The IRS has announced that it will soon provide guidance on a new refund process for federal excise taxes paid on certain dyed fuel. Under the One Big Beautiful Bill Act, taxpayers may be able to recover excise taxes paid on clear diesel fuel or kerosene if the fuel is later removed from a terminal as eligible dyed fuel for a nontaxable use on or after Dec. 31, 2025. The IRS plans to issue guidance in early 2026 and asks taxpayers to wait until then, because claims won’t be processed before the guidance is released. Contact us if you have questions.
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