(1)any dyed fuel is sold or held for sale by any person for any use which such person knows or has reason to know is not a nontaxable use of such fuel,
(2)any dyed fuel is held for use or used by any person for a use other than a nontaxable use and such person knew, or had reason to know, that such fuel was so dyed,
(3)any person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye or marking done pursuant to section
4082 in any dyed fuel, or
(4)any person who has knowledge that a dyed fuel which has been altered as described in paragraph (3) sells or holds for sale such fuel for any use which the person knows or has reason to know is not a nontaxable use of such fuel,
then such person shall pay a penalty in addition to the tax (if any).
(b) Amount of penalty
(1) In general
Except as provided in paragraph (2), the amount of the penalty under subsection (a) on each act shall be the greater of—
(B)$10 for each gallon of the dyed fuel involved.
(2) Multiple violations
In determining the penalty under subsection (a) on any person, paragraph (1) shall be applied by increasing the amount in paragraph (1)(A) by the product of such amount and the number of prior penalties (if any) imposed by this section on such person (or a related person or any predecessor of such person or related person).
For purposes of this section—
(1) Dyed fuel
The term “dyed fuel” means any dyed diesel fuel or kerosene, whether or not the fuel was dyed pursuant to section
(2) Nontaxable use
The term “nontaxable use” has the meaning given such term by section
(d) Joint and several liability of certain officers and employees
If a penalty is imposed under this section on any business entity, each officer, employee, or agent of such entity who willfully participated in any act giving rise to such penalty shall be jointly and severally liable with such entity for such penalty.
(e) No administrative appeal for third and subsequent violations
In the case of any person who is found to be subject to the penalty under this section after a chemical analysis of such fuel and who has been penalized under this section at least twice after the date of the enactment of this subsection, no administrative appeal or review shall be allowed with respect to such finding except in the case of a claim regarding—
(1)fraud or mistake in the chemical analysis, or
(2)mathematical calculation of the amount of the penalty.
Pub. L. 108–357, title VIII, § 855(b),Oct. 22, 2004, 118 Stat. 1616, provided that: “The amendment made by this section [amending this section] shall apply to penalties assessed after the date of the enactment of this Act [Oct. 22, 2004].”
Pub. L. 108–357, title VIII, § 856(c),Oct. 22, 2004, 118 Stat. 1617, provided that: “The amendments made by this section [amending this section] shall take effect on the date of the enactment of this Act [Oct. 22, 2004].”
Section effective Jan. 1, 1994, see section 13242(e) ofPub. L. 103–66, set out as an Effective Date of 1993 Amendment note under section
4041 of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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Description of Change
Statutes at Large
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