Gasoline and Diesel Fuel Excise Tax; Special Rules for

Official source: Federal Register (GovInfo) (https://www.govinfo.gov/content/pkg/FR-1998-01-02/pdf/97-33988.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

24 Federal Register / Vol. 63, No. 1 / Friday, January 2, 1998 / Rules and Regulations

corporation for which the shareholder makes a retroactive election will be treated as an unpedigreed QEF, as defined in § 1.1291–9(j)(2)(iii), with respect to the shareholder, the shareholder may make an election under section 1291(d)(2) to purge its holding period of the years or parts of years before the effective date of the retroactive election. If the qualification date, within the meaning of § 1.1291– 9(e) or 1.1291–10(e), falls in a taxable year for which the period of limitations has expired, the shareholder may treat the first day of the retroactive election year as the qualification date. The shareholder may make a section 1291(d)(2) election at the time that it makes the retroactive election, but no later than two years after the date that the amended return in which the retroactive election is made is filed. For the requirements for making a section 1291(d)(2) election, see §§ 1.1291–9 and 1.1291–10. (ii) Section 1294 election. A shareholder may make an election under section 1294 to extend the time for payment of tax on the shareholder’s pro rata shares of the ordinary earnings and net capital gain of the foreign corporation reported in the shareholder’s amended return, and section 6621 interest attributable to such tax, but only to the extent the tax and interest are attributable to earnings that have not been distributed to the shareholder. The shareholder must make a section 1294 election for a taxable year at the time that it files its amended return for that year, as provided in paragraph (g)(1) of this section. For the requirements for making a section 1294 election, see § 1.1294–1T.

(h) Effective date. The rules of this section are effective as of January 2, 1998. Par. 13. Section 1.1297–3T(c) is added to read as follows:

§ 1.1297–3T Deemed sale election by a United States person that is a shareholder of a passive foreign investment company (temporary).

- - - (c) Application of deemed dividend election rules. —(1) In general. A shareholder of a former PFIC, within the meaning of § 1.1291–9(j)(2)(iv), that was a controlled foreign corporation, within the meaning of section 957(a) (CFC), during its last taxable year as a PFIC under section 1296(a), may apply the rules of section 1291(d)(2)(B) and § 1.1291–9 to an election under section 1297(b)(1) and this section made by the time and in the manner provided in paragraph (b) of this section.

(2) Transition rule. If the time for making an election under this section, as provided in paragraph (b) of this section, expired before January 2, 1998, a shareholder that applied rules similar to the rules of section 1291(d)(2)(A) and § 1.1291–10 to an election under this section made with respect to a corporation that was a CFC during its last taxable year as a PFIC under section 1296(a) may file an amended return for the taxable year that includes the termination date, as defined in paragraph (a) of this section, and apply the rules of section 1291(d)(2)(B) and § 1.1291–9 at any time before the expiration of the period of limitations for the assessment of taxes for that taxable year.

(3) Effective date. The rules of this paragraph are effective as of January 2, 1998.

PART 602—OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT

Par. 14. The authority citation for part 602 continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 15. In § 602.101, paragraph (c) is amended by adding entries in numerical order to the table to read as follows:

§ 602.101 OMB Control numbers.

CFR part of section where

identified and described

Current OMB

control No.

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 40 and 48

[TD 8748]

RIN 1545–AU53

Gasoline and Diesel Fuel Excise Tax; Special Rules for Alaska; Definitions

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final regulations relating to the application of the diesel fuel excise tax to fuel used in Alaska. This document also contains final regulations relating to the gasoline and diesel fuel excise tax definitions. The regulations implement certain changes made by the Omnibus Budget Reconciliation Act of 1993 and the Small Business Job Protection Act of 1996. They affect certain enterers, refiners, retailers, terminal operators, throughputters, wholesale distributors, and users.

DATES: These regulations are effective January 2, 1998. For dates of applicability of these regulations, see §§ 48.4082–5(h) and 48.6715–1(a)(3).

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

SUPPLEMENTARY INFORMATION:

Background

Section 4081 imposes a tax on certain removals, entries, and sales of diesel fuel. However, under section 4082, tax is not imposed if, among other conditions, the diesel fuel is indelibly dyed in accordance with Treasury regulations. Section 1801 of the Small Business Job Protection Act of 1996 amends section 4082 to create an exception to the dyeing requirement that effectively applies only to diesel fuel that is removed, entered, or sold in Alaska.

Temporary regulations (TD 8693) relating to this change were published in the Federal Register on December 17, 1996 (61 FR 66215) along with a notice of proposed rulemaking (REG–247678– 96) cross-referencing the temporary regulations (61 FR 66246). The notice of proposed rulemaking also proposed other changes to the gasoline and diesel fuel excise tax regulations that were not contained in the temporary regulations.

A public hearing was neither requested nor held. After consideration of written comments, the proposed regulations are adopted as revised by

- - - 1.1295–1T ............................... 1545–1555 1.1295–3T ............................... 1545–1555

Michael P. Dolan,

Deputy Commissioner of Internal Revenue.

Approved: December 15, 1997.

Donald C. Lubick,

Acting Assistant Secretary of the Treasury.

[FR Doc. 97–33985 Filed 12–31–97; 8:45 am]

BILLING CODE 4830–01–P

Federal Register / Vol. 63, No. 1 / Friday, January 2, 1998 / Rules and Regulations 25

Par. 4. Section 48.4081–1 is amended as follows:

Paragraph (b) is amended by: a. Adding a definition in alphabetical order; and

b. Revising the definition of terminal. 2. Paragraph (c)(1)(i) is amended by removing the language ‘‘any mixture’’ and adding ‘‘any taxable fuel’’ in its place and by removing the language ‘‘and that consists of’’ and adding ‘‘by mixing’’ in its place.

