How To Check Status, Expedite Delayed IRS Federal Excise Motor Fuel Excise Claims
The PPA and Energy Marketers of America (formally PMAA) is continuing to hear from marketers that their federal motor fuel excise tax (FET) claims for credits or refunds are experiencing lengthy delays.
These include claims by registered ultimate vendors of undyed diesel fuel, undyed kerosene, gasoline, aviation gasoline, and kerosene used in aviation (Form 720, Schedule C; Form 8849, Schedule 2) as well as biodiesel fuel and alternative fuel blender claims (Form 720, Schedule C; Form 8849, Schedule 3).
EMA has been in close contact with the IRS concerning the processing delays, emphasizing the extreme burden the delays place on small business energy marketers and the need to eliminate the backlog immediately.
In addition, EMA has written letters urging action to the IRS Commissioner and key members of Congress sitting on committees with IRS oversight jurisdiction.
EMA has also enlisted the help of the National League of State and Municipal Governments and similar associations representing tax exempt users to pressure the IRS to speed up claims processing.
According to the IRS, the backlog is due to the extension of the deadline for filing (and subsequent processing) of individual income tax returns to July 15th and employee shortages due to COVID-19. The IRS says it is processing the backlog on a first come first serve basis.
Claimants who are experiencing delays can inquire about the status of their claims by faxing the following information to the IRS at (855) 386-5121:
— Name, company name
— Taxpayer ID number
— Type of claim filed and covered period
— Return fax number and voice number
The IRS will fax back a status report on the claim, they say.
Energy marketers experiencing delays should also contact their members of Congress and request follow up by constituent services staff.
Thus far, energy marketer calls to Congress have been the most effective method to expedite payments of claims.
A recent PPA letter sent to Congressman John Joyce (PA-13 District) can be found here. Please contact Ted Harris by sending email to: email@example.com, if you would like PPA and EMA assistance in contacting your member of Congress.
Finally, the IRS is required to pay interest on the amount of paper claims not paid after 45 days of submission and electronic claims not paid after 20 days. Interest payments are compounded daily at quarterly rates established by the IRS.