Has anybody successfully been able to pay taxes on alternative fuel? I mean fuel you make yourself. As you know, taxes need to be paid on alternative fuel. I want to do this for WMO, if that makes a difference. I want to be legal, and I have called several "customer service" people at the IRS and they are clueless and unable to help. I have search the irs.gov website, and can't find anything on the subject. I am concerned about getting "dipped" and getting FINED.
Any advice?!?!?!?
Thanks!
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1993 F350 IDI Turbo
4x4 ZF Crew Cab Longbox
BIG SLOW LOUD STINKY
Runs just as bad as the day I bought it!
Well if you're looking to be legal, you will need to pay state tax also.
But,,,I'm a bit confused by your post. If you're afraid of getting "dipped", then don't burn anything with the red dye that the "dipper" is looking for. I don't see the connection between the two. The "dipper" doesn't check or know if the "dippee" has paid tax or not, he or she just checks for "red", because "red" isn't usually taxed. "Usually" being the operative word.
2006 F350 CC LWB Dually XLT Oxford white manual 4x4 6.0 PSD 6 speed. 4.10 LS front and rear, Built May05. 4" turbo back, 55 gal aux fuel tank. A real pig from a stop, give me 15' and she'll slowly come to life, then watch out!
165K miles, 12 injectors, EGR cooler, Fuel pump, 8 glow plugs, GPCM, FICM rebuilt FoMoCo engine at 150K under 7/200 warranty.
i 2nd what rather said... im all for being legal but , do you really want big brother poking his big ugly nose (even more ) into your beeswax?? if you really cant sleep at night because of it you could contact a C.P.A or you might try GRAYDON BLAIR (?) @ UTAH BIODIESEL... he is very knowledgable about all things biodiesel..
The Governtment got more taxes on diesel fuel in 08 than you or
anyone else could ever burn in a lifetime on (untaxed fuel)
Do you really think the Government has been that fair with you
or anyone on this site?
Sorry guyes I have watched my industry go down in flames (to china)
in the last 20 years. And they let it happened.
I have NO USE at all for out government or anyone running it!!!!!!!!
IT is EAT or be EATEN, I choose to EAT!!!!!!
__________________ 2002 CC F-350 SB SRW 4X4TOREADOR RED DP-TUNER NO-START, MOD STOCK, HIGH IDLE, DRIVE THRU, 40 TOW, DECEL, 60 TOW, 60 ECON, 80 ECON, AND RACE BTSTRANNY (NUFF SAID) ; 6.0 COOLER DIESELSITE BOOST RELIEF VALVE, 203^ THERMOSTAT AND HOUSING, MAX A/C VALVE AND COOLANT FILTER ATS TURBO HOUSING, FORD A.I.S., OILGUARD BY-PASS, 4" MAGNAFLOW STRAIGHT PIPE, SIDE EXIT,
NCHORNET'S CCV MOD, POR-15 OIL PAN ISSPRO A-PILLAR PYRO/BOOST/TRANS, ISSPRO ENGINE, OIL TEMP AND VOLTS OVER MIRROR MARINCO MOD, LED ID BAR, HEATED SIGNAL MIRRORS, LED BRAKE AND TURN SIGNAL BULBS FRONT AND REAR RHINO BED LINER, SIRIUS RADIO , AMERICAN EAGLE WHEELS WITH 305-70-16 NITTO TERRA GRAPPLERS WITH A 2" DONAHOE LEVELING KIT
TRUCK BUILD DATE 1/8/02
BTS BUILD DATE 1/8/07 AT 41K My Truck
1986 Isuzu P'up, 177,673.8 miles.
- Hella headlights (highly recommended)
- DOT C-2 back end (also recommended)
- R-12 air conditioner converted to R-406a. Saved ozone and money
- 4.1:1 final drive converted to 3.4:1. Quieter, better mileage but it's a good thing I live in the flat Midwest.
- 9/22/2007, age 21: Still running well when reluctantly sent away for reincarnation, due to body & frame rust.
__________________
91 f250 4x4,, e rated tires,,cab lights,,,straitpiped to rear,,,,brand spankin new cd player,,,flatbed with gooseneck,,,one hellava bale hauler,,,
International 856 wide front and a super h wide front ,, both have three points for haulin those bales.
63 w200 power wagon 17.5 inch e rated tires,,4 spd, 410's plus a six popper, she's a lil slow but she'll go anywhere yu point her
New to fleet 95 dodge 3500 EXT CAB 4x4 5 spd cummins power, 4 inch exhaust,
also new 88 f350 4x4 non turbo 5pd straitpiped long bed 410's
I read a post a while back that said you're allowed to add up 20%(?) of an 'additive' without paying extra taxes.
Almost any amount of WMO will turn your fuel black, so they can't judge the percentage by sight.
If you're burning ATF, just tell them you're using it as an additive to compensate for these low sulfur fuels they're pushing on us.
... If you're burning ATF, just tell them you're using it as an additive to compensate for these low sulfur fuels they're pushing on us.
Better yet, use an additive which doesn't contain red dye and a high residual ash content. If you do get dipped and they find red dye, there's not going to be much point in trying to tell them anything.
