12.7 detroit Waste motor oil wmo for supplemental fuel???

i wouldent try pushing anything very far, for one thing running 80% untaxed fuel is gonna get you in hot water with ifta. if you want to put your 12 gallons of oil into your fuel tanks after a oil change you shoulder have any issues. im also thinking you may have a source of a lot of used oil in witch case you need to consider where its coming from what kind of contaminates may have been dumped in with the used motor oil ect.

 

You can run strait used veg oil if you want. Of course you can use all the umo you want. The problem is going to be the IRS agent at a road side inspection that dips your tank and then wont let you leave. Then the tow and impound. Thats the only REAL problem you will have. The worst engine problem you will get is you have to clear the fuel lines of the mixture you put in that wont run that day. The umo will settle in your tanks after a long time, a week, if you dont agitate it.

 

Cummins used to sell the blender machine. Filtered the oil and mixed it with fuel and pumped it into the tank. But this was the mid 80s . Still got mine. Never want to use on a DPF truck.

 

If you use oil in the fuel tank, it would be taxable under IFTA. Techinacally, the added gallons would increase the total gallons on the return but no tax paid credit would be taken. Of course, in some states that will flag you for an audit. A good audit candidate is one where the tax paid gallons and the taxable gallons don't match. That is an easy calculation that the computer can run and provide a list. Not really a good idea. If you would choose to report the added oil gallons, the recordkeeping would be very difficult to prove and could get the MPG knock down to the standard 4.0 MPG. Not good either.

A systematic addition of oil into fuel without using bulk tanks would be difficult to find and explain in an audit. If the MPG is not high to begin with additional gallons added will not send the vehicle into a MPG that appears unreasonable, anything over 7.00 for a semi. (PLEASE, don't give me the my truck gets more than that. I didn't make up the guidelines.) An average MPG would not flag an issue with the audit. Auditors look for gaps in fuelings. Typically, this would only be caught is if the driver fessed up. (Don't do that!)

For a small company using bulk storage, a small amount of additional fuel would not be questioned. Indiana allowed a variance of 500 gallons per year in bulk gallons, same 500 gallons for all size companies. (Other states, variances limits will vary WIDELY.) That was provided that the company had purchases, fuel logs and quarterly inventory readings. On a large scale trucking operation it may be a little more difficult to get away with since the variances would be over 500 gallons for the year.

One of the question that I always asked if the fleet were over 5 or so was if the trucks were maintained by the business. If so, how are the old fluids disposed of? Most companies quickly said it was picked up by XXX company. If they were not quick with an answer then documentation was asked for. The only reason I did this was because I had a company where the owner told me that all used oil was dumped into the bulk tanks that was why the number of gallons pumped was more than the number of gallons purchased. Most auditor won't ask that question since they haven't had anyone give them that straight forward of answer to bulk variances. If there are more gallons pumped than purchased and the company doesn't have an answer then the variances are just added to the total gallons with no credit. This would not be a big issue on a reasonable percentage since the pumps could be calibrated incorrectly. It is a situation of you having to be audited and the chances are 3% typically. If you get away with it for 10 years and audited for 1 - 2, it wouldn't be a bad bet. Again, don't fess up or you'll be audited for as many years as available (typically 3) and put on the reaudit list.

Of course, I am not advising anyone not to correctly report on your return, just telling you what might happen.