What is a Kansas Taxable Fuel Bond?
The Kansas Taxable Fuel Bond is a solid undertaking providing a concrete declaration that all taxable fuel registrants will comply with all their tax obligations due to the government with regards to the activities of selling, mixing, and distributing fuel as mandated under 26 U.S. Code 6151.
This bond safeguards the State of Kansas and the public from fuel vendors who conduct themselves in a deceitful manner, engage in fraudulent activities or attempt to evade paying their taxes including fines and penalties.
Why do you need the Kansas Taxable Fuel Bond?
You need the Kansas Taxable Fuel Bond because your business is important to you. You want to be viewed as a business owner who knows how to protect not just clients but the public in general. The bond likewise depicts you as a responsible business owner who thinks of the community it operates, thus, making you appealing to potential customers. With this bond, existing clients and potential patrons will look up to you as an individual of fidelity, trustworthiness, reliability, and uprightness.
More details about the Kansas Taxable Fuel Bond
Since a taxable fuel bond is a prerequisite mandated by a federal agency, the surety company that writes the bond must be listed on the Department of Treasury Circular 570 directory of approved surety firms. Once the bond has been issued, it shall remain in full effect and will be renewed annually for as long as the registrant wishes to continue operations. However, the surety company may cancel the bond at any point during the term by providing the Chief, Excise Tax Program of the Internal Revenue Service with written notice at least 60 days prior to the proposed cancellation date.
What is the cost of a Kansas Taxable Fuel Bond?
For a producer, supplier, distributor, wholesaler, importer or compressed fuel retailer, the bond is computed in an amount akin to three times the monthly tax liability of the licensee rounded to the next higher multiple of $1,000. In the case of an exporter, the amount and duration of the bond shall be fixed by the department. Bonds amounts for all licensees cannot be less than these amounts: Motor vehicle fuels, diesel fuels or both ($20,000), Aircraft fuels ($10,000), Compressed fuel retailer ($1,000).
How do I get a Kansas Taxable Fuel Bond?
Getting a Kansas Taxable Fuel Bond is easy. For faster results, choose a competent and legitimate surety bond company to assist you. With the services of a qualified surety bond practitioner, you don’t only get to protect your business, you also get to safeguard your reputation and business image, provide valuable service to your clients, all in a cost-effective way.