By Jacob Favaro, CPA, Tax Partner | Emerging & Growth Business Team
Delayed Excise Tax Payments and Reporting for Alcohol, Tobacco, Firearms and Ammunition Businesses Hurt by COVID-19
As relief continues to come in various forms, the Treasury Department has announced in a press release that it has delayed excise tax payment and reporting due dates for wine, beer, distilled spirits, tobacco products, firearms, and ammunition excise taxes for 90 days. This will provide additional flexibility for businesses that have been negatively impacted by COVID-19.
What does this mean for businesses?
The delayed payment and reporting comes as part of the emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act) in response to the COVID-19 pandemic. Under this declaration, the Treasury Department is able to allow taxpayers a delay in making tax payment and filing returns.
This relief applies to the excise tax payment and reporting due dates for wine, beer, distilled spirits, tobacco products, firearms, and ammunition excise taxes with an original due date falling on or after March 1, 2020 through July 1, 2020. This emergency declaration means that interest and penalties will not apply when payments are made within 90 days of the original due date.
As the COVID-19 pandemic unfolds, the Treasury will re-evaluate the terms of this postponement.
Source: U.S. Department of the Treasury
We are closely monitoring this evolving and unique economic situation. We will keep you updated and informed on how to respond to these and additional tax and regulation changes as they are announced.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.