EMA Urges IRS to Clear Long-Overdue Form 8849 Excise Tax Refunds

Regulatory Alert

EMA Urges IRS to Clear Long-Overdue Form 8849 Excise Tax Refunds

EMA Regulatory Counsel Contacts: Jeff Leiter and Jorge Roman

Tuesday, June 30, 2026 – The Energy Marketers of America (EMA) has formally called on the IRS to immediately address the ongoing backlog in processing Form 8849 federal excise tax refund claims. Despite assurances from the Department of the Treasury in March that the backlog would be substantially eliminated by May 2026, energy marketers across the country continue to wait six months or longer for refunds on claims filed as far back as fall 2025.

In its March 16, 2026 response to EMA’s December 2025 letter, Treasury attributed the delays to staffing shortages and outlined corrective actions, including staff reallocation and process improvements. Normal processing was expected to resume by May. That timeline has not been met.

Many wholesale marketers sell clear diesel fuel to state and local government entities that are exempt from the federal motor fuel excise tax. Because government bid specifications typically require clear (undyed) fuel sold on a tax-excluded basis, marketers must pay the 24.4-cent-per-gallon federal excise tax upfront and then recover it through Form 8849 refund claims. Under normal conditions, the IRS processes these claims within 45 days. Current wait times of six months or more are creating serious cash-flow pressure for small, often family-owned businesses that have fully complied with all tax requirements.

To resolve the backlog and restore timely processing, EMA has asked the IRS to take the following immediate steps:

Dedicate sufficient personnel to excise tax claim processing until the backlog is cleared
Prioritize the oldest outstanding claims
Provide marketers with estimated processing times so they can better manage cash flow
Designate a senior IRS contact for ongoing stakeholder communication
Meet with EMA representatives within the next 30 days

EMA will continue to press for resolution on behalf of its members and the downstream fuel distribution network that supports critical public services nationwide. Members experiencing significant delays with Form 8849 claims are encouraged to share details with their state or regional EMA affiliate so EMA can continue to document the scope of the problem.

Click here to read the letter.

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