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previous page Previous Page: Publication 225 - Farmer's Tax Guide - Excise Taxes
next page Next Page: Publication 225 - Farmer's Tax Guide - Fuels Used in Off-Highway Business Use
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pubs/p225-064.htm#en_us_publink100073207

Dyed Diesel Fuel and Dyed Kerosene(p82)


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The $.001 leaking underground storage tank (LUST) tax is included on sales of dyed diesel fuel and dyed kerosene and is not refundable. You must continue to use dyed diesel fuel and dyed kerosene only for a nontaxable use, including use on a farm for farming purposes. If you use the dyed fuel for a taxable use, you could be subject to the excise tax and a penalty. For example, if a truck used on a farm for farming purposes is also used on the highway (even though in connection with operating the farm), tax applies to the gallons of diesel fuel used (or sold for use) in operating the truck on the highways.
taxmap/pubs/p225-064.htm#en_us_publink100073208

Penalty.(p82)


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A penalty is imposed on any person who knowingly uses, sells, or alters dyed diesel fuel or dyed kerosene for any purpose other than a nontaxable use. The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. For more information on this penalty, see Publication 510.
previous pagePrevious Page: Publication 225 - Farmer's Tax Guide - Excise Taxes
next pageNext Page: Publication 225 - Farmer's Tax Guide - Fuels Used in Off-Highway Business Use
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication