Kerosene Tax; Aviation Fuel Tax; Tax on
Heavy Trucks & Trailers
DEPARTMENT OF THE TREASURY
Internal Revenue Service 26 CFR Parts 48, 145, and 602 [T.D. 8774]
RIN 1545-AW15
TITLE: Kerosene Tax; Aviation Fuel Tax; Tax on Heavy Trucks and
Trailers
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Temporary regulations.
SUMMARY: This document contains temporary regulations relating to
the kerosene and aviation fuel excise taxes and the tax on the first
retail sale of certain tractors and truck, trailer, and semitrailer
chassis and bodies (heavy vehicles). The regulations provide rules
for the kerosene tax, the refund available to certain aviation
producers, and the tax on heavy vehicles. The regulations relating
to kerosene affect the tax liability of certain industrial users,
refiners, terminal operators, throughputters, and persons that sell,
buy, or use kerosene. The regulations relating to aviation fuel
affect certain producers, retailers, and users of aviation fuel. The
regulations relating to the tax on heavy vehicles affect vehicle
manufacturers and dealers. The text of these regulations also serves
as the text of the proposed regulations set forth in the notice of
proposed rulemaking on this subject in the Proposed Rules section of
this issue of the Federal Register.
DATES: These regulations are effective July 1, 1998. For dates of
applicability, see §§48.4082-6T, 48.4082-7T(b), 48.4082-8T(f),
48.4082-9T(b), 48.4091-3T(f), 48.4101-3T(e), 48.6427-10T(c),
48.6427-11T(g), and 145.4052-1(a)(2)(ii).
FOR FURTHER INFORMATION CONTACT: Frank Boland (202) 622-3130 (not a
toll-free call).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
These temporary regulations are being issued without prior notice
and public procedure pursuant to the Administrative Procedure Act (5
U.S.C. 553). For this reason, the collection of information
contained in these regulations has been reviewed and, pending
receipt and evaluation of public comments, approved by the Office of
Management and Budget under control number 1545- 1608. Responses to
this collection of information are required to obtain a tax benefit.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid OMB control number.
For further information concerning this collection of information,
and where to submit comments on the collection of information and
the accuracy of the estimated burden, and suggestions for reducing
this burden, please refer to the preamble to the notice of proposed
rulemaking in the Proposed Rules section of this issue of the
Federal Register.
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns
and tax return information are confidential, as required by 26
U.S.C. 6103.
Background
This document contains amendments to excise tax regulations (26 CFR
parts 48 and 145) that implement certain changes made by the
Taxpayer Relief Act of 1997 (the 1997 Act) relating to taxes on
kerosene, aviation fuel, and heavy vehicles.
Kerosene; the 1997 Act
Section 4081 imposes a tax on certain removals, entries, and sales
of taxable fuel. Before July 1, 1998, taxable fuel means gasoline
and diesel fuel. As of that date, however, the definition of taxable
fuel is expanded by the 1997 Act to include kerosene. Thus, after
June 30, 1998, tax is imposed on the removal of kerosene from a
terminal at the terminal rack.
In addition, the 1997 Act extends the rules for the exemption of
dyed diesel fuel to dyed kerosene. Thus, tax is not imposed on
kerosene that (1) the IRS determines is destined for a nontaxable
use (such as for heating), (2) is indelibly dyed in accordance with
IRS regulations, and (3) meets any marking requirements that may be
prescribed in regulations.
Also, the 1997 Act provides that undyed kerosene that is destined
for a nontaxable use may be removed, entered, or sold tax free in
three situations. First, in the case of aviation-grade kerosene,
dyeing is not required if the kerosene is received by a person that
is registered by the IRS for purposes of the aviation fuel tax
imposed by section 4091. Second, dyeing is not required for
feedstock kerosene that is received from a pipeline or vessel by a
registered kerosene feedstock user.
Kerosene used as a feedstock by other persons is exempt from the
dyeing requirement to the extent provided by regulations.
Finally, to the extent prescribed by regulations, dyeing is not
required if kerosene is received by a registered wholesale
distributor that sells kerosene exclusively to ultimate vendors that
sell kerosene from a pump that is not suitable for use in fueling
any diesel-powered highway vehicle or train (a blocked pump).
