[Federal Register Volume 59, Number 201 (Wednesday, October 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25763]


[[Page Unknown]]

[Federal Register: October 19, 1994]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 40 and 48

[PS-66-93]
RIN 1545-AS10

 

Gasoline and Diesel Fuel Excise Tax; Rules Relating to Gasohol; 
Tax on Compressed Natural Gas

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and notice of public hearing.

-----------------------------------------------------------------------

SUMMARY: This document contains proposed regulations relating to 
gasohol blending and the taxes on diesel fuel and compressed natural 
gas. This document also proposes to remove obsolete excise tax 
regulations. The proposed regulations reflect and implement certain 
changes made by the Energy Policy Act of 1992 (the Energy Act) and the 
Omnibus Budget Reconciliation Act of 1993 (the 1993 Act). The proposed 
regulations relating to gasoline and diesel fuel affect certain 
blenders, enterers, industrial users, refiners, terminal operators, and 
throughputters. The proposed regulations relating to compressed natural 
gas affect persons that sell or buy compressed natural gas for use as a 
fuel in a motor vehicle or motorboat.

DATES: Written comments must be submitted by December 19, 1994. 
Outlines of comments to be presented at the public hearing scheduled 
for January 11, 1995, must be received by December 21, 1994.

ADDRESSES: Send submissions to: CC:DOM:CORP:T:R (PS-66-93), room 5228, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. In the alternative, submissions may be hand delivered between 
the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:T:R (PS-66-93), 
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., 
Washington, DC. The public hearing will be held in the IRS Auditorium, 
Seventh Floor, 7400 Corridor, Internal Revenue Building, 1111 
Constitution Avenue NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Frank Boland, (202) 622-3130; concerning submissions and the hearing, 
Carol Savage, at (202) 622-8452; (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collections of information contained in this notice of proposed 
rulemaking have been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act (44 U.S.C. 
3504(h)). Comments on the collections of information should be sent to 
the Office of Management and Budget, Attn: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503, with copies to the Internal Revenue 
Service, Attn: IRS Reports Clearance Officer, PC:FP, Washington, DC 
20224.
    The collections of information in this proposed regulation are in 
Secs. 48.4041-21 and 48.6427-10. This information is required by the 
IRS to verify compliance with sections 4041 and 6427 and will be used 
to determine whether an amount of tax, credit, or payment has been 
computed correctly. The likely respondents are businesses and other 
for-profit organizations, including small businesses and organizations.
    Estimated total annual reporting burden: 10 hours.
    Estimated average annual burden per respondent: .1 hour.
    Estimated number of respondents: 100
    Estimated annual frequency of responses: On occasion.

Explanation of Provisions

Background

    Effective January 1, 1994, the 1993 Act amends section 4081 to 
impose the diesel fuel tax in the same manner as the gasoline tax. 
Thus, tax is imposed on (1) the removal of gasoline and diesel fuel 
(collectively taxable fuel) from any refinery, (2) the removal of 
taxable fuel from any terminal, (3) the entry of taxable fuel into the 
United States for consumption, use, or warehousing, and (4) the sale of 
taxable fuel to an unregistered person unless there was a prior taxable 
removal, entry, or sale of the taxable fuel. However, tax does not 
apply to any entry or removal of taxable fuel transferred in bulk to a 
refinery or terminal if the persons involved (including the terminal 
operator) are registered by the IRS.

Conforming Amendments to Gasoline Regulations

    On November 30, 1993, the IRS published in the Federal Register (58 
FR 63069) temporary regulations under section 4081 relating to the 
imposition of the diesel fuel excise tax for diesel fuel that is 
removed at a terminal rack, removed from a refinery, entered into the 
United States, or blended outside of the bulk/transfer terminal system. 
Those rules are similar to the rules relating to the removal, entry, or 
blending of gasoline under Secs. 48.4081-2 and 48.4081-3.
    These proposed regulations generally consolidate the rules relating 
to gasoline and diesel fuel into a single set of rules applicable to 
all taxable fuel.

Compressed Natural Gas

    Effective October 1, 1993, section 4041(a)(3) (added to the 
Internal Revenue Code by section 13241(e) of the 1993 Act) imposes a 
tax on compressed natural gas (CNG) that is sold for use or used as a 
fuel in a motor vehicle or motorboat.
    The proposed regulations provide rules relating to the imposition 
of, and liability for, the tax on CNG. These rules are similar to the 
regulations relating to taxes on special motor fuels imposed by section 
4041.

Gasohol; Tolerance Rule

    The gasoline tax rate is 18.4 cents per gallon (the regular rate). 
However, a reduction from the regular rate is allowed for gasohol (a 
gasoline/alcohol mixture). Before January 1, 1993, section 4081(c) 
treated a mixture of gasoline and alcohol as gasohol only if at least 
10 percent of the mixture was alcohol. The rate reduction under pre-
1993 law was 5.4 cents per gallon for gasohol containing ethanol and 6 
cents per gallon for gasohol containing alcohol other than ethanol. 
This was equivalent to a subsidy of 54 cents or 60 cents per gallon of 
alcohol used to produce gasohol.
    Section 48.4081-6(b)(2) provides a special rule for the application 
of the ``at least 10 percent'' requirement by allowing a tolerance for 
mixtures that contain less than 10 percent alcohol but at least 9.8 
percent alcohol. Under the tolerance rule, a portion of the mixture 
equal to the number of gallons of alcohol in the mixture multiplied by 
10 is considered to be gasohol. Any excess liquid in the mixture is 
taxed at the regular rate. Absent the tolerance rule, pre-1993 law 
would have taxed the entire mixture at the regular rate.
    The tolerance rule accommodates operational problems associated 
with the blending of gasohol. For example, blenders may fail to attain 
the required 10-percent alcohol level because the device used to meter 
the amount of gasoline or alcohol added to a tank truck is imprecise or 
because the high-speed gasoline or alcohol pump used does not shut off 
at the proper moment. Blenders cannot compensate for these errors by 
aiming for an alcohol content in excess of 10 percent because 
Environmental Protection Agency (EPA) rules do not authorize the sale 
of gasohol containing more than 10 percent alcohol.
    Effective January 1, 1993, section 1920 of the Energy Act amended 
section 4081(c) to allow a reduction from the regular rate for mixtures 
containing at least 5.7 percent alcohol but less than 7.7 percent 
alcohol (5.7 percent gasohol) and mixtures containing at least 7.7 
percent alcohol but less than 10 percent alcohol (7.7 percent gasohol). 
The 5.4- and 6-cents-per-gallon rate reductions were retained for 
mixtures containing at least 10 percent alcohol (10 percent gasohol) 
and were prorated for 5.7 percent and 7.7 percent gasohol to maintain 
the subsidy level of 54 cents or 60 cents per gallon, respectively, for 
ethanol or other alcohol that is mixed with gasoline.
    The proposed regulations continue the present tolerance rule for 
mixtures that contain less than 10 percent alcohol but at least 9.8 
percent alcohol. However, a similar rule is not extended to mixtures 
that contain less than 7.7 or 5.7 percent alcohol because blenders can 
compensate for any operational problems by aiming for an alcohol 
content above 7.7 or 5.7 percent without violating EPA rules.

