IRS issues bill guidance
Nov 4, 2005 8:30 AM
The Internal Revenue Service (IRS) has issued a notice to provide guidance on some of the tax provisions of the highway bill and energy bill, including the expansion of the Leaking Underground Storage Tank (LUST) Trust Fund, according to information from the New England Fuel Institute (NEFI).
As has been previously reported, the recent Energy Bill expanded the LUST tax to include dyed fuels, effective October 1, 2005. The IRS notice clearly states that the LUST tax ($.001 per gallon) applies on all removals, entries, and sales of gasoline, diesel and kerosene. No refunds or credits of these taxes shall be made on the LUST tax, except in the case of fuels destined for export.
NEFI said this means that the LUST tax is now imposed on heating oil, diesel fuel sold to farmers, and kerosene sold for aviation, in addition to the products (gasoline and clear diesel) that have always been subject to LUST. The tax continues to be collected at the terminal rack by the supplier.
For more information, click here for the NEFI Web site.
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