IRS Logo
Print - Click this link to Print this page

Excise Tax

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. One of the major components of the excise program is motor fuel.

2014 Fuel Tax Credit Extenders
The Tax Increase Prevention Act of 2014, enacted Dec. 19, 2014, extended the following fuel tax credits:

  • Biodiesel (including renewable diesel) credit
  • Biodiesel (including renewable diesel) mixture credit
  • Alternative fuel credit, and
  • Alternative fuel mixture credit
  • Second generation biofuel producer credit

These fuel tax credits, which expired Dec. 31, 2013, have been retroactively extended through Dec. 31, 2014. Eligible 2014 claims must be filed per Notice 2015-3

Indoor Tanning Service Providers Must File a Federal Excise Tax Return
Beginning July 1, 2010, indoor tanning services will be subject to a 10 percent excise tax under the Affordable Care Act.

Directors Directive on Announcement 2008-18, FET Compliance Initiative
This Directive provides guidance to examiners auditing taxpayers participating in the voluntary compliance initiative (Announcement 2008-18) regarding foreign insurance excise tax (FET) under IRC 4371- 4374.

Excise Summary Terminal Activity Reporting System (ExSTARS)
ExSTARS is a fuel reporting system developed with the cooperation of the IRS, Department of Transportation, states, and motor fuel industry, which details the movement of any product into or out of an IRS approved terminal. A facility control number (FCN) designates a storage location within the motor fuel, or renewable fuel production or the bulk transfer / terminal system. Information regarding the use of FCNs was made public by an announcement in the Federal Register on April 12, 2010.

Excise Tax Electronic Data Interchange (EDI) Guides (Pub. 3536)
Terminal Operators and Bulk Carriers refer to Publication 3536 for EDI filing requirements.

637 Registration Program
Under the Code and regulations, each person that engages in certain specified activities relating to excise tax must be registered by the IRS before engaging in that activity.

Online Form 637 Registration Status Check
This Web application provides the ability for businesses to confirm whether individuals/companies have a valid IRS registration.

Exemption From Excise Tax for Certain Wooden Arrows
On Friday, October 3, 2008, P.L. 110-343 (H.R. 1424), the Emergency Economic Stabilization Act of 2008 (Act), also known as the Tax Extenders and Alternative Minimum Tax Relief Act of 2008, was signed into law by the President. The Act includes a key provision in Title V, Section 503 that impacts the Archery federal excise tax.

Field Directive Federal Excise Tax on the Importation and Manufacture of Fishing and Archery Products
This updates the field directive that discusses the Federal Excise Tax on the importation and manufacture of fishing and archery products.

Idling Reduction Devices Exempt from 12% Retail Excise Tax
The Environmental Protection Agency's (EPA) list of devices that reduce highway tractor idling is now available. These devices may be exempt from the 12 percent retail excise tax provided they meet the criteria set forth in section 4053(9) of the Internal Revenue Code.

Rate the Small Business and Self-Employed Website

Page Last Reviewed or Updated: 13-Aug-2015