IRS Eases Red Diesel Paperwork

The IRS has announced more relief for red-dyed diesel users.

On October 21, 2026, the agency released new guidance covering federal fuel tax reporting and recordkeeping.

For eligible dyed diesel use from October 1 through December 31, 2026, taxpayers will not have to file Form 720 solely to report the related fuel tax liability.

The IRS also says it will not require people to create missing records or complete the covered reporting later.

However, businesses that must file Form 720 for other taxes still need to do so.

!What This Means for CDL Drivers

Owner-operators and trucking companies using red-dyed diesel may have less federal tax paperwork during the temporary relief period.

This does not permanently eliminate the underlying fuel tax.

State fuel rules and penalties may still apply.