The 1997 Act adds section 4101(e) to provide that a terminal for
kerosene or diesel fuel cannot be an approved terminal unless the
operator of the terminal offers dyed diesel fuel and dyed kerosene
for removal for nontaxable use. This provision is not applicable
until July 1, 2000.
The 1997 Act generally applies to kerosene the credit and refund
rules that apply to diesel fuel. Thus, a credit or refund is
allowable to a registered ultimate vendor that sells taxed, undyed
kerosene for use on a farm for farming purposes or for the exclusive
use of a state or local government. In addition, a credit or refund
is allowable to a registered ultimate vendor that sells taxed,
undyed kerosene from a blocked pump or, to the extent provided by
the Secretary of the Treasury, for blending with heating oil to be
used during periods of extreme or unseasonable cold.
Kerosene; explanation of provisions
Because kerosene is classified as a taxable fuel as of July 1, 1998,
the rules (including definitions) in the existing regulations that
apply to taxable fuel generally apply to kerosene.
The temporary regulations define kerosene as the kerosene described
in ASTM Specification D 3699 (No. 1-K and No. 2-K) and ASTM
Specification D 1655 (kerosene-type jet fuel).
Under the temporary regulations, tax is not imposed on the removal,
entry, or sale of kerosene that is dyed with dye of the same
strength and composition that is now required for diesel fuel. Also,
every retail pump where dyed kerosene is sold must display a
prescribed notice similar to the one now required on dyed diesel
fuel pumps.
Under the temporary regulations, tax generally is not imposed on
aviation-grade kerosene if the person that receives the kerosene in
a transaction otherwise subject to tax (such as a person that buys
kerosene at a terminal rack) is registered with respect to the
section 4091 tax and, for sales after September 30, 1998, certifies
that the kerosene will be used as a fuel in an aircraft. These
buyers include registered aviation fuel producers (that is, persons
with IRS registration numbers with an "H" suffix) and registered
commercial airlines.
Transitional rules provide that tax generally is not imposed on
aviation-grade kerosene that is destined for use as aviation fuel if
an unregistered person (such as a fixed-base operator) receives the
kerosene at a terminal rack and certifies (for sales after September
30, 1998) that the kerosene will be used as a fuel in an aircraft.
The Treasury Department is considering whether this provision should
be made a part of the final regulations, or whether persons that are
presently unregistered should be required to register in order to
receive aviation-grade kerosene tax free and requests comments on
this issue. Comments may be submitted in the manner described under
the ADDRESSES caption in the notice of proposed rulemaking on these
subjects in the Proposed Rules section of this issue of the Federal
Register.
The temporary regulations describe the conditions under which a
registered ultimate vendor may be eligible for a credit or refund
with respect to taxed kerosene that it sells from a blocked pump. A
blocked pump is defined as a fuel pump that is at a fixed location
and that cannot be used to fuel any diesel-powered highway vehicle
or train. Also, blocked pumps must display a prescribed notice.
The temporary regulations do not provide rules for the following:
(1) the exception from the dyeing requirement for kerosene that is
removed from a terminal for use as a feedstock, (2) the exception
from the dyeing requirement for kerosene that is received by a
registered wholesale distributor that sells kerosene exclusively to
ultimate vendors that sell kerosene from a blocked pump, (3) the
availability of a credit or refund to a registered ultimate vendor
that sells kerosene for blending with heating oil to be used during
periods of extreme or unseasonable cold, and (4) the requirement
that a terminal for kerosene or diesel fuel cannot be an approved
terminal unless the operator of the terminal offers dyed diesel fuel
and dyed kerosene for removal for nontaxable use. Comments are also
requested on these issues. Comments may be submitted in the manner
described under the ADDRESSES caption in the notice of proposed
rulemaking on these subjects in the Proposed Rules section of this
issue of the Federal Register.