Gasohol; Blender Credit or Payment

    If a gasohol blender produces gasohol from gasoline that was taxed 
at the regular rate, section 6427(f) allows the gasohol blender to 
obtain a partial credit or payment relating to that tax. The proposed 
regulations provide the conditions under which a credit or payment 
under section 6427(f) will be allowed.

Gasohol; ETBE

    The regulations under section 40 provide that alcohol used to 
produce ethyl tertiary butyl ether (ETBE) generally is treated as 
alcohol for purposes of the alcohol fuels credit when the ETBE is mixed 
with gasoline. The proposed regulations provide a similar rule with 
respect to alcohol used to produce ETBE for purposes of the reduced tax 
rates for gasohol.
    For example, a gasoline/ETBE mixture would qualify as 5.7 percent 
gasohol if the mixture contains 12.7 percent ETBE and each gallon of 
ETBE is made from .45 gallon of alcohol.

Reliance on These Proposed Regulations

    These regulations are being issued in proposed form to provide 
timely guidance to taxpayers and to allow interested parties 
appropriate opportunity to provide comments before issuance of final 
regulations. Although final regulations may include changes made, for 
example, in response to comments, taxpayers may rely on the proposed 
regulations until final regulations are issued. For example, alcohol 
used to produce ETBE is treated as alcohol for purposes of the gasohol 
tax rates.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in EO 12866. Therefore, 
a regulatory assessment is not required. It also has been determined 
that section 553(b) of the Administrative Procedure Act (5 U.S.C. 
chapter 5) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do 
not apply to these regulations, and, therefore, a Regulatory 
Flexibility Analysis is not required. Pursuant to section 7805(f) of 
the Internal Revenue Code, this notice of proposed rulemaking will be 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business.

Comments and Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments that are submitted 
timely (preferably a signed original and eight copies) to the IRS. All 
comments will be available for public inspection and copying.
    A public hearing has been scheduled for Wednesday, January 11, 
1995, at 1 p.m. in the Auditorium, Internal Revenue Building, 1111 
Constitution Avenue NW, Washington, DC. Because of access restrictions, 
visitors will not be admitted beyond the building lobby more than 15 
minutes before the hearing starts.
    The rules of Sec. 601.601(a)(3) apply to the hearing.
    Persons that have submitted written comments by December 19, 1994 
and want to present oral comments at the hearing must submit an outline 
of the topics to be discussed and the time to be devoted to each topic 
by December 21, 1994.
    A period of 10 minutes will be allotted to each person for making 
comments.
    An agenda showing the scheduling of the speakers will be prepared 
after the deadline for receiving outlines has passed. Copies of the 
agenda will be available free of charge at the hearing.

Drafting Information

    The principal author of these regulations is Frank Boland, Office 
of Assistant Chief Counsel (Passthroughs and Special Industries). 
However, other personnel from the IRS and Treasury Department 
participated in their development.

List of Subjects in 26 CFR Parts 40 and 48

    Excise taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR parts 40 and 48 are proposed to be amended as 
follows:

PART 40--EXCISE TAX PROCEDURAL REGULATIONS

    Paragraph 1. The authority citation for part 40 continues to read 
in part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Par. 2. Section 40.6302(c)-0 is amended by revising the entries for 
Sec. 40.6302(c)-1(b)(1)(ii), (b)(5)(ii), (b)(6)(iii), (c)(2)(iv), and 
(c)(3)(iii) to read as follows:


Sec. 40.6302(c)-0  Table of contents.

* * * * *


Sec. 40.6302(c)-1  Use of Government depositaries.

* * * * *
    (b) * * *
    (1) * * *
    (ii) Special rule for section 4081 tax deposits for September.
* * * * *
    (5) * * *
    (ii) Special rule for section 4081 tax deposits for September.
* * * * *
    (6) * * *
    (iii) Special rule for section 4081 tax deposits for September.
* * * * *
    (c) * * *
    (2) * * *
    (iv) Modification for section 4081 tax deposits for September.
    (3) * * *
    (iii) Modification for section 4081 tax deposits for September.
* * * * *
    Par. 3. Section 40.6302(c)-1 is amended as follows:
    1. Paragraph (a) is amended by removing the parenthetical 
``(relating to taxes imposed on gasoline by section 4081)'' from the 
last sentence and adding the parenthetical ``(relating to section 4081 
taxes)'' in its place.
    2. The heading for paragraph (b)(1)(ii) is revised.
    3. Paragraph (b)(1)(ii) is amended by removing the parenthetical 
``(relating to gasoline)''.
    4. The heading for paragraph (b)(5)(ii) is revised.
    5. Paragraph (b)(5)(ii) is amended by removing the parenthetical 
``(relating to gasoline)'' from the first sentence.
    6. Paragraph (b)(6)(ii) is amended by removing the parenthetical 
``(relating to deposits of gasoline tax for September)'' and adding 
``(relating to deposits of section 4081 tax for September)'' in its 
place.
    7. The heading for paragraph (b)(6)(iii) is revised.
    8. Paragraph (b)(6)(iii)(A), first sentence, is amended by removing 
the parenthetical ``(relating to gasoline)''.
    9. Paragraph (b)(6)(iii)(B), first sentence, is amended by removing 
the parenthetical ``(relating to gasoline)''.
    10. The heading for paragraph (c)(2)(iv) is revised.
    11. Paragraph (c)(2)(iv)(A) is amended by removing the 
parenthetical ``(relating to gasoline)''.
    12. The heading for paragraph (c)(3)(iii) is revised.
    13. Paragraph (c)(3)(iii)(A) is revised by removing the 
parenthetical ``(relating to gasoline)''.
    14. The revised provisions read as follows:


Sec. 40.6302(c)-1  Use of Government depositaries.

