News and updates: Fuel tax and prorate

IFTA license number will change at the 2025 renewal licensing period

September 19, 2024

What is changing?

Beginning with the 2025 licensing period, DOL will be changing the International Fuel Tax Agreement (IFTA) license number printed on your license. Instead of a license number that matches your Washington IFTA account number, your printed license will now display the required Account Identification Number. This number will start with “WA” followed by the 9-digit Federal Employer Identification Number (FEIN) or the Social Security Number (SSN) of the owner or principal of the business if no FEIN exists. Your Washington IFTA account number will not be impacted by this change.

Example:

New Account Identification (License) Number: WA123456789
Washington IFTA Account Number: 1234567

Why is this change happening?

Washington state is a jurisdictional member of IFTA and must follow the requirements established within the IFTA agreement. DOL was out of compliance by using an alternative Account Identification Number for the license number on the printed license carried by licensed vehicles. DOL must remain compliant and meet IFTA standards.

What do you need to do?

No action if you currently have a FEIN on record. This change will occur automatically with the 2025 IFTA licensing period.

If you would like to apply for a FEIN, visit the free service offered by the Internal Revenue Service, How to Apply for an EIN | Internal Revenue Service (irs.gov). After receiving your FEIN, contact Motor Carrier Services unit by email at MotorCarrierServices@dol.wa.gov or phone at 360-664-1858 to update your IFTA account with your new FEIN. You must provide documentation from the IRS showing the newly issued FEIN.

Note: If you renew your IFTA license for 2025 without providing a FEIN, your SSN will be displayed and printed on your IFTA license, and subject to disclosure and inspection.  

Questions?

Email MotorCarrierServices@dol.wa.gov or call 360-664-1858. 

PRFT Tax Discovery listening sessions and rule making

August 27, 2024

The Department of Licensing (DOL) invites you to a series of virtual listening sessions relating to Engrossed House Bill 1964 (EHB) – Enhancing prorate and fuel tax collections.

Rule Making

Effective July 1, 2024, changes include:

• Taxpayer information reported to DOL is exempt from public inspection and copying.
• New DOL civil authority to investigate unpaid or underpaid taxes, improper reporting, and detection and assessment for fraudulent activity.
• Establishment of a Fuel Tax Discovery team to detect and investigate prorate and fuel tax violations, review abnormal tax returns, review complaints, provide education, and investigate unlicensed entities for taxable activity.
• People who have multiple dyed fuel violations, people who neglect to file tax reports, and people who operate without a valid IFTA license will face new penalties.
• DOL can seek subpoenas and electronically identify assets for unpaid tax lien liabilities. Technical cleanup of statutes for clarity and consistency.

Rulemaking will affect:

1. WAC 308-77 Fuel Tax Rules & Regulations,
2. WAC 308-78 Aircraft Fuel,
3. WAC 308-91 Reciprocity and Proration, and
4. A new chapter within WAC 308 to cover Discovery/Investigation Procedures.

Session #1 – September 12, 2024, at 9:00am (PDT)

Purpose: Share a brief overview of the bill, provide an overview of our implementation efforts, and share draft rule language. Time for questions and answers will be included.

Session #2 – September 19, 2024, at 9:00am (PDT)

Purpose: Gather stakeholder feedback and share any initial concerns/limitations with suggested changes to the draft rule language. Time for questions and answers will be included.

Session #3 – September 25, 2024, at 10:00am (PDT)

Purpose: Share final rule language, review feedback, how the rule language was or was not adjusted and why, and share rulemaking next steps. Time for questions and answers will be included.

Provide Comments

We welcome your comments and input outside of these listening sessions. Please email related questions or comments to: PRFTRulesComments@dol.wa.gov.

New prorate and fuel tax computer system in 2025

August 16, 2024

We’re upgrading the Prorate and Fuel Tax (PRFT) system!

The new and improved Taxpayer Access Point (TAP) will:

• Have enhanced security functions.
• Allow easy access to manage your data on-the-go.
• Have a redesigned look and feel.
• Allow data exchange with automated features.
• Have advanced system checks to ensure accuracy.

This upgrade will keep your data safe and provide flexibility for you and your business.

We’ll launch the new system in February 2025.

Who does this impact?

This upgrade will impact prorate and fuel tax customers who:

• File an IFTA or fuel tax return
• Transfer, buy, and store fuel
• Register with IRP
• File an unlicensed refund claim

What can you do now?

Please review your Taxpayer Access Point (TAP) account and make sure all contact information is current and accurate. We will be sending emails and notifications with project updates.

Volunteers

We need volunteers to help us test the new system! If you want to help, send us an email at DOL-PRFTUpgradeProject@dol.wa.gov with the subject line “Volunteer for new system testing.” Be sure to include your name, phone number, type of account, and city. This will help us with our testing plan.

Stay connected

• Email questions to DOL-PRFTUpgradeProject@dol.wa.gov.
• Stay informed about this project and others by signing up to our Listserv, Prorate and Fuel Tax Project Updates. You can unsubscribe at any time.

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