What is a Georgia Taxable Fuel Bond?
Know what this surety bond is all about and how to easily apply for one!
You need this surety bond if you are a…
- Terminal operator
- Position holder
- Pipeline operator
- Vessel operator
The persons aforementioned who are applying to become registered to conduct a business that involves taxable fuel (gasoline, kerosene, and diesel fuel) are obligated to submit a surety bond to the Internal Revenue Service.
The purpose of the surety bond is to ensure that the registrant will promptly pay the necessary taxes due. If the registrant defaults on the tax payment, the Obligee of the surety bond will be able to acquire the amount due through the surety bond.
The surety bond requirement is in pursuance of Title 26 of the Code of Federal Regulations 48.4081-1.
What is the Taxable Fuel Bond amount?
The bond amount will vary per registrant and will be determined by the Internal Revenue Service Department of the Treasury’s District Director. The following are the determinants of the bond amount:
- The registrant’s tax history
- The registrant’s expected tax liability for 6 months. The expected tax liability for any person other than a terminal operator that has removed a taxable fuel at a terminal rack is 1 month.
- The registrant’s financial capability
- For gasohol blenders, the bond amount will depend on the following:
- Expected total number of gallons of gasoline at the gasohol production tax rate that will be bought in a 6-month period.
- The difference between the gasoline rate of tax and the applicable gasohol production tax rate.
How can I get an Appraisal Management Company Bond?
SEND US A BOND APPLICATION – We begin the bonding process with an application. You may send your application for this bond HERE!
UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
To avoid any delay, make sure that your requirements are complete before submitting them.
ISSUANCE – As soon as the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety company that is part of the Department of the Treasury Circular 570
- The surety bond should be made payable to the Government of the United States of America
- The registrant should obey the provisions of Title 26 of the Code of Federal Regulations, as well as the law of the state on which the registrant operates
- If the registrant commits a valid violation, the aggrieved party will be eligible to file a claim against the surety bond