Menu

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

TTB extends dates on destruction of beer FAQs due to COVID-19

TTB FAQs allowing for the destruction of beer off brewery premises and waiver of notice of intent to destroy were extended through Sept. 1.

  • June 25, 2020

TAX ALERT

TTB authorized use of online filing system for tobacco SOT

The TTB now allows tobacco proprietors to file their special occupation tax online via the agency’s Permit Online program.

  • June 23, 2020

TAX ALERT

Second quarter sporting goods excise tax filing deadline extended

The IRS extended the second quarter filing and payment deadline for federal sporting goods excise taxes until Oct. 31, 2020.

  • June 23, 2020

TAX ALERT

TTB finalizes regulations on certain alcohol tax return filing periods

TTB adopted, with minor changes, temporary regulations on alcohol tax filing dates implementing 2015 PATH Act for eligible excise taxpayers.

  • June 02, 2020

TAX ALERT

New TTB guidance for facilities producing alcohol for hand sanitizer

TTB issues new guidance in Q&A format about tax-free withdrawals of distilled spirits and hand sanitizer under the CARES Act.

  • May 19, 2020

TAX ALERT

New TTB FAQ on wine virtual tasting rooms

New TTB FAQ addresses requirements for a winery holding remote wine tastings with customers, including tax, labeling, and container sizes.

  • May 15, 2020

TAX ALERT

IRS issues aviation excise tax holiday FAQs

IRS released CARES Act FAQs on aviation excise tax holiday. FAQs provide clarification on issues related to jet fuel and ticket tax.

  • May 13, 2020

TAX ALERT

TTB issues excise tax FAQs on destruction of beer due to COVID-19

TTB issued FAQs providing guidance for refund claims on taxpaid beer for brewers when unmerchantable beer is destroyed during COVID-19.

  • May 04, 2020

TAX ALERT

Excise tax exemption for certain distilleries producing hand sanitizer

TTB has extended its waivers for certain distilleries wishing to produce hand sanitizer through the 2020 calendar year.

  • April 22, 2020

TAX ALERT

IRS extends certain excise filing deadlines for specified taxpayers

Notice 2020-23 incorporates Rev. Proc. 2018-58 filing postponements to extend certain excise tax filing deadlines.

  • April 10, 2020

TAX ALERT

IRS LB&I announces new compliance campaigns for R&D and fuels

IRS LB&I announce campaigns to improve compliance with fuel mixture credits and research issues related to sections 41 and 174.

  • March 03, 2020

TAX ALERT

IRS proposed regulations on truck, tractor and trailer excise taxes

Proposed regulations address admin changes and court decisions for excise taxes imposed on highway trucks, tractors, trailers and tires.

  • April 12, 2016

TAX ALERT

Communications provider not allowed refund for excise taxes collected

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.

  • March 07, 2016

INSIGHT ARTICLE

What do electronics importers need to know about the ODC excise tax?

Importers of electronics must understand their responsibilities surrounding the excise tax on ozone-depleting chemicals.

  • January 15, 2015

Receive our tax newsletters by Email

Subscribe


How can we help you with business incentives?