* * * * *
    (b) * * *
    (1) * * *
    (ii) Special rule for section 4081 tax deposits for September. * * 
*
* * * * *
    (5) * * *
    (ii) Special rule for section 4081 tax deposits for September. * * 
*
* * * * *
    (6) * * *
    (iii) Special rule for section 4081 tax deposits for September. * * 
*
* * * * *
    (c) * * *
    (2) * * *
    (iv) Modification for section 4081 tax deposits for September. * * 
*
    (3) * * *
    (iii) Modification for section 4081 tax deposits for September. * * 
*
* * * * *
    Par. 4. In Sec. 40.6302(c)-4, paragraph (a) is amended by removing 
the parenthetical ``(relating to gasoline)''.
    Par. 5. In Sec. 40.9999-1, Example 3 is amended by removing the 
language ``diesel fuel'' each place it appears (including the heading) 
and adding ``aviation fuel'' in its place.

PART 48--MANUFACTURERS AND RETAILERS EXCISE TAXES

    Par. 6. The authority citation for part 48 is amended by removing 
the entries for Secs. 48.4041.21 and 48.4081-2; revising the entry for 
Sec. 48.4081-4; and adding an entry in numerical order to read as 
follows:

    Authority: 26 U.S.C. 7805 * * *

    Section 48.4081-4 also issued under 26 U.S.C. 4083(a)(2). * * *
    Section 48.6427-10 also issued under 26 U.S.C. 6427(f).
    Par. 7. Section 48.4041-21 is revised to read as follows:


Sec. 48.4041-21  Compressed natural gas.

    (a) Delivery of compressed natural gas into the fuel supply tank of 
a motor vehicle or motorboat--(1) Imposition of tax. Tax is imposed on 
the delivery of compressed natural gas (CNG) into the fuel supply tank 
of the propulsion engine of a motor vehicle or motorboat unless tax was 
previously imposed on the CNG under paragraph (b) of this section.
    (2) Liability for tax. If the delivery of the CNG is in connection 
with a sale, the seller of the CNG is liable for the tax imposed under 
paragraph (a)(1) of this section. If the delivery of the CNG is not in 
connection with a sale, the operator of the motor vehicle or motorboat, 
as the case may be, is liable for the tax imposed under paragraph 
(a)(1) of this section.
    (b) Bulk sales of CNG--(1) In general. Tax is imposed on the sale 
of CNG that is not in connection with the delivery of the CNG into the 
fuel supply tank of the propulsion engine of a motor vehicle or 
motorboat if, by the time of the sale--
    (i) The buyer has given the seller a written statement stating that 
the entire quantity of the CNG covered by the statement is for use as a 
fuel in a motor vehicle or motorboat; and
    (ii) The seller has given the buyer a written acknowledgement of 
receipt of the statement described in paragraph (b)(1)(i) of this 
section.
    (2) Liability for tax. The seller of the CNG is liable for the tax 
imposed under paragraph (b) of this section.
    (c) Exemptions--(1) In general. The taxes imposed under this 
section do not apply to a delivery or sale of CNG for a use described 
in Sec. 48.4082-4T(c)(1) through (5)(A) or (6) through (11). However, 
if the person otherwise liable for tax under this section is the seller 
of the CNG, the exemption under this section applies only if, by the 
time of sale, the seller has an unexpired certificate (described in 
this section) from the buyer and has no reason to believe any 
information in the certificate is false.
    (2) Certificate; in general. The certificate to be provided by a 
buyer of CNG is to consist of a statement that is signed under 
penalties of perjury by a person with authority to bind the buyer, 
should be in substantially the same form as the model certificate 
provided in paragraph (c)(4) of this section, and should contain all 
information necessary to complete the model certificate. A new 
certificate must be given if any information in the current certificate 
changes. The certificate may be included as part of any business 
records normally used to document a sale. The certificate expires on 
the earliest of the following dates:
    (i) The date one year after the effective date of the certificate 
(which may be no earlier than the date it is signed).
    (ii) The date a new certificate is provided to the seller.
    (iii) The date the seller is notified by the Internal Revenue 
Service or the buyer that the buyer's right to provide a certificate 
has been withdrawn.
    (3) Withdrawal of right to provide certificate. The Internal 
Revenue Service may withdraw the right of a buyer of CNG to provide a 
certificate under this paragraph (c) if the buyer uses CNG to which a 
certificate applies in a taxable use. The Internal Revenue Service may 
notify any seller to whom the buyer has provided a certificate that the 
buyer's right to provide a certificate has been withdrawn.
    (4) Model certificate.

CERTIFICATE OF PERSON BUYING CNG FOR A NONTAXABLE USE

(To support tax-free sales of CNG under section 4041 of the Internal 
Revenue Code.)

----------------------------------------------------------------------
----------------------------------------------------------------------
Name, address, and employer identification number of seller
    ________________ (``Buyer'') certifies the
    Name of buyer
following under penalties of perjury:
    The CNG to which this certificate relates will be used in a 
nontaxable use.
    This certificate applies to the following (complete as 
applicable):
    If this is a single purchase certificate, check here ________ 
and enter:
1. Invoice or delivery ticket number ____________
2. ________ (number of MCFs)
    If this is a certificate covering all purchases under a 
specified account or order number, check here ________ and enter:
1. Effective date------------------------------------------------------
2. Expiration date-----------------------------------------------------
(period not to exceed 1 year after the effective date)
3. Buyer account or order number---------------------------------------
    Buyer will not claim a credit or refund under section 6427 of 
the Internal Revenue Code for any CNG to which this certificate 
relates.
    Buyer will provide a new certificate to the seller if any 
information in this certificate changes.
    Buyer understands that if Buyer violates the terms of this 
certificate, the Internal Revenue Service may withdraw Buyer's right 
to provide a certificate.
    Buyer has not been notified by the Internal Revenue Service that 
its right to provide a certificate has been withdrawn. In addition, 
the Internal Revenue Service has not notified Buyer that the right 
to provide a certificate has been withdrawn from a purchaser to 
which Buyer sells CNG tax free.
    Buyer understands that the fraudulent use of this certificate 
may subject Buyer and all parties making any fraudulent use of this 
certificate to a fine or imprisonment, or both, together with the 
costs of prosecution.

