Are the rules still the same for the sports excise tax? I know another builder who says that they raised the amount for resale to $200.00 before the tax should be applied. He also said that he pays the tax when he receives klthe parts from the dist. didn't know that you can do that,

The other builder is stuffed like a Thanksgiving turkey. Tax starts at the first penny of a sale and moves forward until you hit $10.00 in assessed tax (calculation varies - end user or reseller).

You have to register to collect excise taxes, register to receive a FEIN and submit a Form 720, with payment, quarterly. Even if you pay at the point of manufacturer OR claim an exemption (different registration) you STILL have to collect/remit and report.

There is an article in the library here ... [www.rodbuilding.org].

In addition, you can read up on the IRS website and/or consult with your CPA. It isn't difficult to remit and report, but I bet things can get excitingly tough if you don't and get caught.



Edited 1 time(s). Last edit at 11/28/2009 05:36PM by Jim Gamble.

I think the guy is saying that he does not owe any more tax because it is included on the components he buys. WRONG.

If he resells the components he does not have to collect any excise tax on them. It has already been included and paid. But.............at the instant you use them to make a new item---the fishing rod---you must now figure and pay the tax on that new item, the rod.

Oh, this is great. More $$ to the gov't.

I have been in business for three years now and had no idea about this tax!!! Been paying state tax but had no idea about this one. Should have known Uncle Sam needed a slice of the action. Assumed it was settled up in my filings at the end of the year when I did my taxes.

Are there any other taxes or fees that are to be paid/gathered?

Uncle Sam doesn't get it - you do. Every fisherman does. 96% of this money is returned the state fish and game departments for sportfish restoration and habitat improvements. The other 4% is kept by the U.S. Fish and Game Department for administrative purposes.

.................

Tom, I can appreciate your comment and understand - no problems with that. But, the thought of having to go back for the last three years and pay the back taxes - and whatever penalty the bureaucrats want to throw at me - that will be coming out of my pocket since I did not collect is extremely aggravating right now. I/We pay enough taxes as it is. I know this is no one's fault but my own but the fact that it "comes back to me" is of little consequence at the moment. I would rather avoid the middle man (gov't) and keep the $$ I have.

Once again, are there other taxes or fees that are to be paid/gathered before I contact my tax preparer and the IRS?

Eddie

The ONLY transactional tax at the Federal level is the Excise Tax (Form 720). Of course, other taxes (sales and/or excise) may be applicable at the local level (state, county, municipality).

Don't forget that all business income and related expense must be properly reported as well ... definitely at the Federal level and quite possibly at the local level.

Although the entire process isn't totally daunting, I prefer to process quarterly reports/payments and leave the end of year to my CPA.

Jim -

Thanks, Jim, for the feedback. Also, thank you Tom for the comment - did not thank you earlier.

I do collect sales and use tax - for North Carolina - and have been paying that. Just was not aware of the excise tax. From what I was to understand did not think I needed an FEIN number so thought was that all fed taxes were being covered as part of my EOY taxes. Oh, well. Fortunately I do keep good records and have been a "business" for about a year and a half. So, hopefully won't be too bad - I hope. I am more concerned about penalties than anything. Especially in this era of budget shortfalls

Thanks again,
Eddie