Bulletin No. 2026–21

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HIGHLIGHTS

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Bulletin No. 2026–21

May 18, 2026

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

ADMINISTRATIVE

REG-108706-25, page 1508.

These proposed regulations relate to user fees for the threepart Special Enrollment Examination individuals may take to

be granted the status of enrolled agent under section 10.4(a)

of Circular 230. In accordance with OMB Circular A-25, the

user fee is decreased from $99 to $66 per part and is in

addition to an amount payable directly to a third-party contractor.

T.D. 10045, page 1491.

These interim final regulations relate to user fees for the

three-part Special Enrollment Examination individuals may

take to be granted the status of enrolled agent under section

10.4(a) of Circular 230. In accordance with OMB Circular

A-25, the user fee is decreased from $99 to $66 per part

and is in addition to an amount payable directly to a thirdparty contractor. The text of these interim final regulations

also serves as the text of the proposed regulations set forth

in the notice of proposed rulemaking on this subject.

EMPLOYEE PLANS

Notice 2026-27, page 1502.

This notice specifies updated static mortality tables to be

used for defined benefit pension plans under § 430(h)(3)(A)

of the Code and section 303(h)(3)(A) of ERISA. This notice

also specifies a mortality table for use in determining minimum present value under § 417(e)(3) of the Code and section 205(g)(3) of ERISA for distributions with annuity starting

Finding Lists begin on page ii.

dates that occur during stability periods beginning in the

2027 calendar year.

EXCISE TAX

REG-119294-25, page 1509.

This document contains proposed regulations regarding the

payment provision for previously taxed dyed fuel enacted by

the One, Big, Beautiful Bill Act. Specifically, these proposed

regulations provide guidance as to the taxpayers that may

claim such payments and the procedures these taxpayers

must follow to claim the payments. The text of the temporary

regulations published simultaneously to the proposed regulations also serves as the text of the proposed regulations

set forth in the notice of proposed rulemaking on this subject in the proposed rules section in this issue of the Federal

withdraw previously taxed dyed fuel from a terminal.

T.D. 10047, page 1494.

This document contains temporary regulations regarding the payment provision for previously taxed dyed fuel

enacted by the One, Big, Beautiful Bill Act. Specifically,

these temporary regulations provide guidance as to the taxpayers that may claim such payments and the procedures

these taxpayers must follow to claim the payments. The

text of the temporary regulations also serves as the text of

the proposed regulations set forth in the notice of proposed

rulemaking on this subject in the proposed rules section in

this issue of the Federal Register. These temporary regulations affect taxpayers that withdraw previously taxed dyed

fuel from a terminal.

The IRS Mission

Provide America’s taxpayers top-quality service by helping

them understand and meet their tax responsibilities and

enforce the law with integrity and fairness to all.

Introduction

The Internal Revenue Bulletin is the authoritative instrument

of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service

and for publishing Treasury Decisions, Executive Orders, Tax

Conventions, legislation, court decisions, and other items of

general interest. It is published weekly.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application

of the tax laws, including all rulings that supersede, revoke,

modify, or amend any of those previously published in the

Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of

internal practices and procedures that affect the rights and

duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service

on the application of the law to the pivotal facts stated in

the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices,

identifying details and information of a confidential nature are

deleted to prevent unwarranted invasions of privacy and to

comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not have the

force and effect of Treasury Department Regulations, but they

may be used as precedents. Unpublished rulings will not be

relied on, used, or cited as precedents by Service personnel in

the disposition of other cases. In applying published rulings and

procedures, the effect of subsequent legislation, regulations,

court decisions, rulings, and procedures must be considered,

and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless

the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on provisions

of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A,

Tax Conventions and Other Related Items, and Subpart B,

Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.

To the extent practicable, pertinent cross references to these

subjects are contained in the other Parts and Subparts. Also

included in this part are Bank Secrecy Act Administrative

Rulings. Bank Secrecy Act Administrative Rulings are issued

by the Department of the Treasury’s Office of the Assistant

Secretary (Enforcement).

Part IV.—Items of General Interest.

This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index

for the matters published during the preceding months. These

monthly indexes are cumulated on a semiannual basis, and are

published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

May 18, 2026

Bulletin No. 2026–21

Part I

26 CFR § 300.4: Enrolled agent special enrollment

examination fee

TD 10045

DEPARTMENT OF THE

TREASURY

Internal Revenue Service

26 CFR Part 300

Enrolled Agent Special

Enrollment Examination

User Fee Update

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Interim Final Rule.

SUMMARY: This document contains

interim final regulations relating to the

imposition of user fees for the special

enrollment examination for enrolled

agents (EA SEE). These regulations

reduce the user fee for each part of the

EA SEE from $99 per part to $66 per

part. The Independent Offices Appropriation Act of 1952 authorizes the charging

of user fees. The text of these interim

final regulations also serves as the text

of the proposed regulations set forth in

the notice of proposed rulemaking on

this subject in this issue in the Proposed

Rules section of this edition of the Federal Register.

DATES: Effective date: These regulations

are effective on April 20, 2026.

Applicability date: For date of applicability, see §300.4(d) of these interim final

regulations.

FOR FURTHER INFORMATION

CONTACT: Concerning the interim final

regulations, Sean Dix at (202) 317-6845;

concerning cost methodology, CFO Cost

and User Fees at (202) 317–6400 (not tollfree numbers).

Bulletin No. 2026–21

SUPPLEMENTARY INFORMATION:

Authority

This document contains interim final

amendments to 26 CFR part 300 regarding user fees for the EA SEE.

The Independent Offices Appropriation

Act of 1952 (IOAA), which is codified at

31 U.S.C. 9701, authorizes agencies to

prescribe regulations that establish user

fees for services provided by the agency.

The IOAA provides that regulations implementing user fees are subject to policies

prescribed by the President; these policies

are set forth in the Office of Management

and Budget Circular A-25, 58 FR 38142

(July 15, 1993) (OMB Circular A-25).

Under OMB Circular A-25, Federal

agencies that provide services that confer benefits on identifiable recipients are

to establish user fees that recover the full

cost of providing the service. An agency

that seeks to impose a user fee for government-provided services must calculate

the full cost of providing those services.

In general, a user fee should be set at an

amount that allows the agency to recover

the direct and indirect costs of providing

the service, unless the Office of Management and Budget (OMB) grants an exception. OMB Circular A-25 provides that

agencies are to review user fees biennially

and update them as necessary.

Background

A. Enrolled Agents and the Special

Enrollment Examinations

Section 330 of Title 31 of the United

States Code authorizes the Secretary of

the Treasury or the Secretary’s delegate

(Secretary) to regulate the practice of

representatives before the Department of

the Treasury (Treasury Department) and

to require that an individual seeking to

practice demonstrate the necessary qualifications, competency, and good character and reputation. The rules governing

practice before the IRS are published in

31 CFR, Subtitle A, part 10, and reprinted

as Treasury Department Circular No. 230

(Circular 230).

1491

Section 10.4(a) of Circular 230 authorizes the IRS to grant status as enrolled

agents to individuals who demonstrate

special competence in tax matters by passing a written examination, the EA SEE,

and who have not engaged in any conduct

that would justify suspension or disbarment under Circular 230.

The EA SEE is comprised of three

parts, and an applicant generally must

pass all three parts within three years to

be granted enrolled agent status through

written examination. The EA SEE testing

period generally begins on May 1 each

year and ends the last day of the following February. The EA SEE is not offered

during March and April when it is updated

to reflect recent changes in the relevant

law. More information on the EA SEE,

including content, scoring, and how to

at https://www.irs.gov/tax-professionals/

enrolled-agents. Since 2006, the IRS

has engaged the services of a third-party

contractor to develop and administer the

EA SEE. The IRS Return Preparer Office

(RPO) oversees the development and

administration of the EA SEE. As of January 31, 2026, there were 75,304 enrolled

agents.

B. The EA SEE User Fee

Section 10.4(a) of Circular 230 provides that the IRS will grant enrolled

agent status to an applicant who, among

other things, demonstrates special competence in tax matters by written examination. The EA SEE is the written examination by which applicants can demonstrate

special competence in tax matters, and

an applicant must pass all three parts of

the EA SEE to be granted enrolled agent

status through written examination. The

IRS confers a benefit on individuals who

take the EA SEE beyond those that accrue

to the general public by providing them

with an opportunity to demonstrate special competence in tax matters by passing

a written examination and thereby satisfy

one of the requirements for becoming an

enrolled agent under section 10.4(a) of

Circular 230. Because the EA SEE is a

service that provides a special benefit to

May 18, 2026

test takers, the IRS charges a user fee to

take the examination.

Final regulations (TD 9962) published

in the Federal Register (87 FR 11295-02)

on March 1, 2022, established the current

$99 user fee (per part) of the EA SEE. At

that time the Treasury Department and

the IRS determined that a $99 user fee

per part would recover the full direct and

indirect costs the government would incur

to oversee the EA SEE. The 2023 biennial

review determined the full cost of the EA

SEE was $121 per part. The IRS requested

and obtained a waiver from OMB to postpone this increase to the EA SEE user fee

until the 2025 biennial review. As a result,

the user fee is currently still $99 per part.

The contractor who administers the EA

SEE also charges individuals taking the

EA SEE an additional fee for its services.

For the May 2025 to February 2026 testing period, the contractor’s fee was $168

for each part of the EA SEE. This contract

expired at the end of the February 2026

testing period and a new contract was

obtained, subject to public procurement

procedures. For the May 2026 to February

2027 testing period, the contractor’s fee is

$251 for each part of the EA SEE.

As required by OMB Circular A-25, in

2025 the IRS conducted a biennial review

of the EA SEE user fee and calculated its

costs for overseeing the examination. As

a result of the review, the IRS determined

that its full cost for overseeing the EA

SEE is now $66 per part. Therefore, these

regulations decrease the amount of the

user fee for taking the EA SEE from $99

per part to $66 per part. This amount is

in addition to the amount payable directly

to the third-party contractor for each part.

The IRS does not intend to subsidize any

of the cost of making the EA SEE available to examinees and is not applying for

an exception to the full-cost requirement

in OMB Circular A-25.

The decrease in the user fee is primarily attributable to a change in timekeeping

methodology, which resulted in a smaller

estimated expense for administering the

EA SEE program. Additionally, there has

been an increase in the number of exam

takers, further distributing the fixed costs

related to administering the exam. The

proposed user fee accounts for the time and

personnel necessary to oversee the development and administration of the EA SEE

May 18, 2026

and to ensure that the contractor complies

with the terms of its contract. The IRS’s

oversight costs include costs associated

with: (1) review and approval of materials

used by the contractor in developing the

EA SEE; (2) review of surveys of existing

enrolled agents, which help to determine

the topics to be covered in the EA SEE; (3)

composition of potential EA SEE questions in coordination with the contractor’s

external tax law experts; and (4) analysis

of the answers and raw scores of a testing

population to determine a passing score.

In addition, IRS personnel ensure the

contractor’s compliance with its contract

by reviewing the work of the contractor

using an annual Work Breakdown Structure—a project management tool—and

reviewing and verifying that the contractor

is in compliance with a Quality Assurance

Plan measuring customer satisfaction and

accuracy. The IRS incurs additional costs

associated with enforcing compliance with

the Treasury contractor personnel security

and training policies, Federal Information

Security Modernization Act (FISMA),

Section 508 of the Rehabilitation Act of

1973 and other laws, regulations and policies in the scope of the EA SEE contract;

monitoring the contractor’s help desk; and

the resolution of test-related issues such as

cheating incidents, appeals regarding test

scores, refund requests, and customer service complaints that are not resolved by

the contractor.

