WASHINGTON, D.C. — Beginning January 1, state or local government or non-profit educational organizations will see a change in the way the excise tax is recovered on purchases of gasoline, according to the National Association of Fleet Administrators (NAFA). Under a new law, the Jobs Creation Act of 2004, claims for credits or refunds will be made by the "ultimate vendor" rather than the "wholesaler." This means the previous method for recovering the excise tax – through a credit from the credit card company used for gasoline purchases - will no longer apply. Instead, the gas retailer will need to register with the IRS and will be responsible for claiming the refund pursuant to procedures still to be outlined by the IRS. One possibility being considered by the IRS is to allow fuel retailers who are already registered for diesel fuel refunds to apply for the gasoline refunds. Unfortunately, however, the IRS advises NAFA that there "are no guarantees" that the IRS will be able to issue guidance to implement the provision prior to the January 1 deadline. This could leave state and local governments and non-profit educational organizations with no way to receive a credit or refund for the excise tax on gasoline purchases. NAFA is working with allied organizations to resolve the uncertainty. NAFA will schedule an emergency conference call of NAFA members to discuss how best to resolve this issue.
Deadline for Gasoline Excise Tax Collections Changes Causes Uncertainty
WASHINGTON, D.C. — Beginning January 1, state or local government or non-profit educational organizations will see a change in the way the excise tax is recovered on purchases of gasoline, according to the National Association of Fleet Administrators (NAFA).
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