26 U.S.C. § 4105 — Two-party exchanges
submitted 22 years ago by Pub. L. 108-357 to r/title-26-INTERNAL-REVENUE-CODE · 163 words · no verdicts yet
In a qualifying two-party exchange, the delivering person is not liable for the specified taxable-fuel tax. The section lists four conditions for such an exchange.
(a) In a two-party exchange, the delivering person is not liable for the tax under section 4081(a)(1)(A)(ii). (b) A "two-party exchange" is a transaction other than a sale in which taxable fuel moves from a registered taxable-fuel delivering person to a registered receiving person, and all these conditions apply: (1) the delivering person holds the terminal inventory position shown in the terminal operator’s records; (2) the exchange occurs before or at the same time as the receiving person finishes removing the fuel across the terminal rack; (3) the terminal operator’s records treat the receiving person as the person who removes the product across the rack for reporting to the Secretary*; and (4) a written contract covers the transaction.
In a two-party exchange, the delivering person shall not be liable for the tax imposed under section 4081(a)(1)(A)(ii).
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:
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.
The exchange transaction occurs before or contemporaneous with completion of removal across the rack from the terminal by the receiving person.
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*.
The transaction is the subject of a written contract.
Source credit: (Added Pub. L. 108–357, title VIII, § 866(a), Oct. 22, 2004, 118 Stat. 1621.)
- 2004Enacted · Pub. L. 108-357 · 118 Stat. 1621
A history note hasn’t been published yet. The record shows enactment by Pub. L. 108-357 on 2004-10-22.
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