Bloomberg Bloomberg
Comprehensive Tax Research. Practitioner to Practitioner. ®

Internal Revenue Code, § 4083. Definitions; Special Rule; Administrative Authority

I.R.C. § 4083(a) Taxable Fuel
For purposes of this subpart—
I.R.C. § 4083(a)(1) In General
The term “taxable fuel” means—
I.R.C. § 4083(a)(1)(A)
gasoline,
I.R.C. § 4083(a)(1)(B)
diesel fuel, and
I.R.C. § 4083(a)(1)(C)
kerosene.
I.R.C. § 4083(a)(2) Gasoline
The term “gasoline”—
I.R.C. § 4083(a)(2)(A)
includes any gasoline blend, other than qualified methanol or ethanol fuel (as defined in section 4041(b)(2)(B)), partially exempt methanol or ethanol fuel (as defined in section 4041(m)(2)), or a denatured alcohol, and
I.R.C. § 4083(a)(2)(B)
includes, to the extent prescribed in regulations—
I.R.C. § 4083(a)(2)(B)(i)
any gasoline blend stock, and
I.R.C. § 4083(a)(2)(B)(ii)
any product commonly used as an additive in gasoline (other than alcohol).
For purposes of subparagraph (B)(i), the term “gasoline blend stock” means any petroleum product component of gasoline.
I.R.C. § 4083(a)(3) Diesel Fuel
I.R.C. § 4083(a)(3)(A) In General
The term “diesel fuel” means—
I.R.C. § 4083(a)(3)(A)(i)
any liquid (other than gasoline) which is suitable for use as a fuel in a diesel-powered highway vehicle, or a diesel-powered train,
I.R.C. § 4083(a)(3)(A)(ii)
transmix, and
I.R.C. § 4083(a)(3)(A)(iii)
diesel fuel blend stocks identified by the Secretary.
I.R.C. § 4083(a)(3)(B) Transmix
For purposes of subparagraph (A), the term “transmix” means a byproduct of refined products pipeline operations created by the mixing of different specification products during pipeline transportation.
I.R.C. § 4083(b) Commercial Aviation
For purposes of this subpart, the term “commercial aviation” means any use of an aircraft in a business of transporting persons or property for compensation or hire by air, unless properly allocable to any transportation exempt from the taxes imposed by sections 4261 and 4271 by reason of section 4281 or 4282 or by reason of subsection (h) or (i) of section 4261. Such term shall not include the use of any aircraft before October 1, 2023, if tax is imposed under section 4043 with respect to the fuel consumed in such use or if no tax is imposed on such use under section 4043 by reason of subsection (c)(5) thereof.
I.R.C. § 4083(c) Certain Uses Defined As Removal
If any person uses taxable fuel (other than in the production of taxable fuels or special fuels referred to in section 4041), such use shall for the purposes of this chapter be considered a removal.
I.R.C. § 4083(d) Administrative Authority
I.R.C. § 4083(d)(1) In General
In addition to the authority otherwise granted by this title, the Secretary may in administering compliance with this subpart, section 4041, and penalties and other administrative provisions related thereto—
I.R.C. § 4083(d)(1)(A)
enter any place at which taxable fuel is produced or is stored (or may be stored) for purposes of—
I.R.C. § 4083(d)(1)(A)(i)
examining the equipment used to determine the amount or composition of such fuel and the equipment used to store such fuel,
I.R.C. § 4083(d)(1)(A)(ii)
taking and removing samples of such fuel, and
I.R.C. § 4083(d)(1)(A)(iii)
inspecting any books and records and any shipping papers pertaining to such fuel, and
I.R.C. § 4083(d)(1)(B)
detain, for the purposes referred in subparagraph (A), any container which contains or may contain any taxable fuel.
I.R.C. § 4083(d)(2) Inspection Sites
The Secretary may establish inspection sites for purposes of carrying out the Secretary's authority under paragraph (1)(B).
