, business name, address, and filing period. Then go to the section for indoor tanning tax and enter the total tax amount due.

4. Submit the return
Review your entries and submit the form online. You will receive an acknowledgment once the IRS accepts it. This confirmation serves as your proof of filing.

Online filing removes the risk of mailing delays and keeps all your filings stored securely for future reference. Many salon owners find this easier because it reduces manual calculations and avoids common mistakes.

One of the biggest challenges salon owners face is understanding exactly which services fall under the indoor tanning excise tax. The IRS is very clear in its definition, but many businesses still get confused because tanning is often bundled with other services. Getting this part right helps you avoid underreporting or overpaying.

1. Services that are taxable
These are considered indoor tanning services and must be included in your quarterly tax calculation.

• Access to UV tanning beds or booths

• Stand-up UV tanning units

• UV-based tanning included in memberships

• UV tanning sold as part of packages or promotions

• Pay-per-session UV tanning

• Unlimited monthly UV tanning plans

If the customer is paying for a service that uses ultraviolet equipment, the 10 percent excise tax applies, even if tanning is only one part of their purchase.

2. Services that are not taxable
The IRS does not charge excise tax on the following, even if they are offered in the same facility.

• Spray tanning or airbrush tanning

• Lotions, oils, and skincare products

• Spa treatments such as massages, facials, saunas or body scrubs

• Gym memberships that do not include UV tanning access

• Red-light therapy that does not use UV equipment

These services do not fall under the indoor tanning definition in Section 5000B of the Internal Revenue Code.

3. Bundled services
Many salons offer combo packages. If one part of the package includes UV tanning, the tax applies only to the portion of the payment related to tanning. Allocating this correctly is important for accurate reporting.

Indoor tanning businesses often make small errors while filing Form 720. These may seem minor, but they can lead to penalties or incorrect reporting. Here are the mistakes you should watch for.

• Not filing Form 720 every quarter even when tanning income is low or zero. The IRS expects a quarterly return as long as UV tanning services are offered.

• Including non-UV services in the tax calculation. Spray tanning, red-light therapy and product sales are not taxable under Section 5000B, but many salons mistakenly include them in the total.

• Missing the 10 percent calculation for memberships or packages. If tanning access is bundled with other services, the tanning portion still needs to be calculated and taxed separately.

• Using the wrong IRS Number. Indoor tanning services must always be reported under IRS No. 140 in Part II of Form 720.

• Estimating income instead of using actual records. The IRS requires accurate figures for tanning revenue each quarter.

• Forgetting to allocate bundled service pricing. When selling packages that include tanning plus another service, the taxable amount must be clearly identified.

• Not keeping documentation. The IRS may request proof of tanning revenue breakdown, especially for bundled or discounted offers.

• Waiting too close to the deadline. Paper filings often get delayed. If you file late, penalties and interest may apply even if the amount owed is small.

• Not separating tanning income from general salon income. This leads to incorrect tax calculations and makes recordkeeping difficult.

• Ignoring IRS notices. Even small discrepancies can trigger reminders. Responding on time avoids escalation and added charges.

These mistakes are common, especially for new tanning service providers, but they are easy to avoid with clear records and a consistent quarterly routine.

Closing thoughts

By filing Form 720 on time each quarter, keeping accurate records, and understanding where the 10% indoor tanning excise tax applies, your salon/gym can stay focused on your clients instead of paperwork. E-filing makes the process faster, easier, and more reliable, giving you the confidence that your returns reach the IRS safely every time.

Think of it as one small routine that protects your business all year long. File your Tanning Excise Tax Online with the IRS Authorized eFile720 portal today.