Dyed kerosene tax & LUST tax filing

If you sell or use fuel in the United States you may need to report excise tax on dyed products plus the LUST charge. Many fuel businesses only learn this after an audit notice or a vendor request for proof. This page explains what the IRS expects how to prepare your numbers and how to file online with confidence.

Dyed kerosene is usually meant for off highway use yet it can trigger tax when it is removed from a terminal or used in a taxable way. LUST is a separate per gallon amount that can apply to certain fuel transactions. With eFileExcise720 you can complete these returns through an IRS authorized portal with secure data handling and helpful support.

What dyed kerosene is and who owes tax

The term dyed kerosene refers to kerosene that has a red dye added to show it is not for taxable highway use. The dye helps enforcement since inspectors can check tanks and lines. Even so dyed kerosene excise tax can still apply in specific cases such as improper use or certain removals. If you are a terminal operator reseller importer or position holder you should review the rules that apply to your role.

An IRS dyed kerosene tax issue often starts with how the product was sold and where it was delivered. For example kerosene dyed for heating may become taxable if it ends up in a vehicle. You may also need to report tax if you sell to a buyer who lacks the right registration. Keeping clear invoices terminal documents and exemption certificates makes later filing much easier.

Understanding LUST and the LUST tax rate

LUST stands for the Leaking Underground Storage Tank trust fund. The tax helps fund cleanup and prevention programs tied to fuel storage. The irs lust tax is generally charged on a per gallon basis and may apply alongside other fuel taxes. The lust tax rate can change based on federal law so you should rely on current IRS guidance for the quarter you are reporting.

For many filers the hardest part is matching LUST to the correct transaction type. If you blend fuel remove fuel from a terminal or sell at the rack you may have different reporting lines. If you are unsure which code applies you can review the Form 720 instructions or ask support for help with where to enter the gallons.

Information you should gather before filing

Good fuel reporting starts with accurate gallon counts. Pull reports from your terminal statements bills of lading and sales summaries. Separate dyed keros from undyed product since that difference drives the tax treatment. Also note whether the buyer had an exemption and whether you have their registration details on file.

If you claim credits or refunds you will also need support for why the tax was not due. That can include export proof exempt sales documents or evidence of a nontaxable use. Keep these records with your quarterly workpapers so you can answer questions from partners and the IRS later.

How eFileExcise720 helps you file online

eFileExcise720 is built for businesses that want a clean online workflow without downloading software. After you create a free account you enter your business details choose the right fuel category and add your gallon amounts. The system guides you through each screen so you can finish your return with fewer surprises.

For Dyed kerosene tax & LUST tax filing the platform helps you stay organized by keeping prior filings in your dashboard. You can review quarter to quarter changes before you transmit. If you need to correct a past return you can prepare an amendment and keep the updated copy with your records.

Common mistakes with dyed kerosene and LUST

Most errors come from mixing taxable and nontaxable gallons. A second common issue is using the wrong IRS number for the activity line. Another problem is forgetting to include LUST when it applies which can create a balance due later. A quick internal review before submission can prevent notices and rework.

To reduce risk confirm your totals match the reports you keep for inventory and billing. Check buyer registrations for exempt sales. Store copies of your return acknowledgments since they help prove timely filing. If a question comes up you can contact customer support for guidance on the filing screens.

Frequently Asked Questions

What is dyed kerosene tax filing? It is the process of reporting taxable dyed kerosene gallons when the fuel is used or removed in a way that creates federal excise tax.

Who needs to pay IRS dyed kerosene tax? You may owe tax if you remove fuel from a terminal sell to an unregistered buyer or have reason to know the fuel will be used on the highway.

What is the irs lust tax and when does it apply? It is a per gallon charge tied to the storage tank trust fund and it can apply to certain removals or sales of taxable fuel.

Do I need to know the lust tax rate for each quarter? Yes because rates can change and using the current rate helps you avoid underpayments and penalties.

Can I correct a past filing if I made a mistake? Yes you can amend and keep supporting records for the changes so your files match the corrected return.

How long should I keep fuel tax records? Many businesses keep them for several years so they can support gallons exemptions and payments if the IRS asks later.

Conclusion

Accurate fuel reporting protects your business and helps you avoid notices. When you have dyed kerosene transactions plus LUST amounts you need a filing method that is clear and secure. eFileExcise720 gives you an IRS authorized way to complete Dyed kerosene tax & LUST tax filing online then save your confirmation for your records.

