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Association Questions Dyed Diesel Fuel Penalty Provision.

DEC. 2, 1993

Association Questions Dyed Diesel Fuel Penalty Provision.

DATED DEC. 2, 1993
DOCUMENT ATTRIBUTES
  • Authors
    West, Tom
  • Institutional Authors
    National Association of Texaco Wholesalers Inc.
  • Cross-Reference
    PS-52-93
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    fuel, diesel
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 93-12709
  • Tax Analysts Electronic Citation
    93 TNT 255-52
====== SUMMARY ======

Tom West of the National Association of Texaco Wholesalers Inc., Springfield, Va., has questioned whether a marketer may blend clear kerosene with dyed diesel fuel without being subject to a penalty. West points out that many marketers blend kerosene into diesel fuel as a thinner during the winter months to keep it flowing.

====== FULL TEXT ======

December 2, 1993

Mr. Frank Boland

 

Internal Revenue Service

 

CC:DOM:CORP:T:R (PS-52-93)

 

Room 5228, P.O. Box 7604

 

Ben Franklin Station

 

Washington, D.C. 20044

Dear Frank:

Reference our recent telephone conversation concerning the blending of clear kerosene with dyed diesel fuel after January 1, 1994. Many marketers blend kerosene into diesel fuel as a thinner during the winter months to keep it flowing. The new Section 6714 of the IRS Code imposes a penalty if "any person willfully alters, or attempts to alter, the strength or composition of any dye or marker in any diesel fuel." Blending clear kerosene with dyed diesel appears to violate this provision.

Question: How may a marketer blend the kerosene without causing a violation?

We would appreciate your prompt response, since blending the kerosene is essential for both heating purposes and for use in tax- exempt vehicles, such as school buses, during the winter months in cold weather states.

Sincerely,

Tom West

 

Executive Vice President

 

National Association of Texaco

 

Wholesalers, Inc.

 

Springfield, Virginia
DOCUMENT ATTRIBUTES
  • Authors
    West, Tom
  • Institutional Authors
    National Association of Texaco Wholesalers Inc.
  • Cross-Reference
    PS-52-93
  • Code Sections
  • Subject Area/Tax Topics
  • Index Terms
    fuel, diesel
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 93-12709
  • Tax Analysts Electronic Citation
    93 TNT 255-52
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