Aviation fuel
The 1997 Act added section 4091(d), which allows a registered
aviation fuel producer (including a registered wholesale
distributor) to obtain a refund of tax previously paid on aviation
fuel that it buys. The temporary regulations describe the procedures
to be followed for the allowance of this refund. These procedures
are similar to the procedures under section 4081(e) for refunds
relating to taxable fuel on which two taxes have been paid.
Registration of heavy vehicle manufacturers and retailers The tax on
the sale of heavy vehicles imposed by section 4051 is a tax that
applies to the first retail sale by the manufacturer, importer, or
retailer of a vehicle. The tax is not imposed if a vehicle is sold
for resale or for lease on a long-term basis. Under existing
regulations, this tax-free treatment applies only if both the seller
and the buyer are registered by the IRS. Under the 1997 Act,
however, the Treasury Department is to revise those regulations so
that those sales may be made tax free even if the parties have not
been registered by the IRS.
These temporary regulations generally provide that a person, such as
a vehicle manufacturer, may sell a vehicle tax free if it accepts
from its buyer, such as a vehicle retailer, a prescribed statement,
signed under penalties of perjury, stating that the buyer will
resell the vehicle or lease it on a long-term basis.
Neither party will be required to be registered.
The temporary regulations do not affect the registration
requirements for tax-free sales under section 4221, such as sales
for the exclusive use of a state or local government.
Special Analyses
It has been determined that this Treasury decision is not a
significant regulatory action as defined in EO 12866. Therefore, a
regulatory assessment is not required. It also has been determined
that section 553(b) of the Administrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regulations.
It is hereby certified that the collection of information in these
regulations will not have a significant economic impact on a
substantial number of small entities. This certification is based
upon the fact that the time required to prepare and submit the
exemption certificates described in these regulations (many of which
are similar to certificates that are already in use) is minimal and
will not have a significant impact on those small entities that
choose to provide the certificates. Therefore, a Regulatory
Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required. Pursuant to section 7805(f) of the
Internal Revenue Code, these temporary regulations will be submitted
to the Chief Counsel for Advocacy of the Small Business
Administration for comment on their impact on small business.
Drafting Information
The principal author of these regulations is Frank Boland, Office of
the Assistant Chief Counsel (Passthroughs and Special Industries),
IRS. However, other personnel from the IRS and Treasury Department
participated in their development.
List of Subjects
26 CFR Parts 48 and 145 Excise taxes, Reporting and recordkeeping
requirements.
26 CFR Part 602 Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations Accordingly, 26 CFR parts
48, 145, and 602 are amended as follows:
PART 48--MANUFACTURERS AND RETAILERS EXCISE TAX REGULATIONS
Paragraph 1. The authority citation for part 48 is amended by adding
entries in numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Sections 48.4082-6T, 48.4082-7T, and 48.4082-8T also issued under 26
U.S.C. 4082 * * *
Section 48.4101-3 also issued under 26 U.S.C. 4101(a) * * *
Sections 48.6427-10T and 48.6427-11T also issued under 26 U.S.C.
6427(n) * * *
Par. 2. Section 48.4081-1T is added to read as follows:
§48.4081-1T Taxable fuel; definitions (temporary).
(a) [Reserved]
(b) Definitions.
Kerosene means, after June 30, 1998,--
(1) The two grades of kerosene (No. 1-K and No. 2-K) described in
ASTM Specification D 3699; and
(2) Kerosene-type jet fuel described in ASTM Specification D 1655
and military specifications MIL-T-5624R and MIL-T-83133D (Grades
JP-5 and JP-8). For availability of ASTM and military specification
material, see §48.4081-1(c)(2)(i).
Par. 3. Sections 48.4082-6T, 48.4082-7T, 48.4082-8T, 48.4082-9T, and
48.4082-10T are added to read as follows:
§48.4082-6T Kerosene; treatment as diesel fuel in certain cases
(temporary).
For purposes of §§48.4081-1(b) (the definition of taxable fuel),
48.4081-2(c), 48.4082-1, 48.4082-4, and 48.4082-5, after June 30,
1998, diesel fuel includes kerosene.
§48.4082-7T Kerosene; notice required with respect to dyed kerosene
(temporary).
