Due Dates, Federal Excise Tax Electronic Filing, Form 720 Quarterly Excise Tax Efile

Excise Tax reporting with IRS…

Excise Tax:

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. Excise Tax has several general excise tax programs. One of the major components of the excise program is motor fuel.

Reporting an Excise Tax with IRS is made simple and easy at www.TaxExcise.com . TaxExcise.com is the only website offering efile for all Excise Tax forms like, Form 2290, Form 8849 & Form 720.

Indoor Tanning Service Providers Must File a Federal Excise Tax Return

Beginning July 1, 2010, indoor tanning services will be subject to a 10 percent excise tax under the Affordable Care Act. Read more about Filing Indoor Tanning, Excise Tax return.

Leaking Underground Storage Tank (LUST) Tax Refunds

Taxpayers eligible for the LUST excise tax refund may use Form 8849, Claim for Refund of Excise Taxes, to file a claim.

Excise Summary Terminal Activity Reporting System (ExSTARS)

ExSTARS is a fuel reporting system developed with the cooperation of the IRS, Department of Transportation, states, and motor fuel industry, which details the movement of any product into or out of an IRS approved terminal. A facility control number (FCN) designates a storage location within the motor fuel, or renewable fuel production or the bulk transfer / terminal system. Information regarding the use of FCNs was made public by an announcement in the Federal Register on April 12, 2010. Read more at ExSTARS

Excise Tax Electronic Data Interchange (EDI) Guides (Pub. 3536)

Terminal Operators and Bulk Carriers refer to Publication 3536 for EDI filing requirements.

637 Registration Program

Under the Code and regulations, each person that engages in certain specified activities relating to excise tax must be registered by the IRS before engaging in that activity.

Excise Tax Online Exchange (ExTOLE)

The IRS administers a data repository for states to exchange motor fuel tax related information. 100 percent of the ExTOLE data originates from a particular state, and is available to other states under disclosure agreements between states. Read more at ExTOLE

Online Form 637 Registration Status Check

This Web application provides the ability for businesses to confirm whether individuals/companies have a valid IRS registration. To check your registration number, click here

Exemption From Excise Tax for Certain Wooden Arrows

On Friday, October 3, 2008, P.L. 110-343 (H.R. 1424), the Emergency Economic Stabilization Act of 2008 (Act), also known as the Tax Extenders and Alternative Minimum Tax Relief Act of 2008, was signed into law by the President. The Act includes a key provision in Title V, Section 503 that impacts the Archery federal excise tax.

Field Directive Federal Excise Tax on the Importation and Manufacture of Fishing and Archery Products

This updates the field directive that discusses the Federal Excise Tax on the importation and manufacture of fishing and archery products.

Idling Reduction Devices Exempt from 12% Retail Excise Tax

The Environmental Protection Agency’s (EPA) list of devices that reduce highway tractor idling is now available. These devices may be exempt from the 12 percent retail excise tax provided they meet the criteria set forth in section 4053(9) of the Internal Revenue Code.

References/Related Topics

•             Excise Tax Forms and Publications

•             Electronic Excise Tax Returns Are Here – Formerly Known as “ETEC” (Excise Tax e-File & Compliance) Form 2290 & 720 Join The Ranks of e-file!

•             Federal Excise Tax – Rural Airports (PDF)

•             IRS Issues Guidance on Truck Sale Excise Tax

•             Telephone Excise Tax Refund

Refer to IRS.gov website for more information.

Due Dates, Federal Excise Tax Electronic Filing, Form 2290 Efile, Form 720 Quarterly Excise Tax Efile, IRS Tax Tips and Alerts

Excise Summary Terminal Activity Reporting System (ExSTARS)

Excise Summary Terminal Activity Reporting System (ExSTARS)

What is ExSTARS?

ExSTARS is a fuel reporting system developed with the cooperation of the IRS, Department of Transportation, States, and Motor Fuel Industry, which details the movement of any liquid product into or out of an IRS approved terminal.

The ExSTARS system requires each terminal operator and bulk carrier to file monthly reports. Reports are filed for each approved terminal with a Terminal Control Number. The Terminal Control Number (TCN)/Terminal Locations Directory contains terminal control numbers and locations for IRS approved terminals.

Who is required to use ExSTARS?

Terminal Operators and Bulk Fuel Carriers (pipeline, vessel and barge operators) are required to file monthly information returns – Fuel Transaction Reports. All receipts and disbursements of liquid products to and from an approved terminal are reportable. If reportable transactions equal or exceed 25 during a monthly reporting period, electronic reporting through ExSTARS is required. Each receipt of liquid product and each disbursement of liquid product constitutes a separate transaction even if it is a single movement of fuel.

Form 720-TO Terminal Operator Report. Form 720-TO is required to be filed by a terminal operator to report monthly receipts and disbursements of all liquid products to and from all approved terminals.

