An audit techniques guide pertaining to the 10 percent excise tax on indoor tanning services is now available from the Internal Revenue Service.
The guide currently includes information such as:
Indoor Tanning Services Excise Tax IRC section 5000B
Overview
Law
Explanation of Provision; overview
Effective Date
Filing requirements
Deposits
Non-taxable services
Phototherapy Service
Qualified Physical Fitness Facility
Overview of Indoor Tanning Services Industry
Sales and Pricing
Terminology
Capital Investment
Sources of Information
Tax application
Basic Transaction
Other goods and services
Undesignated Payment Cards
Bundled Services
Tax is presumed to be included in the indoor tanning services charge
Examples of tax calculation:
Insurance Payments
Refunds, Penalties, and Procedure
Refunds
Penalties
Statutes of Limitation
Collected Tax - Secondary Liability
Collected Tax - IRC Section 6672 Trust Fund Penalty
Examination Techniques
Overview
Examination Issues
Undesignated Payment Cards
"Free" tanning
Other fees
Red Light Beds
Excise Examination
Provider Interview:
Internal Controls
Reconcile return to books/records
Tanning-industry specific software
Reconstructing or verifying indoor tanning service revenue
Additional pre-audit examination steps:
Badges of Fraud
IDR Language:
Link to Frequently Asked Questions
Link to Regulation 49.5000B-1T
