§6715A — Title 26 Internal Revenue Code | U.S. Code

Summary

Anyone who tampers with a mechanical dye injection system used to dye fuel owes a penalty of $25,000 or $10 for each gallon of fuel involved, whichever is greater, on top of any tax due. An operator who fails to keep the required security standards for the system owes $1,000 for each failure, plus $1,000 per day for each day a violation goes uncorrected after it was discovered or reasonably should have been. If a business owes the penalty, any officer, employee, or agent who willfully took part is personally liable along with the company, and a parent corporation can be liable for its affiliate's penalty.

Title 26, §6715A

Internal Revenue Code — Source: USLM XML via OLRC

(a)(1)If any person tampers with a mechanical dye injection system used to indelibly dye fuel for purposes of section 4082, such person shall pay a penalty in addition to the tax (if any).

(2)If any operator of a mechanical dye injection system used to indelibly dye fuel for purposes of section 4082 fails to maintain the security standards for such system as established by the Secretary, then such operator shall pay a penalty in addition to the tax (if any).

(b)The amount of the penalty under subsection (a) shall be—

(1)for each violation described in paragraph (1), the greater of—

(A)$25,000, or

(B)$10 for each gallon of fuel involved, and

(2)for each—

(A)failure to maintain security standards described in paragraph (2), $1,000, and

(B)failure to correct a violation described in paragraph (2), $1,000 per day for each day after which such violation was discovered or such person should have reasonably known of such violation.

(c)(1)If a penalty is imposed under this section on any business entity, each officer, employee, or agent of such entity or other contracting party who willfully participated in any act giving rise to such penalty shall be jointly and severally liable with such entity for such penalty.

(2)If a business entity described in paragraph (1) is part of an affiliated group (as defined in section 1504(a)), the parent corporation of such entity shall be jointly and severally liable with such entity for the penalty imposed under this section.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on the 180th day after the date on which the Secretary of the Treasury issues the

Regulations

described in section 854(b) of Pub. L. 108–357, see section 854(d) of Pub. L. 108–357, set out as an

Effective Date

of 2004 Amendment note under section 4082 of this title.

§6715A Tampering with or Failing to Maintain Security Requirements for Mechanical Dye Injection Systems

Summary

Title 26, §6715A

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Regulations

Effective Date

Citations & Metadata