Form 720-CS Carrier Summary Report. Form 720-CS is required to be filed by bulk transport carriers (barges, ships, and pipelines) who receive or deliver products in or out of storage at a terminal, or any other location designated by a facility control number (FCN).  Pipelines only file for receipt or delivery transactions at an approved terminal.

Facility Control Number System (FCN)

A facility control number designates a storage location within the motor fuel, or renewable fuel production or the bulk transfer / terminal system. Facilities include refineries (RCN), approved terminals (TCN), biodiesel production facilities (BCN), or ethanol production facilities (ECN). Currently, only TCNs are required to file returns.  Information in the RCN directory is required for reporting purposes for carriers. The BCN and ECN numbers will be released at a later date. Information regarding the use of FCNs was made public by an announcement in the Federal Register on April 12, 2010.

When to file?

The report is due the last day of the month following the reporting period. If any due date for filing a return falls on a Saturday, Sunday, or legal holiday, the report maybe filed on the next business day.

How to file?

• Apply to participate in electronic filing using letter(s) of application. Fill-in letters of application are available for Terminal Operator/Carriers and Transmitters.

• Electronic Filing (Electronic Data Interchange) over the Internet

• A test cycle will be used to test the exchange of files between the electronic filer and the IRS prior to submitting production files. These tests will ensure the successful submission of qualifying electronic Form720-TO, and Form 720-CS information returns.

• Paper submission of Form 720-TO and/or 720-CS

Why is filing required?

•  Implementation of Treasury Regulation 48.4101-2 requiring “taxable fuel registrants” to provide information reports.

• Match Information Returns against Excise Tax Returns.

The new electronic format will be available for testing beginning in early December 2010.

Please see a  summary of these changes for further details.

References/Related Topics

Source: IRS.gov read more.

Federal Excise Tax Electronic Filing, Form 2290 Efile, Form 720 Quarterly Excise Tax Efile, IRS Tax Tips and Alerts

Leaking Underground Storage Tank (LUST) Tax Refunds

Leaking Underground Storage Tank (LUST) Tax Refunds – How to claim refund using Form 8849

TaxExcise.com is a certified efile service provider for all Excise Tax forms. We support Form 8849 claims on excise taxes including Schedule 1,2,3,5,6 & 8.

Through www.TaxExcise.com LUST claim can be made to IRS.

What is LUST?

The LUST tax is a $.001 per gallon tax imposed on taxable fuels to fund the cleanup of leaking underground motor fuel storage tanks.

On Dec. 29, 2007, the President signed the Tax Technical Corrections Act of 2007. Section 6(d) of the Act amends Section 1362 of the Energy Policy Act of 2005 and Sections 4041, 4042, 4082 and 6430 of the Internal Revenue Code (IRC) to remove a double LUST excise tax that was previously imposed on dyed diesel fuel used in trains and fuels (other than Bunker C residual fuel oil) used on inland waterways, and to allow a refund of any second LUST tax paid. Additionally, the amendments exempt fuel used in foreign trade from the LUST tax and allow a refund of any LUST tax previously imposed on that use.

Due to amendments to the Tax Technical Corrections Act of 2007, some taxpayers are entitled to a LUST excise tax refund. Taxpayers eligible for a refund are encouraged to use Form 8849, Claim for Refund of Excise Taxes, to file a refund claim. No interest will be paid on LUST tax refunds.

Instructions for Completing Form 8849

Use www.TaxExcise.com to complete your LUST clams, also use the available efile service to claim it electronically.

LUST TAX REFUND claims on

Aviation fuel “Kerosene for use in aviation, LUST tax on foreign trade, the Credit Reference Number (CRN) 433.

Dyed diesel fuel used in trains and inland waterways,  “LUST tax on dyed diesel fuel used in trains and inland waterways” and the CRN 434.

Mail Form 8849 and Schedule 6 to:

IRS prefer electronic method to do Excise Tax claims, still you want to do it over mail, use www.Taxexcise.com prepare your claim form 8849 return and mail it to

Internal Revenue Service
P.O. Box 312
Covington, KY 41012-0312

IRS’ preferred method for claiming the LUST tax refund is the use of Form 8849. Form 8849 will be the most timely and convenient. As an alternative to filing Form 8849 to claim a refund, taxpayers may claim a credit on their federal income tax return by using line 17 on Form 4136, Claim for Federal Tax Paid on Fuels.

Taxpayers Eligible to Claim a LUST Tax Refund Under the Provisions of the Tax Technical Corrections Act of 2007

Only taxpayers involved with the tax on fuel used in inland waterways, trains and aircraft engaged in foreign trade are eligible for the LUST tax refund.

For fuel used in aircraft in foreign trade: The ultimate purchaser unless it waives its right to the claim to the ultimate vendor under IRC Section 6427(l)(4)(C).

