Regulatory Alert

IRS Responds to EMA: Faster Processing Promised for Federal Motor Fuel Excise Tax Claims

Monday, April 6, 2026 – Late last year, energy marketers across the country began reporting renewed delays in the processing of federal motor fuel excise tax (FET) ultimate vendor claims. The claims involve sales of clear, tax-excluded diesel fuel to state and local governments. In response, the Energy Marketers of America (EMA) sent a formal letter to Acting IRS Commissioner Scott Bessent highlighting the issue and urging the agency to restore timely claim processing as quickly as possible. EMA stressed that prolonged delays are putting significant strain on many small business energy marketers, potentially disrupting their day-to-day operations.

The Internal Revenue Service has now replied directly to EMA’s concerns. In its response, the IRS acknowledged that resource constraints were the primary cause of the backlog in processing Form 8849 claims. To address the problem, the agency has already begun reallocating staff from other operations to tackle the excise claim inventory and has implemented several process improvements designed to shorten processing times. Based on current claim volumes, the IRS expects to clear the backlog and return to normal processing schedules by May.

As a reminder, EMA has partnered with ThinkTrade’s taxexcise.com—an IRS-authorized e-filing service provider and a BBB-accredited company with an A+ rating—to offer members a fast, secure, and compliant way to file federal excise tax returns. Through this partnership, EMA member companies receive a 15% discount on ThinkTrade’s e-filing services for IRS Forms 720, 8849, and 2290 via a dedicated landing page.

With more than 20 years of experience helping trucking and energy companies, ThinkTrade has earned a strong reputation for delivering both cost savings and exceptional customer support. Members also gain access to ThinkTrade’s dedicated 24/7/365 support team, providing a single point of contact for all e-filing needs.

EMA will continue to monitor the situation closely and keep members updated on any further developments from the IRS.

CLICK HERE FOR MORE INFORMATION ON ThinkTrade and EMA’s LANDING PAGE TO FILE TAXES