Excise Fuel Tax & Tax Changes for 2023  

fuel tax
December 1, 2022 0 Comments

The 2022 calendar year is ending, and now is the perfect opportunity to evaluate your current tax situation and make adjustments and changes where possible. Therefore, now is the best time to consider a strategic tax plan to carry you through 2023 successfully.  

 Take a step back and look at your business’s tax system from a bird’s eye view. This allows you to understand where you are and effectively plan your future. Looking ahead to 2023, consider business goals worth pursuing, including cost-savings tax strategies that can directly impact and increase your bottom line. 

Important Information About Excise Fuel Tax  

Business fuel expenses provide major tax advantages that are often overlooked, misunderstood, or mismanaged. Meanwhile, compounding the situation, excise fuel taxes are especially complex and complicated to navigate. There is significant room for error, miscalculation, inaccurate reporting, audit risks, fines, and penalties. 

 TiP Excise is Your Primary Source  

 This is where the tax experts at TiP Excise can help. Our job is to make your tax filing experience an opportunity to optimize your financial gain. We are specialists at locating, calculating, and filing excise fuel tax returns and have the expertise you can trust. Learn more about how we can help you secure the best tax refund possible, both now and in the future. 

 First, here is a quick run-down of what you need to know about your excise fuel tax return benefits at the end of the year and how you can plan for the new financial business year. 

 What is an Excise Tax?  

 Excise tax is a tax on the sale of specific goods, services, or certain uses. Unlike sales tax based on a dollar amount per transaction, an excise tax is based on the volume sold. This is a bit more complex to calculate and usually requires a specialized tax professional’s help managing.  

 Federal excise tax is imposed on, but not limited to, the following:  

  • Fuel 
  • Airline tickets 
  • Tires 
  • Tobacco 
  • Indoor tanning 
  • Alcohol 
  • Heavy trucks and highway tractors 

Record High Fuel Prices Can Mean Big Fuel Tax Refunds 

 From a business perspective, one great place to start financial planning is to consider how you can maximize your tax return in the new year. With the impact of high inflation trends and record-breaking fuel prices this past year, this is an essential time for businesses to learn about or review all excise tax return benefits.   

 For companies that rely on fuel to run daily operations, this year was accompanied by unprecedented financial sacrifices and, at times, uncertainty. If this describes your experience, you know firsthand how essential it is to recoup some of your business fuel expenses come tax time. To do this, you must ensure you take full advantage of every fuel tax refund available.  

 Find Out if Your Industry Qualifies  

 Many industries use fuel in the day-to-day operations of their business and pay steep excise taxes in the process. There is a possibility that the fuel tax paid by the taxpayer may be refunded depending on how your business uses the fuel. Therefore, every year excise fuel tax returns are left unclaimed simply because people assume their industry does not qualify.  

 Any business that uses fuel for off-road purposes, such as vehicles, watercraft, and other fuel-dependent equipment, may qualify for an excise tax refund.

 Here are just some of the many industries that use fuel for off-road purposes that may qualify for excise fuel tax refunds.  

  • Construction 
  • Food prep and storage 
  • Commercial or recreational fishing 
  • Landscaping 
  • Farming 
  • Transportation 
  • Golf courses 

Plan Ahead and Review Your Expenses  

 Ideally, taxpayers should keep tabs on income, tax-related paperwork, records of credits and deductibles, and filing deadlines. Although, we know that you’ve been busy running your business, though, and you might not be able to readily provide all this information. Don’t let missing, lost, or misplaced paperwork and records stop you from receiving every penny you are owed this year. However, keep in mind that it will expedite the process.  

 TiP Excise has extensive experience in handling every step of the excise fuel-related tax recovery process. Therefore, as long as you provide us with some basic information to get us started, we can help fill in the blanks to ensure an effective and efficient fuel tax refund.  

 Receive the Refund You Deserve  

No matter what you bring to the table initially, after you’ve given us the green light, we can get started gathering everything for you- records, receipts, and even past tax returns. 

 We can even verify any unclaimed excise fuel tax funds from a previous tax return. Your first federal filing can go back three years from the filing date, and state filing varies from state to state, ranging from three months to three years. Looking into the past can bring some welcomed financial gain in the future. 

 Excise Fuel Tax Specialists 

 Now is the time to review taxes paid on excise fuel used to run your business to ensure you receive the maximum refund this tax year. This is easier said than done, we know. Therefore, understanding and managing excise fuel taxes can be a major source of confusion and stress, so if the thought of filing taxes makes your stomach turn, you’re not alone.  

Excise tax is a specialization beyond what even the most experienced tax professionals and accountants handle regularly. Moreover, excise fuel tax is a complicated part of federal and state tax regulation.  

 Start Your 2023 Tax Planning with TiP Excise  

Even though avoiding or postponing tax planning until the eleventh hour, is risky because you could be overlooking something important and leaving money on the table that is rightly owed to you. Contacting a professional tax team, like TiP Excise, can help alleviate the burden of taking on this tax filing burden on your own. The sooner you give us a call, the sooner we will dedicate our efforts to recovering your money. 

 Learn more about how we can get started securing the highest tax return possible for you.  

 Contact us today.