§6720A — Title 26 Internal Revenue Code | U.S. Code

§6720A Penalty with respect to certain adulterated fuels

Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 68— - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES › Subchapter Subchapter B— - Assessable Penalties › Part PART I— - GENERAL PROVISIONS › § 6720A

Last updated Apr 6, 2026|Official source

Summary

Anyone who knowingly sells, transfers for resale, or offers for resale a liquid for diesel highway vehicles or diesel trains that does not meet EPA rules must pay $10,000 for each sale, transfer, or offer, plus any tax. The same $10,000 penalty (plus tax) applies if someone knowingly offers that noncompliant liquid for sale to others (not for resale).

Title 26, §6720A

Internal Revenue Code — Source: USLM XML via OLRC

(a)Any person who knowingly transfers for resale, sells for resale, or holds out for resale any liquid for use in a diesel-powered highway vehicle or a diesel-powered train which does not meet applicable EPA regulations (as defined in section 45H(c)(3)), shall pay a penalty of $10,000 for each such transfer, sale, or holding out for resale, in addition to the tax on such liquid (if any).

(b)Any person who knowingly holds out for sale (other than for resale) any liquid described in subsection (a), shall pay a penalty of $10,000 for each such holding out for sale, in addition to the tax on such liquid (if any).

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 109–59, title XI, § 11167(d), Aug. 10, 2005, 119 Stat. 1978, provided that: “The

Amendments

made by this section [enacting this section and amending section 9503 of this title] shall apply to any transfer, sale, or holding out for sale or resale occurring after the date of the enactment of this Act [Aug. 10, 2005].”