[Federal Register Volume 66, Number 97 (Friday, May 18, 2001)]
[Rules and Regulations]
[Page 27597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-12600]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 48

[TD 8945]
RIN 1545-AY85


Taxable Fuel Measurement

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final regulations relating to the 
measurement of taxable fuel. The regulations affect certain blenders, 
enterers, refiners, terminal operators, and throughputters.

DATES: Effective Date: These regulations are effective May 18, 2001.
    Applicability Date: These regulations are applicable January 1, 
1994.

FOR FURTHER INFORMATION CONTACT: Frank Boland (202) 622-3130 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    Section 4081 imposes a tax on certain removals, entries, and sales 
of taxable fuel. Section 4083 provides that taxable fuel means 
gasoline, diesel fuel, and kerosene.
    Before July 1, 2000, regulations provided that gallons of taxable 
fuel could be measured on the basis of actual volumetric gallons or 
gallons adjusted to 60 degrees Fahrenheit. However, regulations that 
were published in the Federal Register on March 31, 2000, (TD 8879; 65 
FR 17149) provide that beginning July 1, 2000, for each period from 
July 1 through the following June 30 a person liable for tax on a 
removal may use only one of the two bases of measurement with respect 
to taxable fuel removed from any particular terminal, refinery, or 
blending facility. This rule (the consistency requirement) also applies 
to taxable entries and sales.
    After publication of TD 8879, the IRS and the Treasury Department 
determined that many taxpayers would have had to change their 
accounting systems to comply with the consistency requirement and would 
have been unable to complete the necessary changes by July 1, 2000. 
Accordingly, Notice 2000-33 (2000-27 I.R.B. 97) provided that taxpayers 
would not be required to comply with the consistency requirement before 
July 1, 2001. In the meantime, a taxpayer could use either basis of 
measurement for each taxable removal, entry, or sale of taxable fuel.

Explanation of Provisions

    The IRS and the Treasury Department have now determined that the 
consistency requirement would force many taxpayers to alter current 
standard business practices and potentially could make routine IRS 
examinations more time consuming and burdensome. To avoid these adverse 
consequences, the final regulations in this document remove the 
consistency requirement and reinstate the provision that was in effect 
before July 1, 2000.

Effect on Other Documents

    Notice 2000-33 (2000-27 I.R.B. 97) is obsolete as of May 18, 2001.

Special Analyses

    This rule relieves taxpayer burden by eliminating a requirement 
with respect to the measurement of taxable fuel. Therefore, it has been 
determined that notice and public comment are unnecessary and contrary 
to the public interest. For the same reason, a delayed effective date 
under 5 U.S.C. 553(d) is not required. Because no preceding notice of 
proposed rulemaking is required for this Treasury decision and the rule 
does not impose on small entities a collection of information 
requirement, the provisions of the Regulatory Flexibility Act do not 
apply. It also has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required. Pursuant to section 
7805(f) of the Code, these final regulations were submitted to the 
Chief Counsel for Advocacy of the Small Business Administration for 
comment on their impact on small business.

Drafting Information

    The principal author of these regulations is Frank Boland, Office 
of Associate 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 Part 48

    Excise taxes, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 48 is amended as follows:

PART 48--MANUFACTURERS AND RETAILERS EXCISE TAXES

    Paragraph 1. The authority citation for part 48 continues to read 
in part as follows:

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

    Par. 2. Section 48.4081-8 is revised to read as follows:


Sec. 48.4081-8  Taxable fuel; measurement.

    (a) In general. Volumes of taxable fuel may be measured on the 
basis of actual volumetric gallons or gallons adjusted to 60 degrees 
Fahrenheit.
    (b) Effective date. This section is applicable January 1, 1994.

    Approved: May 10, 2001.
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
Mark A. Weinberger,
Assistant Secretary of the Treasury.
[FR Doc. 01-12600 Filed 5-17-01; 8:45 am]
BILLING CODE 4830-01-P