IRS News Release  
August 24, 1993

Retailers to Get Refunds from
Luxury Tax Repeal

WASHINGTON - The tax law's retroactive repeal of luxury taxes on boats, planes, furs and jewelry has put retailer of these items in line for refunds of taxes on sales occurring in 1993. Because returns of luxury excise tax are filed by the retailers, they--not the customers--must file the refund claims with the Internal Revenue Service.

Customers who paid the tax as part of the purchase price should contact the retailers for their reimbursements. Consumers who paid the tax directly be filing a return with the IRS--for example, those who imported luxury articles for personal use--may claim a refund directly from the IRS.

To get refunds of luxury taxes taxpayers must file Form 843, Claim for Refund and Request for Abatement. Retailers must certify that they have refunded the tax to the consumer, that they have a signed consent from the consumer, or that they did not include the tax in the selling price not collect it from the consumer. Any luxury taxes collected from customers, but not deposited with the IRS, must be refunded to the customers who paid the tax.

Taxpayers must file refund claims within three years after the due date of the original returns, or two years after the tax is paid, whichever is later.

IRS Notice 93-44 gives specific technical guidance on claiming refunds or credits of the repealed luxury taxes. It will be published in Internal Revenue Bulletin 1993-29, dated September 20, 1993.

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