08-23-2011, 03:12 PM | #1 (permalink) |
Join Date: Aug 22 2011 Location: Alexandria la
Posts: 6
Rep Power: 0 | tan tax 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 |
08-23-2011, 08:37 PM | #3 (permalink) |
Join Date: Apr 25 2010 Location: Simi Valley, CA
Posts: 143
Rep Power: 14 | Re: tan tax You have to charge the tax based on percentage of services used if I recall correctly. If half of the membership is being charged for tanning (ie $100 monthly and $50 is going towards tanning) then half of the membership is subject to the tanning tax (ie 10% of the $50, so $5 in tax)
__________________ Alex Chuang Owner Coco Beach Tanning |
10-05-2011, 12:39 PM | #6 (permalink) |
Join Date: Aug 24 2010 Location: North of Boston-Mobile
Posts: 10
Rep Power: 0 | Re: tan tax It's just the tanning, only UV tanning, not sprays tans or the gym. Any time someone's charged to use a UV bed or booth then that's when the 10% would come into effect. I paid quarterly, basically when my accountant told me to, and on my particular software I was able to pull reports of how much was sold in UV tans alone (b/c I also offered Airbrush Tanning). I just calculated 10% of that and sent my check wherever my Accountant told me to. I've read that some owners absorbed the full tax on themselves and didn't increase prices, others added the 10% onto the prices, and some charged 5% then they paid the remaining 5%. |
10-13-2011, 05:32 PM | #9 (permalink) |
Team TanTalk Join Date: Jul 13 2004 Location: Menomonie, Wi. Age: 82
Posts: 3,145
Rep Power: 22 | Re: tan tax ^^I always mail early. I don't want to give them any reason to even think I should be audited. I do it with the feds and I do it with the state returns. I send them in while it's fresh on my mind, and that's as soon as the first week after the end of the quarter. |
10-17-2011, 01:00 PM | #10 (permalink) |
Join Date: Mar 7 2010 Location: 1
Posts: 78
Rep Power: 0 | Re: tan tax Well it looks like the IRS is finally catching up. I always pay my tan tax, but sometimes I make a partial payment one quarter and pay the remaining balance the next quarter. Today I got certified mail from the IRS saying if I didn't pay the remaining balance in 10 days I would have property seized. It isn't even the end of this tax season yet! You couldn't get ahold of someone even 2 months ago with the IRS that knew much about processing the tanning tax and now if you are not paid in full each quarter they are threatening to seize assets. Lesson noted, I will pay in full every quarter just to avoid seeing that envelope with "IRS" on it.
__________________ "Work smarter, not harder" |
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