Does the required dyed diesel fuel tax notice have to appear on the front of an invoice, or can it be on the back if the front references it?

Plain-English summary

A dyed diesel fuel seller had, for years, placed the legally required "Dyed Diesel Fuel, Non-taxable Use Only, Penalty For Taxable Use" notice on the BACK of its invoices. After receiving a noncompliance letter, the seller proposed a fix: add a front-page line reading "DETAILED HAZARDOUS MATERIAL, EPA, AND IRS WARNINGS AND INFORMATION ON REVERSE SIDE," pointing customers to the back. The Department's own reviewer rejected that fix, and the seller asked for clarification on what "conspicuous" actually requires under the law.

The Department sided with its own reviewer. Illinois's Motor Fuel Tax Law requires the dyed-diesel notice to be "legible and conspicuous" on every bill of lading and invoice for dyed diesel fuel sales -- but the statute doesn't define "conspicuous." The Department applied Black's Law Dictionary's definition (clearly visible or obvious) and factors from a federal case on conspicuous contract disclosures: type size and boldness, placement on the page, and the relative sophistication of the parties, ultimately asking whether a reasonable person in the buyer's position would be surprised to find the notice where it was placed.

The seller's proposed front-page language failed that test for two reasons. First, it referenced EPA and IRS warnings but never mentioned the Illinois Department of Revenue at all -- so nothing on the front actually flagged that a STATE tax notice was on the back. Second, and more generally, the Department noted that descriptions of the fuel on the front of an invoice should match up with the numbered headings of the warnings on the back, so a reader can tell which warning applies to which product; inconsistent wording, acronyms, or abbreviations throughout the invoice undermine the notice's visibility and defeat "conspicuous" placement even when a reference exists.

What this means for you

Dyed diesel fuel sellers and distributors

Don't rely on a generic "see reverse side for warnings" reference unless it specifically calls out the Illinois Department of Revenue notice by name (or otherwise makes unmistakably clear that the state tax notice is on the back) -- a reference to EPA/IRS warnings alone won't satisfy "conspicuous" for Section 4e purposes. The safest approach remains putting the actual required notice language on the front of the invoice.

Businesses with multi-page or multi-warning invoices generally

If you route ANY required legal notice to a back page or attachment, make sure the front-page reference is specific enough (naming the actual notice/agency) and that headings/product descriptions are consistent between front and back -- generic "additional terms apply" language is a common but risky shortcut that this letter shows the Department scrutinizes closely.

Accountants and compliance professionals for fuel distributors

If a client already received a noncompliance letter over notice placement, know that simply adding a reference elsewhere on the invoice may not cure the problem -- the Department's read here suggests the front-page language must actually flag the SPECIFIC state tax notice, not just generic hazard/tax warnings from other agencies.

Common questions

Q: Can the dyed diesel fuel notice be placed on the back of an invoice instead of the front? A: Not safely, based on this letter -- unless the front of the invoice clearly and specifically flags that the Illinois Department of Revenue's dyed-diesel notice is on the back. A generic reference to EPA/IRS warnings doesn't satisfy that.

Q: What test does the Department use for "conspicuous"? A: Whether a reasonable person in the buyer's position would be surprised to find the notice where it was placed, considering factors like type size/boldness, page placement, and the sophistication of the parties.

Q: Does it matter if the front-page description of the fuel doesn't match the back-page warning headings? A: Yes -- the Department specifically flagged that inconsistent wording, acronyms, or abbreviations between front and back descriptions impede visibility and undermine "conspicuous" placement.

Q: What's the safest way to comply with the notice requirement? A: Put the required "Dyed Diesel Fuel, Non-taxable Use Only, Penalty For Taxable Use" language directly and legibly on the invoice itself, rather than relying on a back-page placement with a front-page cross-reference.

Q: Can I rely on this letter for my own invoice design? A: No. This is a General Information Letter -- not binding on the Department. If you've received a noncompliance notice or are redesigning your invoices, confirm your specific approach with a tax professional.

Citations and references

Statutes:

• 35 ILCS 505/4e (Motor Fuel Tax Law -- required dyed diesel fuel notice)

Other authority cited by the Department:

• Black's Law Dictionary 305 (7th ed. 1999) (definition of "conspicuous")
• Sierra Diesel Injection Service, Inc. v. Burroughs Corp., 890 F.2d 108 (9th Cir. 1989) (conspicuousness factors: type size/boldness, placement, party sophistication)

Source

• Landing page: Illinois 2026 Sales Tax Letter Rulings
• Original PDF: ST-26-0012-GIL.pdf

