Root Admin Phil Lilley Posted February 17, 2015 Root Admin Posted February 17, 2015 my cpa has the irs letter with the tax bill number that was passed in 2010 that changed how excise tax is applied to lure manufactures and that it goes to obamacare. wish i could recall the exact link so you can read it for yourself. bo May be the 2010 law changed the 2006 rule but you'd think the IRS would change their website. That, or the IRS was incorrect in the letter you got? Something is amiss.
merc1997 Bo Posted February 17, 2015 Posted February 17, 2015 May be the 2010 law changed the 2006 rule but you'd think the IRS would change their website. That, or the IRS was incorrect in the letter you got? Something is amiss.that did change in an amendment in 2010. the irs auditor sent me the link. plus, he came down in person to visit with my cpa, and came on down here to visit with me. there are other types of businesses that got hit by this taxing change. it used to be that you paid 10% on your cost of goods, but that is not the case with the current law. so, they are actually taxing labor too. what i am in the process of doing, is to start a second company that will be the manufacturing company, and nutech will become just a distributor and not a manufacture. that will be the best way to pay the least possible amount of excise tax. nothing like trying to manufacture products here in this country so there are jobs. bo
dtrs5kprs Posted February 17, 2015 Posted February 17, 2015 May be the 2010 law changed the 2006 rule but you'd think the IRS would change their website. That, or the IRS was incorrect in the letter you got? Something is amiss. The FET can be as confusing as get out. In theory, if you make a lure and sell it for $1 you owe $0.10 in excise tax. Gets a little trickier because packaging is considered taxable as well, and that probably catches some folks. Mostly, I think companies end up overpaying it more often than not. There is a decimal amount that is supposed to be used if the tax is included in the sale price, on the order of 0.09 and a whole lot of trailing digits. Not sure anyone really wants to get into a discussion of decimals with the IRS, thus the overpayments. It is also a tax that amounts to a value added tax, as it can get collected at several points in the process. That is a completely separate issue. Next time you hear a legislator call for a value added tax, call them on it, and use FET's as an example. The 637 exemption issue further clouds it up. It is required to buy taxable components without tax (between manufacturers), but is not required to file the 720 form. Just need an FEIN for that, or even just your SSN if in the application process when the tax comes due for that quarter. Last change I knew about, aside from the IRS not automatically sending out the forms (and specific to outdoor issues), was the cap they placed on taxes due on fishing rods. That tax was capped at something like $10-15. Think they addressed the fact they were taxing mostly labor on rod builders over that dollar amount. There are some really gray areas. A good example are the folks selling used/collectible lures on auction sites. If they do it as a business, and do anything to package the baits, they could owe FET under some interpretations. awhuber 1
dtrs5kprs Posted February 17, 2015 Posted February 17, 2015 that did change in an amendment in 2010. the irs auditor sent me the link. plus, he came down in person to visit with my cpa, and came on down here to visit with me. there are other types of businesses that got hit by this taxing change. it used to be that you paid 10% on your cost of goods, but that is not the case with the current law. so, they are actually taxing labor too.what i am in the process of doing, is to start a second company that will be the manufacturing company, and nutech will become just a distributor and not a manufacture. that will be the best way to pay the least possible amount of excise tax. nothing like trying to manufacture products here in this country so there are jobs.bo Amen. A lot of companies did the same...Bass Buster, Norman, etc. That aspect scares the dickens out of me, because I have seen it interpreted in a way that still leaves the "distributor" liable for the full FET if the products are made to their specs, they supply components, they own the design, etc. Thus the overpayments...
Old plug Posted February 17, 2015 Posted February 17, 2015 What I do not understand is since all stops up the line pass on the tax to the consumer how are they being hurt. Most business's do not pay taxes on the bussiness. this is esecially triue with small bussiness. I know a few small business owners who have not paid taxes on there business in years. Myself I am all for them. The Tax code in this country is amess to say the least. You will never see it changed though. To much realpoliticalpower to leave it like it is.
gitnby Posted February 17, 2015 Posted February 17, 2015 I rarely agree with every word of anything (except the Bible) but by gosh I don't think there's a single word in this post that I don't hold to be absolute truth. Very, very well said, gitnby. Why, Thank you, Sir! I assume then, that I can count on your vote in the Iowa primary? First thing I'll do as President will be to subsidize all fishing boat and tackle manufacturers such that we all get free stuff! awhuber 1
Gavin Posted February 18, 2015 Posted February 18, 2015 FET has a couple twists to it and small biz taxpayers rarely understand their tax compliance burden. Sales tax, payroll, excise, income, personal property, 1099's, etc. Every business is a bit different depending upon the jurisdictions that are involved. Advice is worth what you pay for it. Engage a good accountant and let them figure it out for you. Tax compliance is not easy!
jeb Posted February 18, 2015 Posted February 18, 2015 What I do not understand is since all stops up the line pass on the tax to the consumer how are they being hurt. Most business's do not pay taxes on the bussiness. this is esecially triue with small bussiness. I know a few small business owners who have not paid taxes on there business in years. Myself I am all for them. The Tax code in this country is amess to say the least. You will never see it changed though. To much realpoliticalpower to leave it like it is. As the prices rise to compensate for the added govt burdens, so does the risk of losing sales. Folks will do without it, find a different way to get it (internet, cheaper labor, etc), manfs will build the product overseas, etc. John B 08 Skeeter SL210, 225F Yamaha
dtrs5kprs Posted February 18, 2015 Posted February 18, 2015 As the prices rise to compensate for the added govt burdens, so does the risk of losing sales. Folks will do without it, find a different way to get it (internet, cheaper labor, etc), manfs will build the product overseas, etc. And that leads to lower sales, less jobs available, less taxes paid, and more dependence on the govt for hand to mouth existence. Almost like they have it figured out that way...
Old plug Posted February 18, 2015 Posted February 18, 2015 I am sorry but I do not agree about a burden on big bussiness. I will admit I am very biased. I do not like I do not like the idea of companies being unregulated. Unlike most of you my people my hertiage comes from the coal mines and garment sweat shops. My father went down in the mine at the age of about 6 like his brothers did. Never made a penny. To understand that you got to know what the company store was. My mother was a seamstress woked in sweat shops. They would lock them in the shop summer and winter with no open windows with very little heat and no fans in the summer. Women would pass out and they would be fired for it. But I am not a big unionisf either. They are greedy and high handed as well. I believe in the Japanese way of running corporarions. The employess own the place. Big difference. I am trying to get off this darn Ipad. But my the computer I have been using keeps dropping the Password. Worst communications instrument I have ever used.
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