The government is authorized to

charge an EA SEE user fee under the

IOAA because, in exchange for the fee,

it provides a service by developing and

administering the EA SEE, which allows

individuals to become enrolled agents and

gain the ability to practice before the IRS

under Circular 230. OMB Circular A-25

states that user fees should be collected in

advance of or simultaneously with the provision of a service. The EA SEE user fee

is collected when potential enrolled agents

apply to take the examination during the

examination season, which begins annually in May.

Explanation of Provisions

The IRS follows generally accepted

accounting principles (GAAP) in calculating the full cost of overseeing the EA

SEE. The Federal Accounting Standards

1492

Advisory Board (FASAB) is the body

that establishes GAAP that apply for Federal reporting entities, such as the IRS.

FASAB publishes the FASAB Handbook of Accounting Standards and Other

Pronouncements, as Amended (Current

Handbook), which is available at https://

files.fasab.gov/pdffiles/2025_FASAB_

Handbook.pdf. The Current Handbook

includes the Statement of Federal Financial Accounting Standards (SFFAS) No. 4:

Managerial Cost Accounting Standards

and Concepts. SFFAS No. 4 establishes

internal costing standards under GAAP to

accurately measure and manage the full

cost of Federal programs, and the methodology below is in accordance with SFFAS

No. 4.

1. Cost Estimation of Direct Labor

The IRS uses various cost-measurement techniques to estimate the cost

attributable to the program. These techniques include using various timekeeping

systems to measure the time required to

accomplish activities, or using information provided by subject-matter experts on

the time devoted to a program. To determine the labor and benefits cost attributable to oversight of the EA SEE, the IRS

estimated the number of full-time employees required to conduct activities related

to the costs of overseeing the EA SEE.

The number of full-time employees is

based on both current employment numbers and future hiring estimates. Other

direct costs associated with overseeing the

EA SEE include travel, training, and supplies. When the indirect cost of a service

or activity is not specifically identified

from the cost accounting system, an overhead rate is added to the identifiable direct

cost to arrive at full cost.

2. Overhead

Overhead is an indirect cost of operating an organization that is not specifically

identifiable with an activity. Overhead

includes costs of resources that are jointly

or commonly consumed by one or more

organizational unit’s activities but are not

specifically identifiable to a single activity. These costs can include:

• General management and administration

Bulletin No. 2026–21

•

Rent, security, utilities and maintenance

• Procurement and contracting

• Financial management and accounting

• Information technology

• Research, analytical and statistical

To calculate the overhead allocable to

a service, the IRS applies an overhead rate

to the identified direct labor and benefits

and other direct costs. The overhead rate

is the ratio of the IRS’s indirect labor, benefits, and non-labor costs of business divisions that do not interact with taxpayers

Expense

Labor and benefits

Travel, training, and supplies

Overhead (62.92 percent)

$5,759,058

÷ 86,694

$66.43

Taking into account the full amount

of these costs, the amount of the EA SEE

user fee per part is $66.

As noted in section B, the contractor

who administers the EA SEE also charges

individuals taking the EA SEE an additional fee for its services. For the May

2026 to February 2027, May 2027 to February 2028, May 2028 to February 2029

testing periods, the contractor’s fee is

$251 for each part of the EA SEE. For the

May 2029 to February 2030 testing period,

the contractor’s fee is $211 for each part

of the EA SEE. The fee charged by the

Bulletin No. 2026–21

3. Calculation of EA SEE User FEE

The IRS used projections for FYs 2026

through 2028 to determine the direct and

indirect costs associated with overseeing

the EA SEE that are includible in the EA

SEE user fee calculation. Direct costs are

incurred by the RPO and include staffing

FY 2026

$1,136,817.91

$16,182.82

$715,286.00

The total cost for FYs 2026 through

2028 are therefore projected to be

$5,759,058. The number of examination

parts provided during FYs 2022, 2023,

and 2024 were 27,313; 29,797; 29,584,

respectively. The total number of examination parts provided during the three

years was 86,694. The IRS used this historical three-year volume to estimate the

number of examination parts it expects

to provide in FYs 2026, 2027, and 2028.

Dividing this total cost by the projected

examinations for FYs 2026 through 2028

results in a cost per examination of $66 as

shown below:

Total Costs

Number of Applications

Cost Per Application

to the labor and benefits costs of business

divisions that interact with taxpayers. The

IRS calculates an overhead rate annually.

For the FY 2025 user fee review, an overhead rate of 62.92 percent was used.

FY 2027

$1,168,080.40

$16,182.82

$734,956.00

contractor is fixed by the current contract

terms and therefore cannot be reduced or

renegotiated at this time. The contract was

subject to public procurement procedures,

and there were no tenders that were more

competitive. The contract will expire on

February 28, 2030. The fee charged by the

contractor may change when the contract

expires. Any future contract will be subject to the public procurement procedures.

Special Analyses

I. Regulatory Planning and Review

These interim final regulations are

not subject to review under section 6(b)

of Executive Order 12866 pursuant to

the Memorandum of Agreement (July 4,

2025) between the Treasury Department

and OMB regarding review of tax regulations.

II. Regulatory Flexibility Act

Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is hereby

certified that these interim final regulations will not have a significant economic

impact on a substantial number of small

entities. The EA SEE user fee primarily

affects individuals who take the EA SEE.

Only individuals, not businesses, can

be enrolled agents. Thus, the economic

1493

and contract-related costs for activities,

processes, and procedures related to overseeing the EA SEE.

The labor and benefits for the work performed related to overseeing the EA SEE

is projected to be $3,505,101 in total over

FYs 2026 through 2028. In addition to

labor and benefits and overhead expenses,

the IRS projects incurring travel, training,

and supplies costs of $16,182.82 in each

of FYs 2026 through 2028. The total labor

and benefits, travel, training, and supplies,

and overhead expenses projected are

shown below:

FY 2028

$1,200,202.61

$16,182.82

$755,167.00

Total

$3,505,101

$48,548

$2,205,409

impact of these regulations on any small

entity would be a result of an individual

enrolled agent owning a small entity or a

small entity employing an enrolled agent

who must take the EA SEE. The Treasury

Department and the IRS estimate that an

average of 28,898 EA SEE examination

parts will be taken by individuals annually. Therefore, a substantial number of

small entities is not likely to be affected.

Additionally, the economic impact on

those entities is not significant. These regulations will establish a $66 fee per examination part (plus $251 payable directly to

the third-party contractor), and will not

have a significant economic impact on a

small entity. Accordingly, the rule is not

expected to have a significant economic

impact on a substantial number of small

entities, and a regulatory flexibility analysis is not required.

III. Unfunded Mandates Reform Act

Section 202 of the Unfunded Mandates

Reform Act of 1995 (UMRA) requires

that agencies assess anticipated costs and

benefits and take certain other actions

before issuing a final rule that includes

any Federal mandate that may result in

expenditures in any one year by a State,

local, or Tribal government, in the aggregate, or by the private sector, of $100 million in 1995 dollars, updated annually for

May 18, 2026

inflation. This rule does not include any

Federal mandate that may result in expenditures by State, local, or Tribal governments, or by the private sector in excess of

that threshold.

IV. Executive Order 13132: Federalism

Executive Order 13132 (Federalism)

prohibits an agency from publishing any

rule that has federalism implications if

the rule either imposes substantial, direct

compliance costs on State and local governments, and is not required by statute,

or preempts State law, unless the agency

meets the consultation and funding

requirements of section 6 of the Executive

order. These interim final regulations do

not have federalism implications and do

not impose substantial direct compliance

costs on State and local governments or

preempt State law within the meaning of

the Executive order.

V. Good Cause

The annual EA SEE testing period

for May 2026-February 2027 will begin

shortly. It would be unnecessary and contrary to the public interest for the IRS to

continue to charge the current, higher user

fee pending public comment after the IRS

has determined pursuant to the biennial

review conducted under OMB Circular

A-25 that the EA SEE user fee should

be reduced going forward. To enable the

reduced fee amount to be in effect for the

upcoming EA SEE test period beginning

in May 2026, the Treasury Department

and the IRS find that there is good cause

to dispense with (1) notice and public

comment pursuant to 5 U.S.C. 553(b) and

Department and the IRS will consider

public comments submitted in response

to the cross-referenced notice of proposed

rulemaking published in the Proposed

Rules section of this issue of the Federal

after considering those comments.

VI. Submission to Small Business

Administration

Pursuant to section 7805(f) of the

Code, this Treasury decision has been

May 18, 2026

submitted to the Chief Counsel for the

Office of Advocacy of the Small Business

Administration for comment on its impact

on small business.

VII. Congressional Review Act

Pursuant to the Congressional Review

Act (5 U.S.C. 801 et seq.), the Office of

Information and Regulatory Affairs designated this rule as not a major rule, as

defined by 5 U.S.C. 804(2).

Drafting Information

The principal author of these regulations is Sean Dix, Office of the Associate

Chief Counsel (Procedure and Administration). Other personnel from the Treasury Department and the IRS participated

in the development of the regulations.

List of Subjects in 26 CFR Part 300

Estate taxes, Excise taxes, Fees, Gift

taxes, Income taxes, Reporting and

recordkeeping requirements.

(d) Applicability date. This section

applies to registrations for the enrolled

agent special enrollment examination that

occur on or after April 20, 2026.

Frank J. Bisignano,

Chief Executive Officer.

Approved: March 30, 2026.

Kenneth J. Kies,

Assistant Secretary of the Treasury

(Tax Policy).

(Filed by the Office of the Federal Register April 17,

2026, 8:45 a.m., and published in the issue of the

Federal Register for April 20, 2026, 91 FR 20899)

26 CFR 48.6435-1T: Dyed Fuel Refund

TD 10047

DEPARTMENT OF THE

TREASURY

Internal Revenue Service

26 CFR Part 48

Adoption of Amendments to the

Regulations

Section 6435 Payments;

Refunds for Previously

Taxed Dyed Fuel

Accordingly, the Treasury Department

and the IRS amend 26 CFR part 300 as

follows:

AGENCY: Internal Revenue Service

(IRS), Treasury.

PART 300—USER FEES

ACTION: Temporary regulations.

Paragraph 1. The authority citation

for part 300 continues to read in part as

follows:

Authority: 31 U.S.C. 9701.

Par. 2. Section 300.4 is amended by

revising paragraphs (b) and (d) to read as

follows:

SUMMARY: This document contains

temporary regulations regarding the statutory provision providing for payments

to taxpayers with respect to certain previously taxed dyed fuel. Specifically, these

temporary regulations provide guidance

delineating which taxpayers may claim

such payments and the procedures these

taxpayers must follow to claim the payments. The text of the temporary regulations also serves as the text of the proposed regulations set forth in the notice of

proposed rulemaking on this subject in the

proposed rules section in this issue of the

Federal Register. These temporary regulations affect taxpayers that withdraw previously taxed dyed fuel from a terminal.

§300.4 Enrolled agent special

enrollment examination fee.

*****

(b) Fee. The fee for taking the enrolled

agent special enrollment examination is

$66 per part, which is the cost to the government for overseeing the development

and administration of the examination and

is in addition to the fees charged by the

administrator of the examination.

*****

1494

DATES: Effective date: These temporary regulations are effective on May 1,

Bulletin No. 2026–21

2026. The temporary regulations under

§ 48.6435-1T expire on the earlier of May

1, 2029 or the date of any statutory change

that would appropriate funds for the payment of claims under section 6435 to persons other than the taxpayer that paid the

section 4081 tax to which the claim relates.

Applicability date: These temporary regulations apply to removals of eligible dyed fuel

occurring on or after December 31, 2025.

