Tax Docket

As part of a Special Edition Tax Tip, the IRS provides 9 Tips on the 10 Percent Tax on Tanning Services for businesses offering tanning services :

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.

Other resources:

Excise on Indoor Tanning Services FAQs

Affordable Care Act Tax Provisions

And for good measure a video from the IRS explaining the tax. Enjoy!

In IR 2010-78, the IRS issued guidance to individuals and businesses effected by the oil spill in the Gulf of Mexico. In addition to a number of new efforts to assist taxpayers, the service announced that on July 17th there will be a special Gulf Coast Assistance Day:

The guidance released today is based on current law, and it explains how recipients of payments from BP should treat the payments for tax purposes. According to the current law, BP payments for lost income are taxable in the same way that the wages or business income these payments are replacing would have been. The law treats compensation for lost wages or income differently for tax purposes than compensation for physical injuries or property loss, which generally are nontaxable.

Here are links to additional IRS Gulf Oil Spill Resources:

Gulf Oil Spill Information Center

Gulf Oil Spill: Questions and Answers

The Associated Press released Highlights of the House Tax and Spending Bill. The legislation was passed by the House on Friday. Here are the tax measures outlined by the article:

Extends for one year about $32 billion in tax breaks that expired in January, including a property tax deduction for people who don’t itemize, lucrative credits that help businesses finance research and develop new products, and a sales tax deduction that mainly helps people in states without income taxes.

Imposes $11.2 billion in new Medicare taxes on lawyers, doctors and other service providers.

Increases taxes on investment and hedge fund managers, venture capitalists and many real estate investment partnerships by $18.7 billion.

Raises taxes on multinational companies some $14.5 billion by limiting their ability to use credits for paying foreign taxes to lower their U.S. tax liability.

Increases taxes on oil companies by $11.8 billion by raising from 8 cents a barrel to 34 cents a barrel the tax they pay into the Oil Spill Liability Trust Fund.