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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.
TTB FAQs allowing for the destruction of beer off brewery premises and waiver of notice of intent to destroy were extended through Sept. 1.
The TTB now allows tobacco proprietors to file their special occupation tax online via the agency’s Permit Online program.
The IRS extended the second quarter filing and payment deadline for federal sporting goods excise taxes until Oct. 31, 2020.
TTB adopted, with minor changes, temporary regulations on alcohol tax filing dates implementing 2015 PATH Act for eligible excise taxpayers.
TTB issues new guidance in Q&A format about tax-free withdrawals of distilled spirits and hand sanitizer under the CARES Act.
New TTB FAQ addresses requirements for a winery holding remote wine tastings with customers, including tax, labeling, and container sizes.
IRS released CARES Act FAQs on aviation excise tax holiday. FAQs provide clarification on issues related to jet fuel and ticket tax.
TTB issued FAQs providing guidance for refund claims on taxpaid beer for brewers when unmerchantable beer is destroyed during COVID-19.
TTB has extended its waivers for certain distilleries wishing to produce hand sanitizer through the 2020 calendar year.
Notice 2020-23 incorporates Rev. Proc. 2018-58 filing postponements to extend certain excise tax filing deadlines.
IRS LB&I announce campaigns to improve compliance with fuel mixture credits and research issues related to sections 41 and 174.
Proposed regulations address admin changes and court decisions for excise taxes imposed on highway trucks, tractors, trailers and tires.
Collector of excise tax isn't entitled to credit or refund unless it can prove it repaid the tax to its customer or received their consent.
Importers of electronics must understand their responsibilities surrounding the excise tax on ozone-depleting chemicals.
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