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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:
- Energy and environmental
- Food and beverage
- Healthcare and life sciences
- Retail dealers and sellers
- Building and construction
- Aerospace and defense
- Banking, insurance, and financial products
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)
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
- Due diligence
- Compliance and registrations
- CPE trainings
- Tax system implementations
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.
Final air transportation excise tax regulations provide rules for aircraft management services exemption and update prior regulations.
The continuity safe harbor of the beginning of construction requirement is extended to energy credits for offshore or federal land projects.
Guidance permits tax relief for fuel removed from terminals in Milwaukee or Madison and entered into Green Bay terminals through 2021.
Industry backed legislation passed by Congress to make permanent excise tax rate reductions for craft beer, wine, and distilled spirits.
The 2021 Consolidated Appropriations Act passes Congress and includes many extended and improved tax credits and incentives.
Last minute negotiations pave way for Congress to pass second major COVID-19 stimulus package with tax law changes and tax extenders.
Exemption from excise tax on hand sanitizer extended and all FDA approved formulas permitted without requiring prior TTB approval.
The IRS has developed new guidance for processing interest bearing fuel claims, including one-time claims for alternative fuel credits.
Tax planning opportunities for consideration in light of COVID-19, the resulting economic crisis, and evolving tax laws and regulations.
Excise taxes can have a serious financial impact on business, yet many aren’t focused on the potential impacts.
See more Excise Tax Consulting insights >>>
Excise Tax Consulting
Washington National Tax
Area of Focus: Excise Tax Consulting