AI for fuel distributors, tested on loads you already lifted, delivered and billed.

The tax point is the rack. IRS Publication 510, in its December 2025 revision, defines a terminal as a storage and distribution facility supplied by pipeline or vessel from which fuel can be removed at a rack, and a rack as the equipment that loads fuel into anything other than a pipeline or a vessel. Every removal of gasoline, diesel or kerosene across a terminal rack is taxable, and the tax falls on the position holder, whoever the terminal operator's own records show holding that inventory. For a marketer, the bill of lading from that lift starts every chain of paper that follows it: the supplier's invoice, the carrier's bill, the delivery tickets and the customer's invoice.

The terminal reports the same lift. Terminal operators file Form 720-TO, an information return of receipts and disbursements, every month and separately for each approved terminal, and the pipelines, barges and vessels moving product in or out file Form 720-CS. Both fall due on the last day of the following month. The bill of lading in your file describes a lift the terminal has already reported, which makes it a fixed point to check everything else against.

Blending moves the tax. Position holders, terminal operators and blenders all have to register with the IRS on Form 637. A marketer that mixes ethanol into gasoline outside the bulk transfer/terminal system owes gasoline tax on the alcohol in the mixture and must register as a blender, and the same goes for biodiesel splashed into undyed diesel. A load that crossed the rack as one product and reached the customer as a blend is exactly where an invoice needs a second look.

Farm and off-road accounts bring dyed fuel. Dyed diesel, sold for nontaxable uses, meets the IRS dye requirement with Solvent Red 164 injected mechanically, and a seller has to post the dyed fuel notice on every retail pump or delivery facility where its buyers take it. A seller that fails to post it is presumed to know the fuel is headed for a taxable use. Farm gasoline runs the other way: Publication 510 lists use on a farm for farming purposes as credit only, so the farmer buys it with tax included and claims the credit. One customer list can hold every one of these cases, and each is priced and invoiced differently.

Why these two jobs. Reconciliation and invoicing both work from paper your office already keeps for every load, and each closed load carries the answer your team settled on. That gives a reviewer something to hold each draft against, line by line, without collecting anything new.

The limit on both. The proof of concept never logs in to your back-office system, a supplier or terminal portal or a tank monitor, never touches a live invoice, and never files or calculates a tax return. It reads copies only, and a person on your staff checks every reconciliation and every invoice. Nothing on these pages is tax or legal advice; the rules are cited so your reviewer can check them against your own.