Trump Directs Conditional Diesel Tax Deferral and Penalty Relief
Published
President Donald J. Trump signed an executive order on October 5 directing temporary federal diesel-tax relief for farmers and truckers. Within five days, Treasury must determine whether statutory relief is authorized and, if so, defer specified diesel excise-tax payments incurred from October 5 through December 31, 2026, without penalties or interest where the law permits. Treasury must also direct the IRS to announce relief from specified penalties for highway use or sale of dyed diesel during that period. Further guidance must set the conditions, covered taxpayers and repayment deadlines; the order does not permanently forgive the taxes.