IRS Disregards Tanning Industry Comments, Adopts Rules on Excise Taxes

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The Internal Revenue Service June 10 rejected comments and complaints by tanning industry taxpayers opposing the federal excise tax on tanning facilities, and instead incorporated the temporary regulations with additional clarifications into final rules (T.D. 9621).
The regulations affect people who use, provide, or pay for these services. The 10 percent excise tax on indoor tanning services was imposed by the 2010 Affordable Care Act under tax code Section 5000B. The tanning tax, along with other new taxes, fees, and penalties, is intended to help generate $438 billion to help pay for the health care reforms.
The final regulations adopt proposed rules (REG-112841-10) issued in 2010, and remove corresponding temporary regulations, IRS said.
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