----------------------------------------------------------------------
Printed or typed name of person signing

----------------------------------------------------------------------
Title of person signing

----------------------------------------------------------------------
Employer identification number

----------------------------------------------------------------------
Address of Buyer

----------------------------------------------------------------------
Signature and date signed

    (d) Rate of tax. The rate of the taxes imposed under this section 
is the rate prescribed by section 4041(a)(3).
    (e) Effective date. This section is effective January 1, 1995.
    Par. 8. Section 48.4081-0 is amended as follows:
    1. The heading is revised.
    2. The entries for Secs. 48.4081-1 (c) and (k) and 48.4081-3(f) are 
revised.
    3. The entries for the headings of Secs. 48.4081-1, 48.4081-2, 
48.4081-3, 48.4081-5, 48.4081-7, and 48.4081-8 are revised.
    4. The revisions read as follows:


Sec. 48.4081-0  Taxable fuel; table of contents.

* * * * *

Section 48.4081-1  Taxable Fuel; Definitions

* * * * *
    (c) Blended taxable fuel.
* * * * *
    (k) Taxable fuel registrant.
* * * * *

Section 48.4081-2  Taxable Fuel; Tax on Removal at a Terminal Rack

* * * * *

Section 48.4081-3  Taxable Fuel; Taxable Events Other Than Removal at 
the Terminal Rack

* * * * *
    (f) Tax on sales of taxable fuel within the bulk transfer/terminal 
system.
* * * * *

Section 48.4081-5  Taxable Fuel; Notification Certificate of Taxable 
Fuel Registrant

* * * * *

Section 48.4081-7  Taxable Fuel; Conditions for, and Reporting Relating 
to, Refunds of Taxable Fuel Tax Under Section 4081(e)

* * * * *

Section 48.4081-8  Taxable Fuel; Measurement

* * * * *
    Par. 9. Section 48.4081-1 is amended as follows:
    1. The heading for Sec. 48.4081-1 is revised.
    2. In paragraphs (a) and (b) the language ``gasoline'' is removed 
each place it appears and ``taxable fuel'' is added in its place.
    3. Paragraph (c) is revised.
    4. In paragraphs (d) through (h), the heading and text of paragraph 
(k), and paragraphs (m), (n), (p), (q), (r)(1), (s), (u), and (v) the 
language ``gasoline'' is removed each place it appears and ``taxable 
fuel'' is added in its place.
    5. Paragraph (w) is revised.
    6. The revised provisions read as follows:


Sec. 48.4081-1  Taxable fuel tax; definitions.

* * * * *
    (c) Blended taxable fuel--(1) In general. Except as provided in 
paragraph (c)(2) of this section, blended taxable fuel is a mixture 
of--
    (i) Taxable fuel with respect to which tax has been imposed under 
section 4041(a)(1) or 4081(a); and
    (ii) Any substance with respect to which tax has not been imposed 
under section 4041(a)(1) or 4081(a), other than a minor amount of a 
product such as carburetor detergent or oxidation inhibitor.
    (2) Exception. Gasohol (as defined in Sec. 48.4081-6(b)(2)), is not 
blended taxable fuel if--
    (i) The gasohol is a mixture of--
    (A) Gasoline with respect to which tax was imposed under section 
4081(a) at the gasohol production tax rate described in Sec. 48.4081-
6(e) (relating to gasohol) or with respect to which a valid claim is 
made under section 6427(f); and
    (B) Alcohol (or alcohol and a minor amount of a product such as 
carburetor detergent or oxidation inhibitor); and
    (ii) The mixture contains--
    (A) At least 9.8 percent alcohol by volume, without rounding, but 
not more than 10 percent alcohol by volume, without rounding;
    (B) 7.7 percent alcohol by volume, without rounding; or
    (C) 5.7 percent alcohol by volume, without rounding.
* * * * *
    (w) Effective date. This section is effective January 1, 1994.
    Par. 10. Section 48.4081-2 is amended as follows:
    1. The heading for Sec. 48.4081-2 is revised.
    2. The language ``and'' is added immediately following the 
semicolon at the end of paragraph (c)(3)(ii).
    3. Paragraph (c)(3)(iii) is revised.
    4. Paragraph (c)(3)(iv) is removed.
    5. Paragraph (e) is revised.
    6. The revised and added provisions read as follows:


Sec. 48.4081-2  Taxable fuel; tax on removal at a terminal rack.

* * * * *
    (c) * * *
    (3) * * *
    (iii) Has no reason to believe that any information in the 
certificate is false.
* * * * *
    (e) Effective date. This section is effective January 1, 1994.
    Par. 11. Section 48.4081-3 is amended as follows:
    1. The heading for Sec. 48.4081-3 is revised.
    2. In paragraphs (a), (d)(1), (d)(2)(i), and (d)(2)(ii)(A) the 
language ``gasoline'' is removed each place it appears and ``taxable 
fuel'' is added in its place.
    3. Paragraph (d)(2)(iii) is revised.
    4. The introductory text of paragraph (e)(1) is revised.
    5. In paragraphs (e)(1)(i), (e)(1)(iii), and (e)(2)(i) the language 
``gasoline'' is removed each place it appears and ``taxable fuel'' is 
added in its place.
    6. Paragraph (e)(2)(ii) is revised.
    7. In paragraph (e)(2)(iii) the language ``gasoline'' is removed 
each place it appears and ``taxable fuel'' is added in its place.
    8. In paragraphs (f)(1) and (f)(2)(i) the language ``gasoline'' is 
removed each place it appears and ``taxable fuel'' is added in its 
place.
    9. Paragraphs (f)(2)(ii) is revised.
    10. In paragraphs (f)(2)(iii) and (g)(1) the language ``gasoline'' 
is removed each place it appears and ``taxable fuel'' is added in its 
place.
    11. Paragraph (h) is revised.
    12. The revised provisions read as follows:


Sec. 48.4081-3  Taxable fuel; taxable events other than removal at the 
terminal rack.

