# IRS Suspends Dyed Diesel Penalties

The Internal Revenue Service is suspending penalties and collection or enforcement for highway use of dyed diesel from October 1 through December 31, with the relief applying retroactively. For contractors and other organizations that frequently use diesel, the suspension may reduce near-term operating costs; the signal does not identify a related contract award or procurement opportunity.

- Diesel-intensive contractors can evaluate fuel-related cost assumptions for the covered period and review records for any penalties affected by the retroactive suspension.
- Procurement teams may wish to account for the temporary cost relief when assessing operating expenses, while not treating the announcement as a new contracting opportunity.

**Jurisdictions:** federal
**Industries:** Transportation
**Topics:** Regulatory Compliance
**Published:** October 15, 2026

### Government Entities
- Internal Revenue Service (IRS)