tan tax - Page 2 - tanTALK

SprayRayz · 10-17-2011, 01:01 PM

And it's only a couple hundred dollars from the quarter ending June 30, 2011.

Brian Oshman · 10-18-2011, 10:57 AM

Quote:

Originally Posted by bananahut

Does anyone know exact regulations regarding the tan tax and if it would be required to pay for a salon that offers tanning and toning combined. The salon charges a monthly membership fee which includes unlimited tanning and unlimited toning and exercise equipment. It is not a large gym but space is equally divided with tanning on one side and exercise on other. I tried taking to Irs people but they seem more confused. Any ideas

This is considered a gym and if you are including the tanning for free with the membership then you are tax exempt.

If you are charging separately for tanning or have two different price structures for with or without tanning or offer tanning without the gym then you are a tanning salon and are required to collect and forward the tax.

Let's keep in mind here that if you are required to collect and forward tax then it is just that. It is not coming out of your pocket, you are simply collecting it and passing it on. I can't understand the misunderstanding that everyone in the industry has about this. Everyone thinks it is their money or profit that is being tapped into with the tax. IT IS NOT PEOPLE!!!

SprayRayz · 10-18-2011, 01:15 PM

I am not shocked to see how little the tanning tax is bringing in based on the original estimates the ObamaCare made but I am shocked to see how many salons seem to not understand this. It is so important to know what is going on in our industry let alone dealing with the IRS. Talk with a CPA, make sure all your ducks are in a row, do your research, post signs and educate your customers on the tax and submit your 720 every quarter. If you are not already doing this, it could be a huge hit with late fees and back taxes.

SteveO · 10-23-2011, 11:36 AM

Brian, I think part of the confusion is that the IRS calls it an excise tax and not a sales tax. Traditionally an excise tax is on the producer or provider of the goods or services. Everyone knows what a sales tax is.

SprayRayz, When the tan tax was first announced, I don't think the IRS much less a local CPA knew what was going on. I had to educate my CPA about the tax. By now everyone should be up to date though.

toasted1 · 10-23-2011, 06:34 PM

There is a salon near me that has not made a single payment as of yet. I can't wait to see what will happen to them. I have been waiting for them to go out of business for awhile. If the IRS is sending property seizure notices, then I figure it will be only a matter of time.

Its crazy when I pop my head in, the owner always says, " Tan tax? I am not paying that! I don't need the gov't in my pockets"

Some people just don't get it.

10-17-2011, 01:01 PM	#11 (permalink)
SprayRayz Join Date: Mar 7 2010 Location: 1 Posts: 78 Rep Power: 0	Re: tan tax And it's only a couple hundred dollars from the quarter ending June 30, 2011. __________________ "Work smarter, not harder"

10-18-2011, 01:15 PM	#13 (permalink)
SprayRayz Join Date: Mar 7 2010 Location: 1 Posts: 78 Rep Power: 0	Re: tan tax I am not shocked to see how little the tanning tax is bringing in based on the original estimates the ObamaCare made but I am shocked to see how many salons seem to not understand this. It is so important to know what is going on in our industry let alone dealing with the IRS. Talk with a CPA, make sure all your ducks are in a row, do your research, post signs and educate your customers on the tax and submit your 720 every quarter. If you are not already doing this, it could be a huge hit with late fees and back taxes. __________________ "Work smarter, not harder"

10-23-2011, 11:36 AM	#14 (permalink)
SteveO Join Date: May 2 2007 Location: Minnesota Age: 64 Posts: 136 Rep Power: 17	Re: tan tax Brian, I think part of the confusion is that the IRS calls it an excise tax and not a sales tax. Traditionally an excise tax is on the producer or provider of the goods or services. Everyone knows what a sales tax is. SprayRayz, When the tan tax was first announced, I don't think the IRS much less a local CPA knew what was going on. I had to educate my CPA about the tax. By now everyone should be up to date though.

10-23-2011, 06:34 PM	#15 (permalink)
toasted1 Join Date: Jan 24 2011 Location: Massachusetts Age: 47 Posts: 177 Rep Power: 14	Re: tan tax There is a salon near me that has not made a single payment as of yet. I can't wait to see what will happen to them. I have been waiting for them to go out of business for awhile. If the IRS is sending property seizure notices, then I figure it will be only a matter of time. Its crazy when I pop my head in, the owner always says, " Tan tax? I am not paying that! I don't need the gov't in my pockets" Some people just don't get it.

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