* * * * *
    (d) * * *
    (2) * * *
    (iii) Conditions for avoidance of liability. A terminal operator is 
not liable for tax under this paragraph (d)(2) if, at the time of the 
bulk transfer, the terminal operator--
    (A) Is a taxable fuel registrant;
    (B) Has an unexpired notification certificate (described in 
Sec. 48.4081-5) from the position holder; and
    (C) Has no reason to believe that any information in the 
certificate is false.
* * * * *
    (e) * * * (1) * * * Except as provided in Sec. 48.4081-4 (relating 
to gasoline blendstocks), and Sec. 48.4082-1T (relating to diesel 
fuel), a tax on taxable fuel is imposed if--
* * * * *
    (2) * * *
    (ii) Conditions for avoidance of liability. An owner of taxable 
fuel is not liable for tax under paragraph (e)(2)(i) of this section 
if, at the time the taxable fuel is removed from the pipeline or 
vessel, the owner of the taxable fuel--
    (A) Is a taxable fuel registrant;
    (B) Has an unexpired notification certificate (described in 
Sec. 48.4081-5) from the operator of the terminal or refinery where the 
taxable fuel is received; and
    (C) Has no reason to believe that any information in the 
certificate is false.
* * * * *
    (f) * * *
    (2) * * *
    (ii) Conditions for avoidance of liability. A seller is not liable 
for tax under paragraph (f)(2)(i) of this section if, at the time of 
the sale, the seller--
    (A) Is a taxable fuel registrant;
    (B) Has an unexpired notification certificate (described in 
Sec. 48.4081-5) from the buyer; and
    (C) Has no reason to believe that any information in the 
certificate is false.
* * * * *
    (h) Effective date. This section is effective January 1, 1994.
    Par. 12. Section 48.4081-4 is amended as follows:
    1. In paragraphs (b)(1)(i), (b)(2)(i), and (c)(1), the language 
``gasoline registrant'' is removed each place it appears and ``taxable 
fuel registrant'' is added in its place.
    2. The language ``and'' is added immediately following the 
semicolon at the end of paragraph (c)(2).
    3. Paragraph (c)(3) is revised.
    4. Paragraph (c)(4) is removed.
    5. In paragraph (d), the language ``gasoline registrant'' is 
removed and ``taxable fuel registrant'' is added in its place.
    6. Paragraph (f) is revised.
    7. The revised provisions read as follows:


Sec. 48.4081-4  Gasoline tax; special rules for gasoline blendstocks.

* * * * *
    (c) * * *
    (3) Has no reason to believe that any information in the 
certificate is false.
* * * * *
    (f) Effective date. This section is effective January 1, 1994.
    Par. 13. Section 48.4081-5 is amended as follows:
    1. The heading for Sec. 48.4081-5 is revised.
    2. In paragraph (a), the first sentence in paragraph (b)(1), and 
paragraph (b)(2), the language ``gasoline'' is removed each place it 
appears and ``taxable fuel'' is added in its place.
    3. Paragraph (c) is revised.
    4. The revised provisions read as follows:


Sec. 48.4081-5  Taxable fuel; notification certificate of taxable fuel 
registrant.

* * * * *
    (c) Effective date. This section is effective January 1, 1994.
    Par. 14. Section 48.4081-6 is amended as follows:
    1. The heading for Sec. 48.4081-6 is revised.
    2. In the last sentence of paragraph (a), the parenthetical 
``(which has been taxed at a reduced rate)'' is removed and ``that has 
been taxed at a reduced rate'' is added in its place.
    3. Paragraph (b)(1)(iii) is added.
    4. Paragraph (b)(2) is revised.
    5. In paragraphs (c)(1)(i) and (ii), the language ``gasoline 
registrant'' is removed each place it appears and ``taxable fuel 
registrant'' is added in its place.
    6. The language ``and'' is added immediately following the 
semicolon at the end of paragraph (c)(1)(ii)(A).
    7. Paragraph (c)(1)(ii)(B) is revised.
    8. Paragraph (c)(1)(ii)(C) is removed.
    9. Paragraph (c)(2)(ii) is revised.
    10. In the first sentence of paragraph (d), the language ``, 
provided that the alcohol mixture credit allowed by section 40 has not 
been taken with respect to the alcohol in the gasohol'' is added before 
the end thereof.
    10a. Paragraph (e) is revised.
    11. In paragraphs (f)(1)(i) and (iii), the language ``10 percent'' 
is removed each place it appears and ``5.7 percent'' is added in its 
place.
    12. In paragraph (f)(4), Example 1, second sentence, the language 
``gasohol'' is removed and ``10 percent gasohol'' is added in its 
place.
    13. In paragraph (f)(4), Example 2, fourth sentence, the language 
``10 percent'' is removed both places it appears and ``5.7 percent'' is 
added in its place.
    14. Paragraphs (g)(2)(i) and (iii) are revised.
    15. Paragraph (g)(2)(iv) is added.
    16. Paragraph (h) is revised.
    17. The added and revised provisions read as follows:


Sec. 48.4081-6   Taxable fuel; gasohol.

* * * * *
    (b) * * *
    (1) * * *
    (iii) Products derived from alcohol. Alcohol includes alcohol 
described in paragraphs (b)(1)(i) and (ii) of this section that is 
chemically transformed in producing another product so that the alcohol 
is no longer present as a separate chemical in the other product, 
provided that there is no significant loss in the energy content of the 
alcohol. Thus, for example, alcohol described in paragraphs (b)(1)(i) 
and (ii) of this section that is used to produce ethyl tertiary butyl 
ether (ETBE) in a chemical reaction in which there is no significant 
loss in the energy content of the alcohol is treated as alcohol when 
the ETBE is mixed with gasoline.
    (2) Gasohol--(i) In general. Gasohol is a mixture of gasoline and 
alcohol that is 10 percent gasohol, 7.7 percent gasohol, or 5.7 percent 
gasohol immediately after the mixture is blended. The determination of 
whether a particular mixture is 10 percent gasohol, 7.7 percent 
gasohol, or 5.7 percent gasohol is made on a batch-by-batch basis. A 
batch of gasohol is a discrete mixture of gasoline and alcohol. If a 
batch is splash blended, the contents of the batch typically correspond 
to a gasoline meter delivery ticket and an alcohol meter delivery 
ticket, each of which shows the number of gallons of liquid delivered 
into the mixture. In such case, the volume of each component in a batch 
(without adjustment for temperature) ordinarily is determined by the 
number of metered gallons shown on the delivery tickets for the 
gasoline and alcohol delivered. However, if a blender adds metered 
gallons of gasoline and alcohol to a tank already containing more than 
a minor amount of liquid (other than gasohol), the determination of 
whether a batch is gasohol and of its type will be made by taking into 
account the amount of alcohol and non-alcohol fuel contained in the 
liquid already in the tank. Ordinarily, any amount in excess of 0.5 
percent of the capacity of the tank will not be considered minor.
    (ii) 10 percent gasohol--(A) In general. A batch of gasoline/
alcohol mixture is 10 percent gasohol if it contains at least 10 
percent alcohol by volume, without rounding.
    (B) Batches containing less than 10 percent but at least 9.8 
percent alcohol. If a batch of mixture contains less than 10 percent 
alcohol but at least 9.8 percent alcohol, without rounding, a portion 
of the batch is considered to be 10 percent gasohol. That portion 
equals the number of gallons of alcohol in the batch multiplied by 10. 
Any remaining liquid in the mixture is excess liquid. If tax was 
imposed on the excess liquid at the gasohol production rate (as defined 
in paragraph (e)(1) of this section), the excess liquid in the batch is 
considered to be gasoline with respect to which there is a failure to 
blend into gasohol for purposes of paragraph (g) of this section. 
Excess liquid is considered to be removed before the removal of the 
gasohol portion. If tax was imposed on the excess liquid at the rate of 
tax described in section 4081(a), a credit or refund under section 
6427(f) is not allowed with respect to the excess liquid.
    (iii) 7.7 percent gasohol. A batch of gasoline/alcohol mixture is 
7.7 percent gasohol if and only if it contains at least 7.7 percent, 
but less than 9.8 percent, alcohol by volume, without rounding.
    (iv) 5.7 percent gasohol. A batch of gasoline/alcohol mixture is 
5.7 percent gasohol if and only if it contains at least 5.7 percent, 
but less than 7.7 percent, alcohol by volume, without rounding.
    (v) Examples. This paragraph (b)(2) may be illustrated by the 
following examples. In these examples, a gasohol blender creates a 
gasoline/alcohol mixture by pumping a specified amount of gasoline into 
an empty tank. The blender then splash blends a specified amount of 
alcohol into gasoline.