Original ruling text

ST 26-0012-GIL
04/22/2026 MOTOR FUEL TAX
A legible and conspicuous notice stating “Dyed Diesel Fuel, Non-taxable Use Only, Penalty For Taxable Use” must appear on all bills of lading and invoices accompanying any sale of dyed diesel fuel. 35 ILCS 505/4e. (This is a GIL). April 22, 2026 NAME TITLE COMPANY ADDRESS Dear NAME: This letter is in response to your letter dated March 9, 2026, in which you requested information. The Department issues two types of letter rulings. Private Letter Rulings (“PLRs”) are issued by the Department in response to specific taxpayer inquiries concerning the application of a tax statute or rule to a particular fact situation. A PLR is binding on the Department, but only as to the taxpayer who is the subject of the request for ruling and only to the extent the facts recited in the PLR are correct and complete. Persons seeking PLRs must comply with the procedures for PLRs found in the Department’s regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information Letter (“GIL”) is to direct taxpayers to Department regulations or other sources of information regarding the topic about which they have inquired. A GIL is not a statement of Department policy and is not binding on the Department. See 2 Ill. Adm. Code 1200.120. You may access our website at https://tax.illinois.gov/ to review regulations, letter rulings and other types of information relevant to your inquiry. The nature of your inquiry and the information you have provided require that we respond with a GIL. INQUIRY: I am reaching out on behalf of COMPANY to request a General Information Letter under 2 Ill. Adm. Code 1200.120 regarding the Dyed Diesel Fuel Enforcement Program and the appropriate process for disputing or seeking review of related communications from the Illinois Department of Revenue (the "Department"). On or about October 30, 2025, COMPANY received a letter (Letter ID NUMBER) citing COMPANY's noncompliance with 35 ILCS 505/4e due to the placement of the required dyed diesel notice on the back of its invoices. COMPANY has, for years, placed such notice on the reverse side of its

COMPANY
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April 22, 2026
invoices. However, to remedy the issue and meet the "conspicuous notice" requirement under the statute, COMPANY proposed adding the following statement to the front of its invoices: "DETAILED HAZARDOUS MATERIAL, EPA, AND IRS WARNINGS AND INFORMATION ON REVERSE SIDE." The Revenue Tax Specialist assigned to this matter rejected this proposal, asserting that "conspicuous" requires the dyed diesel notice itself to appear on the front of the invoice. We are writing to request clarification and supporting authority regarding the interpretation of "conspicuous" under 35 ILCS 505/4e. We disagree with the assertion that our invoices fail to meet the statutory standard with the addition of our proposed language. From our review, it appears common within the industry for the required dyed diesel notice to be placed on the back of an invoice as long as a disclaimer to view additional terms on the reverse side is included on the front of the invoice. If the submission of this General Information Letter is not the preferred avenue to obtain clarification of the statute and/or dispute the Revenue Tax Specialist's interpretation of the "conspicuous" term, we ask that you please provide direction on how to proceed with such. We appreciate any guidance the Department can provide on this issue. DEPARTMENT’S RESPONSE: Section 4e of the Motor Fuel Tax Law states that “[a] legible and conspicuous notice stating ‘Dyed Diesel Fuel, Non-taxable Use Only, Penalty For Taxable Use’ must appear on all bills of lading and invoices accompanying any sale of dyed diesel fuel.” 35 ILCS 505/4e. The word “conspicuous” is not defined in Section 4e. Black’s Law Dictionary defines “conspicuous” as clearly visible or obvious. Black’s Law Dictionary 305 (7th ed. 1999). Factors in considering whether a term or clause is conspicuous include type size and boldness, placement such as front or back of the page, and relative sophistication of the parties. Sierra Diesel Injection Service, Inc. v. Burroughs Corp., 890 F.2d 108, 114-115 (9th Cir. 1989) (holding that district court’s finding that the warranty disclaimer clauses were not conspicuous is not erroneous). A reviewing court must ascertain that a reasonable person in the buyer’s position would not have been surprised to find the warranty disclaimer clauses. Id. at 115. Placing language on the front of an invoice advising the purchaser of EPA and IRS warnings without mention of the Illinois Department of Revenue is not a conspicuous display of Section 4e notice. It is not obvious to a reader that Section 4e notice will be on

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April 22, 2026
the reverse side. A reasonable person in the purchaser’s position would be surprised to find a Section 4e notice on the reverse side of such an invoice based on the statements made on the front. Generally, descriptions of fuel purchased on the front of the invoice should match any numbered headings pertaining to the warnings and notices on the back of the invoice for the reader to discern which warnings and notices apply to the purchased fuel. Further, wording, acronyms, and abbreviations used inconsistently throughout the invoice impede the visibility of the pertinent language and decrease the likelihood of its discovery. I hope this information is helpful. If you require additional information, please visit our website at https://tax.illinois.gov/ or contact the Department’s Taxpayer Information Division at 800-732-8866. Very truly yours,

Katarzyna Kowalska
Associate Counsel
KAK:sce

Printed by the authority of the state of Illinois.
Electronic Only - One Copy
Issued 04/22/2026; Redacted 05/26/2026