Vol. I  ·  No. 13
Friday, October 30, 2026
37 stories in the archive

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Small business

2 stories in the archive, newest first

notice Form 720 and recordkeeping relief, dyed diesel highway useNationwideUses Oct 1 to Dec 31, 2026; no later filing requiredchecked Oct 22

Small business

No Form 720 Needed for Dyed Diesel Used on Highways This Fall

The IRS expanded its October relief: no excise tax return, reporting or records solely for dyed diesel used on highways from October 1 through December 31.

By Finance Unc  · 

The IRS said October 21 that it will not challenge failures to file, report or keep records that arise solely from tax owed on dyed diesel used in highway vehicles between October 1 and December 31, 2026, and will not assert civil penalties for them. It builds on the penalty relief we reported October 21, which followed the October 5 executive order on diesel fuel.

In practice, that means a farmer, contractor or other business that puts dyed diesel in a highway vehicle during the relief period does not need to file Form 720, the quarterly federal excise tax return, just to report that use, or keep records just to prove it. The relief applies even if a filing deadline falls after December 31, and nothing has to be filed or reconstructed later.

Businesses that file Form 720 for other excise taxes must still file and keep records for those. The relief also does not change records needed for other taxes or for fuel tax credit and refund claims.

One open question: what happens to red dye left in fuel tanks after December 31. The IRS says it is considering a grace period or other measures and will issue more guidance. State fuel tax rules are separate.

Sources

notice Dyed diesel highway-use penalty reliefNationwideOct 1 to Dec 31, 2026checked Oct 21

Small business

IRS Waives Penalties for Dyed Diesel on Highways Through December 31

Under an October 5 executive order, farm and off-road diesel can be used in highway vehicles without excise tax penalties, retroactive to October 1.

By Finance Unc  · 

The IRS will not impose penalties when dyed diesel fuel is sold for highway use or used in vehicles on highways anywhere in the country, from October 1 through December 31, 2026, the agency said. The relief follows the President's October 5 executive order, Emergency Tax Relief on Diesel Fuel.

Dyed diesel is normally untaxed because it is meant for exempt uses such as farming; putting it in a highway vehicle ordinarily triggers the federal excise tax and penalties, owed by the retail seller or, for fuel not bought at retail, such as farm storage-tank fuel, by the vehicle's operator.

During the relief period the IRS says it will suspend its usual collection and enforcement: fuel compliance officers are being reassigned, there will be no federal inspections of on-road dyed fuel, users need not keep records to prove eligibility, and sellers and distributors do not have to investigate or document how dyed fuel is used. Penalties for missing semimonthly tax deposits or records are included.

The relief is federal only. State fuel taxes and state rules on dyed diesel are separate, so check with your state's revenue or motor fuel agency before relying on it.

Sources