On April 30, the IRS issued temporary regulations explaining how taxpayers can recover federal excise taxes paid on clear diesel fuel or kerosene they later removed from a terminal as dyed fuel for nontaxable use. Eligibility is limited to taxpayers who paid the original tax on the dyed fuel related to the claim. Taxpayers meeting specific requirements for fuel use, timing and documentation may file a refund claim using the updated Form 8849, “Claim for Refund of Excise Taxes.” The temporary regs apply to eligible fuel removed on or after Dec. 31, 2025, and take effect immediately. They’ll apply until they expire in three years or final regs are issued, if sooner. Have questions? We can help.
