IRS Extends Use of Oil Company Credit Cards
ISELIN, NJ – The Internal Revenue Service (IRS) has issued official guidance to maintain the status quo with respect to gasoline purchased on an oil company credit card. The IRS guidance will allow tax-exempt fleets to continue fleet card use for gasoline purchases until Congress has had an opportunity to address the issue.
The National Association of Fleet Administrators (NAFA) has worked closely with several organizations to convince federal officials to issue the guidance, including Wright Express, Voyager, the American Petroleum Institute, the National Conference of State Fleet Administrators, and the Government Finance Officers Association.
The IRS guidance is contained in IRS Notice 2005-24 and says in part:
"Treasury and the Service believe that it would be appropriate to continue to apply the oil company credit card rule until Congress has had an opportunity to address the issue. Accordingly, the oil company credit card rule will remain in effect until modified by a statutory change or by future guidance on this issue."