§6715 Dyed Fuel Sold for Use or Used in Taxable Use, Etc.

Summary

People who sell, keep, use, or change dyed diesel or kerosene in ways that avoid tax must pay a penalty. That includes selling or holding dyed fuel when they know or should know it will be used for a taxable purpose, using dyed fuel knowing it was dyed for a taxable purpose, willfully changing the dye or marker, or selling altered dyed fuel for a taxable use when they know or should know it is taxable. The penalty for each offense is the larger of $1,000 or $10 per gallon. The $1,000 amount goes up by $1,000 for each prior penalty on that person (or a related or predecessor person). Dyed fuel means dyed diesel fuel or kerosene. Nontaxable use is defined in section 4082(b). If a business is penalized, officers, employees, or agents who willfully joined in the act are also liable. After a chemical test finds a violation, a person who has been penalized at least twice since this subsection took effect cannot get an administrative appeal except for fraud or mistake in the test or a math error in the penalty.