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Yearly Archives: 2010
IRS Presents: Tanning Tax Is Here
Stacie says: July 1st kicked off the new tanning tax provision of the Affordable Care Act that we debated last year.
You can catch up with the debate by reading these posts:
Vanity Tax = Tax the Other Guy Legislation HR 3590
Babbling Incisively on About Fuller Lips, Larger Breasts, Slimmer Thighs and H.R.3590
Still Talking About Fuller Lips, Larger Breasts, Slimmer Thighs, And H.R. 3590
The IRS Presents the following information:
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.
Here are nine tips on the tanning excise tax that providers must collect.
- Businesses providing ultraviolet tanning services must collect the 10 percent excise tax at the time the customer pays for the tanning services.
- If the customer fails to pay the excise tax, the tanning service provider is liable for the tax.
- The tax does not apply to phototherapy services performed by a licensed medical professional on his or her premises.
- The tax does not apply to spray-on tanning services.
- 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.
- 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.
- 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.
- Tanning service providers must report and pay the excise tax on a quarterly basis.
- 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 IRS.gov.
Links:
- IR-2010-73, IRS Issues Regulations on 10-Percent Tax on Tanning Services Effective July 1
- Excise Tax on Indoor Tanning Services Frequently Asked Questions
- Affordable Care Act Tax Provisions
YouTube Video:
IRS Patrol: IRS Requests Public Input on Expanded Information Reporting Requirement
Stacie says: You have until September 29, 2010 to tell the IRS your thoughts on expanded reporting requirements for Form 1099 recipients. Check out the ways to submit your comments below:
WASHINGTON — The Internal Revenue Service invited public comment on how to most effectively carry out a law change that, starting in 2012, will require businesses to report a wider range of payments to contractors, vendors and others, usually on Form 1099. These comments will help the IRS issue guidance that implements this provision in a manner that minimizes burden and avoids duplicate reporting.
Under a proposed regulation, many business purchases made with credit or debit cards would be exempt from the new reporting requirement because they are already reported by banks and other payment processors. The IRS seeks comments on additional circumstances in which duplicate reporting might otherwise occur and on rules that would prevent such duplicate reporting.
The change, enacted in March but not effective until 2012, expanded existing reporting requirements to include a business’s payments related to goods and other property, and payments to most corporations. With some exceptions, payments to corporations are currently exempt from this requirement.
There are three ways to submit comments.E-mail to:
- Notice.Comments@irscounsel.treas.gov. Include “Notice 2010-51” in the subject line.
- Mail to: Internal Revenue Service, CC:PA:LPD:PR ( Notice 2010-51), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
- Hand deliver to: CC:PA:LPD:PR ( Notice 2010-51), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, between 8 a.m. and 4 p.m., Monday through Friday.
The deadline is Sept. 29, 2010. Further details are in Notice 2010-51, posted today on IRS.gov.
Notice 2010-51 invites public comments regarding guidance to be provided to payors and other affected persons concerning new requirements with respect to the reporting of payments made in the course of the payor’s trade or business. Section 6041 of the Internal Revenue Code generally requires information returns to be made by every person who makes payments, as defined in section 6041(a), aggregating $600 or more in any taxable year to a single payee in the course of the payor’s trade or business; new amendments to section 6041 expand reporting to payments of gross proceeds and payments to corporations.
Notice 2010-51 will appear in IRB 2010-29, dated July 19, 2010.
Stacie's Tax Stuff 