(a) In general. A legible and conspicuous notice stating:
"DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE" must
be posted by a seller on any retail pump or other delivery facility
where it sells dyed kerosene for use by its buyer. Any seller that
fails to post the required notice on any retail pump or other
delivery facility where it sells dyed kerosene is, for purposes of
the penalty imposed by section 6715, presumed to know that the fuel
will not be used for a nontaxable use.
(b) Effective date. This section is applicable after June 30, 1998.
§48.4082-8T Kerosene; exemption for aviation-grade kerosene
(temporary).
(a) Overview. This section provides rules for exempting aviation-
grade kerosene from the tax imposed by section 4081.
Generally, under prescribed conditions, tax is not imposed on a
removal, entry, or sale of aviation-grade kerosene if the kerosene
is destined for use as a fuel in an aircraft.
(b) Definition.
Aviation-grade kerosene means kerosene-type jet fuel described in
ASTM Specification D 1655 and military specifications MIL-T-5624R
and MIL-T-83133D (Grades JP-5 and JP-8). For availability of ASTM
and military specification material, see §48.4081-1(c)(2)(i).
(c) Removals and entries not in connection with sales. Tax is not
imposed by section 4081 on the removal or entry not in connection
with a sale of aviation-grade kerosene if--
(1) The person otherwise liable for tax is a taxable fuel
registrant;
(2) In the case of a removal from a terminal, the terminal is an
approved terminal; and
(3) The kerosene will be used as fuel in an aircraft and--
(i) The person otherwise liable for tax subsequently delivers the
kerosene into the fuel supply tank of an aircraft or is registered
under section 4101 with respect to the tax imposed by section 4091;
or
(ii) The section 4091 tax has been imposed on the kerosene.
(d) Removals and entries in connection with sales. Tax is not
imposed under section 4081 on the removal or entry of aviation-grade
kerosene in connection with a sale if--
(1) The person otherwise liable for tax is a taxable fuel
registrant;
(2) In the case of a removal from a terminal, the terminal is an
approved terminal; and
(3) The kerosene will be used as fuel in an aircraft and--
(i) The buyer is registered under section 4101 with respect to the
tax imposed by section 4091;
(ii) The buyer is buying for its use in a nontaxable use (as defined
in section 4092(a)); or
(iii) The section 4091 tax is, or has been, imposed on the kerosene.
(e) Evidence under paragraph (d)(3)--(1) In general--(i) Sales
before October 1, 1998. For sales before October 1, 1998, the
requirements of paragraph (d)(3) of this section will be considered
to have been met if the person otherwise liable for tax has an
unexpired certificate (described in this paragraph (e)) from the
buyer and has no reason to believe that any information in the
certificate is false.
(ii) Sales after September 30, 1998. For sales after September 30,
1998, the requirements of paragraph (d)(3) of this section are met
only if the person otherwise liable for tax has an unexpired
certificate (described in this paragraph (e)) from the buyer and has
no reason to believe that any information in the certificate is
false.
(2) Certificate. The certificate to be provided by a buyer of
aviation-grade kerosene is a statement signed under penalties of
perjury by a person with authority to bind the buyer, in
substantially the same form as the model certificate provided in
paragraph (e)(4) of this section, and that contains all information
necessary to complete the model certificate. A new certificate or
notice that the correct certificate is invalid must be given if any
information in the current certificate changes. The certificate may
be included as part of any business records normally used to
document a sale. The certificate expires on the earliest of the
following dates:
(i) The date one year after the effective date of the certificate
(which may be no earlier than the date it is signed).
(ii) The date the buyer provides a new certificate or notice that
the current certificate is invalid to the seller.
(iii) The date the seller is notified by the Internal Revenue
Service or the buyer that the buyer's right to provide a certificate
has been withdrawn.
(3) Withdrawal of the right to provide a certificate. The Internal
Revenue Service may withdraw the right of a buyer of aviation-grade
kerosene to provide a certificate under this section if the buyer
uses or disposes of aviation-grade kerosene to which a certificate
applies other than as a fuel in an aircraft. The Internal Revenue
Service may notify any seller to whom the buyer has provided a
certificate that the buyer's right to provide a certificate has been
withdrawn.
