7 Steps to File Sport Fishing Equipment Excise Tax Online

The Sport Fishing Equipment Tax is a federal excise tax in the United States, levied on manufacturers, producers, and importers of specific fishing-related items. Established under the Dingell–Johnson Act of 1950, its primary purpose is to fund conservation and fishery management programs. 

The tax rate is generally 10% of the sales price for most fishing equipment, with certain items like electric outboard motors and tackle boxes taxed at 3%. For fishing rods and poles, the tax is capped at $10 per item. While manufacturers are responsible for remitting this tax to the IRS, the cost is typically passed down through the supply chain to consumers.

Filing the Sport Fishing Equipment Tax manually can be a complex and time-consuming process. Therefore, opting for the online method is a smarter and more efficient choice. Let’s walk through a step-by-step guide to filing your Sport Fishing Equipment Tax online using eFile720, ensuring a smooth, hassle-free, and straightforward experience.

Step1: Create an Account: If you’re a new user, sign up for a free eFile720 account. Existing users can log in with their credentials.

Step 2: Provide Business Details: For new users, the next step is to enter your business details. Click on “Add New Filings” and click on “Add New Business” and complete the required fields, including:

• Business Name

• Employer Identification Number (EIN)

• Business Type (Individual / Estates / Partnership / Corporation / Other Organizations / Limited Liability Company (LLC))

• Business Contact Information (Address, Country, State, Zip code, Ph num, Ext. num, Email address)

• Signing Authority Information (Name, Phone, Title)

If you’re an existing user, simply select the stored business name from the database.

Step 3: Choose Form Type: Select “Form 720 (Quarterly Federal Excise Tax)” as the form type. Accurately provide the tax year and quarter you are filing for, then click “Proceed.”

Step 4: Select Tax Category: From the left menu, select “Sport Fishing Equipment” by choosing IRS number 41 under Part 2.

Step 5: Tax Amount Calculation: Enter the sales price of the fishing equipment subject to this tax. The tax amount will be calculated automatically at the rate of $0.10 per dollar of sales price and displayed on the dashboard.

Step 6: Complete Your Payment: Review your information and choose one of the IRS payment methods which you prefer and complete the payment.

• Electronic Funds Withdrawal (Direct Debit)

• EFTPS - Electronic Federal Tax Payment System

Step 7: Complete Your Filing: Once the payment is completed, your Sport Fishing Equipment Tax filing will be submitted within minutes.

Staying compliant with IRS regulations not only helps avoid penalties but also supports crucial conservation efforts funded by this tax.

For more insights on additional taxes applicable to sport fishing equipment manufacturers, check out our detailed blog.

WRAP:

Filing your Sport Fishing Equipment Tax online through eFile720 ensures a quick, accurate, and hassle-free process. By following this step-by-step guide, manufacturers and importers can easily meet their tax obligations without the complexities of manual filing.