Calculation of FAET

[EBR Works]

A simple question; Is excise tax calculated on my cost for the firearm or retail sale price? Not sure why I don't know this! Thanks.

[BannedinBritain]

A simple question; Is excise tax calculated on my cost for the firearm or retail sale price? Not sure why I don't know this! Thanks.

[Refer to 26 U.S.C. 4181 and 27 CFR 53.61(a) ]

When you sell an article, you will calculate your FAET by multiplying your sale price by the applicable tax rate. If you owe interest on Federal Excise Tax, use the rates published by the Internal Revenue Service in http://www.irs.gov/pub/irs-drop/rr-05-15.pdf or just file the return and we will assist you in computing any adjustments to the tax.


Source: http://www.ttb.gov/firearms/faet-faqs.shtml

[EBR Works]

OK, thanks!