Fuel Excise Tax: How Do I Get Back My Money From the IRS?

tax, taxes, IRS, money, fuel excise tax
October 14, 2020 0 Comments

TiP has been putting money in the pockets of clients for 20 years. We have assembled an experienced and talented team that is singularly focused on your excise tax refund.

If you want to participate in the economy and purchase goods such as clothing, groceries, and gasoline, you’re obligated to pay a certain percentage of taxes based on the value of goods you bought.

These taxes have been gradually introduced throughout the years in the United States, so our government can put money toward items such as education or our federal highways.

In 1933, the federal gasoline excise tax was implemented and taxed each gallon of gas at one cent. Current federal gasoline rates in May 2019 have escalated to 24.3 cents for each gallon of diesel and 18.3 cents per gallon of gas.

The fuel tax recovery and refund process can be complicated, but TiP makes it simple for you to recover your refund. Our knowledge of state and federal fuel tax laws and our experience with fleet operations enables us to identify and recover tax refunds for you.

Gasoline Tax?

When you purchase gasoline and pay taxes for gas at the federal level, you are adding money to the Highway Trust Fund.

The money that accumulates in the fund is then allocated to cover costs for federal infrastructure projects related to transportation in the United States.

The amount paid at the federal level has not been changed or adjusted for inflation since 1993. Some groups feel like the rate should be increased as it’s been over 25 years since any changes have been made.

The American Society of Civil Engineers is one of these proponents. They point out statistics that indicate one out of every five miles of federal highway pavement needs some repair.

If the federal gas excise tax rates were raised for both diesel and gasoline, it might help alleviate some of the poor conditions seen on our federal highways.

Don’t Forget State Taxes!

When you purchase gasoline or diesel fuel, the federal government isn’t the only one taking a cut. You’ll also be taxed on gasoline by your state.

Each state has its discretion as to the rate that’s tacked onto each gallon of fuel that you buy. States such as Pennsylvania, California, and Washington are at the highest level.

Their tax rates range from 49.5 cents per gallon to 58.7 cents per gallon. States like Alaska, Virginia, and Missouri are at the low level with a range of 8.9 cents per gallon to 17.3 cents per gallon.

State gasoline taxes do fluctuate. If you’re interested to see what the current gasoline tax is in your state, you can find information at the United States Energy Information Administration (EIA) website.

What’s the Average Fuel Tax Rates?

In August 2018, the average amount of people taxed when they bought gasoline in all 50 states was 28.6 cents per gallon. These state gas taxes fund projects such as:

  • State road maintenance
  • Road construction
  • State road repair

As you can see, there is a large discrepancy in the amount of state gasoline taxes you may pay. And, this discrepancy is dependent on the state where you are purchasing the majority of your fuel.

If you buy gasoline in states like California, Washington, or Hawaii, you are paying a larger amount of state fuel tax than you would if you were buying it in other states.

Let Us Help You!

For over 20 years, we have put money in the pockets of clients! The IRS taxes the fuel you use to power the equipment in your company whether you know it or not! And after you get your excise tax refunded, you’ll wonder why you waited so long!

Your business may qualify for a full refund. We can help you navigate the process and receive what’s yours. Our team is an experienced and talented team that is singularly focused on your excise tax refund.

The fuel tax recovery and refund process can be complicated, but TiP makes it simple for you to recover your refund.

Our knowledge and our experience with fleet operations enable us to identify and recover tax refunds for you. Let is work for YOU! Contact us today for our No-Risk service!

What We Do

We use our experience and expertise to prepare accepted methodologies and filings for the IRS. We make sure we maximize your excise tax recovery.

How We Do It

We use your fuel receipts, invoices, and a list of the equipment you already have. If you don’t have the receipts available, don’t worry! We may be able to get them for you.

Why We Do It

Many companies we work with have no idea about excise tax refunds! We want to change that and help put money back in your pocket. The government has your money, let us help you recover it!

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Summary
Article Name
Fuel Excise Tax: How Do I Get Back My Money From the IRS?
Description
The federal and state fuel tax recovery and refund process can be complicated, but TiP makes it simple for you to recover your refund.