Internal Revenue Code:Sec. 4105. Two-party exchanges

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle D - Miscellaneous Excise Taxes
       CHAPTER 32 - MANUFACTURERS EXCISE TAXES
        Subchapter A - Automotive and Related Items
         PART III - PETROLEUM PRODUCTS
          Subpart B - Special Provisions Applicable to fuels tax 

Statute

    Sec. 4105. Two-Party Exchanges

    (a) In General.--In a two-party exchange, the delivering person 
       shall not be liable for the tax imposed under section 4081(a)(1)
      (A)(ii).
    (b) Two-Party Exchange.--The term `two-party exchange' means a 
       transaction, other than a sale, in which taxable fuel is 
       transferred from a delivering person registered under section
       4101 as a taxable fuel registrant to a receiving person who is
       so registered where all of the following occur:
            (1) The transaction includes a transfer from the 
       delivering person, who holds the inventory position for taxable 
       fuel in the terminal as reflected in the records of the terminal 
        operator.
            (2) The exchange transaction occurs before or 
        contemporaneous with completion of removal across the rack from 
        the terminal by the receiving person.
            (3) The terminal operator in its books and records treats 
        the receiving person as the person that removes the product
        across the terminal rack for purposes of reporting the 
        transaction to the Secretary.
            (4) The transaction is the subject of a written 
        contract.


        

Sources

     Pub.L.108-357, Sec.866(a), October 2004, created this new section.

References

                            AMENDMENT

      Amendment by Pub.L.108-357, Sec.866(a), added Sec.4105 which
      shall take effect on the date of the enactment of this Act.