charmerbaits Posted May 9, 2008 Report Share Posted May 9, 2008 If you pay excise tax on all your components do you still have to charge excise tax on jigs or spinnerbaits that you make and sell? If so, should you not be paying excise tax on your components? It seems if you pay it on components then you shouldn't have to charge it because the IRS is double dipping. Thanks, Charlie Quote Link to comment Share on other sites More sharing options...
Spike-A-Pike Posted May 9, 2008 Report Share Posted May 9, 2008 Charlie, Call you local IRS office and tell them you'd like information on getting an IRS Form 637. Not everything falls under that 10% Excise Tax; exempt items include poly bags, multi-compartment containers, pliers, wire, wire shafts, air guns and accessories, air compressors, rod cases, nylon net, snell tyers and paint, to list a few that I know about. If you make an appointment with them before starting a business, they can help identify all the tax concerns you'll need to address as you start Charmer Baits lure manufacturing empire. If you've at it a while still make an appointment to see them. This will provide you a POC and a business card to ask future questions as they come up. Good luck and keep updating this thread as you work through the process so we can all learn from your adventure. Quote Link to comment Share on other sites More sharing options...
Spin Casting Posted May 9, 2008 Report Share Posted May 9, 2008 Charlie, Here is a link to a Excise Tax discussion some time ago. http://www.tackleunderground.com/forum/docks/10770-federal-excise-tax-fishing-tackle.html If you have any other questions that I may be able to answer please feel free to contact me. Chuck Vanover Tight Line Anglers Products PH. 440-277-1511 Fax 440-277-9152 Quote Link to comment Share on other sites More sharing options...
JSC Posted May 9, 2008 Report Share Posted May 9, 2008 The Link Refered to by Spin Cast should get you on the right trail. JSC Quote Link to comment Share on other sites More sharing options...
King Bait Co. Posted May 10, 2008 Report Share Posted May 10, 2008 Let me brake the tax thing down to you King Bat Co. Style. Lets take a stake for a break down. They guy who bought the calf to start this off with had to pay tax(#1) on it he. Now he has to get feed for it which he pays tax(#2) on for a few years(will only count it once). Then he takes it to the slaughter house(fuel tax#3). They buy it then he has to claim the profit on his taxes(#4). They process it then resell then they have to claim the profit on their taxes(#5). Then the trucker who haules it to the store has to pay fuel taxes(#6). Then the store sell that nice stake to you. Then they have to claim it on their taxes(#7). Then you take it home and eat it up and throw some fat and bone in the trash. The next day you use the restroom to remove left over stake from you. You Flush it goes to the trement plant and at the end of the month you get a water bill and a grabage bill you then pay water tax(# and you pay waste tax(#9). I hope you get the point of this I may have left a few out but who's counting the goverments just counting the your dollars in their pockets. Quote Link to comment Share on other sites More sharing options...
Spike-A-Pike Posted May 10, 2008 Report Share Posted May 10, 2008 Now I remember why I rustle cattle, have a outhouse in the back yard behind the bushs, and use moonshine in my gas tank... Okay, okay; I'm just kidding... About some of it... Okay, all of it ~ where's Tater? He'll get it. Pass the roasted squirrel please. Quote Link to comment Share on other sites More sharing options...