Don't put red dye in on-road vehicles. It ain't exactly rocket science.
__________________
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Douglas Campbell, P.E.
1986 Isuzu P'up, 177,673.8 miles.
- Hella headlights (highly recommended)
- DOT C-2 back end (also recommended)
- R-12 air conditioner converted to R-406a. Saved ozone and money
- 4.1:1 final drive converted to 3.4:1. Quieter, better mileage but it's a good thing I live in the flat Midwest.
- 9/22/2007, age 21: Still running well when reluctantly sent away for reincarnation, due to body & frame rust.
Okay, so after alot of google searches, I finally found some promising info. This is a link to a real IRS document. I read the whole thing and I would reccomend anyone who does this sort of thing read it also. Paragraph 1 on page 3 explains a 400gallon per quarter rule and is defined as "minor blending." From reading it, my understanding is that a fuel blend is legal to use on the road IF part of the blend is previously taxed. So a blend of pump diesel and (wmo, atf, wvo etc) is legal. I can't find any info on what percentage or ratio is legal, so I guess it doesn't matter. I keep a copy of this in my glovebox, just in case.
If anyone reads this and understands differently please share!
I was always under the impression that it doesn't need to be taxed unless you are re-selling it. So if you are running vegi oil and are not re-selling it then I thought you were fine.
Wrong. In most (if not all) states, you're expected to pay a state motor-vehicle fuel tax on anything & everything used for on-road fuel. In all states, you're expected to pay a federal motor-vehicle fuel tax.
Many state legislatures haven't comprehended homebrewers and have either not established procedures for small homebrewers to file and pay the tax, or have established ridiculously inappropriate procedures. (one state requires people who wish to become fuel blenders, regardless of size, to post a $25,000 bond) That the legislature might not have figured out what you're doing (and on what scale) doesn't absolve you of the responsibility of paying taxes.
__________________
-
Douglas Campbell, P.E.
1986 Isuzu P'up, 177,673.8 miles.
- Hella headlights (highly recommended)
- DOT C-2 back end (also recommended)
- R-12 air conditioner converted to R-406a. Saved ozone and money
- 4.1:1 final drive converted to 3.4:1. Quieter, better mileage but it's a good thing I live in the flat Midwest.
- 9/22/2007, age 21: Still running well when reluctantly sent away for reincarnation, due to body & frame rust.
Last edited by drcampbell; 10-26-2010 at 10:47 AM.
if it bothers you real bad you could always make a charitable donation to the ronald mcdonald house etc, etc. they need your money more than the govt. ... and itll probably be used for "legitimate" good cause...
if it bothers you real bad you could always make a charitable donation to the ronald mcdonald house etc, etc. they need your money more than the govt. ... and itll probably be used for "legitimate" good cause...
i agree. estimate what you would have paid in road tax and donate the money to a good charity such as the ronald mcdonald house. this way you will sleep easier and the money will be well spent. then the charity donation can be deducted on your taxes..
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2002 F-250: CREW CAB: SHORT BED: 4X4IESEL: 6SPD MANUAL: ALUMINUM AIR INTAKE: 4" BANKS DOWN PIPE: CUSTOM MADE 5" DUAL EXHAUST IN FRONT OF REAR WHEELS: TS PERFORMANCE 6POSITION 140HP: AUTOMETER GAUGES ON PILLAR AND ON INSTRUMENT CLUSTER: DUAL FRONT SHOCKS: DUAL STEERING STABILIZER: KYB MONOTUBE SHOCKS AND STEERING STABILIZER: LIFTED 2INCHES: TOYO OPEN COUNTRY AT TIRES LT285/75/17 LOAD RANGE E: 17" AMERICAN RACING WHEELS: CUSTOM MADE WHEEL SPACERS: WARN HUBS: POWER SLOT FRONT BRAKE ROTORS: HAWK SD BRAKE PADS UP FRONT: SMOKED CAB LIGHTS: SMOKED TAIL LIGHTS: POLK AUDIO 10" SUBS IN HOMEMADE BOXES: SONY HEAD UNIT AND SPEAKERS: KENWOOD AMP
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; 6.0 COOLER 
,
IESEL: 6SPD MANUAL: ALUMINUM AIR INTAKE: 4" BANKS DOWN PIPE: CUSTOM MADE 5" DUAL EXHAUST IN FRONT OF REAR WHEELS: TS PERFORMANCE 6POSITION 140HP: AUTOMETER GAUGES ON PILLAR AND ON INSTRUMENT CLUSTER: DUAL FRONT SHOCKS: DUAL STEERING STABILIZER: KYB MONOTUBE SHOCKS AND STEERING STABILIZER: LIFTED 2INCHES: TOYO OPEN COUNTRY AT TIRES LT285/75/17 LOAD RANGE E: 17" AMERICAN RACING WHEELS: CUSTOM MADE WHEEL SPACERS: WARN HUBS: POWER SLOT FRONT BRAKE ROTORS: HAWK SD BRAKE PADS UP FRONT: SMOKED CAB LIGHTS: SMOKED TAIL LIGHTS: POLK AUDIO 10" SUBS IN HOMEMADE BOXES: SONY HEAD UNIT AND SPEAKERS: KENWOOD AMP
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