IRS Publishes Treasury Decision for Dyed Fuel Refund Claims, Limits Eligibility to Original Taxpayer

The IRS published temporary regulations establishing procedures for taxpayers to claim refunds under I.R.C. §6435 for previously taxed dyed fuel. The regulations limit eligible claimants to taxpayers who both paid the original section 4081 excise tax and later remove the same fuel as dyed fuel from an approved terminal. Claims must be filed on Form 8849 with a completed Schedule 5 and include a section 6435 taxpayer’s report. The regulations apply to fuel removals occurring on or after Dec. 31, 2025, and expire on May 1, 2029, or earlier if statutory changes appropriate funds for payments to persons other than ...