(4) Model certificate.
CERTIFICATE OF PERSON BUYING AVIATION-GRADE KEROSENE FOR USE AS A
FUEL IN AN AIRCRAFT (To support tax-free removals and entries of
aviation-grade kerosene under section 4081 of the Internal Revenue
Code.) Name, address, and employer identification number of seller
("Buyer") certifies the following under Name of Buyer penalties of
perjury:
The aviation-grade kerosene to which this certificate relates will
be used as fuel in an aircraft.
Buyer is (check one):
Registered under section 4101 of the Internal Revenue Code with
respect to the tax imposed by section 4091 with a registration
number of .
Buying the kerosene for its use in a nontaxable use (as defined in
section 4092(a)).
Buying the kerosene for its use (other than a nontaxable use) in
commercial aviation (as defined in section 4092(b)).
Buying the kerosene for its use (other than a nontaxable use) in
noncommercial aviation (as defined in section 4041(c)(2)).
Buying the kerosene for resale.
This certificate applies to the following (complete as applicable):
If this is a single purchase certificate, check here and enter:
1. Invoice or delivery ticket number
2. (number of gallons) If this is a certificate covering all
purchases under a specified account or order number, check here and
enter:
1. Effective date
2. Expiration date (period not to exceed 1 year after the effective
date)
3. Buyer account or order number Buyer will provide a new
certificate to the seller if any information in this certificate
changes.
Buyer understands that if Buyer violates the terms of this
certificate, the Internal Revenue Service may withdraw Buyer's right
to provide a certificate.
Buyer has not been notified by the Internal Revenue Service that its
right to provide a certificate has been withdrawn.
Buyer understands that the fraudulent use of this certificate may
subject Buyer and all parties making any fraudulent use of this
certificate to a fine or imprisonment, or both, together with the
costs of prosecution.
Printed or typed name of person signing Title of person signing
Employer identification number Address of Buyer Signature and date
signed (f) Effective date. This section is applicable after June 30,
1998.
48.4082-9T Kerosene; exemption for non-fuel feedstock purposes
(temporary).
(a) In general. Tax is not imposed under section 4081 and
§48.4081-3(e)(1) if, upon the removal of kerosene from a pipeline or
vessel, the kerosene is received by a taxable fuel registrant that
is a kerosene feedstock user. For this purpose, a kerosene feedstock
user is a person that receives kerosene by bulk transfer for its own
use in the manufacture or production of any substance (other than
gasoline, diesel fuel, or special fuels referred to in section
4041).
(b) Effective date. This section is applicable after June 30, 1998.
§48.4082-10T Kerosene; additional exemption from floor stocks tax
(temporary).
The floor stocks tax imposed by section 1032(g) of the Taxpayer
Relief Act of 1997 does not apply to kerosene that satisfies the
dyeing requirements of §48.4082-1(b) by the earlier of--
(a) September 30, 1998; or
(b) The time the kerosene is sold by the person otherwise liable for
the floor stocks tax.
Par. 4. Section 48.4091-3T is added to read as follows:
§48.4091-3T Aviation fuel; conditions to allowance of refunds of
aviation fuel tax under section 4091(d) (temporary).
(a) Overview. This section provides the conditions under which a
refund of tax imposed by section 4091 is allowable with respect to
taxed aviation fuel that is held by a registered aviation fuel
producer. No credit against any tax imposed by the Internal Revenue
Code is allowed under section 4091(d).
(b) Conditions to allowance of refund. A claim for refund of tax
imposed by section 4091 with respect to aviation fuel is allowed
under section 4091(d) and this section only if--
(1) A tax imposed by section 4091 with respect to the aviation fuel
was paid to the government by an importer or producer (the first
producer) and the tax has not been otherwise credited or refunded;
(2) After imposition of the tax, the aviation fuel is acquired by a
person that is a registered aviation fuel producer (the second
producer);
(3) The second producer has filed a timely claim for refund that
contains the information required under paragraph (d) of this
section; and
(4) The first producer and any person that owns the fuel after its
sale by the first producer and before its purchase by the second
producer (a subsequent seller) have met the reporting requirements
of paragraph (c) of this section.