Aviation gasoline filing

Aviation gasoline is a special fuel used in piston engine aircraft. If you produce import sell or use it you may have a federal excise reporting duty. The rules can feel technical because rates depend on how the fuel is used and who buys it. This service page gives a simple view so you can file on time.

Aviation gasoline filing is often required for airports fixed base operators fuel distributors and some charter businesses. When you file correctly you protect your margins and show partners that your tax process is reliable. eFileExcise720 lets you e-file online through an IRS authorized system with secure storage and support when you have questions.

Who must report aviation gasoline tax

You may need to report Aviation gasoline tax if you remove the fuel from a terminal sell it at the rack import it or make a taxable use. Most filers are wholesalers terminals and resellers but some end users also file when they are liable for tax on use. If you are unsure start by mapping how the fuel enters your business how it is stored and how it leaves.

Filing is usually quarterly. The IRS due dates are fixed on the last day of the month after each quarter ends. If the date falls on a weekend or holiday you file the next business day. Set reminders early to avoid penalties and interest charges.

The IRS aviation gasoline tax rules also affect businesses that blend fuel. A change in product type can turn an internal transfer into a taxable event. You should also consider ownership and custody because liability can follow the position holder in some cases. Clear contracts and shipping paperwork reduce disputes later.

What counts as avgas and what to track

Most people use the term avgas for aviation gasoline used in small aircraft. For tax purposes you should track gallons by product by buyer type and by use. Keep separate totals for general aviation sales and other sales since general aviation gasoline tax treatment may differ from fuel used in commercial aviation. Your records should show dates gallons location and buyer name.

Good support also includes exemption certificates when they apply plus terminal documents and meter readings. When you reconcile each month it is easier to spot missing tickets and avoid a last minute scramble at quarter end. If you use accounting software export a report that ties back to your invoice numbers.

How the excise tax is calculated

Aviation gasoline excise tax is generally computed by multiplying taxable gallons by the applicable rate for the use. The rate can differ for use in aircraft versus use for other purposes. The safest approach is to confirm the current rate in the official IRS instructions and tables for the quarter. If you manage more than one airport location keep each location report separate so you can trace changes.

If tax is collected in your selling price make sure your system flags the line item so you can report it consistently. If you are the user rather than the seller document the gallons used in taxable flights. This is important when you also sell Jet A or other fuels because the categories are different.

Credits exemptions and refunds

Some aviation fuel sales are nontaxable due to the buyer status or the way the fuel is used. Others may be taxable at sale but later qualify for a credit if conditions are met. When you pursue a refund the paperwork matters because the IRS will ask for proof of gallons and use. In some cases a claim may be filed on the 8849 form so you can request a credit without waiting for the next quarter.

If you are unsure whether a transaction is exempt do not guess. Review contracts for the flight purpose and confirm whether the buyer can provide the needed documentation. If you later learn an invoice was wrong keep a correction log so you can support your updated numbers.

Why businesses choose eFileExcise720

The platform is designed for Aviation gas tax filing with a guided flow that matches the IRS structure. You can enter data validate totals then transmit electronically. After submission you receive an acknowledgement that you can store for your files. Since the system is online you can work from any location with access to your records.

If you file for multiple clients or multiple locations you can keep each return organized in one dashboard. Customer support can answer screen level questions so you can submit with confidence. If you want to review fees you can do so before you transmit so there are no surprises.

Frequently Asked Questions

What is aviation gasoline filing? It is the reporting of taxable aviation gasoline gallons and related excise amounts for a specific quarter.

Is Aviation gasoline tax the same as jet fuel tax? No aviation gasoline applies to piston aircraft fuel while jet fuel has separate rules and rates.

Who pays the IRS aviation gasoline tax? It can be the terminal position holder the seller at the rack or the user depending on the transaction.

What records help with Avgas tax filing? Keep invoices terminal statements meter readings buyer certificates and a monthly gallon reconciliation.

Can general aviation gasoline tax have exemptions? Some sales may qualify based on use and documentation so review the facts before you claim an exemption.

How fast will I get confirmation after I submit online? Electronic submission normally provides an acknowledgement that you can save as proof of filing.

Conclusion

Aviation gasoline filing does not have to be confusing when you build a repeatable process. Track your gallons keep good source documents and confirm the current rates each quarter. When you are ready to submit use eFileExcise720 for a secure online experience that fits busy airport operations.