Get Form 721vi

Excise taxes are taxes required on specific goods or services like fuel, tobacco, and alcohol. Excise taxes are primarily taxes that must be paid by businesses, usually increasing prices for consumers indirectly. Excise taxes can be ad valorem (paid by percentage) or specific (cost charged by unit).

Excise taxes levied for this purpose are often called sin taxes. Similarly, governments use excise taxes to help cover costs related to the taxed item. For example, excise taxes on gasoline help pay for new highway construction. Other excise taxes fund activities that benefit society.

In general, an excise tax is a tax is imposed on the sale of specific goods or services, or on certain uses. Federal excise tax is usually imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco and other goods and services.

Place Form 8689 in the return in attachment sequence order (85). Sign and date Form 1040 on page 2 and mail to the IRS Service Center Austin, TX 73301-0215. On the Form 1040 that will be filed with the Virgin Islands Bureau of Internal Revenue, put Form 8689 as the first page of the return (on top of Form 1040 page 1).

For example, if you're single, under the age of 65, and your yearly income is less than $12,200, or married, both spouses under 65, with income less than $24,400, you're exempt from paying taxes. If you're over the age of 65, single and have a gross income of $13,850 or less, you don't have to pay taxes.

Excise Exemption Certain activities and nonprofit organizations are exempt from federal excise tax surcharges. ... Nonprofit hospital and educational organizations are exempt from communication-related excise taxes.

In order to qualify for tax-free treatment, the state or local government must purchase the fuel for its own exclusive use. State and local government entities may benefit from Internal Revenue Code Section 4221(a)(4). This section exempts these entities from the Federal motor fuel excise taxes.

Exemptions for use by the United States or by a States or local government for police or law enforcement purposes; ambulances, ambulance-hearses; emergency uses prescribed by the IRS (including firefighting). IRC § 4064(b)(1). All 5 exemptions under IRC § 4221 apply.