Category Archives: Tax Excise Users Alert

Know the Differences between Excise Tax and City Tax

The Internal Revenue Service collects taxes every quarter for selling of specific commodities such as gasoline. Besides, there being excise taxes individuals in the U.S have to file city taxes to report their income or property. Although, most individuals and businesses would be aware of the differences between the two tax returns but, those filing either of the taxes for the first need to have a clear understanding of both the taxes to make the filing process smooth. Additionally, e filing is better than paper filing, as this saves time also adding ease. Read below to learn how both the taxes are different. Continue reading Know the Differences between Excise Tax and City Tax

History about Federal Excise Taxes- Known And Unknown

Taxes are the major way for the government to make money. Federal excise taxes are imposed on the purchase and sale of goods such gasoline including truck owners and operators handling the trucking business.  If you own a business in the U.S and responsible to file any of the federal excise taxes listed on the Part I or II in IRS form 720, then you must file every quarter and before the time expires. Filing excise tax in the US has an interesting history and reading this blog will provide you an insight into the trend for filing excise tax in the U.S have an interesting history and reading this blog will provide brief insight into the evolution of the Federal excise tax. Continue reading History about Federal Excise Taxes- Known And Unknown

Explaining Part II in IRS Excise Tax Form 720

Filing excise tax return is no child’s play and involves several processes starting from understanding to filing the taxes. Excise tax form 720 engages several categories i.e. Part I, Part II, and Schedule A, T, and C. Speaking about the Part II available in IRS form 720, it involves several aspects such as ‘patient centered outcomes research fee’, ‘health insurance policies’, and ‘fishing equipment’. Reading this blog can help in a better understanding of the tax returns involved in the U.S federal excise tax return. Continue reading Explaining Part II in IRS Excise Tax Form 720

Know More about The Patient-Centered Outcomes Research Fee

After the passage of authorization by Congress, the ‘Patient-Centered Outcomes Research Institute’ conducts several researchers to find out effective ways to prevent, diagnose, and treat diseases. To meet the funds required for doing the researchers, the Congress set up the patient-centered outcomes research fee, which is a part of the other health measures passed under the ‘Patient Protection and Affordable Care Act of 2010’. In this blog, we shall discuss more about the fee imposed by the IRS. Continue reading Know More about The Patient-Centered Outcomes Research Fee

Dive In to Get a Brief Understanding of Indoor Tanning Tax

Is it that you are only paying taxes without understanding what actually you are paying for? Tanning tax in form 720 is one of the tax returns that not many taxpayers tend to understand. However, reading this blog can help them gain some information on indoor tanning tax available in form 720 returns.

Understanding Indoor Tanning Tax:

Indoor tanning tax is a kind of excise tax imposed on individuals who use the service to reduce skin tanning. Similar to communication and air transportation excise taxes, indoor tanning tax in form 720 is ‘collected excise tax’ and is acquired at the time of making payment. Moreover, the person who receives the payment is known as the ‘collector’. For a better understanding, this tax is employed on electronic products having ultraviolet lamps and designed to safeguard individuals from the irradiation caused due to ultraviolet rays. Therefore, the amount paid for purchasing creams, lotions, etc. to reduce skin tanning is not subjected to indoor tanning tax.

As mentioned above, indoor tanning tax is a kind of excise tax collected by individuals offering the service. This tax not applicable on undesignated payment cards or gift cards usually exchanged for goods and services but not necessarily indoor tanning services. Moreover, in case the provider does not receive the payment for offering the services, then he or she is liable for paying the tax return.

Knowing the Filing Requirements:

This excise tax is a part of form 720, which is paid quarterly and the due date is 30 days after the end of every quarter. This tax should be reported on Part II of the excise tax form on IRS. No.140.

Find the clear dates to File and pay Your Tanning taxes by Form 720 :

April 30- To report tax collected in Jan., Feb. and March
July 31- To report tax collected in April, May and June
October 31-To report tax collected in July, Aug. and Sept.
January 31- To report tax collected in Oct., Nov. and Dec. of the prior year

Exemptions for Indoor Tanning Tax Services:

  • Photo-therapy Service:

Licensed medical professionals offering photo-therapy services are not liable to pay indoor tanning tax. Moreover, the services should be performed by a licensed medical practitioner. Therefore, if a patient is advised photo-therapy services but, if he or she takes the treatment from a private salon, then the person is liable to tax payment. This service is useful for treating patients having problems such as acme, sleeping disorder, neonatal jaundice, etc.

  • Qualified Physical Fitness Facility:

This is a facility where a company provides equipment to its members to help them exercise and maintain physical fitness. However, businesses should keep in mind that indoor tanning services are not a part of their business and if so they would be liable for indoor tanning tax.  It is not only important to pay taxes but understanding them is important too.

Now, you can e-file excise tax from the comfort and convenience of your house. Log on Taxexcise.com today! Whether you have a suggestion for us or need an answer for your query. Call us at 1-866-245-3918 to help us serve you better.