Association Questions Dyed Diesel Fuel Penalty Provision.
Association Questions Dyed Diesel Fuel Penalty Provision.
- AuthorsWest, Tom
- Institutional AuthorsNational Association of Texaco Wholesalers Inc.
- Cross-ReferencePS-52-93
- Code Sections
- Subject Area/Tax Topics
- Index Termsfuel, diesel
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 93-12709
- Tax Analysts Electronic Citation93 TNT 255-52
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.
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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
- AuthorsWest, Tom
- Institutional AuthorsNational Association of Texaco Wholesalers Inc.
- Cross-ReferencePS-52-93
- Code Sections
- Subject Area/Tax Topics
- Index Termsfuel, diesel
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 93-12709
- Tax Analysts Electronic Citation93 TNT 255-52