IRS will not impose a penalty when dyed diesel fuel is sold for use or used on highways nationwide through Dec. 31.
The move comes following President Donald Trump’s earlier October executive order on emergency tax relief on diesel fuel. The relief is retroactive to Oct. 1, and relief is available to any person who sells dyed diesel fuel or uses dyed diesel fuel for highway use.
“This relief only applies for federal tax purposes,” the IRS said. “It has no effect on state fuel taxes and penalties that a state may impose on the use of dyed diesel fuel on the highway.”