FOR FURTHER INFORMATION

CONTACT: Concerning these temporary

regulations, Danielle Mayfield or Andrew

Clark of the Office of Associate Chief

Counsel (Energy, Credits, and Excise Tax)

at (202) 317-6855 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Authority

This document contains amendments to

the Manufacturers and Retailers Excise Tax

Regulations (26 CFR part 48) under section

6435 of the Internal Revenue Code (Code)

relating to the determination of payments

regarding dyed diesel fuel or dyed kerosene with respect to which excise tax under

section 4081 of the Code was paid (regulations). The regulations are issued under

the authority granted by sections 6435(a),

6001, and 7805(a) of the Code.

Section 6435(a) requires that a person

claiming a payment under section 6435

establish to the satisfaction of the Secretary of the Treasury or the Secretary’s delegate (Secretary) that such person meets

the requirements under section 6435(b).

Section 6001 authorizes the Secretary

to prescribe regulations related to recordkeeping, statements, and returns.

Section 7805(a) authorizes the Secretary to prescribe all needful rules and regulations for the enforcement of the Code,

including all rules and regulations as may

be necessary by reason of any alteration of

law in relation to internal revenue.

Background

I. Overview

This document amends the Manufacturers and Retailers Excise Tax Regulations (26 CFR part 48) to add temporary

regulations providing rules relating to

Bulletin No. 2026–21

claims for payment under section 6435

regarding previously taxed dyed fuel. For

the reasons discussed in Part IV of this

Background, the temporary regulations

limit the claimants under section 6435 to

taxpayers that paid to the IRS the prior

fuel excise tax under section 4081 with

respect to the dyed fuel.

In accordance with section 7805(e)

(1), concurrent with the publication of

this Treasury Decision, the Department of

the Treasury (Treasury Department) and

the IRS are publishing in the Proposed

Rules section of this issue of the Federal

(REG-119294-25) containing proposed

regulations under section 6435 at proposed § 48.6435-1, the text of which is

identical to the text of § 48.6435-1T of the

temporary regulations.

Interested persons are directed to

the ADDRESSES and Comments and

Requests for a Public Hearing sections

of the preamble to REG-119294-25 for

information on submitting public comments or requesting a public hearing on

the proposed regulations.

II. Federal Fuel Excise Taxes

Section 4081(a) imposes an excise tax

(section 4081 tax) on certain removals,

entries, and sales of taxable fuel, including

diesel fuel and kerosene. Section 4081(a)

(2) prescribes the tax rate for the section 4081 tax. Section 4081(a)(2)(A)(iii)

prescribes a general tax rate of 24.3 cents

per gallon for diesel fuel or kerosene. In

addition to that tax rate, section 4081(a)

(2)(B) prescribes a tax rate of 0.1 cent per

gallon, referred to as the Leaking Underground Storage Tank Trust Fund financing

rate (LUST tax).

Under section 4082(a), diesel fuel

and kerosene are exempt from the section 4081 tax if the fuel: (i) is destined

for a nontaxable use (as defined in section 4082(b)); (ii) is indelibly dyed by

mechanical injection in accordance with

Treasury regulations; and (iii) meets

any marking requirements prescribed in

Treasury regulations. Section 4082(f)(1)

provides that the exemption in section

4082(a) generally does not apply to the

LUST tax.

Section 48.4082-1 and Notice 200580, 2005-2 C.B. 953, provide rules and

1495

conditions for the exemption provided by

section 4082(a) to apply to the removal,

entry, or sale of any diesel fuel or kerosene.

III. Section 6435

Section 70525(a) of Public Law 11921, 139 Stat. 282 (July 4, 2025), commonly known as the One, Big, Beautiful

Bill Act (OBBBA), added section 6435

to allow recovery of the amount of the

section 4081 tax paid with respect to diesel fuel or kerosene that later qualifies as

exempt from section 4081 tax under section 4082(a).

Section 6435 allows a person that

establishes to the satisfaction of the Secretary that the person removed eligible

indelibly dyed diesel fuel or kerosene (eligible dyed fuel) from a terminal to claim

a payment (without interest) equal to the

amount of the section 4081 tax previously

paid with respect to such dyed fuel. Eligible dyed fuel is diesel fuel or kerosene:

(i) with respect to which tax under section

4081 was previously paid (and not credited or refunded); and (ii) that is exempt

from the section 4081 tax under section

4082(a). See section 6435(a) and (b). Section 6435 is effective for eligible dyed fuel

removed on or after December 31, 2025.

See section 70525(c) of the OBBBA.

Section 6430 provides that no refunds,

credits, or payments shall be made under

subchapter B of chapter 65 for any LUST

tax imposed except with respect to fuels as

otherwise provided by section 6430. Section 70525(b)(2) of the OBBBA amended

section 6430 to except from the general

rule fuels which are removed as eligible

dyed fuel under section 6435. Therefore,

payments under section 6435 may include

the LUST tax.

IV. Announcement 2026-1

Announcement 2026-1, 2026-4 I.R.B

402 (released December 22, 2025),

requested that taxpayers hold any section

6435 claims until the Treasury Department

and the IRS issue guidance related to section 6435 and the process for requesting

a refund. The announcement explained

that, although section 6435 is functionally

similar to other rules providing for payments to taxpayers with respect to previ-

May 18, 2026

ously paid excise tax, section 6435 lacks

a directive to treat the payments as if they

constitute refunds of overpayments of the

underlying tax. Compare section 6435

with sections 6420(e)(1), 6421(g)(1),

and 6427(j)(1) of the Code. Further,

the OBBBA does not provide a specific

appropriation for section 6435 payments.

The only appropriation for paying section 6435 claims is the general refund

appropriation, which is available only to

the extent of an overpayment under section 6402, which requires the claimant to

be the same person that paid the section

4081 tax to which the claim relates. See

31 U.S.C. 1324(b)(1) (disbursement may

be made from the refund appropriation

for “refunds to the limit of liability of an

individual tax account”); section 6402

(permitting a refund of an overpayment

“on the part of the person who made the

overpayment”). Thus, absent a statutory

change, the Treasury Department and the

IRS lack the authority to pay section 6435

claims to anyone other than the person

that paid the section 4081 tax with respect

to the eligible dyed fuel to which the claim

relates.

These temporary regulations, and the

cross-referenced proposed regulations,

are the forthcoming guidance referenced

in Announcement 2026-1.

Explanation of Provisions

I. Overview

These

temporary

regulations,

§ 48.6435-1T, provide rules to determine

eligibility for a refund under section 6435

with respect to eligible dyed fuel (section

6435 refund) and rules for filing a claim

for a section 6435 refund (section 6435

claim).

II. General Rules

A. Overview

Section 48.6435-1T(b) provides definitions of terms used for purposes of

section 6435 and § 48.6435-1T. Section

48.6435-1T(c) provides that a person that

satisfies the requirements of paragraphs

(d) through (g) of that section with respect

to eligible dyed fuel may receive a payment under section 6435 that is a refund

May 18, 2026

of an overpayment of the section 4081 tax

previously paid. Section 48.6435-1T(d)

provides conditions that must be satisfied

for a section 6435 refund to be allowed to

the person that paid the section 4081 tax

and incorporates and clarifies the rules in

section 6435(b). Section 48.6435-1T(e)

provides reporting requirements taxpayers

must satisfy to make a section 6435 claim.

Section 48.6435-1T(f) provides rules

regarding the form and content of a section 6435 claim. Section 48.6435-1T(g)

provides the claim period for section 6435

refunds.

B. Definitions

The terms defined in § 48.6435-1T(b)

include “approved terminal,” “eligible

dyed fuel,” and “section 6435 refund.” To

maintain consistency with existing fuel

excise tax regulations, the term “approved

terminal” has the same meaning as in

§ 48.4081-1(b).

C. Refund to Taxpayer

Section 48.6435-1T(c) provides that

the payment under section 6435 of the

amount equal to the section 4081 tax paid

to the IRS is the refund (without interest)

of an overpayment to the taxpayer that

paid the section 4081 tax with respect to

the eligible dyed fuel. Section 48.64351T(c) incorporates and clarifies the rules

in section 6435(a). Section 48.64351T(d) makes clear that only a taxpayer

that removes the eligible dyed fuel from a

terminal and also previously paid the section 4081 tax with respect to that fuel can

receive a refund described in § 48.64351T(c).

As explained below, to the extent the

claimant previously paid the section 4081

tax, the payment described in section

6435 represents a refund of an overpayment. Under section 6402(a), “[i]n the

case of any overpayment,” the IRS “may

credit the amount of such overpayment . . .

against any liability in respect of an Internal Revenue tax on the part of the person

who made the overpayment and shall . . .

refund any balance to such person.” For

a taxpayer to receive a credit or refund,

there must first be an overpayment. An

overpayment is “any payment in excess

of that which is properly due.” Jones v.

1496

Liberty Glass Co., 332 U.S. 524, 531

(1947). An overpayment is determined by

comparing the amount by which a taxpayer’s payments exceed the amount of tax

properly due. For example, a taxpayer that

pays $5,000 towards a taxable period or

event but owes $4,000 in tax liability for

such taxable period or event has an overpayment of $1,000. Section 6402(a) also

limits to whom a credit or refund can be

made by providing that only “the person

who made the overpayment,” that is, the

taxpayer subject to the tax and to whom

the payments are attributed, is entitled to

receive a credit or refund of an overpayment. Roman v. United States, 61 F.4th

1366, 1370 (Fed. Cir. 2023); JetPay Corp.

v. United States, 26 F.4th 239, 242 (5th

Cir. 2022); Jewell v. United States, 548

F.3d 1168, 1172 (8th Cir. 2008); DeNiro

v. United States, 561 F.2d 653 (6th Cir.

1977).

Section

4081(a)(1)(A)

generally

imposes an excise tax on the removal of

taxable fuel (defined in section 4083(a) to

include diesel fuel and kerosene) from any

refinery or terminal; the entry of taxable

fuel into the United States for consumption, use, or warehousing; and the sale of

taxable fuel to an unregistered person. In

certain circumstances, diesel fuel or kerosene with respect to which tax has previously been imposed may be transported

outside the bulk transfer/terminal system

and later entered into a terminal that is

part of the system. That fuel would also

generally be subject to a second instance

of the section 4081 tax upon removal from

such terminal. In other words, the section

4081 tax may be imposed with respect to

fuel more than once. Section 4081(e) and

§ 48.4081-7 provide a refund mechanism

that allows the person that pays the second instance of section 4081 tax to claim

a refund in the amount of the second tax

paid (without interest). However, if the

fuel removed from the terminal is destined

for a nontaxable use and dyed pursuant to

the provisions of section 4082(a), then the

second removal is exempt from section

4081 tax. Section 4081(e) does not apply

to such a removal because there is no second instance of section 4081 tax.

Prior to the enactment of section 6435,

there was no mechanism allowing a taxpayer to claim a refund when dyed fuel

removed from a terminal was previously

Bulletin No. 2026–21

taxed under section 4081. Section 6435(a)

creates such a mechanism by providing

for a payment in the amount of the section

4081 tax previously paid (and not credited

or refunded) with respect to eligible dyed

fuel. However, as explained in Part IV

of the Background section, section 6435

does not include language deeming such a

payment as a refund of an overpayment of

tax and lacks a specific appropriation for

section 6435 payments.

The Treasury Department and the IRS

view the general appropriation for refunds

of Internal Revenue collections in 31

U.S.C. 1324(b) as appropriating funding

for section 6435 payments to the extent

that the taxpayer claiming the section 6435

payment is the same taxpayer that paid the

section 4081 tax with respect to the diesel

fuel or kerosene. Accordingly, these regulations provide that if the same taxpayer

that paid the section 4081 tax with respect

to the diesel fuel or kerosene subsequently

removes that fuel from an approved terminal as eligible dyed fuel, such taxpayer

can seek a refund under section 6435 of

the section 4081 tax it paid. Construing

the payment described in section 6435(a)

as a refund of an overpayment on the part

of the same taxpayer that paid the section 4081 tax to the IRS with respect to

the diesel fuel or kerosene is consistent

with the Supreme Court’s explanation

of how to determine an overpayment in

Jones v. Liberty Glass. Accordingly, under

section 6435 when a person removes from

a terminal eligible dyed fuel with respect

to which the person had previously paid

section 4081 tax, that person has made an

overpayment because, as a result of section 6435, the person has paid more section 4081 tax than is due.

