Client
A North American oilfield services company operated a large fleet of heavy-duty vehicles used primarily at well sites and other field locations. Because the vehicles were registered for highway use, the company paid federal Heavy Vehicle Use Tax (HVUT) annually as required.
Although the company had a well-established compliance process, it had never performed a detailed review to determine whether any of the taxes paid could be recovered.
Challenge
The company’s fleet included a significant number of specialized vehicles that spent most of their time operating off public highways. While the tax had been paid in full each year, certain vehicles may have qualified for refunds due to low highway mileage or changes in fleet composition during the tax period.
The company had previously considered reviewing its HVUT filings but did not move forward because the process required combining data from multiple sources, including fleet records, mileage reports, and prior federal filings. With the information maintained across different departments, the internal tax team did not have the time to assemble and analyze the data needed to prepare refund claims.
As a result, several years of potential recovery opportunities had not been evaluated.
Solution
DMA’s fuel and excise tax team conducted a targeted review of the company’s prior HVUT filings to determine whether refund opportunities existed.
Rather than requiring extensive new reporting, DMA requested a limited set of information already maintained by the company, including fleet listings, mileage data, vehicle acquisition and disposition records, and previously filed federal returns. Using this information, DMA analyzed each vehicle to determine eligibility for refunds based on actual usage and ownership during the tax year. DMA then prepared and filed refund claims on the company’s behalf and managed all follow-up with the IRS, including responding to documentation requests during the review process.
The work was completed without interrupting the company’s normal compliance activities and required minimal time from internal personnel.
Result
DMA successfully recovered more than $500,000 in federal Heavy Vehicle Use Tax for the company, representing taxes that had been paid but were not ultimately owed based on vehicle usage. Additional claims were prepared for subsequent periods, allowing the company to continue recovering eligible amounts going forward.
The project provided a substantial financial benefit while only requiring limited involvement from the client’s internal team.
Why DMA
Heavy Vehicle Use Tax refunds often go unclaimed because the information needed to identify them is spread across operational, accounting, and tax systems. Without a defined process, companies may not have the resources to review previous filings in detail.
For organizations with large fleets, a review of prior HVUT filings can uncover substantial savings that would otherwise remain unrealized.
DMA’s fuel and excise tax specialists use a focused approach to identify refund opportunities, prepare claims, and manage the recovery process from start to finish. By handling the analysis, documentation, and IRS correspondence, DMA allows clients to pursue recoveries without adding to their internal workload.
Find out if your fleet qualifies for an HVUT refund
Connect with a DMA fuel and excise tax specialist to evaluate eligibility and quantify potential recoveries.