IRS Large Business and International (LB&I) Division Announces Fuel Compliance Campaign Focused on Excise Tax Credits

Mar 16, 2020

The IRS LB&I Division has announced a new compliance campaign focused on ensuring taxpayer compliance with income tax treatment of the fuel mixture credits under 26 U.S.C. 6426 (the alcohol, biodiesel and alternative fuel mixture credits). The LB&I Division hasn’t provided much information about the campaign to date other than to say that it will concentrate on taxpayers who claimed the credits and did not treat them as a reduction in excise tax liability pursuant to the Federal Circuit decision in Sunoco Inc. v. United States (CA Fed. Cir. 2018) 122 AFTR 2d 2018-5389. Per the campaign announcement, the goal is to bring such taxpayers into compliance with the decision in Sunoco.