Title 26 — Internal Revenue CodeRelease 119-73

§6435 Dyed fuel

Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 65— - ABATEMENTS, CREDITS, AND REFUNDS › Subchapter Subchapter B— - Rules of Special Application › § 6435

Last updated Apr 6, 2026|Official source

Summary

The Secretary must pay a refund, with no interest, equal to the tax paid under section 4081 when a person proves they removed eligible indelibly dyed diesel fuel or kerosene from a terminal. "Eligible" means the fuel had tax paid under section 4081 (not credited or refunded) and is exempt under section 4082(a). Civil penalties for excess claims are under section 6675.

Full Legal Text

Title 26, §6435

Internal Revenue Code — Source: USLM XML via OLRC

(a)If a person establishes to the satisfaction of the Secretary that such person meets the requirements of subsection (b) with respect to diesel fuel or kerosene, then the Secretary shall pay to such person an amount (without interest) equal to the tax described in subsection (b)(2)(A) with respect to such diesel fuel or kerosene.

(b)(1)A person meets the requirements of this subsection with respect to diesel fuel or kerosene if such person removes from a terminal eligible indelibly dyed diesel fuel or kerosene.

(2)The term “eligible indelibly dyed diesel fuel or kerosene” means diesel fuel or kerosene—

(A)with respect to which a tax under section 4081 was previously paid (and not credited or refunded), and

(B)which is exempt from taxation under section 4082(a).

(c)For civil penalty for excessive claims under this section, see section 6675.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to eligible indelibly dyed diesel fuel or kerosene removed on or after the date that is 180 days after July 4, 2025, see section 70525(c) of Pub. L. 119–21, set out as an

Effective Date

of 2025 Amendment note under section 6206 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 6435

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73