Correction: IRS has not waived the federal tax on diesel

| Friday, September 09, 2005

A story posted recently on this Web site incorrectly stated the current situation regarding the IRS easing some regulations on red-dyed diesel in the aftermath of Hurricane Katrina.

On Sept. 2, the IRS took action and removed the financial penalty for using so called off-road diesel for on-road uses. The regular federal excise fuel tax must be paid on the fuel if it is being used on the road.

As long as the operator or the person selling the fuel has paid the 24.4 cents per gallon excise tax, anyone using the dyed fuel will not be charged a federal penalty. Ordinarily, dyed diesel fuel is not taxed for off-road uses, because it is sold for uses that are exempt from the excise tax.

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