How to Achieve Fuel Excise Tax Compliance
- Sales and Use Tax
- February 25, 2016 | Gary Davis
Fuel suppliers, distributors and retailers face one of America’s most complicated tax compliance environments—one where rules, rates and requirements change constantly. Even when armed with the latest excise tax compliance tips—scrutinizing indirect taxes on invoices, applying the correct fuel volumes from the BOL, understanding state licensing requirements and so on—most businesses still wage a tremendous uphill battle to achieve and maintain compliance.
The reasons for these difficulties are many.
Some companies wrestle with error-prone spreadsheets and struggle to find the countless hours it takes to manually research excise tax statutes and regulations. Many rely heavily on IT teams burdened with the demands of continually coding homegrown systems for changing rules and rates. And still others maintain valuable compliance documents like fuel licenses and exemption certificates in paper files that become difficult to store and manage.
- Are your tax analysts spending an increasing amount of time researching jurisdictional excise tax changes?
- Are you worried that you’ll miss a tax change and risk audit liabilities?
- Do tax tables, IT integrations and testing scenarios eat away at time and resources?
- Are tax filing processes and spreadsheets becoming increasingly complex?
- Does your organization rely heavily on one or two in-house experts for monthly excise tax filing? Could you still file with confidence if those individuals leave?
- If an audit notice were to arrive today, would the thought of extracting valid exemption certificates and licenses induce panic?
- Does the volume of paper documents related to excise tax necessitate off-site storage or boxes and pallets?
If you answered “yes” to any of these questions, it could be an indication that your company is growing at a much faster pace than your excise tax determination and filing systems.
The Solution: Increase Fuel Excise Tax Automation
Are you looking for ways to streamline and simplify fuel excise tax systems? Many companies are turning to off-the-shelf automation solutions designed specifically for excise tax calculations, filing and compliance documentation. Our latest white paper, How to Achieve Fuel Tax Compliance: Increasing Automation to Reduce Costs and Avoid Errors, provides insights on how automation can help reduce costs, prevent errors and eliminate manual processes that drain time and resources. Download the white paper now.