(c) Reporting requirements--(1) In general. The reporting
requirements of this paragraph (c)(1) are met if the first producer
files a report (the first producer's report) that--
(i) Is in substantially the same form as the model report provided
in paragraph (c)(2) of this section (or such other model report as
the Commissioner may prescribe);
(ii) Contains all information necessary to complete such model
report; and
(iii) Is filed at the time and in the manner prescribed by the
Commissioner.
(2) Model first producer's report.
FIRST PRODUCER'S REPORT
_____________________________________________________
_____________________________________________________
First Producer's name, address, and employer identification number
_____________________________________________________
_____________________________________________________
Buyer's name, address, and employer identification number
_____________________________________________________
Date and location of taxable sale
_____________________________________________________
Volume and type of aviation fuel sold
_____________________________________________________
Amount of federal excise tax paid on account of the sale Under
penalties of perjury, First Producer declares that First Producer
has examined this statement, including any accompanying schedules
and statements, and, to the best of First Producer's knowledge and
belief, it is true, correct and complete.
_______________________________________________________
Printed or typed name of the person signing
_______________________________________________________
Title of person signing
_______________________________________________________
Signature and date signed
(3) Information provided to buyers. The reporting requirements of
this paragraph (c)(3) are met if a first producer that filed a first
producer's report under paragraph (c)(1) of this section gives a
copy of the report to the person to whom the first producer sells
the aviation fuel.
(4) Statement of subsequent seller--(i) In general. The reporting
requirements of this paragraph (c)(4) are met if--
(ii)(A) Each subsequent seller gives to its buyer a copy of a
statement that provides all information (whether or not in the same
format) necessary to complete the model statement prescribed in
paragraph (c)(4)(ii) of this section (or such other model statement
as the Commissioner may prescribe); and
(B) The statement is provided at the bottom or on the back of the
copy of the first producer's report (or in an attached document).
(iii) Model statement describing subsequent sale.
STATEMENT OF SUBSEQUENT SELLER (AVIATION FUEL)
_____________________________________________________
_____________________________________________________
Name, address, and employer identification number of seller in
subsequent sale
_____________________________________________________
_____________________________________________________
Name, address, and employer identification number of buyer in
subsequent sale
_____________________________________________________
Date and location of subsequent sale
_____________________________________________________
Volume and type of aviation fuel sold The undersigned seller (the
Seller) has received the copy of the first producer's report
provided with this statement in connection with Seller's purchase of
the aviation fuel described in this statement.
Under penalties of perjury, Seller declares that Seller has examined
this statement, including any accompanying schedules and statements,
and, to the best of Seller's knowledge and belief, it is true,
correct and complete.
_______________________________________________________
Printed or typed name of person signing
_______________________________________________________
Title of person signing
_______________________________________________________
Signature and date signed
(5) Sale to multiple buyers. If a first producer's report relates to
aviation fuel that is divided among more than one buyer, multiple
copies of the first producer's report should be made at the stage
that the aviation fuel is divided and a copy given to each buyer.
The reporting requirements of this paragraph (c) will be met only
with respect to the fuel purchased by buyers that are given a copy
of the report including any statement required under paragraph (c)
(4) of this section.
(d) Form and content of claim--(1) In general. The following rules
apply to claims for refund under section 4091(d):
(i) The claim must be made by the second producer and must include
all the information described in paragraph (d)(2) of this section.
(ii) The claim must be made on Form 8849 (or such other form as the
Commissioner may designate) in accordance with the instructions on
the form. The form should be marked Section 4091(d) Claim at the
top. Section 4091(d) claims must not be included with a claim for a
refund under any other provision of the Internal Revenue Code.
(2) Information to be included in the claim. Each claim for a refund
under section 4091(d) must contain the following information with
respect to the aviation fuel covered by the claim:
(i) Volume and type of aviation fuel.
(ii) Date on which the second producer acquired the aviation fuel to
which the claim relates.
