In response to disruptions caused by Hurricane Helene, the IRS is waiving penalties for selling or using dyed diesel fuel with a sulfur content of up to 15 parts-per-million on highways in Alabama, Georgia, North Carolina, South Carolina, and certain counties in Florida, Tennessee, and Virginia. This relief is retroactive to Sept. 26, 2024, and will be in effect until Oct. 15, 2024. The penalty relief applies to anyone selling or using dyed diesel fuel for highway use, but the 24. 4 cents per gallon tax must be paid. The IRS will also not penalize failure to make semimonthly tax deposits during the relief period. Dyed diesel fuel is typically tax-exempt, but IRS Publication 510 outlines the proper reporting and payment methods. The IRS will continue to monitor the situation and offer further relief as necessary.