WASHINGTON (Pakistan Point News / Sputnik - 13th May, 2021) The Internal Revenue Service (IRS) on Thursday announced that it will not penalize those who either sell or use dyed diesel fuel on US highways in states experiencing fuel shortages due to the Colonial Pipeline shutdown.
"The Internal Revenue Service, in response to disruptions of the fuel supply chain, will not impose a penalty when dyed diesel fuel is sold for use or used on the highway in the states of Alabama, Delaware, Georgia, Florida, Louisiana, Maryland, Mississippi, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and the District of Columbia," IRS said in a release.
The penalty relief is retroactive to May 7 and will remain in effect till May 21, the release said.
IRS explained in the release that as a rule, dyed diesel fuel is not taxed in case it is used for farming and home heating purposes and not on US highways.
Dyed diesel fuel is ordinary diesel with an addition of red dye in it to make it easier for tax law-enforcement to identify a fuel as non-taxed.
The cyberattack on the Colonial Pipeline last week led to fuel shortages across several US states. On Wednesday, the fuel transporting company announced it resumed operation but it will take a few days to get things back on track.
