Dyed Fuel and IRS Inspections

[thatguy]

ANY vehicle driven on the public roads, that includes,P/U trucks,big trucks,cars.

We just came across this at work this week, which i didnt know. I thought you could not run dyed fuel in any sort of vehicle on the highway at all....

You can run dyed fuel in a vehicle that operates on the highway if it meets the qualifications outlined in 'Farm Fuel (IRS Guidelines)' outlines in the attached pdf in the first post - Page 2, #1 - 'vehicles not considered highway vehicles'.. In our situation it was an oversize/over dimensional crane - VA and WV will follow the IRS guidelines allow dyed fuel use..

it really all comes down to the definition of what a highway and non-highway vehicle are it seems..

 

[Soundguy]

In fl you can run red fuel in a tractor, over the road, as long as the tractor runs less than some 'number' of miles per year on the road. it's a pretty generous number.. like 4000 or so.

I run my tractor and batwing 8m down the road each week during 'growing' season in florida.. IE.. 10m a year if we have rain..

soundguy

 

[zmoz]

It was my understanding that you can used dyed fuel on the road, but you have to document your usage and pay the taxes.

EXACTLY

The fuel tax laws vary by state. Every state is going to be different. Federally, and in Oregon, it is perfectly legal to drive with red fuel on a highway, *IF* you have about as much documentation as it takes to own an automatic firearm. There is a *LOT* of paperwork but it is *NOT* illegal. Any inspector that thinks so is an idiot and should be fired.

 

[zmoz]

You guys need to bone up on FEDERAL law before you start spouting off here.

I am very clear on the federal and state fuel tax laws, YOU need to bone up on your laws before you start spouting off. *sigh*

 

[Kernopelli]

Interesting thread and a subject I have wondered about. I have a lot of friends that fill their pickup truck tanks exclusively with dyed farm fuel. A coworker said he was a the local cattle sale barn last year and when he was leaving he said everyone was in a panic because "they" (he didn't specify who "they" was) were checking vehicles for off road fuel and issuing citations. He of course had about 50 gallons in his tanks and was freaking out too. He's pretty wily and somehow slipped out without getting caught. Bottom line, it may be rare but someone out there is occasionally checking for compliance in S. Illinois.

 

[zmoz]

Interesting thread and a subject I have wondered about. I have a lot of friends that fill their pickup truck tanks exclusively with dyed farm fuel. A coworker said he was a the local cattle sale barn last year and when he was leaving he said everyone was in a panic because "they" (he didn't specify who "they" was) were checking vehicles for off road fuel and issuing citations. He of course had about 50 gallons in his tanks and was freaking out too. He's pretty wily and somehow slipped out without getting caught. Bottom line, it may be rare but someone out there is occasionally checking for compliance in S. Illinois.

Yeah, that sort of thing is DEFINATELY illegal. I believe the OP is just talking about driving his tractor down the road. I think it's a $5,000 fine, first offense, if you just fill your daily driver with it.

 

[thatguy]

Yeah, that sort of thing is DEFINATELY illegal. I believe the OP is just talking about driving his tractor down the road. I think it's a $5,000 fine, first offense, if you just fill your daily driver with it.

The IRS (and VA follows their guidelines) charges $10/gal of tank size with a minimum fine of $1,000 (you pay $1k for tank up to 100 gal in size).. BUT somehow VA will/can also go back and assess you for the tank size on your farm (assuming that is where you fueled up)..

IF the IRS makes a stop they let VA know and we piggyback on their assessment. And if VA makes a stop they IRS piggybacks on the VA assessment.. So you will end up owing at least $2,000 in penalty.

You will also owe the tax on the fuel - .40ish fed and .175 VA per gallon

Brian

 

[Taylortractornut]

I think this rule applies to tractors that run over the mileage limit. One of my former employers used tractor pans. We hauled a few of them but the most had to be roaded. We had to check the mileage of each trip. At the end of the year they had to submit a form if they were roaded over 4500 miles. If they were the last few trips were made with green road fuel

 

[Retro]

We just came across this at work this week, which i didnt know. I thought you could not run dyed fuel in any sort of vehicle on the highway at all....

You can run dyed fuel in a vehicle that operates on the highway if it meets the qualifications outlined in 'Farm Fuel (IRS Guidelines)' outlines in the attached pdf in the first post - Page 2, #1 - 'vehicles not considered highway vehicles'.. In our situation it was an oversize/over dimensional crane - VA and WV will follow the IRS guidelines allow dyed fuel use..

it really all comes down to the definition of what a highway and non-highway vehicle are it seems..

This is exactly what we are arguing! :mur:

It isn't an entire leap of logic to conclude that tractors, combines, etc. meet the guidelines for "vehicles not considered highway vehicles."

Here's to hoping common sense can make a comeback!

 

[Highbeam]

I also live in the "puget sound" and have never been checked for dyed fuel though I own a tank of it and use it for the tractor. So where exactly is this crazy IRS guy and is he bothering regular people or just picking on you due to your farm and your exempt plates?