These regulations are also consistent

with section 6402(a)’s requirement that

only “the person who made the overpayment” is entitled to receive a credit

or refund of that overpayment. Reading

section 6435 in conjunction with section 6402(a), section 6435(a) requires

that the payment be made to the same taxpayer that paid the section 4081 tax with

respect to diesel fuel or kerosene and later

removes the fuel as dyed for nontaxable

use. Thus, under these regulations, the

taxpayer entitled to payment under section 6435 is “the person who made the

overpayment.”

Bulletin No. 2026–21

D. Reporting Requirements

The rules in § 48.6435-1T(e) closely

follow existing reporting requirements

under § 48.4081-7(c) applicable to section

4081(e) claims with which taxpayers are

already familiar. Under § 48.6435-1T(e)

(1), a taxpayer must file a section 6435 taxpayer’s report with its section 6435 refund

claim. Section 48.6435-1T(e)(2) provides

a model report. This model report differs

in a few respects from the first taxpayer’s

report used for section 4081(e) claims as

provided in § 48.4081-7(c)(2). The model

report requires a taxpayer to declare that,

except for the section 6435 claim to which

the report relates, the taxpayer has not

received, and will not claim, a credit with

respect to, or a refund of, the tax with

respect to the diesel fuel or kerosene to

which the report relates. The model report

also differs by identifying and revoking

any prior first taxpayer report filed pursuant to § 48.4081-7(c) by the taxpayer with

respect to the fuel that is the subject of the

section 6435 taxpayer’s report.

This approach is expected to reduce

the burden on taxpayers. It also avoids

duplicate reporting for many taxpayers that also file a first taxpayer’s report

with their Form 720, Quarterly Federal

Excise Tax Return, in accordance with

§ 48.4081-7(c). A taxpayer may not know

after paying section 4081 tax with respect

to a particular volume of fuel whether it

will sell the fuel as undyed fuel such that

there may be a second tax imposed under

section 4081 (which may result in a section 4081(e) refund), or whether it will

later remove the fuel as eligible dyed

fuel (which may result in a section 6435

refund). As such, a section 6435 taxpayer’s report will only be filed once, when a

taxpayer makes a section 6435 claim, and

need not be filed with the taxpayer’s Form

720 to which the section 4081 tax relates.

Such a report will also allow a taxpayer to

automatically revoke any first taxpayer’s

report with respect to the same fuel.

E. Form and Content of Claim

Section 48.6435-1T(f)(1) provides

that a taxpayer must submit a section

6435 claim on Form 8849, Claim for

Refund of Excise Taxes. In addition to the

section 6435 taxpayer’s report, the Form

1497

8849 must include a completed Schedule 5 (Form 8849), Section 4081(e) and

6435 Claims. A taxpayer cannot make

a section 6435 claim on the same Form

8849 as any other claims. For example,

if a taxpayer also wishes to make section

4081(e) claims, the taxpayer must submit a separate Form 8849, and include

a separate Schedule 5 (Form 8849),

for those section 4081(e) claims. Section 48.6435-1T(f)(2) provides the information that must be included in a section

6435 claim.

F. Time for Filing Claim

Section 48.6435-1T(g) provides that

the time for filing a section 6435 claim

begins after the removal of the eligible

dyed fuel and lasts until the end of the

period prescribed by section 6511 of the

Code for filing a refund claim for the section 4081 tax paid with respect to the fuel.

Applicability Date

The temporary regulations under

§ 48.6435-1T apply to removals of eligible dyed fuel occurring on or after December 31, 2025. See section 7805(b)(2). The

temporary regulations under § 48.64351T expire on the earlier of May 1, 2029,

or the date of any statutory change that

would appropriate funds for the payment

of claims under section 6435 to persons

other than the taxpayer that paid the section 4081 tax to which the claim relates.

Special Analyses

I. Good Cause

Section 553(b)(B) of the Administrative Procedure Act (5 U.S.C. Subchapter

II) provides that advance notice and the

opportunity for public comment are not

required with respect to a rulemaking

when an “agency for good cause finds

(and incorporates the finding and a brief

statement of reasons therefor in the rules

issued) that notice and public procedure

thereon are impracticable, unnecessary, or

contrary to the public interest.”

The Treasury Department and the IRS

find that good cause exists for making

these temporary regulations immediately effective without notice and com-

May 18, 2026

ment because failure to do so would be

impracticable and contrary to the public

interest.

Section 6435 became effective on

December 31, 2025, less than six months

after it was enacted as part of the OBBBA

on July 4, 2025. In addition to the implementation of this new dyed fuel payment

provision, the OBBBA contained sweeping changes to the tax code, with extensive

modifications and additions to provisions

administered by the IRS, necessitating

guidance-drafting and administrative

responsibilities across the organization.

Given the legal complexity and administration challenges presented by section

6435, discussed below, it is critical to provide taxpayers and the IRS with certainty

as soon as possible regarding the rules

governing eligibility for, and the procedures for claiming, a payment under section 6435.

Section 6435 is a complex provision that presented interpretation challenges. Specifically, the OBBBA does

not direct that these payments be treated

as refunds of overpayments of tax, nor

does it provide a specific appropriation

for payments. Accordingly, the Treasury

Department and the IRS were required

to determine if and how section 6435

could be implemented consistent with

both Congressional intent and the lack

of a specific appropriation to make the

payments contemplated by section 6435

and then develop appropriate procedures

that taxpayers can easily follow to claim

section 6435 payments.

As noted, section 6435 became effective on December 31, 2025, and taxpayers

are seeking certainty as to whether and

how to file claims. It is important to provide that certainty by the issuance of these

temporary regulations so that taxpayers

understand the procedures they need to

follow in order for the IRS to be able to

process claims under section 6435 and

the limitations on the IRS’s ability to pay

those claims. In addition, given that these

regulations limit the scope of eligible

claimants under section 6435 to taxpayers

that paid the underlying section 4081 tax,

taxpayers also need certainty as soon as

possible to enable them to structure their

business arrangements in a manner that

results in eligibility for the section 6435

payment.

May 18, 2026

The guidance in these regulations also

preserves government resources by discouraging taxpayers from filing claims

that the IRS lacks the legal authority to

pay. Issuing this guidance quickly also

protects the Federal fisc as a delay in

guidance would increase the likelihood of

unappropriated funds being disbursed.

Following notice-and-comment procedures would delay when taxpayers

receive the certainty provided by the

rules and procedures in these temporary

regulations. Issuing immediately effective regulations avoids wasting resources

and ensures eligible taxpayers can claim

section 6435 refunds as enacted by the

OBBBA to the extent appropriations are

authorized by 31 U.S.C. 1324(b). Having

immediately effective regulations also

provides the IRS certainty as to appropriations boundaries regarding section 6435

refunds and enables the IRS to process

claims without waiting for notice-andcomment regulations or risking uneven

implementation.

Because of the limited time to provide

the requisite certainty to taxpayers and the

IRS without unduly delaying the ability

of eligible taxpayers to file claims that the

IRS is authorized to pay, it was impracticable to conduct notice‑and‑comment

procedures. The limited time available to

prepare these regulations is an important

factor in finding good cause. See Petry v.

Block, 737 F.2d 1193 (D.C. Cir. 1984).

Accordingly, it is in the public interest to

both provide these temporary regulations

without following notice-and-comment

procedures and to make them effective

immediately.

Comments are being solicited in the

cross-referenced notice of proposed

rulemaking that is in the proposed rules

section in this issue of the Federal Register. Any comments will be considered

before final regulations are issued.

II. Regulatory Planning and Review

These temporary regulations are not

subject to review under section 6(b) of

Executive Order 12866 pursuant to the

Memorandum of Agreement (July 4,

2025) between the Treasury Department

and the Office of Management and Budget (OMB) regarding review of tax regulations.

1498

III. Paperwork Reduction Act

The Paperwork Reduction Act of 1995

(44 U.S.C. 3501-3520) (PRA) generally

requires that a Federal agency obtain the

approval of the Office of Management and

Budget (OMB) before collecting information from the public, whether such

collection of information is mandatory,

voluntary, or required to obtain or retain

a benefit. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control number

assigned by the OMB.

These temporary regulations set forth

intended collections of information to be

provided to the IRS with Form 8849 and

Schedule 5 (Form 8849).

The collections of information associated with these temporary regulations

include reporting and recordkeeping

requirements that are necessary to ensure

that a taxpayer qualifies for a section 6435

refund. The collections will be used by the

IRS for tax compliance purposes and by

taxpayers to establish eligibility for a section 6435 refund.

The reporting requirements include

reporting related to claiming a section 6435

refund, including the execution and filing

of reports as detailed in § 48.6435-1T(e).

The recordkeeping requirements include

that a taxpayer keep records to establish its

eligibility for and the amount of a section

6435 claim. The burden for these requirements is included with Form 8849 and its

instructions and with Schedule 5 (Form

8849) and its instructions. These forms

and form instructions are already approved

under OMB control number 1545-1420.

Books or records relating to a collection of information must be retained as

long as their contents may become material in the administration of any Internal

Revenue law. Generally, tax returns and

tax return information are confidential, as

required by 26 U.S.C. 6103.

IV. Regulatory Flexibility Act

For applicability of the Regulatory Flexibility Act, please refer to the

cross-referenced notice of proposed

rulemaking (REG-119294-25) published

elsewhere in this issue of the Federal

Bulletin No. 2026–21

Pursuant to section 7805(f), these temporary regulations will be submitted to the

Chief Counsel of Advocacy of the Small

Business Administration for comment on

their impact on small business.

ing Office, Washington, DC 20402, or by

visiting the IRS website at https://www.

irs.gov.

V. Unfunded Mandates Reform Act

The principal authors of these temporary regulations are Danielle Mayfield

and Andrew Clark of the Office of Associate Chief Counsel (Energy, Credits, and

Excise Tax). However, other personnel

from the Treasury Department and the

IRS participated in their development.

Section 202 of the Unfunded Mandates

Reform Act of 1995 requires that agencies

assess anticipated costs and benefits and

take certain other actions before issuing a

final rule that includes any Federal mandate that may result in expenditures in

any one year by a State, local, or Tribal

government, in the aggregate, or by the

private sector, of $100 million (updated

annually for inflation). These temporary

regulations do not include any Federal

mandate that may result in expenditures

by State, local, or Tribal governments,

or by the private sector, in excess of that

threshold.

VI. Executive Order 13132: Federalism

Drafting Information

List of Subjects in 26 CFR Part 48

Excise taxes, Reporting and recordkeeping requirements.

Adoption of Amendments to the

Regulations

Accordingly, the Treasury Department

and the IRS amend 26 CFR part 48 as follows:

Executive Order 13132 (Federalism)

prohibits an agency from publishing any

rule that has federalism implications if

the rule either imposes substantial direct

compliance costs on State and local governments and is not required by statute,

or preempts State law, unless the agency

meets the consultation and funding

requirements of section 6 of the Executive order. These temporary regulations do

not have federalism implications and do

not impose substantial direct compliance

costs on State and local governments or

preempt State law within the meaning of

the Executive order.

