Concerns Raised Over Long Delays In Processing Federal Motor Fuel Excise Tax Claims

PMAA is hearing from petroleum marketers that they are experiencing long delays in the processing of federal motor fuel excise tax (FET) claims.

The delays include ultimate vendor claims for sales of tax included motor fuels to state and local governments and nonprofit educational organizations, kerosene and av-gas used in aviation, undyed diesel fuel for use in intercity busses, tax included kerosene sales from blocked pumps and both retroactive and current year biodiesel blender and alternative fuel tax credits.

Marketers are also reporting delays in processing heavy highway vehicle use tax (HHVUT) proof of payment certificates needed for state registration of cargo tanks and IRS 637 UV registrations.

Both the U.S. Department of Treasury and the IRS say the delays are due to COVID-19 related altered working conditions.

While many of the claims pay interest after 60 days, PMAA is concerned if the delays continue, they could interfere with the daily operations of marketer operations.

In response to marketers’ concerns, PMAA sent a letter to IRS Commissioner Charles P. Rettig emphasizing that many small business petroleum marketer operations could be disrupted if the delays are not resolved quickly and asked for a return to timely processing as soon as possible.

In the meantime, petroleum marketers experiencing delays in claim and paperwork processing should call the IRS Business and Specialty Tax Line at (800) 829-4933, M-F between 7:00am and 7:00 local taxpayer time.

Be prepared to be placed on hold for an extended period.

In addition, those filing the federal heavy highway vehicle use tax should do so electronically and use the IRS Electronic Federal Tax Payment System for direct debit payment.

Credit and debit cards are not accepted for payment of the HHVUT until January 1, 2021. Paper filing with payment by check is also available but expect significant delays.

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