BRIGHTON, Mass. -- The Internal Revenue Service apparently has begun passive enforcement of the new red-dyed fuel regulations for motorcoach operators and plans to launch a full-scale nationwide enforcement around the middle of this month.

At least one carrier - Crystal Transport of Brighton - already has had one of its coaches stopped on the highway by the IRS and checked for the marked fuel and a follow up visit by federal agents to its garage the following day.

The inspections occurred during the third week in February.

"It was a real surprise to us because we haven't seen any thing posted to the Federal Register or any enforcement rules," said Kevin Sheehan, general manager of Crystal Transport, adding that he has been waiting for official notification from the IRS that the new regulations are in effect and enforcement would begin.

Although all 50 Crystal coaches had red-dyed fuel in their tanks, the IRS did not fine the company. Instead, the agents acknowledged that there might be a problem with notification regarding the new regulations and they likely would wait until the second or third week in March before beginning their enforcement program nationwide.

"I had heard there was going to be some kind of notification in March, but we haven't heard a thing," said Sheehan. "I would think that everyone who files 720 (tax) forms and fuel suppliers would be on the list for notification."

IRS forms 720-CS and 720-TO are filed by carriers and terminal operators to report fuel usage.

The new law, which became effective Jan. 1, prohibits operators from using red-dyed fuel in coaches that qualify for tax exemptions. Instead, they are required to use fully taxed clear fuel in all of their buses, pay the full tax and then file for refunds of that portion of the tax from which they are exempt.

Violators can be fined a minimum of $1,000 or $10 for each gallon of fuel in their tanks, which ever is larger.

Sheehan said he told the IRS agents who visited his garage he would begin immediately cleaning out his tanks of the red-dyed fuel. "But that's going to take us at least a month to go through it all," he said.

There has been concern throughout the industry that many coaches still would have some of the marked fuel left over in their tanks even though they stopped using it weeks and sometime months earlier.

Many carriers have complained about the rule change because in the past they could hold on to thousands of dollars of their own money before paying the tax each quarter. Under the new rules, they have to pay the full tax whenever they fill up their coaches or storage tanks and then file for a refund later.

"It really is sad to have them change the law this way and have bus companies pay up front because they can't enforce and control the correct use of red-dyed fuel," suggested Sheehan. "It seems they can't do their job with policing it so they have to penalize everybody."