PART 48—MANUFACTURERS AND

RETAILERS EXCISE TAXES

VII. Congressional Review Act

(a) Overview. This section provides

guidance related to section 6435 of the

Internal Revenue Code (Code), including definitions, rules, conditions, filing

instructions, and reporting requirements

governing claims. Paragraph (h) of this

section provides an example illustrating

the provisions of this section.

(b) Definitions. For purposes of section

6435 and this § 48.6435-1T:

(1) Approved terminal. The term

approved terminal has the same meaning

as provided in § 48.4081-1(b).

(2) Eligible dyed fuel. The term eligible dyed fuel means diesel fuel or ker-

Pursuant to the Congressional Review

Act (5 U.S.C. 801 et seq.), the Office of

Information and Regulatory Affairs designated this rule as a non-major rule as

defined by 5 U.S.C. 804(2).

Statement of Availability of IRS

Documents

Guidance cited in this preamble is published in the Internal Revenue Bulletin

and is available from the Superintendent

of Documents, U.S. Government Publish-

Bulletin No. 2026–21

Paragraph 1. The authority citation

for part 48 is amended by adding an entry

for § 48.6435-1T in numerical order to

read in part as follows:

Authority: 26 U.S.C. 7805 * * *

*****

Section 48.6435-1T also issued under

26 U.S.C. 6435(a) and 6001.

Par. 2. Section 48.6435-1T is added to

read as follows:

§ 48.6435-1T Dyed fuel refund.

1499

osene with respect to which a tax under

section 4081 of the Code (section 4081

tax) was previously paid (and not credited

or refunded), and that is exempt from taxation under section 4082(a) of the Code.

(3) Section 6435 refund. The term section 6435 refund means a payment made

under section 6435(a) to the person that

paid the section 4081 tax to the Internal

Revenue Service (IRS) with respect to

eligible dyed fuel. Under paragraph (c) of

this section, such a payment is a refund of

an overpayment (without interest) under

section 6402 to the taxpayer equal to the

amount of section 4081 tax previously

paid by the taxpayer with respect to such

fuel.

satisfies the requirements of paragraphs

(d) through (g) of this section with respect

to eligible dyed fuel, then pursuant to

section 6435, an amount equal to the section 4081 tax paid to the IRS (including

any tax paid at the Leaking Underground

Storage Tank Trust Fund financing rate

(LUST tax) under section 4081(a)(2)(B))

with respect to such fuel is allowed as a

refund (without interest) to such person as

an overpayment of such tax under section

6402.

(d) Conditions to allowance of refund.

A claim for refund is allowed under section 6435 and this § 48.6435-1T only if

each of the following conditions is satisfied:

(1) Section 4081 tax was imposed with

respect to diesel fuel or kerosene;

(2) The taxpayer was liable for and

paid such tax to the IRS and the tax has

not been credited or refunded;

(3) The taxpayer removes from an

approved terminal the diesel fuel or kerosene, which has been dyed as provided in

section 4082(a); and

(4) The taxpayer meets the reporting

requirements of paragraph (e) of this section.

(e) Reporting requirements--(1) In

general. A taxpayer must file a report with

respect to the tax described in paragraph

(d)(2) of this section that is in substantially the same form as the model report

provided in paragraph (e)(2) of this section (or such other model report as the

Commissioner of Internal Revenue (Commissioner) may prescribe) and contains all

information necessary to complete such

May 18, 2026

report (section 6435 taxpayer’s report).

A section 6435 taxpayer’s report must be

filed with the section 6435 claim to which

it relates (or at such other time, or in such

other manner, as prescribed by the Commissioner).

(2) Model section 6435 taxpayer’s

report.

Section 6435 Taxpayer’s Report

__________________________________

Taxpayer’s name, address, and employer identification number

__________________________________

Date and location of taxable event

__________________________________

Volume and type of taxable fuel

Check type of taxable event:

____ Removal at the terminal rack

____ Entry into United States

____ Other: ____________________________________

Description

__________________________________

Amount of federal excise tax paid on the taxable event

[ ] Check the box if Taxpayer previously filed a First Taxpayer’s Report under § 48.4081-7 relating to the same fuel described in

this statement.

__________________________________

Year and quarter First Taxpayer’s Report filed

Taxpayer hereby revokes such report with respect to the fuel described in this statement.

Except for the section 6435 claim to which this report relates, the undersigned taxpayer (the “Taxpayer”) has not received, and

will not claim, a credit with respect to, or a refund of, the tax to which this form relates.

Under penalties of perjury, Taxpayer declares that Taxpayer has examined this statement, including any accompanying schedules

and statements, and to the best of Taxpayer's knowledge and belief, such statements are true, correct, and complete.

__________________________________

Signature and date signed

__________________________________

Printed or typed name of person signing this report

__________________________________

Title

May 18, 2026

1500

Bulletin No. 2026–21

(f) Filing instructions for a section

6435 claim--(1) Form of claim. A taxpayer must submit a section 6435 claim

on Form 8849, Claim for Refund of Excise

Taxes, that includes the section 6435 taxpayer’s report and a completed Schedule

5 (Form 8849), Section 4081(e) and 6435

Claims, or any successor form(s). Both

the Form 8849 and the included Schedule

5 (Form 8849) must include all information and documentation required by the

forms, form instructions, and this section. A taxpayer cannot make a section

6435 claim on the same Form 8849 as

any other claims besides another section

6435 claim. Therefore, no other schedules

or types of claims may be included with

the Form 8849 on which a section 6435

claim is made. For example, if a taxpayer

making a section 6435 claim also wishes

to make section 4081(e) claims, the taxpayer must submit a separate Form 8849,

and include a separate Schedule 5 (Form

8849), for those section 4081(e) claims.

(2) Content of claim. A section 6435

claim must contain the following information with respect to the eligible dyed fuel

covered by the claim:

(i) Volume and type of fuel removed.

(ii) Date of removal of fuel.

(iii) Amount of section 4081 tax previously paid with respect to such fuel.

(iv) The section 6435 taxpayer’s report

that relates to such fuel.

(g) Time for filing claim. A section

6435 claim may be filed any time after

the removal of the eligible dyed fuel and

before the end of the period prescribed by

section 6511 of the Code for the filing of

Bulletin No. 2026–21

a claim for a refund of an overpayment of

the section 4081 tax paid with respect to

such fuel.

(h) Example. The following example illustrates the provisions of this section: On June 25, 2026, X, a taxable fuel

registrant, removes 10,000 gallons of

undyed diesel fuel from an approved terminal at the rack. The diesel fuel is then

transported to and entered into a second

approved terminal via tank trucks. X, as

the position holder of the diesel fuel at the

time of this first removal, is liable for the

$2,440 section 4081 tax imposed on the

removal, which includes the LUST tax.

On July 31, 2026, X timely files its Form

720 for the quarterly tax period ending

June 30, 2026, on which it reports the

section 4081 tax imposed on the removal,

and pays the section 4081 tax to the IRS.

Pursuant to § 48.4081-7(c)(3), X also

files a first taxpayer’s report with its Form

720 with respect to the removal of the

10,000 gallons of diesel fuel. On August

10, 2026, X dyes 5,000 gallons of the diesel fuel and removes the dyed diesel fuel

from the second approved terminal. The

dyed diesel fuel is intended for use on a

farm, which is a nontaxable use. After X

has removed the dyed diesel fuel from the

second approved terminal, X files a Form

8849 that only covers a section 6435

claim, and includes a completed Schedule

5 (Form 8849) and the required section

6435 taxpayer’s report, to claim a refund

in the amount of the $1,220 section 4081

tax paid with respect to such fuel. X’s

section 6435 taxpayer’s report uses the

model report provided in paragraph (e)

1501

(2) of this section. X checks the box in

line 6 of its section 6435 taxpayer’s report

and identifies the corresponding first taxpayer’s report it filed for the quarterly

tax period ending June 30, 2026, thereby

revoking the first taxpayer’s report to the

extent of the 5,000 gallons of dyed diesel

fuel. Because X has met the conditions

under paragraph (d) of this section and

filed a claim for refund in accordance

with paragraph (f) of this section, X is

allowed a refund of the section 4081 tax

(including the LUST tax) that it paid to

the IRS on the June 25, 2026, removal of

the 5,000 gallons of diesel fuel that it later

reentered, dyed, and removed.

(i) Applicability date. This section

applies to removals of eligible dyed fuel

occurring on or after December 31, 2025.

(j) Expiration date. This section expires

on the earlier of May 1, 2029, or the date

of any statutory change that would appropriate funds for the payment of claims

under section 6435 to persons other than

the taxpayer that paid the section 4081 tax

to which the claim relates.

Frank J. Bisignano,

Chief Executive Officer.

Approved: April 6, 2026.

Kenneth J. Kies,

Assistant Secretary of the Treasury

(Tax Policy).

(Filed by the Office of the Federal Register April

30, 2026, 8:45 a.m., and published in the issue of

the Federal Register for May 1, 2026, 91 FR 23363)

May 18, 2026

Part III

Updated Static Mortality

Tables for Defined Benefit

Pension Plans for 2027

Notice 2026-27

PURPOSE

This notice specifies updated static

mortality tables to be used for defined

benefit pension plans under § 430(h)(3)

(A) of the Internal Revenue Code (Code)

and section 303(h)(3)(A) of the Employee

Retirement Income Security Act of 1974,

Pub. L. No. 93-406, as amended (ERISA).

These updated static mortality tables,

which are being issued pursuant to the

regulations under § 430(h)(3)(A) of the

Code, apply for purposes of calculating

the funding target and other items for valuation dates occurring during the 2027

calendar year.

This notice also includes a modified

unisex version of the mortality tables

for use in determining minimum present value under § 417(e)(3) and section

205(g)(3) of ERISA for distributions with

annuity starting dates that occur during

stability periods beginning in the 2027

calendar year.

BACKGROUND

Mortality Tables for Purposes of § 430

Section 412 of the Code provides minimum funding requirements that generally

apply for defined benefit plans. Pursuant

to § 412(a)(2), § 430 sets forth the minimum funding requirements that apply to

a defined benefit plan (other than a multiemployer plan described in § 414(f) or

a CSEC plan described in § 414(y)). Section 430(a) defines the minimum required

contribution for such a plan by reference

to the plan’s funding target for the plan

year. Under § 430(d)(1), a plan’s funding

target for a plan year generally is the present value of all benefits accrued or earned

under the plan as of the first day of that

plan year.

Section 430(h)(3) provides rules

regarding the mortality tables that generally are used under § 430. Under § 430(h)

(3)(A), except as provided in § 430(h)(3)

by regulation mortality tables to be used

in determining any present value or making any computation under § 430.1 Those

tables are to be based on the actual experience of pension plans and projected trends

in that experience. In accordance with that

standard, the Department of the Treasury

and the Internal Revenue Service issued

§ 1.430(h)(3)-1 to provide base mortality

tables and mortality improvement rates

that apply for valuation dates occurring on

or after January 1, 2024.

Section 1.430(h)(3)-1(a)(1) permits the

projection of mortality improvement to

be applied in either of two ways: through

use of generational mortality tables or

through use of static mortality tables

(available only to small plans described

in § 1.430(h)-1(c)(1)(ii)) that are updated

annually to reflect expected improvements

in mortality. Note 1 to § 1.430(h)(3)-1(c)

(1)(iv) states that the static mortality tables

for valuation dates occurring in calendar

years starting with 2025 will be published

in the Internal Revenue Bulletin.

Application of § 430 Mortality Tables to

Other Funding Rules

Section 431 provides the minimum

funding standards for multiemployer

plans that are subject to § 412. Section

431(c)(6)(D)(iv) provides that the Secretary may by regulation prescribe mortality

tables to be used in determining current

liability for purposes of § 431(c)(6)(B).

