Many of our tax laws are written in very broad language. This provides a significant advantage to the IRS, as the IRS can issue interpretive guidance to clarify these rules in a way that is easier to administer and, often, in ways that maximize tax revenue for the government. This flexibility also aids IRS auditors……
Tag: Excise Tax
Fifth Circuit Expands Tire Import Excise Tax
In the tax world, excise taxes are often the neglected step-child. They take a back seat to income and estate taxes. They do not make the headlines very often. Excise taxes are largely transaction-based taxes that target specific industries or activities. The businesses that are subject to these taxes generally just pay them, and consider……
IRS Says Extra Legroom for Flight is “Necessary” to Fly
If you pay an airline for premium economy seating, is the amount you pay subject to the air transportation excise tax for the airline? The answer depends on whether the seating is necessary. Given the smaller spaced allotted for each passenger, one conclude that premium seating is necessary. The IRS determined that it is in……