Gerald Hoots, CPA, P.C.

Certified Public Accountant

 

P.O. Box 7356

Salem, OR 97303

 

Phone: 503-585-1782

Fax:     503-585-1818

 

March 2020

A Primer on Excise Taxes

A Primer on Excise Taxes

The sheer number of taxes companies must pay surprises many new business owners. They can be assessed for unemployment, Social Security and a variety of excise taxes, to mention a few. The latter affects businesses dealing with everything from sports wagering and gasoline to indoor tanning and tire sales. They are imposed by some states as well as the federal government.


Whether you’re a new business owner or plan to start a company, you need to understand excise taxes.


FOR BUSINESSES
On the federal level, you’re probably familiar with excise taxes on tobacco and alcohol, but they are also imposed on a variety of products and services. Although these taxes are normally priced into what consumers pay, businesses need to break their sales down to report and pay excise taxes quarterly.


Use Form 720, the Quarterly Federal Excise Tax Return, to determine your tax liability. If you need help either with filing or establishing recordkeeping to keep track, work with your tax professional who is experienced in this area.


CONSUMERS, TOO
Remember that business owners are consumers, too. In addition to paying these stealth taxes built into the pricing, consumers may also have to pay state excise taxes directly on purchases of vehicles, real estate and more.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.