Section 1.431(c)(6)-1 provides that the

same mortality assumptions that apply for

purposes of § 430(h)(3)(A) and § 1.430(h)

(3)-1(a)(2) are used to determine a multiemployer plan’s current liability for purposes of applying the full-funding rules

of § 431(c)(6). For this purpose, either the

generational mortality tables or the static

mortality tables are permitted to be used

without regard to whether the plan is a

small plan.

Section 433 provides the minimum

funding standards for CSEC plans. Section 433(h)(3)(B)(i) provides that the

Secretary may by regulation prescribe

mortality tables to be used in determining

current liability for purposes of § 433(c)

(7)(C). Section 1.433(h)(3)-1(a) provides

that the mortality tables described in §

430(h)(3)(A) are to be used to determine

current liability under § 433(c)(7)(C). For

this purpose, either the generational mortality tables or the static mortality tables

are permitted to be used without regard to

whether the plan is a small plan.

Application of Mortality Tables for

Minimum Present Value Requirements

under § 417(e)(3)

Section 417(e)(3) generally provides

that the present value of certain accelerated forms of benefit under a qualified

pension plan (including single-sum distributions) must not be less than the present value of the accrued benefit using

applicable interest rates and the applicable mortality table. Section 417(e)(3)

(B) defines the term “applicable mortality table” as the mortality table specified

for the plan year under § 430(h)(3)(A)

(without regard to § 430(h)(3)(C) or (D)),

modified as appropriate by the Secretary.

Under § 1.417(e)-1(d)(2)(i), the applicable mortality table for a calendar year is

the mortality table that is prescribed by

the Commissioner in guidance published

in the Internal Revenue Bulletin.

Rev. Rul. 2007-67, 2007-2 CB 1047,

provides that, except as otherwise stated

in future guidance, the applicable mortality table under § 417(e)(3) is a static mortality table set forth in published guidance

that is developed based on a fixed blend

of 50 percent of the static male combined

mortality rates and 50 percent of the static

female combined mortality rates used

Section 430(h)(3)(C) provides that, upon request by a plan sponsor and approval by the Secretary, substitute mortality tables that meet the applicable requirements may be used in lieu of the

standard mortality tables provided under § 430(h)(3)(A). Section 430(h)(3)(D) provides for the use of separate mortality tables with respect to certain individuals who are entitled to benefits

on account of disability.

May 18, 2026

1502

Bulletin No. 2026–21

under § 1.430(h)(3)-1. Rev. Rul. 2007-67

also provides that the applicable mortality

table for a calendar year applies to distributions with annuity starting dates that

occur during stability periods that begin

during that calendar year.

STATIC MORTALITY TABLES FOR

2027

The static mortality tables that apply

under § 430(h)(3)(A) for valuation dates

occurring during 2027 are set forth in the

appendix to this notice. The mortality rates

Bulletin No. 2026–21

in these tables have been developed using

the methodology set forth in § 1.430(h)

(3)-1(c), the base mortality rates set forth

in § 1.430(h)(3)-1(d), and the mortality

improvement rates that are incorporated

by reference under § 1.430(h)(3)-1(b)(1)

(iv)(A).

The static mortality table that applies

under § 417(e)(3) for distributions with

annuity starting dates occurring during

stability periods beginning in 2027 is set

forth in the appendix to this notice in the

column labeled “Unisex.” The mortality

rates in this table are derived from the

1503

mortality tables specified under § 430(h)

(3)(A) for 2027 in accordance with the

procedures set forth in Rev. Rul. 2007-67.

Drafting Information

The principal author of this notice is

Arslan Malik of the Office of the Associate Chief Counsel (Employee Benefits,

Exempt Organizations, and Employment

Taxes). For further information regarding

this notice, contact Arslan Malik at (202)

317-6700 (not a toll-free number).

May 18, 2026

APPENDIX

Mortality Tables for 2027

Valuation Dates Occurring During 2027 and

Distributions Subject to § 417(e)(3) with Annuity Starting Dates During

Stability Periods Beginning in 2027

430(h)(3)(A) Static Tables

May 18, 2026

Age

Males

Females

Unisex

0.00348

0.00299

0.00324

0.00024

0.00021

0.00023

0.00016

0.00013

0.00015

0.00012

0.00010

0.00011

0.00010

0.00007

0.00009

0.00007

0.00008

0.00006

0.00007

0.00006

0.00007

0.00006

0.00005

0.00006

0.00005

0.00008

0.00006

0.00007

0.00010

0.00007

0.00009

0.00013

0.00008

0.00011

0.00017

0.00008

0.00013

0.00021

0.00009

0.00015

0.00024

0.00009

0.00017

0.00028

0.00009

0.00019

0.00033

0.00010

0.00022

0.00035

0.00010

0.00023

0.00036

0.00010

0.00023

0.00036

0.00011

0.00024

0.00037

0.00012

0.00025

0.00038

0.00013

0.00026

0.00039

0.00014

0.00027

0.00040

0.00014

0.00027

0.00042

0.00015

0.00029

0.00043

0.00016

0.00030

0.00045

0.00016

0.00031

0.00048

0.00018

0.00033

0.00049

0.00019

0.00034

0.00052

0.00020

0.00036

0.00055

0.00022

0.00039

1504

Bulletin No. 2026–21

430(h)(3)(A) Static Tables

Age

Males

Females

Unisex

0.00057

0.00023

0.00040

0.00060

0.00025

0.00043

0.00063

0.00028

0.00046

0.00065

0.00030

0.00048

0.00068

0.00032

0.00050

0.00071

0.00034

0.00053

0.00072

0.00036

0.00054

0.00073

0.00038

0.00056

0.00075

0.00040

0.00058

0.00077

0.00042

0.00060

0.00079

0.00044

0.00062

0.00081

0.00047

0.00064

0.00086

0.00050

0.00068

0.00090

0.00054

0.00072

0.00095

0.00058

0.00077

0.00102

0.00062

0.00082

0.00110

0.00069

0.00090

0.00121

0.00078

0.00100

0.00134

0.00088

0.00111

0.00150

0.00099

0.00125

0.00169

0.00112

0.00141

0.00200

0.00135

0.00168

0.00247

0.00166

0.00207

0.00289

0.00190

0.00240

0.00336

0.00220

0.00278

0.00388

0.00253

0.00321

0.00447

0.00292

0.00370

0.00511

0.00336

0.00424

0.00600

0.00400

0.00500

0.00687

0.00467

0.00577

0.00756

0.00524

0.00640

0.00841

0.00605

0.00723

0.00934

0.00691

0.00813

0.01030

0.00767

0.00899

0.01135

0.00851

0.00993

0.01253

0.00945

0.01099

0.01387

0.01057

0.01222

0.01539

0.01189

0.01364

0.01709

0.01336

0.01523

0.01903

0.01504

0.01704

Bulletin No. 2026–21

1505

May 18, 2026

430(h)(3)(A) Static Tables

May 18, 2026

Age

Males

Females

Unisex

0.02124

0.01701

0.01913

0.02377

0.01929

0.02153

0.02666

0.02188

0.02427

0.02997

0.02481

0.02739

0.03380

0.02811

0.03096

0.03821

0.03179

0.03500

0.04339

0.03628

0.03984

0.04892

0.04061

0.04477

0.05518

0.04542

0.05030

0.06224

0.05081

0.05653

0.07026

0.05688

0.06357

0.07945

0.06376

0.07161

0.08986

0.07172

0.08079

0.10157

0.08080

0.09119

0.11468

0.09121

0.10295

0.12914

0.10288

0.11601

0.14488

0.11589

0.13039

0.16147

0.12933

0.14540

0.17846

0.14336

0.16091

0.19580

0.15794

0.17687

0.21320

0.17284

0.19302

0.23056

0.18815

0.20936

0.24888

0.20450

0.22669

0.26748

0.22151

0.24450

0.28640

0.23930

0.26285

0.30578

0.25773

0.28176

100

0.32531

0.27674

0.30103

101

0.34486

0.29618

0.32052

102

0.36407

0.31568

0.33988

103

0.38291

0.33516

0.35904

104

0.40141

0.35455

0.37798

105

0.41901

0.37374

0.39638

106

0.43621

0.39250

0.41436

107

0.45247

0.41085

0.43166

108

0.46810

0.42839

0.44825

109

0.48303

0.44520

0.46412

110

0.49240

0.46130

0.47685

111

0.49374

0.47665

0.48520

112

0.49512

0.49112

0.49312

113

0.49651

0.49731

0.49691

1506

Bulletin No. 2026–21

430(h)(3)(A) Static Tables

Age

Males

Females

Unisex

114

0.49795

0.49840

0.49818

115

0.49930

0.49950

0.49940

116

0.49960

0.49975

0.49968

117

0.49980

0.49985

0.49983

118

0.49985

0.50000

0.49993

119

0.50000

120

1.00000

Bulletin No. 2026–21

1507

May 18, 2026

Part IV

Notice of Proposed

Rulemaking

Enrolled Agent Special

Enrollment Examination

User Fee Update

regulations, Sean Dix at (202) 317-6845;

concerning cost methodology, CFO Cost

and User Fees at (202) 317–6400; concerning submissions of comments or requests

for a public hearing, the Publications and

Regulations Section at (202) 317-6901

(not toll-free numbers) or by email at publichearings@irs.gov (preferred).

REG-108706-25

SUPPLEMENTARY INFORMATION:

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: In the Rules and Regulations section of this issue of the Federal

(Treasury Department) and the IRS are

issuing interim final regulations that amend

the current regulations to reduce the user

fee for each part of the special enrollment

examinations for enrolled agents (EA SEE)

from $99 per part to $66 per part.

DATES: Electronic or written comments

and requests for a public hearing must be

received by May 20, 2026.

ADDRESSES: Commenters are strongly

encouraged to submit public comments

electronically. Submit electronic submissions via the Federal eRulemaking Portal

at https://www.regulations.gov (indicate

IRS and REG-108706-25) by following

the online instructions for submitting

comments. Requests for a public hearing

must be submitted as prescribed in the

“Comments and Requests for a Public

Hearing” section. Once submitted to the

Federal eRulemaking Portal, comments

cannot be edited or withdrawn. The Treasury Department and the IRS will publish for public availability any comments

submitted to the IRS’s public docket.

Send paper submissions to: CC:PA:01:PR

(REG-108706-25), Room 5503, Internal

Revenue Service, P.O. Box 7604, Ben

Franklin Station, Washington, DC 20044.

FOR FURTHER INFORMATION

CONTACT: Concerning the proposed

May 18, 2026

Background and Explanation of

Provisions

Interim final regulations in the Rules

and Regulations section of this issue of

the Federal Register amend regulations

under 26 CFR part 300 setting a user

fee for the special enrollment examinations for enrolled agents. The Independent Offices Appropriation Act of 1952

(IOAA), which is codified at 31 U.S.C.

9701, authorizes agencies to prescribe

regulations that establish user fees for

services provided by the agency. The

IOAA provides that regulations implementing user fees are subject to policies

prescribed by the President; these policies are set forth in the Office of Management and Budget Circular A-25, 58 FR

38142 (July 15, 1993).

The text of the interim final regulations

also serves as the text of these proposed

regulations. The preamble to the interim

final regulations explains the interim final

regulations and these proposed regulations.

Special Analyses

I. Regulatory Planning and Review

These proposed regulations are not

subject to review under section 6(b) of

Executive Order 12866 pursuant to the

Memorandum of Agreement (July 4,

2025) between the Treasury Department

and the Office of Management and Budget

regarding review of tax regulations.

II. Regulatory Flexibility Act

Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is hereby

1508

certified that these proposed regulations

will not have a significant economic

impact on a substantial number of small

entities. The EA SEE user fee primarily

affects individuals who take the EA SEE.

