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Fuel Tax Evasion-Intergovernmental Enforcement Effort
Funds made available shall be used only to expand or enhance intergovernmental efforts to increase motor fuel tax enforcement and payments; to supplement motor fuel
This program is part of the Highway Use Tax Evasion program which also may provide funds to the Internal Revenue Service (IRS) for their efforts as outlined in 23 U.S.C.
143.
Fiscal Year 2016: Awards have not been made using 2016 funds as of May 2017.
However, several States continue to use funds from previous awards.
Examples of the uses include participation by States in the Joint Operations Center for National Fuel Tax Compliance (JOC) which is a cooperative program between the FHWA, the IRS, and individual States excise taxing agencies.
Information from distributor?s reports to the States and the IRS are compared and combined with other data sets to identify ?anomalies? or questionable transactions.
This can greatly reduce the number of transactions that internal or field staff must review.
It is very helpful in identifying potential missed tax payments.
Other projects include funding for States to attend fuel tax training for auditors and enforcement agents.
Funds are used for additional enforcement efforts, and in some cases, funds have been applied to enhancements of data systems (Oregon, Alabama).
Fiscal Year 2017: Awards have not been made using 2017 funds as of May 2017.
Fiscal Year 2018: No Current Data Available
The Department of Transportation's mission is to ensure fast, safe, efficient, accessible and convenient transportation that meets vital national interests and enhances the quality of life of the American people, today and into the future.
Selected Recipients for this Program
| Recipient | Amount | Start Date | End Date | |
| Transportation, Florida Department Of | $ 32,510 | 2013-01-28 | 2014-09-30 | |
| Transportation, Connecticut Department Of | $ 250,000 | |||
| Transportation Sc Dept | $ 250,000 | |||
| Transportation, New York Department Of | $ 250,000 | |||
| Transportation, Delaware Department Of | $ 250,000 | |||
| Executive Office Of The Commonwealth Of Kentucky | $ 250,000 | |||
| Executive Office Of The Commonwealth Of Kentucky | $ 250,000 | |||
| Transportation, California Department Of | $ 200,000 | |||
| Transportation, Washington State Department Of | $ 196,336 | |||
| Transportation, Virginia Department Of | $ 154,682 |
Program Accomplishments
Fiscal Year 2016: Funds have not been awarded for FY 2015 and 2016 as of May 2017. However, prior awards are still used to support training, and a few individual projects in the States. These may include enforcement programs, and enhancements to data systems. Fiscal Year 2017: Funds will likely also be used to expand auditing and tracking programs, including enhancements to data systems. When diesel fuel leaves the bulk terminal, fuel to be used in a non-taxable fashion (off-highway use) is injected with a red dye. At both the Federal and State level, fuel taxes are not imposed on dyed fuel. Many States have enforcement initiatives where vehicles are randomly checked for the presence of red dye in the fuel. Several of the awards will likely be used to start or enhance existing programs in testing for dyed fuel. Fiscal Year 2018: No Current Data Available
Uses and Use Restrictions
State agencies can use the funds: to expand efforts to enhance motor fuel tax enforcement; to supplement motor fuel tax examinations and criminal investigations; to develop automated data processing tools to monitor motor fuel production and sales; to evaluate and implement registration and reporting requirements for motor fuel taxpayers; to reimburse State expenses that supplement existing fuel tax compliance efforts; to analyze and implement programs to reduce tax evasion associated with other highway use taxes; to support efforts between States and Indian tribes to address issues relating to State motor fuel taxes; and to analyze and implement programs to reduce tax evasion associated with foreign imported motor fuel.
An approved indirect cost rate by the entity?s cognizant agency is required before claiming indirect costs under a Federal award (2 CFR 200, Appendix VII, States and Local Government and Indian Tribe Indirect Cost Proposals).
Allowable activities are included in the defining statute at the United States Code, Title 23, Section143.
Pre-award costs are not allowed under this program.
$ 2,000,000 is available each year that are awarded through a competitive process base upon a Notice of Funding Opportunity.
Eligibility Requirements
Applicant Eligibility
States, and the District of Columbia,.
Beneficiary Eligibility
States, and the District of Columbia.
Credentials/Documentation
No Credentials or documentation are required. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
Aplication and Award Process
Preapplication Coordination
Preapplication coordination is not applicable.
Environmental impact information is not required for this program.
This program is excluded from coverage under E.O.
12372.
Application Procedures
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Applicants must submit all proposals electronically through www.Grants.gov.
Award Procedures
Awards are scheduled to be made for Fiscal Year 2015. FHWA and IRS will jointly recommend and approve projects for Federal funding for fuel tax evasion intergovernmental enforcement efforts. States selected to receive funding will enter into negotiations with FHWA and be required to enter into a project agreement with FHWA.
Deadlines
Nov 30, -0001: No. Due to a delay in the approval of the 2015 and 2016 awards, we have not yet announced the availability of the 2017 grants. When we do, we will allow approximately 60 days from the Notice of Funding Opportunity (NOFO) date. Not available at this time.
Authorization
Fixing America?s Surface Transportation Act (FAST Act), Public Law 114-94, 23 U.S.C 143.
Range of Approval/Disapproval Time
The approval/disapproval time will take approximately 1 month.
Appeals
None.
Renewals
None.
Assistance Considerations
Formula and Matching Requirements
Statutory formulas are not applicable to this program. Matching requirements are not applicable to this program. MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
The program is currently authorized for fiscal year 2016. There is no statutory expiration of the funds once awarded. Method of awarding/releasing assistance: lump sum.
Post Assistance Requirements
Reports
Annual reports will required for each project and will be outlined in the project agreement.
Cash reports are not applicable.
Progress reports are not applicable.
Expenditure reports are not applicable.
Performance monitoring is not applicable.
Audits
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503.
Records
Participating agencies must keep records of expenditures/accomplishments as applicable.
Financial Information
Account Identification
69-8083-0-7-401.
Obigations
(Project Grants) FY 16 $738,057; FY 17 est $4,000,000; and FY 18 est $4,000,000 - The FY 2017 budget line item is for the Highway Use Tax Evasion program. The source of funds for this program is a deduction (set-aside) of not more than $4 million per year from the funds authorized for FHWA administrative expenses. Of the amount set-aside, $2 million must be reserved to make grants for intergovernmental enforcement efforts, including research and training. As of May 2017, the awards for 2015 and 2016 were still awaiting final approval by the Office of the Secretary of Transportation (OST). The additional amount, $ 2 million under the FAST Act, is allocated to the Internal Revenue Service (IRS) for their highway use tax evasion enforcement efforts. The source of funds for this program is a deduction (set-aside) of not more than $4 million per year from the funds authorized for FHWA administrative expenses. Of the amount set-aside, $2 million must be reserved to make grants for intergovernmental enforcement efforts, including research and training.
Range and Average of Financial Assistance
Minimum: $10,000; Maximum $250,000.
Regulations, Guidelines, and Literature
Not Applicable.
Information Contacts
Regional or Local Office
None.
Headquarters Office
Michael Dougherty, 1200 New Jersey Ave. S.E., Washington, District of Columbia 20590 Email: michael.dougherty@dot.gov Phone: (202) 366-9234.
Criteria for Selecting Proposals
Applicants are encouraged to submit innovative proposals to reduce fuel tax evasion and increase collaboration and coordination among several public agencies. Priority will be given to proposals that involve more than one public agency. FHWA and the IRS will review the proposals using a scoring process that includes consideration of completeness of the application, enforcement potential, innovation, intergovernmental inclusion, and risk of success.
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