    Example 1. Mixtures containing exactly 10 percent alcohol. The 
applicable delivery tickets show that the mixture is made with 7200 
metered gallons of gasoline and 800 metered gallons of alcohol. 
Accordingly, the mixture contains 10 percent alcohol (as determined 
based on the delivery tickets provided to the blender) and qualifies 
as 10 percent gasohol.
    Example 2. Mixtures containing less than 10 percent alcohol but 
at least 9.8 percent alcohol. The applicable delivery tickets show 
that the mixture is made with 7205 metered gallons of gasoline and 
795 metered gallons of alcohol. Because the mixture contains less 
than 10 percent alcohol, but more than 9.8 percent alcohol, (as 
determined based on the delivery tickets provided to the blender), 
7950 gallons of the mixture qualify as 10 percent gasohol. If tax 
was imposed on the gasoline in the mixture at the gasohol production 
rate, the remaining 50 gallons of the mixture are treated as 
gasoline with respect to which there was a failure to blend into 
gasohol for purposes of paragraph (g) of this section. If tax was 
imposed on the gasoline in the mixture at the rate of tax described 
in section 4081(a), a credit or refund under section 6427(f) is 
allowed only with respect to 7155 gallons of gasoline.
    Example 3. The applicable delivery tickets show that the mixture 
is made with 7550 metered gallons of gasoline and 450 metered 
gallons of alcohol. Because the mixture contains only 5.625 percent 
alcohol (as determined based on the delivery tickets provided to the 
blender), the mixture does not qualify as gasohol. 
* * * * * 
    (c) * * *
    (1) * * *
    (ii) * * *
    (B) Has no reason to believe that any information in the 
certificate is false.
    (2) * * *
    (ii) Model certificate.

CERTIFICATE OF REGISTERED GASOHOL BLENDER 
(To support sales of gasoline at the gasohol production tax rate 
under section 4081(c) of the Internal Revenue Code)

----------------------------------------------------------------------
Name, address, and employer identification number of seller
    ________________ (Buyer) certifies the
    Name of Buyer
following under penalties of perjury:
    Buyer is registered as a gasohol blender with registration 
number ________________. Buyer's registration has not been suspended 
or revoked by the Internal Revenue Service. The gasoline bought 
under this certificate will be used by Buyer to produce gasohol (as 
defined in Sec. 48.4081-6(b) of the Manufacturers and Retailers 
Excise Tax Regulations) within 24 hours after buying the gasoline.
    Type of gasohol Buyer will produce (check one only):
    ________ 10% gasohol
    ________ 7.7% gasohol
    ________ 5.7% gasohol
    If the gasohol the Buyer will produce will contain ethanol, 
check here: ________.
    This certificate applies to the following (complete as 
applicable):
    If this is a single purchase certificate, check here and enter:
1. Account number------------------------------------------------------
2. Number of gallons---------------------------------------------------
    If this is a certificate covering all purchases under a 
specified account or order number, check here __________ and enter:
1. Effective date------------------------------------------------------
2. Expiration date-----------------------------------------------------
(period not to exceed 1 year after the effective date)
3. Buyer account or order number ____________--------------------------
    Buyer will not claim a credit or refund under section 6427(f) of 
the Internal Revenue Code for any gasoline covered by this 
certificate.
    Buyer agrees to provide seller with a new certificate if any 
information on this certificate changes.
    Buyer understands that Buyer's registration may be revoked if 
the gasoline covered by this certificate is resold or is used other 
than in Buyer's production of the type of gasohol identified above.
    Buyer will not take the alcohol mixture credit under section 
40(b) with respect to the alcohol in the gasohol to which this 
certificate relates.
    Buyer understands that the fraudulent use of this certificate 
may subject Buyer and all parties making any fraudulent use of this 
certificate to a fine or imprisonment, or both, together with the 
costs of prosecution.

