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THE IRS IS STEPPING-UP ENFORCEMENT OF PUMP DECALS REQUIRED FOR ALL DIESEL & KEROSENE SOLD TAX-FREE
The Internal Revenue Service (IRS) requires all dyed diesel and dyed kerosene to have a specific decal indicating that the fuel is dyed and for non-taxable use only (26 CFR 48.4082.2). The labeling requirement has been in place for dyed diesel dispensers since 1993 and dyed kerosene dispensers since 1998. Clear kerosene sold tax-free at blocked pumps also requires a decal. The IRS has recently stepped-up enforcement of this requirement across the country.
NEFI is offering the required decals (shown below) which fully comply with IRS requirements. NOTE: These decals may not replace or obstruct any other pump labels/decals required by law (e.g., EPA sulfur decals, FTC biodiesel pump decals, etc). They must be placed in a clear and conspicuous location that is easily visible to the person dispensing the fuel. This may be on the face of the dispenser (on both sides) or on the side of the dispenser just above the nozzle housing.
Any seller that fails to post the required decal on any retail dispenser that sells dyed fuel is presumed to know that the fuel will be used for taxable purposes and may be responsible for paying 24.4cpg federal excise tax on the fuel and assessed a $10 fine for every gallon of fuel in the tank at the time of violation or $10 per gallon based on the gallon capacity of the tank.
FOR HEATING OIL DISPENSERS, USE THE DYED DIESEL LABEL IN ADDITION TO THE EPA HEATING OIL LABEL.
DYED DIESEL FUEL - IRS-310 |
DYED KEROSONE - IRS-311 |
UNDYED UNTAXED KEROSENE AT BLOCKED PUMPS - IRS-312 |