Yesterday I recieved the new Form 720 packet from IRS. Part II, pertaining to fishing etc, is broken down further into Sport fishing equipment, Fishing Rods and Fishing poles, then Fishing Tackle boxes. A note on line 110 (Fishing rods and Fishing poles is "(maximum tax of $10)". The form is easy to read, understand and calculate.
So for you business people, take alook at the new form 720 (rev10-2005) part II, it finally makes things easy for us. If you sell items other than rods, like reels and tackle including tackle boxes, the dollars breakout easier for you on the form....
If you haven't recieved the new form it'll be coming to ya soon, but you can look it up on the IRS form site.
Remember, the FET taxes we collect and pay are important for the continued operations of our local fisheries as 98% of the FET are returned to your state fisheries program.
God Bless America,

Good Wrappin !
David A. Fuller,
Great Basin Fishing Rods
Full-Time RV'r Traveling- n- Fishing
www.mytripjournal.com/FullersBigAdventure

I have a suggestion in to them at this time as I think the new form may confuse some folks. It should read "maximum tax $10 per rod" instead of just "maximum tax $10."

Also, instead of simply listing "10% of sales" they should at least include a mention of the 60% rule (Constructive Sales Price) so builders do not overtax their customers. They do not mention this in the included instructions, but it is still a valid part of the Sport Fishing excise tax code.

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Yes, I agree with you on the language, but we use the form regularly should also have the accompanying booklet. Presuming, one has a tax ID and has read the booklet he/she would know how to assign the FET to each sale.
Furthermore on page 6 of the booklet of instructions the directions are clear but conveniently leaves out the 10% of 60% ruling.

thanks for your insight

Good Wrappin !
David A. Fuller,
Great Basin Fishing Rods
Full-Time RV'r Traveling- n- Fishing
www.mytripjournal.com/FullersBigAdventure

LOL you could always move over to england over here its Value Added Tax at 17.5% on luxery items (like chocolate which personally i class as a nessessity but the tax office doesnt seem to agree )

I lived in England (Newbury, Berks) for three years, familiar with the VAT, but holy smokes ! 17.5 % ! ! ! Course our FET is on top of any state and local sales taxes added to the final price...

I'm even tying the Diawl fly and learning about the Boobie fly.

Ta !

Good Wrappin !
David A. Fuller,
Great Basin Fishing Rods
Full-Time RV'r Traveling- n- Fishing
www.mytripjournal.com/FullersBigAdventure

this is good info.i did a search on this subject but i didn't find too much.if you guys have any more info on these things can you direct me to them?i am a starter of a new custom rod building buisness as of today.this is my first time ever starting a legit buisness. i am lost on where to obtain the info on keeping my records and steps which should be taken to make sure i do everything right.thanks..

That information can be found in a past issue of RodMaker - I can't remember off the top of my head which one, however. Go to the online library and check the RodMaker index for the article on the Sportsfishing Excise Tax.

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Tom,

Won't you be giving a workshop on this in Charlotte?

Bill in WV

Yes, thanks for mentioning it. I guess I forgot!

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