heres the real deal on a federal level...myths busted
http://www.revenue.state.il.us/legal...mf/mf01-16.pdf

 

hardcore judge there.

 

http://www.paclp.com/product/PetroSp...ec/DTcolor.pdf
how they do it. only can be dipped to tell

 

Will that machine be able to tell the difference between ATF and the "dyed fuel" ? NOT that I run ATF, but heard of some that do.

 

That's only the Illinois penalty. They are still subject to IRS penalty.

http://www.irs.gov/publications/p510/ch01.html#d0e1727
Go down to the heading Dyed Diesel Fuel and Dyed Kerosene

I didn't want to paste the entire thing.

The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. After the first violation, the $1,000 portion of the penalty increases depending on the number of violations.

This penalty is in addition to any tax imposed on the fuel.

If the penalty is imposed, each officer, employee, or agent of a business entity who willfully participated in any act giving rise to the penalty is jointly and severally liable with that entity for the penalty.

 

Read closer, the penalty you quote only applies to people who fraudulently sell red fuel as taxed or don't post that the fuel is untaxed.
I've never heard of anyone having to pay the IRS, just the state.
"Any seller that fails to post the required notice under item (2) is presumed to know that the fuel will be used for a taxable use (a use other than a nontaxable use listed later). That seller is subject to the penalty described next."

 

Do not run ATF in your diesel. It has additive that will leave deposits. They may have done it in the 'day' but our diesels don't like it.