I.R.C. § 4083(d)(3) Penalty For Refusal Of Entry
I.R.C. § 4083(d)(3)(A) Forfeiture
The penalty provided by section 7342 shall apply to any refusal to admit entry or other refusal to permit an action by the Secretary authorized by paragraph (1), except that section 7342 shall be applied by substituting “$1,000” for “$500” for each such refusal.
I.R.C. § 4083(d)(3)(B) Assessable Penalty
For additional assessable penalty for the refusal to admit entry or other refusal to permit an action by the Secretary authorized by paragraph (1), see section 6717.
(Aug. 16, 1954, ch. 736, 68A Stat. 483; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1906(b)(13)(A), 90 Stat. 1834; Oct. 22, 1986, Pub. L. 99-514, title XVII, 1703(a), 100 Stat. 2776; Pub. L. 103-66, title XIII, Sec. 13242(a), Aug. 10, 1993, 107 Stat. 312; Pub. L. 105-34, title IX, X, Sec. 902(b)(3), 1032(a), Aug. 5, 1997, 111 Stat 788; Pub. L. 109-59, title XI, Sec. 11123(b), Aug. 10, 2005, 119 Stat. 1144; Pub. L. 112-95, title XI, Sec. 1103(b), Feb. 14, 2012, 126 Stat. 11; Pub. L. 114-55, title II, Sec. 202(c)(1), Sept. 30, 2015; Pub. L. 114-141, title II, Sec. 202(c)(1), Mar. 30, 2016; Pub. L. 114-190; title I, Sec. 1202(c)(1), July 15, 2016; Pub. L. 115-63, title II, Sec. 202(c)(1), Sept. 29, 2017; Pub. L. 115-141, Div. M, title I, Sec. 202(c)(1), Mar. 23, 2018, 132 Stat. 348; 132 Stat. 3164; Pub. L. 115-254, title VIII, Sec. 802(c)(2), Oct. 5, 2018, 132 Stat. 3186.)
BACKGROUND NOTES
AMENDMENTS
2018 - Subsec. (b). Pub. L. 115-254, Sec. 802(c)(2), amended subsec. (b) by substituting “October 1, 2023” for “October 1, 2018”.
Subsec. (b). Pub. L. 115-141, Div. M, Sec. 202(c)(1), amended subsec. (b) by substituting “October 1, 2018” for “April 1, 2018”.
2017 - Subsec. (b). Pub. L. 115–63 , Sec. 202(c)(1), amended subsec. (b) by substituting “April 1, 2018” for “October 1, 2017”.
2016 - Subsec. (b). Pub. L. 114-190, Sec. 1202(c)(1), amended subsec. (b) by substituting “October 1, 2017” for “July 16, 2016”.
Subsec. (b). Pub. L. 114-141, Sec. 202(c)(1), amended subsec. (b) by substituting “July 16, 2016” for “April 1, 2016”.
2015 - Subsec. (b). Pub. L. 114-55, Sec. 202(c)(1), amended subsec. (b) by substituting “April 1, 2016” for “October 1, 2015”.
2012 - Subsec. (b). Pub. L. 112-95, Sec. 1103(b), amended subsec. (b) by adding the sentence at the end.
2005 - Subsec. (b). Pub. L. 109-59, Sec. 11123(a), amended subsec. (b) by substituting “subsection (h) or (i) of section 4261” for “section 4261(h)”.
2004 - Subsec. (a)(2). Pub. L. 108-357, Sec. 301(c)(8), amended par. (2). Before amendment it read as follows:
“(2) Gasoline.--
“The term ‘gasoline’ includes, to the extent prescribed in regulations --
“(A) gasoline blend stocks, and
“(B) products commonly used as additives in gasoline. For purposes of subparagraph (A), the term ‘gasoline blend stock’ means any petroleum product component of gasoline.”
