Excise Tax Reviews May Yield Returns

Businesses whose activities are impacted by excise taxes – indirect taxes paid on certain goods and services such as motor fuel – may benefit from a detailed review.

What Are Excise Taxes?

Excise tax applies to the oil and gas, trucking and delivering, construction, manufacturing, and aviation industries, as well as motor fuel distributors and retailers, among others. A company paying and reporting federal and state excise tax on heavy vehicles, tires, airline tickets, and motor fuel is mandated to meet government reporting requirements on those taxes.

Inefficiencies May Cost You

While trying to maintain compliance, a company’s tax department may not have the in-house expertise to recognize refunds that can be recovered or to meet all the requirements. A company’s excise tax reporting function may be inefficient if excise taxes are paid and one or more of the following is true:

  • Limited to no process in place to recover refunds
  • Limited excise tax resources
  • Not meeting government reporting requirements
  • Currently under audit
  • History of large excise tax assessments
  • Multiple excise tax audits
If any of these rings true, a company should consider a review of its in-house excise tax function, which may:
  • Yield cash recovery of refunds
  • Help mitigate risk by ensuring compliance with federal and state reporting obligations
  • Identify fractures in internal processes

BDO Can Help: Excise Tax Review

Upon assessment of a company’s internal processes, our professionals will provide a path for:

  • Cash refund recovery opportunities
  • Audit defense assistance
  • Compliance assistance
  • Process review and technology automation