Brad Posted August 8, 2003 Report Share Posted August 8, 2003 I read where the IRS will check out your facilities before they will grant you exemption (form 637). Sometimes my facility is a kitchen table and a old tackle box. Is it worth filling out & submitting the form? Quote Link to comment Share on other sites More sharing options...
dlaery Posted August 8, 2003 Report Share Posted August 8, 2003 Our facility was a back room in our house for 14 years. The IRS comes about every 2 years to look at our quarterly reports and they look at our facility. We set at the kitchen table while he or she looks at the reports. They ask several general questions pertaing to the way we do business. One time when they asked if we were doing anything new I told them we were pouing bank sinkers, but I was not reporting them because I didn't think they were taxable, but I was wrong, so I had to go back and add up those sales and send in the tax the next quarter. I had only been making them a couple of months. Outside that, I've never had any problems. Quote Link to comment Share on other sites More sharing options...
kidlizard Posted August 8, 2003 Report Share Posted August 8, 2003 Where do you get an excise tax exemption form?? Thanks John Quote Link to comment Share on other sites More sharing options...
Brad Posted August 8, 2003 Author Report Share Posted August 8, 2003 See if this works, if not, go to IRS.gov form637.pdf form637.pdf form637.pdf form637.pdf form637.pdf form637.pdf form637.pdf form637.pdf form637.pdf Quote Link to comment Share on other sites More sharing options...
Gr8flyz Posted August 8, 2003 Report Share Posted August 8, 2003 The exemption is only so you can buy wholesale without paying the tax on top of the cost. If you do buy without the exemption you still have to collect & pay the excise tax on anything you manufacture & sell. Th excise tax on fishing tackle is a manufacturers tax. If you don't have the exemption, whatever excise tax you pay when you buy supplies can be credited when you file the quarterly tax, if you can provide verification that you paid the tax on the supplies. This of course does not apply to sales tax you might have to pay. The IRS also visits me about every two years, looks over my books pertaining to what I manufacture, & asks some questions. I've never had any problems either. They do undertsand that many who make fishing tackle are hobbyists, and not big time corporations. They really just want to know that you are complying with the law & filing the correct excise tax. The only way they know you even exist as a tackle manufacturer is when you file for the exemption or when you file a quarterly report, or if someone alerts them about you. If you file for the exemption just to be able to buy cheaper for yourself & you're not regularly selling anything or filing the quarterly tax, the IRS will eventually catch up with you & will revoke the exemption, and make you pay any back taxes, interest & penalties, even on supplies you converted to personal use. Someone has to pay that tax. If you don't have the exemption you can still buy wholesale,(as long as someone will sell to you) but anything you make for your own use, is generally not considered liable for the excise tax, because it's not being sold and you would still be paying the tax when you bought the supplies, however, it could be if they decided to pursue it as such. I've had this discussion a few times with the IRS agents who visit me, and there is a lot of gray areas with the Excise tax law concerning fishing tackle, so be careful what you do. Quote Link to comment Share on other sites More sharing options...
dlaery Posted August 8, 2003 Report Share Posted August 8, 2003 I think you will have to have a Federal ID Number (F.I.N.) first before you can do the form 637, but that is easy to obtain also from the IRS. It is just a form, you may be able to do it online. Quote Link to comment Share on other sites More sharing options...