----------------------------------------------------------------------
Printed or typed name of person signing

----------------------------------------------------------------------
Title of person signing

----------------------------------------------------------------------
Employer identification number

----------------------------------------------------------------------
Address of Buyer

----------------------------------------------------------------------
Signature and date signed
* * * * *
    (e) Tax rates--(1) Gasohol production tax rate. The gasohol 
production tax rate is the applicable rate of tax determined under 
section 4081(c)(2)(A).
    (2) Gasohol tax rate. The gasohol tax rate is the applicable 
alcohol mixture rate determined under section 4081(c)(4)(A).
* * * * *
    (g) * * *
    (2) Failure to blend--(i) Imposition of tax. Tax is imposed on the 
entry, removal, or sale of gasoline (including excess liquid described 
in paragraph (b)(2)(ii)(B) of this section) with respect to which tax 
was imposed at a gasohol production tax rate if--
    (A) The gasoline was not blended into gasohol; or
    (B) The gasoline was blended into gasohol but the gasohol 
production tax rate applicable to the type of gasohol produced is 
greater than the rate of tax originally imposed on the gasoline.
* * * * *
    (iii) Rate of tax. The rate of tax imposed on gasoline described in 
paragraph (g)(2)(i)(A) of this section is the difference between the 
rate of tax applicable to gasoline not described in this section and 
the rate of tax previously imposed on the gasoline. The rate of tax 
imposed on gasoline described in paragraph (g)(2)(i)(B) of this section 
is the difference between the gasohol production tax rate applicable to 
the type of gasohol produced and the rate of tax previously imposed on 
the gasoline.
    (iv) Example. The following example illustrates the rule of this 
paragraph (g)(2):

    Example. (i) A registered gasohol blender bought gasoline in 
connection with a removal described in paragraph (c)(1)(ii) of this 
section. Based on the blender's certification (described in 
paragraph (c)(2) of this section) that the blender would produce 10 
percent gasohol with the gasoline, tax at the gasohol production tax 
rate applicable to 10 percent gasohol was imposed on the removal.
    (ii) The blender then produced a mixture by splash blending in a 
tank holding approximately 8000 gallons of mixture. The applicable 
delivery tickets show that the mixture was blended by first pumping 
7220 metered gallons of gasoline into the empty tank, and then 
pumping 780 metered gallons of alcohol into the tank. Because the 
mixture contains 9.75 percent alcohol (as determined based on the 
delivery tickets provided to the blender) the entire mixture 
qualifies as 7.7 percent gasohol, rather than 10 percent gasohol.
    (iii) Because the 7220 gallons of gasoline were taxed at the 
gasohol production tax rate applicable to 10 percent gasohol but the 
gasoline was blended into 7.7 percent gasohol, a failure to blend 
has occurred with respect to the gasoline. As the person that bought 
the gasoline in connection with the taxable removal, the blender is 
liable for the tax imposed under paragraph (g)(2)(i) of this 
section. The amount of tax imposed is the difference between--
    (A) 7220 gallons times the gasohol production tax rate 
applicable to 7.7 percent gasohol; and
    (B) 7220 gallons times the gasohol production tax rate 
applicable to 10 percent gasohol.
    (iv) Because the gasohol does not contain exactly 7.7 percent 
alcohol, the benefit of the gasohol production tax rate with respect 
to the alcohol is less than the amount of the alcohol mixture credit 
under section 40(b) (determined before the application of section 
40(c). Accordingly, the blender may be entitled to claim an alcohol 
mixture credit for the alcohol used in the gasohol. Under section 
40(c), however, the amount of the alcohol mixture credit must be 
reduced to take into account the benefit provided with respect to 
the alcohol by the gasohol production tax rate.

    (h) Effective date. This section is effective January 1, 1993.
    Par. 15. Section 48.4081-7 is amended as follows:
    1. The heading for Sec. 48.4081-7 is revised.
    2. In paragraphs (a), (b), (c), and (d), the language ``gasoline'' 
is removed each place it appears and ``taxable fuel'' is added in its 
place.
    3. In paragraph (f), Example 1, paragraph (i), first and fourth 
sentences, and paragraph (ii), first and third sentences, the language 
``1993'' is removed each place it appears and ``1994'' is added in its 
place.
    4. Paragraph (g) is revised.
    5. The revised provisions read as follows:


Sec. 48.4081-7  Taxable fuel; conditions for, and reporting relating 
to, refunds of taxable fuel tax under section 4081(e).

* * * * *
    (g) Effective date. This section is effective in the case of 
taxable fuel with respect to which the first tax is imposed after 
December 31, 1993.
    Par. 16. Section 48.4081-8 is revised to read as follows:


Sec. 48.4081-8  Taxable fuel; measurement.

    (a) In general. For purposes of the tax imposed by section 4081, 
gallons of taxable fuel may be measured on the basis of--
    (1) Actual volumetric gallons;
    (2) Gallons adjusted to 60 degrees Fahrenheit; or
    (3) Any other temperature adjustment method approved by the 
Commissioner.
    (b) Effective date. This section is effective January 1, 1994.


Sec. 48.4221  [Removed]

    Par. 17. Section 48.4221 is removed.
    Par. 18. Section 48.4221-1 is amended as follows:
    1. Paragraph (a) is revised.
    2. Paragraph (b)(2)(iv) is amended by adding ``and'' at the end 
thereof.
    3. Paragraph (b)(2)(v) is revised.
    4. Paragraphs (b)(2)(vi) through (xii) are removed.
    5. Paragraph (b)(3) is removed and paragraphs (b)(4) and (5) are 
redesignated as paragraphs (b)(3) and (4), respectively.
    6. The revised provisions read as follows:


Sec. 48.4221-1  Tax free sales; general rule.

    (a) Application of regulations under section 4221--(1) In general. 
The regulations under section 4221 provide rules under which the 
manufacturer, producer, or importer of an article subject to tax under 
chapter 32 (or the retailer of an article subject to tax under 
subchapter A or C of chapter 31) may sell the article tax free under 
section 4221.
    (2) Limitations. The following restrictions must be taken into 
account in applying the regulations under section 4221:
    (i) The exemptions under section 4221(a)(4) and (5) do not apply to 
the tax imposed by section 4064 (gas guzzler tax).
    (ii) The exemptions under section 4221 do not apply to the tax 
imposed by section 4081 (gasoline and diesel fuel tax).
    (iii) The exemptions under section 4221 do not apply to the tax 
imposed by section 4091 (aviation fuel tax). For rules relating to tax-
free sales of aviation fuel, see section 4092 and the regulations 
thereunder.
    (iv) The exemptions under section 4221 do not apply to the tax 
imposed by section 4121 (coal tax).
    (v) The exemptions under sections 4221(a)(3), (4), and (5) do not 
apply to the tax imposed by section 4131 (vaccine tax). In addition, 
the exemption under section 4221(a)(2) applies to the vaccine tax only 
to the extent provided in Sec. 48.4221-3(e) (relating to tax-free sales 
of vaccine for export).
    (vi) The exemptions under section 4221(a) apply only in those cases 
where the exportation or use referred to is to occur before any other 
use.
    (b) * * *
    (2) * * *
    (v) Section 4221(e)(3) relating to the sale of tires used on 
intercity, local, or school buses (see Sec. 48.4221-8).
* * * * *
    Par. 19. Section 48.4221-2 is amended by:
    1. Removing from the first sentence of paragraph (a)(1) the 
language ``(other than a tire or inner tube taxable under section 4071, 
which are given special treatment under sections 4221(e)(2) and (4), 
and Secs. 48.4221-7 and 48.4221-8)'' and adding ``(other than a tire 
taxable under section 4071, which is given special treatment under 
section 4221(e)(2) and Sec. 48.4221-7)'' in its place.
    2. Removing paragraph (a)(2) and redesignating paragraph (a)(3) as 
paragraph (a)(2).
    3. Revising paragraph (b).
    4. The revised provision reads as follows:


Sec. 48.4221-2  Tax-free sale of articles to be used for, or resold 
for, further manufacture.

