Don’t Miss Out on Your Excise Tax Refund

excise tax refund
March 1, 2023 0 Comments

There is officially one entire month left in the 2023 tax filing season. Are you prepared to file and maximize your excise tax refund? The excise tax refund is simple to understand, but there are certain things to know before filing.  

Let’s discuss what an excise tax refund is, why an excise tax return is important, and how you can apply for it when filing. Then, you can take the information you learn here today and file for the largest excise tax refund with the help of our tax experts at TiP Excise. Let’s get started.  

What is an Excise Tax Refund? 

An excise tax refund is a refund on your federal tax return for any excise tax paid to the government. In plain terms, it works just like any regular tax refund, but for the excise tax specifically. 

What is the federal excise tax? The federal excise tax is a fee that businesses pay for certain goods, activities, and services they sell. State and local governments can also impose excise taxes. The excise tax exists to increase the burden on businesses for selling items that in turn increase social harm, like alcohol and tobacco.  

Excise taxes are also often used to fund government initiatives. Despite their intent, excise taxes don’t make up that much of the government’s revenue. If the government charges your business an excise tax, then you are eligible to claim those expenses on your return for a refund.  

Differences Between Excise Taxes and Sales Taxes  

There are some people who confuse excise taxes with sales taxes. While they may serve similar purposes, sales taxes are paid by the consumer. Therefore, the producer pays excise taxes. However, neither type of tax exists to decrease overall consumption. 

 The goal is to make a profit and reduce any associated harm. If the government can profit from your goods, you can claim some of that back as a refund during tax season.  

What is the Importance of Receiving a Refund? 

Receiving a refund is important because it helps you understand your company’s spending in comparison to its production and sales. Besides, no one wants to waste their hard-earned money. If there is an opportunity to get some of that taxed income back, then it is important to claim what is yours.  

As you prepare to file your tax return, you will want to know what you are eligible to claim to maximize your excise tax refund.  

Who is Eligible for the Excise Tax Refund? 

The following items are examples of services, goods, and activities subject to an excise tax:  

  • Tobacco  
  • Alcohol  
  • Airline tickets 
  • Hotel rooms 
  • Fuel  
  • Firearms 
  • Medical Devices  
  • Cigarettes 
  • Health insurance plans 
  • Coal  
  • Gambling 
  • Ammunition  
  • Indoor Tanning 
  • Marijuana  

If your business produces anything on the list (or similar items), you could be eligible for the excise tax refund. The amount of your excise tax refund will depend on many factors, but the important thing to know is to file for it in the first place. Different types of excise taxes can impact tax refund eligibility.  

What are the Different Types of Excise Taxes that are Eligible for Refunds? 

The different types of excise taxes eligible for refunds or credits include:  

  • Aviation Fuel Credit 
  • Excise Tax on Coal  
  • Chemical Excise Taxes 
  • Sports Wagering 
  • Heavy Highway Vehicle Use 
  • Indoor Tanning Excise Tax 
  • Idling Reduction Devices 
  • Kerosene Taxes 
  • Petroleum Excise Tax 
  • And more!  

Each of the above categories is a specific type of excise tax defined and established by the IRS that you must pay to the government (but is therefore eligible for a refund). Working with a professional who understands excise tax categories can help you get organized when it comes to the time to file. Our tax experts at TiP Excise can help you get the maximum refund possible.  

If your business provides more than one of the goods, services, or activities listed above, then you will want extra support from our team during filing time to avoid mistakes (which can be expensive).  

How to Apply for an Excise Tax Refund? 

Here comes the most important information: how to apply for your excise tax refund. Now that you understand the excise tax and the eligibility requirements to claim it, let’s go through the application process in detail.  

What is the application process? 

  • The application process for the excise tax return is simple. All you need to do is complete and attach the correct excise tax form and any other documentation required or requested to your business’ tax return.  

What forms and documents are necessary to receive a refund? 

  • Use form 8849 to claim your excise tax refund. To complete this form, you will want documentation of excise taxes paid to the government for your respective goods, services, and/or activities. You can file this form (and your overall tax return) electronically or by paper in the mail. You will receive your refund faster if you file electronically.  

When is the deadline? 

  • While excise tax payments to the government can be paid quarterly, you must file your tax return by the official deadline of Tuesday, April 18, 2023. Any late filings will be subject to penalties as set by the IRS.  

Taxes in general are always more difficult to understand when it is time to file your return. Save time and money with TiP Excise.  

TiP Excise Specializes in Excise Tax – Receive the Largest Refund Possible! 

Your maximized excise tax refund is waiting for you. Even if you feel prepared to file on your own, a professional can review your work for accuracy. A mistake with the IRS is not worth the consequences!  

Here at TiP Excise, our team specializes in excise taxes and all associated regulations so that you can file with confidence.  

We can review your tax return or help you prepare your claim so that you receive the largest refund possible. As a plus, our services have no upfront or hidden costs. Don’t leave money on the table this tax season. 

 Contact us now to get started.