Subsec. (a)(3). Pub. L. 108-357, Sec. 870(a), amended par. (3). Before amendment, it read as follows:
“(3) Diesel fuel.--
“The term ‘diesel fuel’ means any liquid (other than gasoline) which is suitable for use as a fuel in a diesel-powered highway vehicle or a diesel-powered train.”
Subsec. (b)-(d). Pub. L. 108-357, Sec. 853(b), redesignated subsec. (b) and (c) as subsec. (c) and (d), respectively, and added subsec. (b).
Subsec. (d)(1)(A)(i). Pub. L. 108-357, Sec. 858(a), amended clause (i) by striking “and” at the end.
Subsec. (d)(1)(A)(iii). Pub. L. 108-357, Sec. 858(a), added clause (iii).
Subsec. (d)(3). Pub. L. 108-357, Sec. 859(b), amended par. (3) by striking “ENTRY- The penalty” and inserting “ENTRY-(A) FORFEITURE- The penalty” and added subpar. (B).
1997--Subsec. (a)(1)(A)-(C). Pub. L. 105-34, Sec. 1032(a), as amended by Pub. L. 105-206, Sec. 6010(h)(1), amended par. (1) by striking “and” at the end of subpar. (A); substituting “, and” for “.” at the end of subpar. (B); and adding a new subpar. (C).
Subsec. (a)(3). Pub. L. 105-34, Sec. 902(b)(3), amended par. (3) by substituting “or a diesel-powered train” for “, a diesel-powered train, or a diesel-powered boat”.
Subsec. (b). Pub. L. 105-34, Sec. 1032(e)(4), amended subsec. (b) by substituting “taxable fuels” for “gasoline, diesel fuel,”.
1993Pub. L. 103-66, Sec. 13242(a), amended section generally. Prior to amendment, it read as follows:
“Sec. 4083. Cross References
“(1) For provisions to relieve farmers from excise tax in the case of gasoline used on the farm for farming purposes, see section 6420.
“(2) For provisions to relieve purchasers of gasoline from excise tax in the case of gasoline used for certain nonhighway purposes, used by local transit systems, or sole for certain exempt purposes, see section 6421.
“(3) For provisions to relieve purchasers of gasoline from excise tax in the case of gasoline not used for taxable purposes, see section 6427.”
1986--Pub. L. 99-514 amended section generally. Prior to amendment, section 4083 “Exemption of sales to producer”, read as follows: “Under regulations prescribed by the Secretary the tax imposed by section 4081 shall not apply in the case of sales of gasoline to a producer of gasoline.”
1976--Pub. L. 94-455 struck out “or his delegate” after “Secretary”.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendment by Sec. 802(c)(2) of Pub. L. 115-254 effective October 5, 2018.
Amendment by Sec. 202(c)(1) of Pub. L. 115-141, Div. M, effective March 23, 2018.
EFFECTIVE DATE OF 2017 AMENDMENT
Amendment by Sec. 202(c)(1) of Pub. L. 115–63 effective September 29, 2017.
EFFECTIVE DATE OF 2016 AMENDMENT
Amendment by Sec. 1202(c) of Pub. L. 114-190 effective on the date of the enactment of this Act [Enacted: July 15, 2016].
Amendment by Sec. 202(c) of Pub. L. 114-141 effective on the date of the enactment of this Act [Enacted: Mar. 30, 2016].
EFFECTIVE DATE OF 2015 AMENDMENT
Amendment by Sec. 202(c) of Pub. L. 114-55 effective on the date of the enactment of this Act [Enacted: Sept. 30, 2015].
EFFECTIVE DATE OF 2012 AMENDMENT
Amendment by Sec. 1103(b) of Pub. L. 112-95 effective for uses of aircraft after March 31, 2012.
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by Sec. 11123(b) of Pub. L. 109-59 effective for transportation beginning after September 30, 2005.
EFFECTIVE DATE OF 2004 AMENDMENTS
Amendments by Sec. 301(c) of Pub. L. 108-357 effective for fuel sold or used after December 31, 2004.
