IRS waives diesel fuel penalty, offers relief to Hurricane Irma victims

IRS waives diesel fuel penalty, offers relief to Hurricane Irma victims

The Westerly Sun

The Internal Revenue Service will not impose penalties on those selling or using dyed diesel fuel on Florida highways, a response to a shortage of undyed fuels as a result of Hurricane Irma.

The relief, which was placed in effect on Sept. 6, is consistent with the Environmental Protection Agency waiver for Florida regarding use of non-road diesel locomotive and marine fuel, the IRS said in a press release, and will remain in effect through Sept. 22.

“This penalty relief is available to any person that sells or uses dyed fuel for highway use,” the IRS said. “In the case of the operator of the vehicle in which the dyed fuel is used, the relief is available only if the operator or the person selling the fuel pays the tax of 24.4 cents per gallon that is normally applied to diesel fuel for highway use.”

“The IRS will not impose penalties for failure to make semimonthly deposits of this tax. IRS Publication 510, Excise Taxes, has information on the proper method for reporting and paying the tax,” a press release stated.

Dyed diesel fuel is not typically taxed, because it is sold for uses exempt from excise tax, such as to farmers for farming purposes, for home heating use and to local governments for buses.

The waiver does not apply to the Internal Revenue Code penalty for using adulterated fuels that do not comply with applicable EPA regulations. Diesel fuel with sulfur content higher than 15 parts-per-million is still restricted and may not be used in highway vehicles, officials said.

The IRS is closely monitoring the situation and will provide additional relief as needed, the agency said.

For more information, visit the Internal Revenue website at

— Sun staff


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