Why this matters to fleets and owner-operators
Two developments could affect your bottom line and how you handle tax disputes and fuel budgeting heading into 2026: the IRS is expanding alternative dispute resolution (ADR) options for tax controversies, and Indiana has refreshed guidance and notices around its monthly gasoline use tax (GUT)—alongside posted per‑gallon tax rates for gasoline and special fuel. Understanding both will help you keep audit issues out of court and forecast fuel costs more accurately if you run through the Hoosier State.
IRS is making ADR faster and more accessible
The IRS Independent Office of Appeals launched pilot changes in 2025 to make ADR a more attractive alternative to prolonged appeals or litigation. The pilots expand Fast Track Settlement (FTS) availability on an issue‑by‑issue basis and streamline Post‑Appeals Mediation (PAM), including assigning a fresh Appeals team to PAM so taxpayers see a neutral set of eyes. These moves are designed to resolve disputes earlier, cut professional fees, and reduce downtime that can distract trucking businesses from operations.
- Fast Track Settlement: Appeals mediates while your case is still with Exam or Collections—often resolving issues in months rather than years. Participation no longer blocks a later request for PAM under the pilot.
- Post‑Appeals Mediation: A one‑day, nonbinding mediation after an unsuccessful Appeals conference. Under the 2025 pilot, Appeals uses a team not previously involved in the case to boost impartiality.
For trucking businesses, common IRS disputes suited to ADR include worker classification and payroll tax assessments, per‑diem substantiation, fuel tax credits, depreciation and §179/bonus timing, and hobby‑loss vs. business determinations for single‑truck operations. ADR can narrow issues and avoid costly Tax Court litigation that ties up cash and management time.
Indiana’s gasoline and diesel tax picture—plus the monthly Gasoline Use Tax
If your fleet buys fuel in Indiana, note that the Department of Revenue (DOR) posts each year’s per‑gallon excise rates and continues to publish a separate monthly GUT rate via Departmental Notice #2. For July 1, 2025 through June 30, 2026, the state excise taxes are $0.36/gal for gasoline and $0.61/gal for special fuel (diesel). GUT—Indiana’s functional equivalent of a 7% sales tax on gasoline only—is recalculated monthly from the average statewide retail price (pre‑tax) and published before the 22nd of each month; retailers bake it into the pump price.
In practice, that means gasoline prices at Indiana pumps reflect three moving parts: the per‑gallon gasoline excise tax, the monthly GUT percentage applied to a rolling average price, and federal fuel taxes. Media coverage this summer highlighted that combination as rates ticked up on July 1, 2025. Diesel purchases, by contrast, are not subject to the GUT but do bear the special fuel license (diesel) tax posted by DOR.
Action steps for carriers and O/Os
- Ask about ADR early. If you receive an exam or collection notice, talk with your CPA or tax counsel about FTS before positions harden. Under the 2025 pilots, FTS can be used for one or more issues even if others aren’t eligible—and you can still request PAM later.
- Document, then mediate. ADR works best when your mileage records, per‑diem logs, maintenance invoices, and fuel purchase data are organized. Appeals mediators facilitate settlement—but they expect facts in hand.
- Indiana fuel planning. If you run gasoline-powered units (mixed fleets, last‑mile vans, or support vehicles) in Indiana, build the monthly GUT into budgets and price models; check Departmental Notice #2 each month. For diesel tractors, use the posted $0.61/gal special fuel rate for the 7/1/2025–6/30/2026 period when modeling in‑state fueling versus neighboring states. Every one‑cent change equals $10 per 1,000 gallons.
- Coordinate IFTA and receipts. Ensure retail receipts clearly show gallons and taxes; reconcile Indiana purchases with IFTA filings and your TMS. While GUT is embedded in the pump price for gasoline, accurate documentation supports audits and cost analysis.
Bottom line
The IRS is signaling it wants more disputes resolved without court battles, and its 2025 pilots make ADR more flexible and accessible—good news for trucking companies that can’t afford prolonged tax fights. In Indiana, keep an eye on posted diesel and gasoline excise rates and the monthly GUT notice to avoid budget surprises. A little calendar discipline—checking Appeals options early and Indiana’s Notice #2 monthly—can save both time and money in the year ahead.
Sources Consulted: IRS (Independent Office of Appeals news releases and ADR program pages); Journal of Accountancy; Indiana Department of Revenue (Departmental Notices and Gasoline Use Tax guidance); Hoosier Ag Today.
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This article was prepared exclusively for truckstopinsider.com. For professional tax advice, consult a qualified professional.