Amendments by Sec. 853 of Pub. L. 108-357 effective for aviation-grade kerosene removed, entered, or sold after December 31, 2004.
Amendments by Sec. 858 of Pub. L. 108-357 effective on the date of the enactment of this Act [Enacted: Oct. 22, 2004].
Amendments by Sec. 859 of Pub. L. 108-357 effective January 1, 2005.
Amendment by Sec. 870(a) of Pub. L. 108-357 effective for fuel removed, sold or used after December 31, 2004.
EFFECTIVE DATE OF 1997 AMENDMENTS
Amendment by Sec. 902(b)(3) of Pub. L. 105-34 effective on January 1, 1998.
Amendment by Sec. 1032 of Pub. L. 105-34 effective on July 1, 1998. Sec. 1032(g) of Pub. L. 105-34 provided that:
“(g) Floor Stock Taxes.--
(1) Imposition of tax.--In the case of kerosene which is held on July 1, 1998, by any person, there is hereby imposed a floor stocks tax of 24.4 cents per gallon.
(2) Liability for tax and method of payment.--
(A) Liability for tax.--A person holding kerosene on July 1, 1998, to which the tax imposed by paragraph (1) applies shall be liable for such tax.
(B) Method of payment.--The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe.
(C) Time for payment.--The tax imposed by paragraph (1) shall be paid on or before August 31, 1998.
(3) Definitions.--For purposes of this subsection--
(A) Held by a person.--Kerosene shall be considered as “held by a person” if title thereto has passed to such person (whether or not delivery to the person has been made).
(B) Secretary.--The term “Secretary” means the Secretary of the Treasury or his delegate.
(4) Exception for exempt uses.--The tax imposed by paragraph (1) shall not apply to kerosene held by any person exclusively for any use to the extent a credit or refund of the tax imposed by section 4081 of the Internal Revenue Code of 1986 is allowable for such use.
(5) Exception for fuel held in vehicle tank.--No tax shall be imposed by paragraph (1) on kerosene held in the tank of a motor vehicle or motorboat.
(6) Exception for certain amounts of fuel.--
(A) In general.--No tax shall be imposed by paragraph (1) on kerosene held on July 1, 1998, by any person if the aggregate amount of kerosene held by such person on such date does not exceed 2,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this paragraph.
(B) Exempt fuel.--For purposes of subparagraph (A), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (4) or (5).
(C) Controlled groups.--For purposes of this paragraph--
(i) Corporations.--
(I) In general.--All persons treated as a controlled group shall be treated as 1 person.
(II) Controlled group.--The term “controlled group" has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase “more than 50 percent” shall be substituted for the phrase “at least 80 percent" each place it appears in such subsection.
(ii) Nonincorporated persons under common control.--Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation.
(7) Coordination with section 4081.--No tax shall be imposed by paragraph (1) on kerosene to the extent that tax has been (or will be) imposed on such kerosene under section 4081 or 4091 of such Code.
(8) Other laws applicable.--All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of such Code shall, insofar as applicable and not inconsistent with the provisions of this subsection, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4081.”
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103-66, Sec. 13242(a), effective January 1, 1994.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to gasoline removed (as defined in section 4082 of this title as amended by section 1703 of Pub. L. 99-514) after Dec. 31, 1987, see section 1703(h) of Pub. L. 99-514 set out as a note under section 4081 of this title.
EXTENSION OF TAXES FUNDING THE AIRPORT AND AIRWAY TRUST FUND
Sec. 5(b) of Pub. L. 115-250 provided that:
“(b) Section 4083(b) of such Code shall be applied by substituting ‘‘October 8, 2018’’ for ‘‘October 1, 2018’’.”
PRIOR PROVISIONS
A prior section 4084, added Apr. 2, 1956, ch. 160, 4(a)(1), 70 Stat. 90, and amended June 29, 1956, ch. 462, title II, 208(e)(1), 70 Stat. 396, contained cross references, prior to the general amendment of this subpart by Pub. L. 99-514, 1703(a).