Red fuel

[maniac]

IRS Waives Diesel Fuel Penalty Due to Hurricane Katrina

IR-2005-89, Sept. 2, 2005

WASHINGTON — The Internal Revenue Service, in response to shortages of clear
diesel fuel caused by Hurricane Katrina, will not impose a tax penalty when
dyed diesel fuel is sold for use or used on the highway.

This relief applies beginning August 25, 2005, in Florida, August 30, 2005,
in Alabama, Louisiana, and Mississippi, and August 31, 2005, in the rest of
the United States, and will remain in effect through September 15, 2005.

This penalty relief is available to any person that sells or uses dyed fuel
for highway use. 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. The IRS will
not impose penalties for failure to make semimonthly deposits of this tax.
IRS Publication 510, Excise Taxes for 2005, has information on the proper
method for reporting and paying the tax.

Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses
exempt from excise tax, such as to farmers for farming purposes and to local
governments for buses.
Finally, the Internal Revenue Service will not impose the recently enacted
tax penalty on a failure to meet the requirements of EPA highway diesel fuel
sulfur content regulations if EPA has waived those requirements.

Links:

IRS Disaster Relief Page
More Information on Katrina-Related Issues
http://www.irs.gov/newsroom/article/0,,id=147221,00.html

 

[whatabudro]

IRS Waives Diesel Fuel Penalty Due to Hurricane Katrina

IR-2005-89, Sept. 2, 2005

WASHINGTON — The Internal Revenue Service, in response to shortages of clear
diesel fuel caused by Hurricane Katrina, will not impose a tax penalty when
dyed diesel fuel is sold for use or used on the highway.

This relief applies beginning August 25, 2005, in Florida, August 30, 2005,
in Alabama, Louisiana, and Mississippi, and August 31, 2005, in the rest of
the United States, and will remain in effect through September 15, 2005.

This penalty relief is available to any person that sells or uses dyed fuel
for highway use. 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. The IRS will
not impose penalties for failure to make semimonthly deposits of this tax.
IRS Publication 510, Excise Taxes for 2005, has information on the proper
method for reporting and paying the tax.

Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses
exempt from excise tax, such as to farmers for farming purposes and to local
governments for buses.
Finally, the Internal Revenue Service will not impose the recently enacted
tax penalty on a failure to meet the requirements of EPA highway diesel fuel
sulfur content regulations if EPA has waived those requirements.

Links:

IRS Disaster Relief Page
More Information on Katrina-Related Issues
http://www.irs.gov/newsroom/article/0,,id=147221,00.html

That red dye will stay in your tank for a very very long time. I've heard as many as 20 tanks later. They evidently dump the red dye into a tanker already filled with diesel. They put enough in to do several trucks so when you add taxed diesel to it it just stays red.

 

[W4RLR]

Anyone that does take advantage of this ought to download that temporary exemption notice and keep it in their glove box. You know some yahoo with a badge won't get the word.

I read that Publication 510. It's typical government gobbyleygook. Sounds like more trouble than it's worth.

Of course, the road taxes still have to be paid, the 18 wheelers have IFTA stickers. Wonder how we will do it?

 

[maniac]

Personally I won't run it in either one of my trucks, not that much of a savings IMO.

 

[dmd]

Personally I won't run it in either one of my trucks, not that much of a savings IMO.

If it is all you can get in a situation some of the folks are in, then there is nothing wrong with it.