(iii) Amount of tax that the first producer paid to the government
and a statement that the second producer has not included the amount
of that tax in the sales price of the aviation fuel to which the
claim relates and has not collected that amount from the person that
bought the aviation fuel from the second producer, if any.
(iv) Name, address, and employer identification number of the first
producer that paid the tax to the government.
(v) A copy of the first producer's report that relates to the
aviation fuel covered by the claim.
(vi) A copy of any statement of a subsequent seller that the second
producer received with respect to that aviation fuel.
(e) Time for filing claim. A claim for refund under section 4091(d)
may be filed any time after the first producer has filed the return
of the tax to which the claim relates and before the end of the
period prescribed by section 6511 for the filing of a claim for
refund of that tax.
(f) Effective date. This section is applicable with respect to
refunds of tax imposed by section 4091 after December 31, 1998.
Par. 5. Section 48.4101-2T is added to read as follows:
§48.4101-2T Information reporting (temporary).
(a)(1) through (a)(3). [Reserved]
(a)(4) Registered aviation fuel producers. After June 30, 1999, each
person that is registered under section 4101 as a producer of
aviation fuel must make a return showing--
(i) The name and employer identification number of each unregistered
person to whom it sold aviation fuel for resale;
(ii) The volume of the aviation fuel sold to such persons;
(iii) The date and location of such sales; and
(iv) Any other information required by the Commissioner.
(b) through (d). [Reserved] Par. 6. Section 48.4101-3T is added to
read as follows:
§48.4101-3T Registration; special rules for kerosene (temporary).
(a) Application of §48.4101-1. The references to diesel fuel in
§§48.4101-1(a)(1) and (f)(1)(ii) are treated as references to either
diesel fuel or kerosene, and the references in §§48.4101-1(b)(5)(i)
and (f)(2) to paragraphs (c)(1) or (d) of §48.4101-1 are treated as
references also to paragraph (c) of this section.
(b) Transitional registration rule--(1) In general. A person is
treated as a taxable fuel registrant if, on June 30, 1998, the
person--
(i) Is an enterer, refiner, terminal operator, or throughputter of
kerosene and is registered under section 4101 as a producer or
importer of aviation fuel; or
(ii) Operates one or more terminals that store kerosene (and no
other type of taxable fuel) and each position holder at each of its
terminals is a taxable fuel registrant.
(2) Termination. A person treated as registered under this paragraph
(b) is treated as registered until the earlier of--
(i) The effective date of a registration issued under §48.4101-1(g)
(3) with respect to kerosene;
(ii) The effective date of a revocation or suspension of
registration under §48.4101-1(i); or
(iii) April 1, 1999.
(c) Persons that may, but are not required to, be registered. A
person may, but is not required to, be registered under section 4101
with respect to the tax imposed by section 4081 if the person is a
kerosene feedstock user (defined in §48.4082-9T).
(d) Additional terms and conditions of registration for certain
terminal operators. A legible and conspicuous notice stating: "DYED
KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE" must be
provided by each terminal operator to any person that receives dyed
kerosene at a terminal rack of that operator. This notice must be
provided by the time of the removal and must appear on all shipping
papers, bills of lading, and similar documents that are provided by
the terminal operator to accompany the removal of the fuel.
(e) Effective date. This section is applicable after June 30, 1998.
Par. 7. Sections 48.6427-10T and 48.6427-11T are added to read as
follows:
§48.6427-10T Claims with respect to kerosene (temporary).
(a) Claims under §48.6427-8--(1) In general. For purposes of
§48.6427-8, diesel fuel includes kerosene.
(2) Blocked pumps. Kerosene is treated as satisfying the conditions
of §48.6427-8(b)(1) only if it was not sold from a blocked pump (as
described in §48.6427-11T(b)).
(b) Claims under §48.6427-9. For purposes of §48.6427-9, diesel fuel
includes kerosene.
(c) Effective date. This section is applicable to kerosene taxed
after June 30, 1998.
§48.6427-11T Special rules for claims by registered ultimate vendors
of kerosene (blocked pump)(temporary).
