ExSTARS Program

QUESTIONS

Are you a terminal operator as defined in §48.4101-1?

Do you operate a pipeline, vessel, or barge, as defined in §48.4101-1, that delivers product into or out of an approved terminal?

If the answer to either question is "YES",

YOU NEED TO READ THIS DOCUMENT


What is ExSTARS?

The Excise Summary Terminal Activity Reporting System (ExSTARS) is a fuel reporting system currently being developed by the Internal Revenue Service. It is scheduled for implementation in September 2000.

ExSTARS
will track all products through approved terminals and capture destination state information when the product is disbursed through the terminal rack. Using a concept similar to the 1099 process for reporting income, ExSTARS will collect fuel information and then compare it to federal excise tax returns. The destination state information will be distributed to state agencies for their use in compliance efforts.

Who will be required to report?

Terminal operators and bulk carriers, including pipeline companies and vessel or barge operators, will be required to file monthly information reports.

A terminal operator is a person or company who owns, operates or controls a terminal registered with the IRS that has been assigned a "terminal control number" (TCN.) Such terminals are supplied by marine vessel or pipeline and disburse motor fuels to trucks or rail cars through a loading rack.

A bulk carrier is a vessel, barge operator or a pipeline company that makes deliveries of reportable products into or out of an approved terminal. The carrier is the person who was hired by the owner of the product to transport such product. This will generally be the carrier as shown on the shipping papers.

What products will be reported?

Generally, any product delivered to or from an approved terminal will be reported. A complete listing of reported products is contained in the EDI Implementation Guide. To obtain the guide, see "How will reports be filed?"

Reporting Requirements for Terminal Operators

Terminal operators will be required to file monthly information reports containing the transaction detail of deliveries, receipts, inventories and disbursements. Each receipt of motor fuel product, ending inventory of each product, and each disbursement out of the terminal must be reported. The bulk disbursements report will include the date, document number, net gallons, and identity of the pipeline or barge removing the product. The report of non-bulk disbursements through the terminal rack will include the date, carrier FEIN, document number, net and gross gallons, position holder and state of destination for each transaction.

Reporting Requirements for Bulk Carriers

Bulk carriers, including vessel, barge or pipeline operators, will be required to report each shipment into or out of an approved terminal. The information reported will include the terminal number, date of delivery or receipt, document number, type of product and net gallons shipped.

How can you prepare for ExSTARS' requirements?

To ensure you are ready for ExSTARS, do the following:

Make certain your tax department or whoever handles your company's tax matters, is aware of ExSTARS and its projected implementation date of September 2000.

Update your files to include the FEIN of carriers or position holders and TCNs of terminals with which you do business. TCN numbers may be obtained on the Worldwide Web at www.taxadmin.org/fta.

Obtain a copy of the EDI Implementation Guide. This document is available free on the Worldwide Web at www.taxadmin.org.

Alert your Information Systems personnel or EDI coordinator of the electronic filing requirements contained in the EDI Implementation Guide.

How will reports be filed?

In general electronic data interchange (EDI) will be used to file your monthly information reports. For more information about EDI requirements, read the EDI Implementation Guide available on the Worldwide Web at www.taxadmin.org.

Who to contact if you have questions

Duane Gillen,
Project Manager
Phone: (412) 395-5385
Fax: (412) 395-5382
E-mail: GillenDuane@irs.gov