Only individuals, not businesses, can

be enrolled agents. Thus, the economic

impact of these regulations on any small

entity would be a result of an individual

enrolled agent owning a small entity or a

small entity employing an enrolled agent

who must take the EA SEE. The Treasury

Department and the IRS estimate that an

average of 28,898 EA SEE examination

parts will be taken by individuals annually. Therefore, a substantial number of

small entities is not likely to be affected.

Additionally, the economic impact on

those entities is not significant. These regulations will establish a $66 fee per examination part (plus $251 payable directly

to the third-party contractor) and will not

have a significant economic impact on a

small entity. Accordingly, the rule is not

expected to have a significant economic

impact on a substantial number of small

entities, and a regulatory flexibility analysis is not required.

III. Unfunded Mandates Reform Act

Section 202 of the Unfunded Mandates

Reform Act of 1995 (UMRA) requires

that agencies assess anticipated costs and

benefits and take certain other actions

before issuing a final rule that includes

any Federal mandate that may result in

expenditures in any one year by a State,

local, or Tribal government, in the aggregate, or by the private sector, of $100 million in 1995 dollars, updated annually for

inflation. This rule does not include any

Federal mandate that may result in expenditures by State, local, or Tribal governments, or by the private sector in excess of

that threshold.

IV. Executive Order 13132: Federalism

Executive Order 13132 (Federalism)

prohibits an agency from publishing any

rule that has federalism implications if

the rule either imposes substantial, direct

compliance costs on State and local gov-

Bulletin No. 2026–21

ernments, and is not required by statute,

or preempts State law, unless the agency

meets the consultation and funding

requirements of section 6 of the Executive

order. These interim final regulations do

not have federalism implications and do

not impose substantial direct compliance

costs on State and local governments or

preempt State law within the meaning of

the Executive order.

V. Submission to Small Business

Administration

Pursuant to section 7805(f) of the

Code, this notice of proposed rulemaking

has been submitted to the Chief Counsel

for the Office of Advocacy of the Small

Business Administration for comment on

its impact on small business.

Comments and Requests for a Public

Hearing

Consideration will be given to comments that are submitted timely to the

IRS as prescribed in this preamble under

the ADDRESSES heading. The Treasury

Department and the IRS request comments on all aspects of the proposed regulations. Any comments submitted will

be made available at https://www.regulations.gov or upon request.

A public hearing will be scheduled if

requested in writing by any person who

timely submits electronic or written comments. Requests for a public hearing are

also encouraged to be made electronically. If a public hearing is scheduled,

notice of the date and time for the public

hearing will be published in the Federal

Drafting Information

The principal author of these regulations is Sean Dix, Office of the Associate

Chief Counsel (Procedure and Administration). Other personnel from the Treasury Department and the IRS participated

in the development of the regulations.

List of Subjects in 26 CFR Part 300

Estate taxes, Excise taxes, Fees, Gift

taxes, Income taxes, Reporting and

recordkeeping requirements.

Bulletin No. 2026–21

Proposed Amendments to the

Regulations

Accordingly, the Treasury Department

and the IRS propose to amend 26 CFR

part 300 as follows:

PART 300—USER FEES

Paragraph 1. The authority citation for

part 300 continues to read in part as follows:

Authority: 31 U.S.C. 9701.

Par. 2. Section 300.4 is amended by

revising paragraphs (b) and (d) to read as

follows:

§300.4 Enrolled agent special

enrollment examination fee.

*****

(b) [The text of proposed § 300.4(b) is

the same as the text of § 300.4(b) in the

interim final rule published elsewhere in

this issue of the Federal Register].

*****

(d) [The text of proposed § 300.4(d) is

the same as the text of § 300.4(d) in the

interim final rule published elsewhere in

this issue of the Federal Register].

Frank J. Bisignano,

Chief Executive Officer.

(Filed by the Office of the Federal Register April 17,

2026, 8:45 a.m., and published in the issue of the

Federal Register for April 20, 2026, 91 FR 20968)

Notice of Proposed

Rulemaking

Section 6435 Payments;

Refunds for Previously

Taxed Dyed Fuel

REG-119294-25

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: In the Rules and Regulations section of this issue of the Fed-

1509

eral Register are temporary regulations

regarding the statutory provision providing for payments to taxpayers with

respect to certain previously taxed dyed

fuel. Specifically, the temporary regulations provide guidance as to the taxpayers that may claim such payments and

the procedures these taxpayers must follow to claim the payments. The text of

those regulations also serves as the text

of these proposed regulations. These proposed regulations would affect taxpayers

that withdraw previously taxed dyed fuel

from a terminal.

DATES: Written or electronic comments

and requests for a public hearing must be

received by June 30, 2026.

ADDRESSES:

Commenters

are

strongly encouraged to submit public

comments electronically via the Federal eRulemaking Portal at https://www.

regulations.gov (indicate IRS and REG119294-25) by following the online

instructions for submitting comments.

Requests for a public hearing must be

submitted as prescribed in the “Comments and Requests for a Public Hearing” section. Once submitted to the

Federal eRulemaking Portal, comments

cannot be edited or withdrawn. The

Department of the Treasury (Treasury

Department) and the IRS will publish

for public availability any comments

submitted to the IRS’s public docket

on https://www.regulations.gov. Send

paper submissions to: CC:PA:01:PR

(REG-119294-25), Room 5503, Internal Revenue Service, P.O. Box 7604,

Ben Franklin Station, Washington, DC

20044. A plain language summary of the

proposed regulations will be made available at https://www.regulations.gov.

FOR FURTHER INFORMATION

CONTACT: Concerning the proposed regulations, Danielle Mayfield

or Andrew Clark of the Office of Associate Chief Counsel (Energy, Credits,

and Excise Tax) at (202) 317-6855 (not

a toll-free number); concerning submissions of comments or requests for a public hearing, Publications and Regulations

Section at (202) 317-6901 (not a toll-free

number) or by email at publichearings@

irs.gov (preferred).

May 18, 2026

SUPPLEMENTARY INFORMATION:

Authority

This document contains proposed

amendments to the Manufacturers and

Retailers Excise Tax Regulations (26 CFR

part 48) under section 6435 of the Internal Revenue Code (Code) relating to the

determination of payments regarding dyed

diesel fuel or dyed kerosene with respect

to which excise tax under section 4081 of

the Code was paid (proposed regulations).

The proposed regulations would be issued

under the authority granted by sections

6435(a), 6001, and 7805(a) of the Code.

Section 6435(a) requires that a person

claiming a payment under section 6435

establish to the satisfaction of the Secretary of the Treasury or the Secretary’s delegate (Secretary) that such person meets

the requirements under section 6435(b).

Section 6001 authorizes the Secretary

to prescribe regulations related to recordkeeping, statements, and returns.

Section 7805(a) authorizes the Secretary to prescribe all needful rules and regulations for the enforcement of the Code,

including all rules and regulations as may

be necessary by reason of any alteration of

law in relation to internal revenue.

Background and Explanation of

Provisions

Temporary regulations in the Rules and

Regulations section of this issue of the

Federal Register add § 48.6435-1T to the

Manufacturers and Retailers Excise Tax

Regulations (26 CFR part 48). The temporary regulations relate to the statutory

provision providing for payments to taxpayers with respect to certain previously

taxed dyed fuel. Specifically, the temporary regulations provide guidance as to the

taxpayers that may claim such payments

and the procedures these taxpayers must

follow to claim the payments. The text of

the temporary regulations also serves as

the text of these proposed regulations. The

preamble to the temporary regulations

explains the amendments.

Proposed Applicability Date

Proposed § 48.6435-1 would apply to

removals of eligible dyed fuel occurring

May 18, 2026

on or after December 31, 2025. See section 7805(b)(2).

Special Analyses

I. Regulatory Planning and Review

These proposed regulations are not

subject to review under section 6(b) of

Executive Order 12866 pursuant to the

Memorandum of Agreement (July 4,

2025) between the Treasury Department

and the Office of Management and Budget (OMB) regarding review of tax regulations.

II. Paperwork Reduction Act

The Paperwork Reduction Act of 1995

(44 U.S.C. 3501-3520) (PRA) generally

requires that a Federal agency obtain the

approval of the OMB before collecting

information from the public, whether such

collection of information is mandatory,

voluntary, or required to obtain or retain

a benefit. An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control number

assigned by the OMB.

These proposed regulations set forth

intended collections of information to

be provided to the IRS with Form 8849,

Claim for Refund of Excise Taxes, and

Schedule 5 (Form 8849), Section 4081(e)

and 6435 Claims.

The collections of information in

these proposed regulations would include

reporting and recordkeeping requirements

that are necessary to ensure that a taxpayer

qualifies for a section 6435 refund. The

collections would be used by the IRS for

tax compliance purposes and by taxpayers

to establish eligibility for a section 6435

refund.

The reporting requirements would

include reporting related to claiming a

section 6435 refund, including the execution and filing of reports as detailed in

proposed § 48.6435-1(e). The recordkeeping requirements would include that a taxpayer keep records to establish its eligibility for and the amount of a section 6435

claim. The burden for these requirements

is included with Form 8849 and its instructions and with Schedule 5 (Form 8849)

and its instructions. These forms and form

1510

instructions are already approved under

OMB control number 1545-1420.

Books or records relating to a collection of information must be retained as

long as their contents may become material in the administration of any Internal

Revenue law. Generally, tax returns and

tax return information are confidential, as

required by 26 U.S.C. 6103.

These proposed regulations would not

change or create new collection requirements beyond the requirements that are

being reviewed and approved by OMB

under the temporary regulations.

III. Regulatory Flexibility Act

Pursuant to the Regulatory Flexibility

Act (5 U.S.C. chapter 6), it is hereby certified that these proposed regulations will

not have a significant economic impact

on a substantial number of small entities

within the meaning of section 601(6) of

the Regulatory Flexibility Act.

As discussed in Announcement 20261, 2026-4 I.R.B 402 (released December

22, 2025), absent a statutory change, the

Treasury Department and the IRS lack the

authority to pay section 6435 claims to

anyone other than the person that paid the

section 4081 tax to the IRS with respect to

the eligible dyed fuel to which the claim

relates. Section 6435 allows a person that

establishes to the satisfaction of the Secretary that the person removed eligible

indelibly dyed diesel fuel or kerosene (eligible dyed fuel) from a terminal to claim

a payment (without interest) equal to the

amount of the section 4081 tax previously paid with respect to such dyed fuel.

The proposed regulations would provide

needed guidance for such taxpayers on eligibility and filing procedures for making a

section 6435 claim. These proposed regulations would establish reporting procedures, including a model report, that allow

the IRS to verify a taxpayer’s entitlement

to a payment under section 6435 as contemplated by the statute. Accordingly, the

Treasury Department and the IRS intend

that the proposed rules provide clarity for

taxpayers on the availability and claim

procedures for a payment under section

6435.

These proposed regulations would

affect a narrow subset of businesses

within the fuel industry: taxpayers remov-

Bulletin No. 2026–21

ing dyed fuel from an approved terminal

with respect to which they previously

paid tax. Because section 6435 first went

into effect on December 31, 2025, no historical data is available on the number

or size of section 6435 claimants. While

there is uncertainty as to the exact number of small businesses within this group,

such taxpayers are necessarily a subset of

taxpayers filing Form 720 with respect

to certain taxes paid on diesel fuel and

kerosene. From 2021 to 2024, more than

85 percent of such identifiable Form 720

filers were businesses with total positive

incomes of at least $25 million, and more

than two-thirds were businesses with total

assets of at least $25 million. Moreover,

under section 4081(e), the most analogous

existing provision, the vast majority of

taxpayers the IRS can identify have total

positive incomes and assets of at least

$100 million. This data is constrained

by issues matching between databases,

but the IRS has no reason to believe it

is skewed. As such, of the relatively few

taxpayers affected by section 6435, nearly

all can be expected to be predominantly

large, sophisticated businesses in the fuel

industry.

