In this tax topic you will learn about excise taxes for which
a taxpayer may be liable during 2008. You will learn how and where to report
excise taxes, including fuel tax credits and refunds.
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Use
IRS publication 510
to complete this topic.
1. The following are
exempt from the environmental taxes.
A. The Federal government.
B. State and local governments.
C. Indian tribal governments and non-profit educational organizations.
D. No one is exempt.
2. Environmental taxes are imposed on
crude oil and petroleum products, the sale or use of
Ozone-depleting chemicals (ODCs) and imported products containing or
manufacturing with these chemicals. Figure the environmental tax on
A. Form 6627 and attach it to Form 720.
B. Form 720 directly.
C. Form 4136 and attach it to Form 720.
C. Form 8849 and attach it to Form 720.
3. Tax is imposed on an
imported taxable product when the product is
A. Fabricated by the company.
B. First sold or used by its importer.
C. First bought from the company for resale.
D.
Transported across the border.
4. The importer may treat the sale of an article manufactured or
assembled in the United States as the first sale or use of an imported taxable
product incorporated in that article if
A. The importer has consistently treated the sale of similar items as the first
sale or use of similar taxable imported products.
B. The importer
has not chosen to treat entry into the United States as use of the product.
C. The importer
has chosen to treat entry into the United States as use of the product.
D.
Both A and B
above.
5. Excise taxes are
imposed on amounts paid for certain facilities and services. A communications tax is imposed on amounts paid for
communications services such as local and toll telephone service, and
teletypewriter exchange services of
A. 1%.
B. 2%.
C. 3%.
D. 5%.
6. Payments for certain
services or payments for certain users are exempt from the communications tax.
The tax does apply to the following service.
A. Payments received for the installation of any instrument, wire, pole,
switchboard, apparatus, or equipment.
B. Payments for the repair or replacement of any instrument, wire, pole,
switchboard, apparatus, or equipment incidental to ordinary
maintenance.
C. Payments paid for a private line, an answering service and a one-way paging
or message service if they provide access to a local telephone system.
D.
Payments for a two-way radio service that provide access to a local
telephone system.
7. The tax on transportation of persons by air is made up of two
parts; the percentage tax and the domestic-segment tax. The domestic-segment tax
is a flat dollar amount for each segment of taxable transportation for which an
amount is paid. A segment is
A. A single take off only.
B. A single landing only.
C. A single take off and a single landing.
D. None
of the above.
8. The excise tax
registration requirements for activities relating to gasoline, diesel fuel, and
kerosene do not apply for the following.
A. A blender.
B. An enterer.
C. A pipeline operator.
D.
An industrial user.
9. Any person who produces a taxable article from new or raw
material, or from scrap, salvage, or junk material, by processing or changing
the form of an article or by combining or assembling two or more articles is
A. A
producer.
B.
A manufacturer.
C. An
importer.
D. A
seller.
10. Tax attaches when the title to the article sold passes from
the manufacturer
A.
To the producer.
B.
To the factory worker.
C.
To the buyer.
D.
To the seller.
11.
The sale of an article to a nonprofit education organization for
its exclusive use (does not apply to the taxes on coal, gas guzzlers, and
vaccines) is an example of a sale by the manufacturer that is
A.
Exempt from the manufacturers tax.
B.
Taxable for manufactures tax.
C.
Access to a local telephone system.
D.
Fabricated by the company.
12. A tax is imposed on many articles of sport fishing equipment
sold by the manufacturer. This includes any parts or accessories sold on or in
connection with the sale of those articles. This tax is ____ of the sales price.
A. 10%.
B. 20%.
C. 30%.
D. 50%.
13. A tax is imposed on taxable tires sold by
the manufacturer, producer, or importer at the rate of $.0945 for each 10 pounds
of the maximum rated load capacity over
A. 3,500 pounds.
B. 4,000 pounds.
C. 5,000 pounds.
D. 10,000 pounds.
14. Tax is imposed on certain vaccines sold by the manufacturer
in the United States. A taxable vaccine is any vaccine against measles (for
example).
True
False
15.
A credit or refund of the
gasoline tax may be allowable if gasoline is used for a nontaxable purpose or
exempt use.
True
False
16. Tax is imposed on insurance policies issued by foreign
insurers. The following rate applies to each dollar of the premium paid.
A. Casualty insurance and indemnity, fidelity, and surety bonds: 4 cents.
B. Life, sickness, and accident insurance, and annuity contracts: 1 cent.
C. Re-insurance policies covering any of the taxable contracts for any of the
different kinds of insurance.
D. All of the above.
17. A tax is imposed on any person who issues a
registration-required obligation not in registered form. The tax is 1% of the
principal of the obligation, multiplied by the number of calendar years during
the period starting on the date the obligation was issued and ending on the date
it matures.
True
False
18. To report and pay the excise taxes use
A. Form 4136.
B. Form 720.
C. Form 8849.
D. Form
6990.
19. Tax is imposed on
certain vaccines sold by the manufacturer in the United States. Which vaccine is
a taxable vaccine?
A. Influenza.
B. Hepatitis A or B.
C. Polio.
D.
Any of the above.
20. The following truck
body type will meet the suitable for use standard and will be excluded from
excise tax.
A. Platform truck bodies 21 feet or less in length.
B. Dump truck bodies with load capacities of eight cubic yards or less.
C. Refuse packer truck bodies with load capacities of 20 cubic yards or less.
D.
Any of the above.
