What is an Indiana Taxable Fuel Bond?

Know the importance of this surety bond and how to apply for one!

Indiana Taxable Fuel BondYou need this surety bond if you are a…

  • Enterer
  • Refiner
  • Blender
  • Terminal operator
  • Position holder
  • Pipeline operator
  • Vessel operator

A Taxable Fuel Bond It is an Internal Revenue Service registration requirement for the aforementioned persons who are engaged in a business of taxable fuel (gasoline, kerosene, and diesel fuel).

The purpose of the surety bond is to ensure that the registrant will promptly pay the necessary taxes due.

The Obligee of the bond will file a bond claim if the registrant breaches his or her obligation in order to recover the loss.

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 a Taxable Fuel Bond?

In order to secure this type of bond, the permitted driller must seek the assistance of a surety bond company.

You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!

Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.

An underwriter will then evaluate your credit score to determine if you qualify for bonding.

Once the prequalification process is fulfilled, we will execute the 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

Ready to apply for your surety bond? Contact us!

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