For fuel used in inland waterways: The person that paid the tax as the operator of the vessel in which the propulsion fuel was consumed.

For fuel used in trains: The operator of the train, unless the deliverer of the fuel paid the tax under Treasury Regulation Section 48.4082-4(b)(2)(ii).

The LUST tax imposed under IRC Section 4041(a)(1)(C)(ii) does not apply after Dec. 31, 2006.

Explanation of the Term “use in foreign trade”

Generally, use in foreign trade includes any use of an aircraft in a commercial international flight that leaves the United States (subject to the reciprocity rules of IRC 4221(e)(1)).  Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for compensation or hire.

Receipt of Refund

The IRS anticipates issuance of refunds within 20 days of receipt of Form 8849.

General Scenarios

If you own a taxable fuel terminal and in 2007 reported the LUST tax on Form 720, Quarterly Federal Excise Tax Return, under abstract 119, you are not entitled to the LUST tax refund because only one LUST tax was paid on your fuel.

If you used undyed diesel fuel in your train, you are not entitled to the LUST tax refund.

If you used undyed diesel fuel in your inland waterways vessel, you may be eligible but only if you paid the inland waterways tax of $0.201 per gallon.

If you used dyed diesel fuel in your inland waterways vessel to operate generators that are not part of the propulsion system of the vessel, you are not entitled to the LUST tax refund. This fuel use is excluded from the tax imposed by IRC Section 4042, so no double LUST tax would have been paid.

References/Related Topics

Excise Tax: www.irs.gov

Due Dates, Federal Excise Tax Electronic Filing, Form 2290 Efile, IRS Tax Tips and Alerts

Nine Tips on the 10 Percent Tax on Tanning Services

Starting July 1, 2010, many businesses offering tanning services must collect a 10 percent excise tax on the tanning services they provide. This excise tax requirement is part of the Affordable Care Act that was enacted in March 2010. Indoor Tanning tax has to be reported for the 1st Quarter of 2011 is due by May 2nd, 2011.

Use IRS Form 720, Quarterly Federal Excise Tax Return to report and pay the indoor tanning tax due by May 2, 2011. Act fast and report it electronically at www.TaxExcise.com

Here are nine tips on the tanning excise tax that providers must collect.

1. Businesses providing ultraviolet tanning services must collect the 10 percent excise tax at the time the customer pays for the tanning services.

2. If the customer fails to pay the excise tax, the tanning service provider is liable for the tax.

3. The tax does not apply to phototherapy services performed by a licensed medical professional on his or her premises.

4. The tax does not apply to spray-on tanning services.

5. If a payment covers charges for tanning services along with other goods and services, the other goods and services may be excluded from the tax if they are separately stated and the charges do not exceed the fair market value for those other goods and services.

6. If the customer purchases bundled services and the charges are not separately stated, the tax applies to the portion of the payment that can be reasonably attributed to the indoor tanning services.

7. The tax does not have to be paid on membership fees for certain qualified physical fitness facilities that offer indoor tanning services as an incidental service to members without a separately identifiable fee.

8. Tanning service providers must report and pay the excise tax on a quarterly basis.

9. To pay the tax, businesses must file IRS Form 720, Quarterly Federal Excise Tax Return using an Employer Identification Number assigned by the IRS. Businesses that don’t already have one can apply for an EIN online at IRS.gov.

Find more information about the excise tax on tanning services, IRS Form 720 and other tax provisions of the Affordable Care Act at www.Taxexcise.com.

Call our Help Desk Toll Free 1-866-245-3918 or simply email to us at support@taxexcise.com. Follow our tweets @taxexcise.com

To read more click here

Due Dates, Federal Excise Tax Electronic Filing, Form 2290 Efile, IRS Tax Tips and Alerts, Tax Excise Users Alert

Excise tax on indoor tanning services, for the first quarter of 2011 is due May 2.

TaxExcise.com

Starting July 1, 2010, many businesses offering tanning services must collect a 10 percent excise tax on the tanning services they provide. This excise tax requirement is part of the Affordable Care Act that was enacted in March 2010.

Use IRS Form 720, Quarterly Federal Excise Tax Return to report and pay the indoor tanning tax due by May 2, 2011. Act fast and report it electronically at www.TaxExcise.com

What is taxable indoor tanning service?

Taxable indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning

Who must pay the indoor tanning services tax?

Indoor tanning service providers are responsible for collecting the tax from the person paying for the service and in some situations, from the person receiving the service.What is taxable indoor tanning service?

Taxable indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning.

Who must report the tax to the government?

The person receiving the payment for the indoor tanning service must report the indoor tanning services tax on and remit the full amount of tax with a timely filed return.

How do I report the indoor tanning services tax?

Report the indoor tanning services tax on Form 720, Quarterly Federal Excise Tax Return electronically at www.TaxExcise.com and get it accepted by the IRS in minutes.

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