Wright Express Federal Gasoline Excise Tax Exemption

New Legislation Effective March 1, 2005

Important Update: Specific provisions of The American Jobs Creation Act (AJCA) scheduled to go into effect March 1, 2005 have been delayed. Click here for more details.

The new American Jobs Creation Act http://waysandmeans.house.gov/media/pdf/hr4520/hr4520confchairmark2.pdf is scheduled to go into effect on March 1, 2005. Provisions in this bill impact the exemption of FEDERAL GASOLINE TAXES under our current Tax Exemption and Reporting program. The bill states that federal gasoline excise taxes will be subject to similar rules as federal diesel fuel excise taxes, which state that the “ultimate vendor” is the party authorized to file for an IRS refund.

One important section of the IRS code governing federal gasoline excise tax exemptions was not changed by the American Jobs Creation Act. Section 6421 of the IRS code for gasoline also allows the ultimate purchaser (end user) to file for a tax refund. Wright Express has developed two cost-effective options to help you manage your federal gasoline tax exemptions at merchants who no longer offer this exemption.

Impact to Fleets
Please review the Federal Gasoline Tax Exemption Overview and FAQ, so you can decide which solution works best for your situation. Once you make a decision, please complete the enclosed Federal Gasoline Tax Exemption Request and fax it to us as soon as possible. If you are the owner of the taxpayer ID, you may need to complete IRS Form 2848 (Power of attorney and Declaration of Representative), depending on which filing option you choose.

By sending the form(s) no later than February 18, 2005 you will avoid disruption to your federal gasoline exemption. Please remember, depending on the option you choose, we may bill your fleet for federal gasoline taxes beginning with March 1, 2005 transactions.

If you choose to file your own refund request, click here for IRS form 8849 http://www.irs.gov/pub/irs-pdf/f8849s5.pdf

Impact to Merchants/States
The changes in the law will make it extremely difficult for many merchants to continue exempting federal gasoline excise tax. (The new law does not change our current process for exempting state and local taxes.)

Please check this site often, to print or download an up-to-date List of Participating Merchants to see which ones are participating in either the regular Wright Express Tax Exemption program or the Federal Gasoline Tax program.

To download a presentation with all the details, click here. If you have any questions, please call the Wright Express Customer Service Tax Group at 1-866-462-5038.