* * * * *
    (b) Circumstances under which an article is considered to have been 
sold for use in further manufacture--(1) An article shall be treated as 
sold for use in further manufacture if the article is sold for use by 
the buyer as material in the manufacture or production of, or as a 
component part of, another article taxable under chapter 32 of the 
Internal Revenue Code.
    (2) An article is used as material in the manufacture or production 
of, or as a component of, another article if it is incorporated in, or 
is a part or accessory of, the other article when the other article is 
sold by the manufacturer. In addition, an article is considered to be 
used as material in the manufacture of another article if it is 
consumed in whole or in part in testing such other article. However, an 
article that is consumed in the manufacturing process other than in 
testing, so that it is not a physical part of the manufactured article, 
is not considered to have been used as material in the manufacture of, 
or as a component part of, another article.
* * * * *


Sec. 48.4221-5  [Amended]

    Par. 20. Section 48.4221-5 is amended as follows:
    1. Paragraph (c)(1) is amended by:
    a. Removing the first sentence.
    b. Removing the language ``If a State or local government is not 
registered, the'' and adding ``The'' in its place in the new first 
sentence.
    2. In paragraph (d), the first sentence, is amended by:
    a. Removing the language ``(whether on the basis of a registration 
number or an exemption certificate)''.
    b. Removing the language ``(such as gasoline that is'' and adding 
``(such as tires that are'' in its place.


Secs. 48.4221-8, 48.4221-9, 48.4221-10  [Removed]

    Par. 21. Sections 48.4221-8, 48.4221-9, and 48.4221-10 are removed.


Sec. 48.4221-11  [Redesignated Sec. 48.4221-8]

    Par. 22. Section 48.4221-11 is redesignated Sec. 48.4221-8.


Sec. 48.4221-12  [Removed]

    Par. 23. Section 48.4221-12 is removed.
    Par. 24. In Sec. 48.4222(a)-1, paragraphs (a) and (b) are revised 
to read as follows:


Sec. 48.4222(a)-1  Registration.

    (a) General rule. Except as provided in Sec. 48.4222(b)-1, tax- 
free sales under section 4221 may be made only if the manufacturer, 
first purchaser, and second purchaser, as the case may be, have been 
registered by the Internal Revenue Service.
    (b) Application instructions. Application for registration under 
section 4222 must be made in accordance with instructions for Form 637 
(or such other form as the Commissioner may designate).
* * * * *
    Par. 25. In Sec. 48.4222(b)-1, paragraph (a) is revised to read as 
follows:


Sec. 48.4222(b)-1  Exceptions to the requirement for registration.

    (a) State and local governments. The Internal Revenue Service will 
not register state or local governments under section 4222. To 
establish the right to sell articles tax free to a state or local 
government, the manufacturer must obtain from a state or local 
government the information described in Sec. 48.4221-5(c).
* * * * *


Sec. 48.6416(b)(2)-2  [Amended]

    Par. 26. In Sec. 48.6416(b)(2)-2, paragraphs (g) through (k) are 
removed.
    Sec. 48.6416(g)-1  [Removed]

    Par. 27. Section 48.6416(g)-1 is removed.


Secs. 6424-0 through 48.6424-6  [Removed]

    Par. 28. Section 48.6424-0 through 48.6424-6 are removed.
    Par. 29. Section 48.6427-10 is added to read as follows:


Sec. 48.6427-10  Credit or payment with respect to gasoline used to 
produce gasohol.

    (a) Conditions to allowance of credit or payment. A claim for 
credit or payment with respect to gasoline is allowed under section 
6427(f) only if--
    (1) The gasoline to which the claim relates was taxed at the 
aggregate rate of tax imposed by section 4081 without regard to section 
4081(c);
    (2) The claimant used the gasoline to produce gasohol (as defined 
in Sec. 48.4081-6(b)(2)) that was sold or used in the claimant's trade 
or business; and
    (3) The claimant has filed a timely claim for a credit or payment 
that contains the information required under paragraph (c) of this 
section.
    (b) Form of claim. Each claim for a payment under section 6427(f) 
must be made on Form 8849 (or such other form as the Commissioner may 
designate) in accordance with the instructions for that form. Each 
claim for a credit under section 6427(f) must be made on Form 4136 (or 
such other form as the Commissioner may designate) in accordance with 
the instructions for that form.
    (c) Content of claim. Each claim for credit or payment under 
section 6427(f) must contain the following information with respect to 
each batch of gasohol that contains the gasoline covered by the claim:
    (1) The claimant's registration number, if the claimant is a 
registered gasohol blender (as defined in Sec. 48.4081-6(b)(4)).
    (2) The name, address, and employer identification number of the 
person that sold the claimant the gasoline.
    (3) The date and location of the sale of the gasoline.
    (4) The volume of the gasoline.
    (5) The name, address, and employer identification number of the 
person that sold the claimant the alcohol.
    (6) The date and location of the sale of the alcohol.
    (7) The volume and type of the alcohol.
    (8) In the case of a claim for a payment, a copy of the invoice or 
other record of sale relating to each purchase of alcohol.
    (9) The written or typed name of the individual signing the claim 
and the telephone number of that individual.
    (10) The amount of credit or payment claimed.
    (d) Time for filing claim. For rules relating to the time for 
filing a claim under section 6427(f), see section 6427(i). A claim 
under section 6427(f) is not considered to be filed unless it contains 
all the information required by paragraph (c) of this section and 
received at the place required by the form.
    (e) Effective date. This section is effective with respect to 
claims relating to gasohol produced after December 31, 1994.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 94-25763 Filed 10-17-94; 8:45 am]
BILLING CODE 4830-01-P