I thought I would post my experience with the IRS who came to visit yesterday.

I filed for a 637 Exemption and an IRS agent came to my office for further questioning. I found out that I did not even need one. I pour and sale plastics only. Since I am not buying any finished product and making alterations, such as buying hooks to add to my lures, there was no need for me to have an exemption. Also, I sell quite a bit of lures to Mexico and Africa. If I export these properly, I do not need to pay tax on exported lures. The Tariff has to be paid by one of the parties involved.

My 10% tax is factored into the sale price, therefore, I was told to divide the cost of the lures by 1.1 and pay 10% on that amount. This visit by the IRS agent proved extremely helpful. Guys, if you are selling, I would file the qtrly 720. You do not want to get caught. It's not worth it.

If you have any questions about this, let me know. I was very pleased.

All rod builders (like myself) have been paying this tax for years now......

It is called, The Sport Fishing Excise Tax:

A user tax levied and built into the price of all fishing equipment. Used for fisheries enhancement.

There is alot of wrong information floating around and I did not want to miss anything. I filed for the exemption based upon information I read on TU. I have been filing my 720 since I started. The meeting was more informative than investigative.