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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
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TAX ALERT
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Claimants not entitled to alternative fuel credit after IRS found activity did not qualify, despite issuance of IRS 637 registration.
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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.
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.
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.
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.
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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.
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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.
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Excise Tax Consulting
Debbie Gordon
Principal
Washington National Tax
Area of Focus: Excise Tax Consulting