Federal kerosene excise tax bonds.
From $100. Enter your amount.

Kerosene is taxable fuel under the Internal Revenue Code, so a kerosene registrant whose IRS §4101 registration is conditioned on security posts a taxable fuel bond on Form 928. The IRS sets the penal sum; pricing is 0.75% of the bond amount, $100 minimum, and the application collects no credit information.

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Required when the IRS asks for security on your §4101 taxable-fuel (Form 637) registration

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Filed on IRS Form 928 — the Taxable Fuel Bond — backing the kerosene excise under §4081 / §4041

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0.75% of the bond amount, $100 minimum, no credit section — enter the penal sum the IRS set and apply to see your price

From $100your price at applicationNo SSNin the applicationInstantapproval for most

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How it works

Apply to filed in one sitting.

No underwriting queue for the standard fuel tax bond — enter your amount, pay, and file Form 928 with the IRS. Here is the whole thing:

TODAY · ONLINE

Apply online

Your business details, the bond amount the IRS required, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

No credit section in the application and no waiting — the executed bond is generated as soon as you pay. Larger amounts may get a quick review, and if a check ever runs it is a soft pull that won’t affect your score.

SAME DAY

File Form 928 with the IRS

Submit the executed Taxable Fuel Bond (Form 928) to satisfy the security test on your §4101 registration. Wet-ink originals mailed whenever the IRS insists.

About this bond

What it is and who needs it.

What the kerosene fuel bond actually covers

Kerosene is a taxable fuel under the Internal Revenue Code, so businesses that handle it register with the IRS under 26 U.S.C. §4101 on Form 637. Where the IRS adequate-security test is not satisfied, it can condition the registration on a taxable fuel bond.

The bond is filed on IRS Form 928. You agree not to defraud the United States of any tax, to file all required returns, and to pay the kerosene excise tax under §4081 or §4041(a)(1), with penalties and interest. If you do not, the United States can recover against the bond.

The penal sum tracks your estimated quarterly excise tax liability on the kerosene you handle. If that liability changes materially, the IRS may ask for a strengthening or superseding bond — we re-issue at the new amount, with pricing starting from $100 and no credit section in the application.

26 U.S.C. §4101 · 26 CFR §48.4101-1 (Form 928)Kerosene is taxable fuel; handlers register under 26 U.S.C. §4101 and 26 CFR §48.4101-1, which lets the IRS condition registration on an adequate-security (bond) test. The bond is posted on IRS Form 928 (Taxable Fuel Bond) and guarantees the kerosene excise tax imposed by §4081 / §4041(a)(1). The penal sum is set by the IRS from your estimated liability — confirm the amount on your IRS correspondence.

You need this bond if you are

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A kerosene blender, importer, or refiner the IRS has asked to post security on a §4101 registration

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A position holder or terminal operator whose Form 637 registration is conditioned on a bond

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Handling aviation-grade kerosene under a registration the IRS wants bonded

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Reinstating a registration the IRS suspended or flagged on the security test

One application, issued on the spot.

Submit the application with the bond amount the IRS set — the executed Form 928 bond is generated instantly, ready to file.

Start the application →

FAQ

Common questions.

How much is the federal kerosene fuel tax bond?This bond is priced at 0.75% of the bond amount, with a $100 minimum — your exact price appears at the application. The penal sum itself is set by the IRS from your estimated kerosene excise tax liability for the registration period. Enter that figure and apply.

Is kerosene really a taxable fuel?Yes. Kerosene is treated as a taxable fuel under the Internal Revenue Code, alongside gasoline and diesel, which is why §4101 registration and the Form 928 bond can apply to it.

Which form is the bond filed on?IRS Form 928, the Taxable Fuel Bond, posted under §4101. We issue the executed bond ready to submit with your Form 637 registration or in response to the IRS notice that requested it.

Is there a credit check?The application collects no credit information. Most applications approve instantly; if a check ever runs on a larger bond amount, it is a soft pull that never affects your credit score.

Can I cover gasoline and diesel on the same bond?Often yes — a combination taxable fuel bond can cover gasoline, diesel, and kerosene on one Form 928. If that fits your registration, our Federal Fuel Tax (Combination) bond is the one to use.

Related bonds

Other Federal bonds.

Kerosene fuel bond, issued today.

Pricing from $100. Enter the penal sum the IRS set and file Form 928 the same day.

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