Even if a substantial number of small

entities are affected, the economic impact

of these proposed regulations on small

entities is not likely to be significant. The

proposed regulations would provide taxpayers with guidance regarding the eligibility and filing requirements for section

6435, including the reporting requirements. As explained in the PRA section,

the reporting and recordkeeping obligations imposed by these proposed regulations would include filing a report to make

a claim. It is estimated that fewer than 60

taxpayers will prepare one or more of such

reports annually and that each report will

take no more than one hour to complete.

Accordingly, the Secretary of the Treasury certifies that these proposed regulations will not have a significant economic

impact on a substantial number of small

entities. The Treasury Department and the

IRS specifically invite comments from

any party, particularly affected small entities, on the accuracy of this certification.

Pursuant to section 7805(f), this notice

of proposed rulemaking has been submitted to the Chief Counsel for the Office of

Advocacy of the Small Business Adminis-

Bulletin No. 2026–21

tration for comment on its impact on small

business.

Statement of Availability of IRS

Documents

IV. Unfunded Mandates Reform Act

Guidance cited in this preamble is published in the Internal Revenue Bulletin and

is available from the Superintendent of

Documents, U.S. Government Publishing

Office, Washington, DC 20402, or by visiting the IRS website at https://www.irs.gov.

Section 202 of the Unfunded Mandates

Reform Act of 1995 requires that agencies

assess anticipated costs and benefits and

take certain other actions before issuing a

final rule that includes any Federal mandate that may result in expenditures in any

one year by a State, local, or Tribal government, in the aggregate, or by the private

sector, of $100 million (updated annually

for inflation). These proposed regulations

do not include any Federal mandate that

may result in expenditures by State, local,

or Tribal governments, or by the private

sector, in excess of that threshold.

Drafting Information

The principal authors of these proposed regulations are Danielle Mayfield

and Andrew Clark of the Office of Associate Chief Counsel (Energy, Credits, and

Excise Tax). However, other personnel

from the Treasury Department and the

IRS participated in their development.

V. Executive Order 13132: Federalism

List of Subjects in 26 CFR Part 48

Executive Order 13132 (Federalism)

prohibits an agency from publishing any

rule that has federalism implications if the

rule either imposes substantial direct compliance costs on State and local governments and is not required by statute, or preempts State law, unless the agency meets

the consultation and funding requirements

of section 6 of the Executive order. These

proposed rules do not have federalism

implications and do not impose substantial direct compliance costs on State and

local governments or preempt State law

within the meaning of the Executive order.

Excise taxes, Reporting and recordkeeping requirements.

Comments and Requests for a Public

Hearing

Before these proposed regulations are

adopted as final regulations, consideration

will be given to comments that are submitted timely to the IRS as prescribed in the

preamble under the ADDRESSES heading. The Treasury Department and the IRS

request for comments on all aspects of the

proposed regulations. Any comments will

be made available at https://www.regulations.gov or upon request.

A public hearing will be scheduled if

requested in writing by any person that

timely submits electronic or written comments. If a public hearing is scheduled,

a notice of the date, time, and place for

the public hearing will be published in the

Federal Register.

1511

Proposed Amendments to the Regulations

Accordingly, the Treasury Department

and the IRS propose to amend 26 CFR

part 48 as follows:

PART 48—MANUFACTURERS AND

RETAILERS EXCISE TAXES

Paragraph 1. The authority citation

for part 48 is amended by adding an entry

for § 48.6435-1 in numerical order to read

in part as follows:

Authority: 26 U.S.C. 7805 * * *

*****

Section 48.6435-1 also issued under 26

U.S.C. 6435(a) and 6001.

Par. 2. Add § 48.6435-1 to subpart O to

read as follows:

§ 48.6435-1 Dyed fuel refund.

[The text of proposed § 48.6435-1 is

the same as the text of § 48.6435-1T in the

temporary rule published elsewhere in this

issue of the Federal Register].

Frank J. Bisignano,

Chief Executive Officer.

(Filed by the Office of the Federal Register April

30, 2026, 8:45 a.m., and published in the issue of

the Federal Register for May 1, 2026, 91 FR 23380)

May 18, 2026

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as “rulings”) that

have an effect on previous rulings use the

following defined terms to describe the

effect:

Amplified describes a situation where

no change is being made in a prior published position, but the prior position is

being extended to apply to a variation of

the fact situation set forth therein. Thus,

if an earlier ruling held that a principle

applied to A, and the new ruling holds that

the same principle also applies to B, the

earlier ruling is amplified. (Compare with

modified, below).

Clarified is used in those instances

where the language in a prior ruling is

being made clear because the language

has caused, or may cause, some confusion. It is not used where a position in a

prior ruling is being changed.

Distinguished describes a situation

where a ruling mentions a previously published ruling and points out an essential

difference between them.

Modified is used where the substance

of a previously published position is being

changed. Thus, if a prior ruling held that a

principle applied to A but not to B, and the

new ruling holds that it applies to both A

and B, the prior ruling is modified because

it corrects a published position. (Compare

with amplified and clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions.

This term is most commonly used in a ruling

that lists previously published rulings that

are obsoleted because of changes in laws or

regulations. A ruling may also be obsoleted

because the substance has been included in

regulations subsequently adopted.

Revoked describes situations where the

position in the previously published ruling

is not correct and the correct position is

being stated in a new ruling.

Superseded describes a situation where

the new ruling does nothing more than

restate the substance and situation of a

previously published ruling (or rulings).

Thus, the term is used to republish under

the 1986 Code and regulations the same

position published under the 1939 Code

and regulations. The term is also used

when it is desired to republish in a single

ruling a series of situations, names, etc.,

that were previously published over a

period of time in separate rulings. If the

new ruling does more than restate the substance of a prior ruling, a combination of

terms is used. For example, modified and

superseded describes a situation where the

substance of a previously published ruling

is being changed in part and is continued

without change in part and it is desired to

restate the valid portion of the previously

published ruling in a new ruling that is

self contained. In this case, the previously

published ruling is first modified and then,

as modified, is superseded.

Supplemented is used in situations in

which a list, such as a list of the names of

countries, is published in a ruling and that

list is expanded by adding further names

in subsequent rulings. After the original

ruling has been supplemented several

times, a new ruling may be published that

includes the list in the original ruling and

the additions, and supersedes all prior rulings in the series.

Suspended is used in rare situations

to show that the previous published rulings will not be applied pending some

future action such as the issuance of new

or amended regulations, the outcome of

cases in litigation, or the outcome of a

Service study.

Abbreviations

The following abbreviations in current

use and formerly used will appear in

material published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

Bulletin No. 2026–21

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contributions Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statement of Procedural Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

May 18, 2026

Numerical Finding List1

Bulletin 2026–21

Announcements:

2026-1, 2026-04 I.R.B. 402

2026-2, 2026-05 I.R.B. 447

2026-3, 2026-06 I.R.B. 518

2026-4, 2026-06 I.R.B. 533

2026-5, 2026-07 I.R.B. 540

2026-6, 2026-10 I.R.B. 634

2026-7, 2026-11 I.R.B. 697

2026-8, 2026-16 I.R.B. 813

2026-9, 2026-18 I.R.B. 881

Notices:

2026-2, 2026-02 I.R.B. 304

2026-3, 2026-02 I.R.B. 307

2026-5, 2026-02 I.R.B. 309

2026-6, 2026-02 I.R.B. 313

2026-1, 2026-04 I.R.B. 365

2026-8, 2026-04 I.R.B. 368

2026-10, 2026-04 I.R.B. 378

2026-11, 2026-06 I.R.B. 491

2026-12, 2026-06 I.R.B. 496

2026-13, 2026-06 I.R.B. 499

2026-9, 2026-07 I.R.B. 534

2026-7, 2026-11 I.R.B. 637

2026-14, 2026-11 I.R.B. 654

2026-15, 2026-11 I.R.B. 658

2026-16, 2026-11 I.R.B. 685

2026-17, 2026-12 I.R.B. 698

2026-4, 2026-13 I.R.B. 726

2026-19, 2026-15 I.R.B. 797

2026-20, 2026-15 I.R.B. 800

2026-22, 2026-15 I.R.B. 802

2026-23, 2026-15 I.R.B. 804

2026-24, 2026-17 I.R.B. 835

2026-25, 2026-17 I.R.B. 836

2026-26, 2026-18 I.R.B. 878

2026-27, 2026-21 I.R.B. 1502

Proposed Regulations:

REG-101952-24, 2026-03 I.R.B. 345

REG-110519-25, 2026-03 I.R.B. 353

REG-132251-11; REG-134219-08,

2026-03 I.R.B. 358

REG-103430-24, 2026-05 I.R.B. 447

REG-112829-25, 2026-05 I.R.B. 452

REG-113515-25, 2026-05 I.R.B. 455

REG-121244-23, 2026-09 I.R.B. 579

REG-105064-25, 2026-13 I.R.B. 735

REG-108921-25, 2026-13 I.R.B. 756

REG-117002-25, 2026-13 I.R.B. 761

REG-117270-25, 2026-13 I.R.B. 772

REG-117298-21, 2026-14 I.R.B. 784

REG-114499-25, 2026-18 I.R.B. 883

Proposed Regulations:—Continued

REG-113229-25, 2026-19 I.R.B. 900

REG-108706-25, 2026-21 I.R.B. 1508

REG-119294-25, 2026-21 I.R.B. 1509

Revenue Procedures:

2026-1, 2026-01 I.R.B. 1

2026-2, 2026-01 I.R.B. 119

2026-3, 2026-01 I.R.B. 143

2026-4, 2026-01 I.R.B. 160

2026-5, 2026-01 I.R.B. 258

2026-6, 2026-02 I.R.B. 314

2026-7, 2026-02 I.R.B. 316

2026-8, 2026-04 I.R.B. 380

2026-9, 2026-04 I.R.B. 393

2026-10, 2026-04 I.R.B. 394

2026-12, 2026-07 I.R.B. 535

2026-13, 2026-09 I.R.B. 563

2026-11, 2026-12 I.R.B. 707

2026-15, 2026-13 I.R.B. 729

2026-16, 2026-13 I.R.B. 733

2026-17, 2026-15 I.R.B. 805

2026-19, 2026-19 I.R.B. 899

2026-14, 2026-20 I.R.B. 910

Revenue Rulings:

2026-1, 2026-02 I.R.B. 299

2026-2, 2026-03 I.R.B. 342

2026-3, 2026-06 I.R.B. 485

2026-4, 2026-06 I.R.B. 487

2026-5, 2026-08 I.R.B. 542

2026-6, 2026-11 I.R.B. 635

2026-7, 2026-15 I.R.B. 791

2026-8, 2026-16 I.R.B. 812

2026-9, 2026-19 I.R.B. 897

Treasury Decisions:

10042, 2026-03 I.R.B. 320

10041, 2026-04 I.R.B. 360

10039, 2026-05 I.R.B. 403

10040, 2026-05 I.R.B. 416

10043, 2026-15 I.R.B. 793

10044, 2026-18 I.R.B. 840

10045, 2026-21 I.R.B. 1491

10047, 2026-21 I.R.B. 1494

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin

2024–52, dated December 22, 2024.

May 18, 2026

Bulletin No. 2026–21

Finding List of Current Actions on

Previously Published Items1

Bulletin 2026–21

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin

2024–52, dated December 22, 2024.

Bulletin No. 2026–21

iii

May 18, 2026

Internal Revenue Service

Washington, DC 20224

Official Business

Penalty for Private Use, $300

INTERNAL REVENUE BULLETIN

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We Welcome Comments About the Internal Revenue Bulletin

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