IRS Issues News Release Announcing Refund Procedures for Dyed Fuel Excise Tax

The IRS has issued a news release announcing temporary regulations establishing procedures for recovering federal excise tax paid on dyed fuel under the One Big Beautiful Bill have been issued, the IRS announced. The regulations allow taxpayers who paid tax on clear diesel fuel or kerosene to claim refunds if they later removed the fuel from a terminal as dyed fuel for nontaxable use on or after Dec. 31, 2025, provided specific eligibility requirements are met including that the claimant paid the original tax to the IRS. The temporary regulations are effective immediately and will expire no later than three ...