B-26/02
November 19, 2002


FTA MOTOR FUEL TAX ENFORCEMENT BASIC TRAINING COURSE

February 2-5, 2003 – Houston, Texas

Preliminary Program
Registration Form

To State Tax Administrators:

SUMMARY

FTA and ExxonMobil, with the participation of state tax agencies and the petroleum industry, are offering the Motor Fuel Tax Basic Level Training course February 2-5, 2003, in Houston, Texas. The hotel selected is the Courtyard Houston Near the Galleria but the seminar will take place at the ExxonMobil Training Facility in Houston. This bulletin includes the program and provides training course and hotel registration information.

Please note that the cut-off dates for course registration and hotel reservations are January 13 and January 18, 2003, respectively.

FTA and ExxonMobil, with the participation of state tax agencies and the petroleum industry, are offering the Motor Fuel Tax Basic Level Training course February 2-5, 2003, in Houston, Texas. The hotel selected is the Courtyard Houston Near the Galleria but the meeting will take place at the ExxonMobil Training Facility in Houston. For those participants staying at the Courtyard Houston, shuttle buses will be provided to the ExxonMobil Training Facility.

Instructors will be state employees with expertise in motor fuel audits and investigations. Representatives of the motor fuel industry will also make presentations to help the participants understand how the fuel distribution system operates. All participants will receive a comprehensive training manual, reference materials, and a certificate of completion.

Basic Seminar
The basic seminar is designed for new, mid-level, state, federal and industry employees along with investigators with limited experience in motor fuel taxes. The four-point objective of the three-day course is as follows:

•Provide participants an overview of the motor fuel industry practices with an understanding of the motor fuel distribution chain.

•Provide participants a detailed view of motor fuel taxation at all points in the distribution chain, the movement of fuel through the chain, and source documents to consider in a compliance audit.

•Provide participants an understanding of the opportunities for motor fuel tax fraud at the different distribution points in the chain and the schemes used by fraudsters to commit the fraud.

•Provide participants with tips on available resources for training and help (FHwA, Fed/State Task Forces, and FTA MFTS Uniformity) on proven methods to identify and document fraudulent activities, then how and when to involve investigators.

The program for the basic training course is attached.

Training Course Registration
The Basic Training Course for 2003 is being co-sponsored by ExxonMobil, which has enabled FTA to offer it at a reduced fee.

The registration fee of $300.00 per registrant will cover the expenses of the instructors and miscellaneous expenses. States receiving federal funds, as participants in regional motor fuel tax enforcement task forces, may use those funds to pay travel expenses and registration fees for their employees. A registration form is enclosed; upon completion, please fax (202) 624-7888 or mail it, together with your check (made payable to Federation of Tax Administrators) to:

Federation of Tax Administrators
444 N. Capitol Street, NW – Suite 348
Washington, DC 20001

The deadline for submitting training course registration is January 13, 2003.

Hotel Registration
The rate at the Courtyard Houston Near the Galleria is $80 plus 17% tax per night single/double. Make your reservations directly with the hotel by calling 800-321-2211 or (713) 961-1640. Make certain to inform the clerk that you will be attending the Federation of Tax Administrators Training Seminar to receive the special rate. Please note that the cut-off date for hotel reservations is January 18, 2003. The hotel’s address is 3131 West Loop South, Houston, Texas 77027.

Transportation
Ground transportation to the hotel from the airport is available for a charge, or you may take a cab.

If you have any questions, please call Cindy Anders-Robb at (307) 632-4144 or send an e-mail to Cindy at <cindy.anders-robb@taxadmin.org>

Sincerely,

Harley T. Duncan
Executive Director


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Preliminary Program

FTA MOTOR FUEL TAX BASIC TRAINING
Houston, Texas
February 2-5, 2003


SUNDAY
February 2, 2003

4:00 p.m. - 6:00 p.m. Registration (Courtyard Houston Near the Galleria)

MONDAY
February 3, 2003

ExxonMobil Training Facility
6:30 a.m. – 8:00 a.m. Breakfast
(Courtyard Café for those staying at hotel)

8:00 a.m. Meet in the Courtyard lobby for ride to the training facility

8:30 a.m. – 9:00 a.m. Introduction and Welcome

9:00 a.m. – Noon Motor Fuel Industry Overview

Motor Fuel Distribution Systems – Gasoline and Diesel
Gasoline Market in the United States Today

Noon – 1:30 p.m. Lunch (on your own)

1:30 p.m. – 3:00 p.m. Overview of Federal & State Motor Fuel Taxation

What a State Should Know About the Federal Tax
Points of Imposition
Information Reporting; Third-party Reporting
Rates and Surcharges
Motor Fuel Tax Section

3:00 p.m. – 3:15 p.m. Break
3:15 p.m. – 4:30 p.m. Mr. Mob

Discuss motor fuel tax administration problems and solutions. Such things as: daisy chains, smuggling fuel across state lines, abuse of registration certificates, exemption abuses, illegal blending, pipeline schemes and more.

TUESDAY
February 4, 2003

ExxonMobil Training Facility
6:30 a.m. – 8:00 a.m. Breakfast
(Courtyard Café for those staying at the hotel)

8:00 a.m. Meet in the Courtyard lobby for ride to the training facility

8:30 a.m. – Noon Compliance Program

(Audit, Collection, Registration, Revocation)
Understanding Accounting Systems and Transaction Flow
Source Documents
Tracking Transactions and Payments
Audit Selection
Audit Preparation
Risk Assessment
Observation/Interviewing
Compliance Tools
Bonding and Registration

Noon – 1:30 p.m. Lunch (on your own)

1:30 p.m. – 5:00 p.m. Compliance Program

Continuation of the morning session.

WEDNESDAY
February 5, 2003

ExxonMobil Training Facility
6:30 a.m. – 8:00 a.m. Breakfast
(Courtyard Café for those staying at the hotel)

8:00 a.m. Meet in the Courtyard lobby for ride to the training facility

8:30 a.m. – 10:00 a.m. Cooperation Efforts

Cooperation with Other State and Federal Agencies
Exchange of Information
Joint Compliance Projects
Uniformity Efforts

10:00 a.m. – 10:15 a.m. Break

10:15 a.m. – Noon Dyed Fuel Program

Intent of Dyed Fuel Legislation
Users of Dyed Fuel
Compliance Programs
Field Inspection
Documentation and Case Preparation

Noon – 1:30 p.m. Lunch (on your own)

1:30 p.m. – 3:00 p.m. Dyed Fuel Program (Contd)

3:00 p.m. – 3:15 p.m. Break

3:15 p.m. – 4:00 p.m. Preparation for Court

Indicators of Evasion/When to Involve Criminal Investigators
Cooperation Between Civil Auditors and Criminal
Investigators
How to be a Witness

4:00 p.m. – 5:00 p.m. Roundtable/Seminar Wrap-up and Evaluation

Discuss ways and methods to improve motor fuel tax administration – both industry and tax authority – to minimize opportunities for fraud and evasion. Identify and discuss successes, failures and new ideas.


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