26 USC 4105: Two-party exchanges
Result 1 of 1
26 USC 4105: Two-party exchanges Text contains those laws in effect on June 13, 2024
From Title 26-INTERNAL REVENUE CODESubtitle D-Miscellaneous Excise TaxesCHAPTER 32-MANUFACTURERS EXCISE TAXESSubchapter A-Automotive and Related ItemsPART III-PETROLEUM PRODUCTSSubpart B-Special Provisions Applicable to Fuels Tax

§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.

(Added Pub. L. 108–357, title VIII, §866(a), Oct. 22, 2004, 118 Stat. 1621 .)

Editorial Notes

Prior Provisions

Prior sections 4111 to 4113, 4121, and 4131 of this title constituted a former subchapter B of this chapter, see Prior Provisions note set out preceding section 4121 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 108–357, title VIII, §866(c), Oct. 22, 2004, 118 Stat. 1622 , provided that: "The amendment made by this section [enacting this section] shall take effect on the date of the enactment of this Act [Oct. 22, 2004]."