IRS waives dyed diesel penalties, but taxes remain
The waiver covers highway use of dyed diesel through Dec. 31, but federal excise taxes, state rules and recordkeeping requirements still apply.
- The IRS waived penalties for highway use of dyed diesel through Dec. 31, following President Donald Trump's executive order aimed at lowering fuel costs for farmers during the autumn harvest.
- President Trump signed the order this month to boost approval ratings amid soaring diesel costs, aiming to expand access to tax-exempt fuel and offset expenses for farmers during peak harvest season.
- Although penalties are waived, federal excise taxes still apply, and the IRS stated, "No forgiveness has been granted." Taxpayers must maintain records to determine any underlying diesel tax owed.
- Farmers and truckers remain wary of using Red diesel on highways, fearing potential state fines up to $10,000 and long-term fuel tank contamination after the temporary relief expires.
- The Kansas Highway Patrol warned the order "would result in law enforcement difficulties once red dye diesel returns to its normal usage restrictions" after Dec. 31, when relief expires.
11 Articles
11 Articles
The Billings Gazette
US waives red diesel tax record requirements to entice buyers
The Trump administration is waiving recordkeeping requirements in a bid to encourage farmers, truck-stop operators and other companies to buy tax-exempt red diesel.
Trump’s tax-exempt diesel draws skepticism from farmers, eludes others - Regional Media News
By Tom Polansek CHICAGO, Oct 22 (Reuters) - US President Donald Trump signed an executive order this month to expand access to tax-exempt diesel as soaring prices frustrate voters ahead of midterm elections. But farmers say it is too risky to use the fuel on [...]
The Straits Times
Trump's tax-exempt diesel draws skepticism from farmers, eludes others
CHICAGO, Oct 22 - US President Donald Trump signed an executive order this month to expand access to tax-exempt diesel as soaring prices frustrate voters ahead of midterm elections. But farmers say it is too risky to use the fuel on public roads, while some other drivers do not have access to it. Read more at straitstimes.com.
Trump has tried to lower prices and improve his popularity rates with fuel-focused measures
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