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Excise Tax

Excise taxes have been imposed on U.S. taxpayers since the inception of the country. Existing excise taxes on articles such as fuel, alcohol, tobacco, and heavy vehicles were enacted in the early to mid-1900s. Today there are over 30 federal excise taxes administered by the Internal Revenue Service (IRS) and the Alcohol and Tobacco Tax and Trade Bureau (TTB). Each tax has its own rules, complex regulations and procedures. States and local governments also impose excise tax on a wide range of articles and services.

The Far Reach of Excise Tax

Excise taxes affect many middle market companies in a wide range of industries including:

  • Transportation
  • Manufacturing
  • Energy and environmental
  • Food and beverage
  • Healthcare and life sciences
  • Retail dealers and sellers
  • Importers
  • Building and construction
  • Aerospace and defense
  • Banking, insurance, and financial products
  • Gaming

RSM’s full service excise tax practice covers a complete range of excise taxes and credits, including:

  • Manufacturers taxes (e.g., petroleum products and motor fuel; tires; sporting goods; firearms)
  • Retail taxes (e.g., alternative fuels; ethanol; biodiesel; heavy trucks and trailers)
  • Air transportation taxes for passengers and property
  • Environmental taxes (e.g., ozone-depleting chemicals; oil spill; superfund)
  • Heavy vehicle highway use tax
  • Foreign insurance excise tax
  • Wagering excise tax
  • Affordable Care Act provisions (e.g., branded prescription drug fee; tanning excise tax; PCORI fee)
  • Communications excise taxes
  • Fuel credits (e.g., taxable fuel; alcohol; biodiesel; alternative fuel)
  • Excise taxes administered by the Alcohol and Tobacco Tax and Trade Bureau (e.g., spirits; wine; beer; tobacco; firearms; ammunition)

Our Services

RSM’s excise tax practice advises clients on the complexities of excise taxes administered by the IRS, TTB and state and local governments.  Our services include:

  • Controversy disputes and representation
  • Planning and refund opportunities
  • Consulting
  • Due diligence
  • Compliance and registrations
  • CPE trainings
  • Tax system implementations

Our Professionals

RSM’s excise tax practice is led by Washington National Tax professionals with more than 20 years of government and private sector experience.  Our goal is to be your first choice advisor by bringing our experts to team with you to provide a comprehensive and holistic approach to your tax matters.  We will evaluate opportunities and areas of risk to provide you with a clear assessment based on your particular situation.


RELATED INSIGHTS

TAX ALERT

IRS extends May 17, 2021 due date for victims of Tennessee storms

IRS postpones certain filing, payment and other deadlines for taxpayers affected by Tennessee storms, wind, tornadoes, and flooding.

  • May 14, 2021

TAX ALERT

IRS temporarily waives penalty for using dyed diesel fuel in Southeast

IRS temporarily waives penalty for using dyed diesel fuel on highways in Southeast due to Colonial Pipeline shutdown through May 21, 2021.

  • May 14, 2021

INSIGHT ARTICLE

Patient-centered outcomes research fee on health plans

Plan sponsors have until July 31, 2021, to pay the patient-centered outcomes research fee on health plans for plan years ending in 2020.

  • May 10, 2021

TAX ALERT

Court denies company's claim for refund of alternative fuel payments

Claimants not entitled to alternative fuel credit after IRS found activity did not qualify, despite issuance of IRS 637 registration.

  • March 31, 2021

TAX ALERT

IRS extends April 15, 2021 due date for victims of Texas winter storm

IRS postpones certain filing, payment and other time sensitive deadlines for taxpayers affected by Texas winter storms.

  • February 23, 2021

TAX ALERT

IRS temporarily waives penalty for using dyed diesel fuel in Texas

IRS temporarily waives penalty for using dyed diesel fuel on the highways in Texas due to severe winter storm retroactive to Feb. 12.

  • February 22, 2021

TAX ALERT

Court holds fuel mixture credit must first offset excise tax liability

Tennessee district court holds credit against fuel excise taxes, reduces excise tax liability and must be deducted from production costs.

  • February 01, 2021

TAX ALERT

Treasury issues final aviation excise tax regulations

Final air transportation excise tax regulations provide rules for aircraft management services exemption and update prior regulations.

  • January 12, 2021

TAX ALERT

IRS extends energy safe harbor for offshore or federal land projects

The continuity safe harbor of the beginning of construction requirement is extended to energy credits for offshore or federal land projects.

  • January 06, 2021

TAX ALERT

Extension of temporary relief for fuel removals in Wisconsin

Guidance permits tax relief for fuel removed from terminals in Milwaukee or Madison and entered into Green Bay terminals through 2021.

  • December 23, 2020

Excise Tax Consulting

Debbie Gordon
Principal
Washington National Tax
Area of Focus: Excise Tax Consulting


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