(a) Overview. This section provides rules relating to claims by
registered ultimate vendors for payments and income tax credits with
respect to kerosene that is sold from a blocked pump. For rules
relating to claims by registered ultimate vendors for kerosene that
is sold for farming use or use by a State, see §§48.6427-9 and
48.6427-10T.
(b) Definition; blocked pump. A blocked pump is a fuel pump that
meets the following conditions:
(1) It is used to dispense undyed kerosene that is sold at retail
for use by the buyer in a nontaxable use.
(2) It is at a fixed location and cannot (because, for example, of
its distance from a road surface or train track or the length of its
delivery hose) be used to dispense fuel directly into the fuel
supply tank of a diesel-powered highway vehicle or train.
(3) It is identified with a legible and conspicuous notice stating:
"UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY".
(c) Conditions to allowance of credit or payment.
Notwithstanding §48.6427-9(c), a claim for a credit or payment with
respect to undyed kerosene is allowable under section 6427(l)(5)(B)
(i) if--
(1) Tax was imposed by section 4081 on the kerosene to which the
claim relates;
(2) The claimant sold the kerosene from a blocked pump;
(3) The claimant is a registered ultimate vendor of kerosene; and
(4) The claimant has filed a timely claim for a credit or payment
that contains the information required under paragraph (e) of this
section.
(d) Form of claim. The rules of §48.6427-9(d) apply to claims filed
under this section.
(e) Content of claim. Each claim for credit or payment under this
section must contain the following information with respect to all
the kerosene covered by the claim:
(1) The total number of gallons covered by the claim.
(2) A statement by the claimant that tax has been imposed on the
kerosene covered by the claim.
(3) The claimant's registration number.
(4) A statement that the claimant has not included the amount of the
tax in its sales price of the kerosene and has not collected the
amount of tax from its buyer.
(f) Time and place for filing claim. The rules of §48.6427- 9(f)
apply to claims filed under this section.
(g) Effective date. This section is applicable June 30, 1998.
PART 145--TEMPORARY EXCISE TAX REGULATIONS UNDER THE HIGHWAY REVENUE
ACT OF 1982 (PUB. L. 97-424)
Par. 8. The authority citation for part 145 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 9. Section 145.4052-1 is amended as follows:
1. Paragraph (a)(2)(ii) is redesignated as paragraph (a)(2)(ii)(A).
2. Paragraph (a)(2)(ii)(A), as redesignated, is amended by removing
the language "Both" and adding "For a sale before July 1, 1998,
both" in its place and removing the language "or" at the end.
3. Paragraph (a)(2)(ii)(B) is added to read as follows:
§145.4052-1 Special rules and definitions.
(a) * * *
(2) * * *
(ii) * * *
(B) For a sale after June 30, 1998, and regardless of the
registration status of the seller or the purchaser, the seller has
in good faith accepted from the purchaser a statement that the
purchaser executed in good faith and that is in substantially the
same form as the certificate described in paragraph (a)(6) of this
section, except that the statement must be signed under penalties of
perjury and need not contain a registration number, or
* * * * *
PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT
Par. 10. The authority citation for part 602 continues to read as
follows:
Authority: 26 U.S.C. 7805.
Par. 11. In §602.101, paragraph (c) is amended by: 1. Removing the
following entry from the table:
§602.101 OMB Control numbers.
* * * * *
(c) * * *
CFR part or section where Current OMB identified and described
control number
* * * * *
145.4052-1.............................1545-0120 1545-0745 1545-1076
* * * * *
2. Adding entries in numerical order to the table to read as
follows:
§602.101 OMB Control numbers.
* * * * *
(c) * * *
CFR part or section where Current OMB identified and described
control number
* * * * *
48.4082-7T.............................1545-1608
48.4082-8T.............................1545-1608
48.4091-3T.............................1545-1608
* * * * *
48.4101-2T.............................1545-1608
48.4101-3T.............................1545-1608
* * * * *
48.6427-11T............................1545-1608
* * * * *
145.4052-1.............................1545-1608
1545-0120
1545-0745
1545-1076
* * * * *
Michael P. Dolan
Deputy Commissioner of Internal Revenue
Approved: June 17, 1998
Donald C. Lubick
Assistant Secretary of the Treasury
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