Excise Tax

Navigating the complex terrain of excise taxation and uncovering opportunities

Taylor Cortright

Taylor Cortright

Managing Director, Co-Lead Federal Excise Tax Group, KPMG LLP (US)

+1 202 533 6188
Deborah Gordon

Deborah Gordon

Managing Director, Co-Lead Federal Excise Tax Group,, KPMG LLP

+1 202-533-5965

Who we are and how we can help

Led by former IRS senior excise tax counsel, KPMG’s Excise Tax practice in Washington National Tax guides clients across all affected industries through a wide range of complex excise tax issues.

In an area that possesses a myriad of specialized rules, our team helps clients understand their excise tax positions while helping them manage risks and identify potential opportunities for available tax refunds and credits related to excise taxation.

We can help with:

  • Evaluating a company's excise tax positions
  • Advising on the reduction of future excise tax exposure
  • Managing risks related to excise taxation
  • Identifying refund and credit opportunities pertaining to excise taxation
  • Streamlining excise tax-related administrative processes
  • Assisting with excise tax planning, including preparation and review of requests for letter rulings and IRS pre-filing agreements
  • Providing compliance services related to excise tax rules and regulations, including excise tax return and claim filings
  • Considering penalty standards and pursuing opportunities for relief, including penalties for the late filing of excise tax returns, late payments, and late or missing excise tax deposits
  • Supporting clients in complex IRS examinations or at the IRS appeal level, including anticipating, managing, and responding to excise tax issues raised by the IRS and assisting in the drafting of requests for technical advice
  • Working with the Alcohol and Tobacco Tax and Trade Bureau (TTB) in relation to client examinations and ruling requests.

About our Excise Tax team

Our Excise Tax team is comprised of former IRS Office of Chief Counsel excise tax attorneys who were responsible for published guidance on excise taxes, technical advice to IRS tax agents, and letter rulings to taxpayers.

Our Excise Tax team is part of KPMG’s Washington National Tax practice and works with professionals throughout KPMG's Tax, Audit, and Advisory divisions to identify federal excise tax issues across various industry sectors in an effort to provide wide-ranging services to clients.

Our excise tax experience includes:

  • Energy and environmental taxes including conventional and renewable fuels
  • Healthcare related taxes including medical devices and branded prescription drug fee
  • Manufacturers taxes including heavy vehicles, sporting goods, firearms and ammunition
  • Taxes on heavy vehicles
  • Alcohol and tobacco taxes
  • Foreign insurance excise tax

Learn more about our team's excise tax capabilities here.

 

Excise tax insights

Excise tax drawback for alcohol used in manufacturing

A significant "drawback" from the federal government may be available to manufacturers that use tax-paid distilled spirits in manufacturing nonbeverage products. With a statute of limitations of six years, there may be an opportunity to go back and claim the drawback for open past periods.

Tax reform and alcoholic beverage companies

The new U.S. tax law contains a number of tax reforms with respect to the alcoholic beverages imposted on beer, wine, and distilled spirits.

Treasury offers expanded relief for producers claiming wine production credit

The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau announced that for a limited time, “producing wineries” can determine and pay the federal excise tax.

Webcast replay: tax reform: changes affecting the alcohol beverage industry

Listen to our April 2018 Webcast the tax reform changes affecting the alcohol beverage industry. Professionals from KPMG’s Washington National Tax practice discuss the reduced rates of tax and credits on beer, wine, and distilled spirits; new rules affecting foreign producers and importers of alcoholic beverages; new tax reform guidance issued by the Alcohol and Tobacco Tax and Trade Bureau; and other items.

Latest news

November 1, 2018

Federal Circuit: Alcohol fuel mixture credit reduces gasoline excise tax

The U.S. Court of Appeals for the Federal Circuit today affirmed a decision of the U.S. Court of Federal Claims and held that a section 6426 alcohol fuel mixture credit must be treated first as a reduction of the taxpayer's section 4081 excise tax liability, with any remaining mixture credit amount treated as a section 6427 tax-free payment. Read more here.

 

 

Excise tax news

Stay informed on excise tax-related news with our KPMG TaxNewsFlash archive.

Fuel blending and the excise tax

Keeping fuel blending companies updated with the latest excise tax news.

Medical device excise tax insights

Calculate and manage potential tax liabilities while saving hours of manual time and money.

Excise tax news

Stay informed on excise tax-related news with our KPMG TaxNewsFlash archive.