IRS Mails Tan Tax Letters

The nation’s 10 percent excise tax on indoor tanning services – enacted as part of healthcare reform – has been in effect since July 1, 2010, yet a representative from the Internal Revenue Service reports there may still be a plethora of non-filing salons.

Today, the IRS mailed out thousands of letters to selected indoor tanning salon owners. The correspondence does not represent an audit letter. Rather, the communication is being sent as a reminder to businesses believed to be non-compliant in filing tan tax paperwork. Past-due taxes typically result in fines and other unpleasant penalties.

The letters contain info about the tax and request a response within 30 days of the letter's date. Again, they are not audit letters, but an audit could definitely result and/or indoor tanning businesses that haven't paid their taxes could find themselves needing to justify their non-compliance.

Should you be on the receiving end of a letter, the IRS recommends you respond promptly. Additionally, business owners are advised to keep thorough records and receipts, as well as copies of any documentation sent to the IRS.

More information about the letters is posted on the IRS Tan Tax website in the "Responding to an IRS Notice" section.

In discussions on TanToday.com, a couple of salon owners have mentioned the IRS has already begun its audit process with some salons specifically regarding the tan tax. (Other threads on the topic may be located in the Industry Professionals area of the forum, which requires pre-approval to access. Any threads containing sensitive information are moved to this area.)

My IRS contact couldn't confirm or deny anything regarding audits that are reportedly underway. If you've had any activity, let us know the scoop by leaving a comment below.