EMA is receiving reports from energy marketers that they are once again experiencing delays in the processing of federal motor fuel excise tax (FET) ultimate vendor claims for sales of clear, tax excluded diesel fuel to state and local governments. In response, EMA sent a letter this week to IRS Commissioner Charles P. Rettig expressing concern over the delays and asking for a return to timely processing as soon as possible. EMA emphasized that many small business petroleum marketer operations could be disrupted if the delays are not resolved quickly. Click here to read the letter.
The processing delays are almost entirely claims filed on paper forms. Paper claims must be processed by hand, a time-consuming process made lengthier by COVID related labor shortages at the IRS. The IRS is urging energy marketers to avoid processing delays by filing 8849 claims electronically. Electronic filing must be done through an IRS certified e-file provider. These e-file providers are private vendors who charge a small processing fee to file 8849 claims. Additional information about e-filing 8849 claims can be found at the IRS 8849 Claim website.