Extends Hurricane Sandy Diesel Fuel Penalty Waiver to Dec. 7 for New Jersey and
Parts of New York
WASHINGTON — As part of the administration’s efforts to bring all available
resources to bear to support state and local partners impacted by Hurricane
Sandy, the Internal Revenue Service today extended until Dec. 7 the diesel fuel
penalty waiver, due to expire today, for New Jersey and parts of New York.
The extension is based on an extended fuel waiver granted to these areas by
the Environmental Protection Agency (EPA). The original
waiver was put in place in response to shortages of clear diesel fuel
caused by the hurricane.
As a result, the IRS will not impose a tax penalty when dyed diesel fuel is
sold for use or used on the highway. This relief applies beginning Oct. 30,
2012 to the entire state of New Jersey and to the five boroughs of New York
City and Nassau, Suffolk, Rockland and Westchester counties in New York State,
and will remain in effect through Dec. 7, 2012.
This relief is available to any person that sells or uses dyed fuel for highway
use. In the case of the operator of the vehicle in which the dyed fuel is used,
the relief is available only if the operator or the person selling the fuel
pays the 24.4-cent-per-gallon tax that normally applies to diesel fuel for
on-road use. The IRS will not impose penalties for failure to make semimonthly
deposits of this tax. IRS Publication
510, Excise Taxes, has information on the proper method for reporting and
paying the tax.
Ordinarily, dyed diesel fuel is not taxed, because it is sold for uses
exempt from excise tax, such as to farmers for farming purposes, for home
heating use and to local governments for buses.
Finally, the IRS will not impose the tax penalty on a failure to meet the
requirements of EPA highway diesel fuel sulfur content regulations if EPA has
waived those requirements.
The IRS is closely monitoring the situation and will provide additional
relief as needed.
[ Source: IRS Newswire ]