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hi this is Clinton Donnelly from Valley tax law let's talk about for 720 excise tax most people have never heard of this form most people don't know what an excise taxes for Americans abroad the reason this form is of interest is that there is a excise tax on foreign insurance policies that you have signed an excise tax is basically a sales tax at the federal level the tax is 1% on policies that involve risks to living like life insurance policies sickness accidents health insurance policies annuity contracts it is a 4% tax on the premiums for all other foreign insurance policies casualty and indemnification policies this tax is paid on Form 720 this is a totally separate form it does not go in with your 1040 it is mailed to a different location the most irksome thing about this form is that it requires an EIN you cannot use your social security number the IRS requires an EIN I recommend the first time you mail this in you do not include a payment you do not put down your social securi

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