IRS Weighs in on Red-Dye Diesel Tax Relief

IRS weighs in on red-dye diesel tax relief

The IRS has weighed in to clarify further what it will mean if truckers use red-dyed diesel for on-highway use as allowed by an Oct. 6 executive order.

Trump Administration’s Diesel Tax Relief Raises Questions for Fuel Buyers as Global Supply Risks Persist - Mansfield Energy

The Trump administration’s temporary tax provisions for on-road dyed diesel use could provide additional supply options, but uncertainty over federal excise taxes and state restrictions leaves the financial benefits unresolved. On October 14, the Internal Revenue Service (IRS) temporarily waived federal penalties for selling or using dyed diesel in on-highway vehicles nationwide. The relief follows …

IRS announces no future tax-penalty for the current use of red dye diesel

The  Internal Revenue Service has announced that there will be no future tax penalties on the current federally-sanctioned use of red dye diesel.  The President issued an Executive Order on October 5th, 2026 ordering no tax penalty on red dye diesel, even when sold for use on highways, through December 31st. Shortly thereafter, trucking and […]

IRS Relaxes Dyed Diesel Restrictions, Tax Questions Linger

What’s happening: The Internal Revenue Service (IRS) Oct. 14 announced temporary federal penalty relief for the sale and use of red-dyed diesel in on-highway vehicles from Oct. 1 through Dec. 31. As ARTBA previously reported, President Donald Trump’s Oct. 5 executive order (EO) directed the Department of Treasury and the IRS to pursue two measures: deferring certain federal diesel excise tax payments and easing penalties for using dyed diesel on…

IRS Halts Penalties for Died Diesel Fuel Use for the Rest of 2026

The IRS announced Wednesday evening that it's temporarily suspending federal tax penalties when dyed diesel fuel is sold for use or used on highways nationwide.

IRS waives tax penalties for dyed diesel fuel sales

The Internal Revenue Service is providing relief on federal tax penalties on sales of dyed diesel fuel in response to an executive order from President Trump.