Paragraph (d) is revised. The addition and revisions read as follows:

§ 48.4081–1 Taxable fuel; definitions.

- - - (b) * - Aviation gasoline means all special grades of gasoline that are suitable for use in aviation reciprocating engines, as described in ASTM Specification D 910 and Military Specification MIL–G–5572. The ASTM specification may be obtained from the American Society for Testing and Materials and the military specification from the Standardization Document Order Desk at the addresses provided in paragraph (c)(2)(i) of this section.
- - - Terminal means a taxable fuel storage and distribution facility that is supplied by pipeline or vessel and from which taxable fuel may be removed at a rack. However, the term does not include any facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline and from which no gasoline is removed. Also, effective January 2, 1998, the term does not include any facility operated by a taxable fuel registrant if all of the finished gasoline and diesel fuel (other than diesel fuel dyed in accordance with § 48.4082–1(b)) stored at the facility has been previously taxed under section 4081 upon removal from a refinery or terminal.
- - - (d) Effective date. This section is applicable January 1, 1994, except that in paragraph (b) of this section the definition of aviation gasoline and the third sentence in the definition of terminal are effective January 2, 1998.

§ 48.4082–5T [Redesignated as § 48.4082– 5] Par. 5. Section 48.4082–5T is redesignated as § 48.4082–5 and the language ‘‘(temporary)’’ is removed from the section heading.

Par. 6. Section 48.4082–5, as redesignated, is amended as follows:

Paragraph (b) is amended by revising the definition of qualified dealer.

this Treasury decision. Comments and revisions are discussed below.

Explanation of Provisions

The proposed regulations provide a definition of kerosene for purposes of the diesel fuel tax. Several commentators questioned this proposal. Because the IRS is continuing its review of this issue, the final regulations do not define kerosene. However, a definition may be included in a future Treasury decision.

The proposed regulations also include changes to the effective date of other proposed regulations that were published in the Federal Register on March 14, 1996 (61 FR 10490). Those regulations propose requirements relating to dye injection equipment and are not being finalized at this time. However, the IRS appreciates the concern expressed by several commentators that, as revised, the proposed effective dates still would not give taxpayers sufficient time to comply with the proposed requirements. Thus, the final dye injection regulations will provide a longer period of time between the publication date and the effective date than was proposed.

In response to comments, these final regulations modify the definition of terminal to exclude an otherwise qualifying facility that stores only taxed gasoline and taxed, undyed diesel fuel. As a result of this modification, tax will not be imposed again when the fuel is removed from this type of facility.

The final regulations generally adopt as proposed the provisions dealing with diesel fuel that is removed, entered, or sold in Alaska. However, several comments suggested that the definition of qualified dealer in the proposed regulations was too narrow and prevented unlicensed vendors from selling diesel fuel for exempt uses. In response, the final regulations expand the definition of qualified dealer to include unlicensed diesel fuel retailers that are registered by the IRS under specified conditions. As a result of this modification, many retailers that serve remote communities in Alaska will be able to buy diesel fuel tax free for resale for nontaxable uses.

The final regulations also make minor modifications to existing gasoline and diesel fuel regulations. For example, existing regulations generally require gasoline and diesel fuel refund claims to be filed with the same service center where the claimant’s income tax return is filed. Because all excise tax refund claims are now processed at the Cincinnati Service Center, this regulatory provision is removed.

Special Analyses

It has been determined that this Treasury decision 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) does not apply to these regulations and, because these regulations do not impose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Therefore, a Regulatory Flexibility Analysis is not required. Pursuant to section 7805(f) of the Internal Revenue Code, the notice of proposed rulemaking preceding these regulations was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.

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.

Adoption of Amendments to the Regulations

Accordingly, 26 CFR parts 40 and 48 are 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 * -
§ 40.6011(a)–1 [Amended] Par. 2. Section 40.6011(a)–1(b)(2)(vi) is amended by removing the language ‘‘a taxable fuel registrant’’ and adding ‘‘registered under section 4101’’ in its place.

PART 48—MANUFACTURERS AND RETAILERS EXCISE TAXES

Par. 3. The authority citation for part 48 is amended by removing the entry for § 48.4082–5T and adding an entry in numerical order to read in part as follows:

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

Section 48.4082–5 also issued under 26 U.S.C. 4082. * -

26 Federal Register / Vol. 63, No. 1 / Friday, January 2, 1998 / Rules and Regulations

Paragraphs (f) and (g) are redesignated as paragraphs (g) and (h), respectively.
A new paragraph (f) is added.
Paragraph (h), as redesignated, is revised.

The addition and revisions read as follows:

§ 48.4082–5 Diesel fuel; Alaska

- - - (b) * - Qualified dealer means any person that holds a qualified dealer license from the state of Alaska or has been registered by the district director as a qualified retailer. The district director will register a person as a qualified retailer only if the district director—

(1) Determines that the person, in the course of its trade or business, regularly sells diesel fuel for use by its buyer in a nontaxable use; and

(2) Is satisfied with the filing, deposit, payment, and claim history for all federal taxes of the person and any related person.

- - - (f) Registration. With respect to each person that has been registered as a qualified retailer by the district director, the rules of § 48.4101–1(g), (h), and (i) apply.
- - - (h) Effective date. This section is applicable with respect to diesel fuel removed or entered after December 31,

A person registered by the district director as a qualified retailer before April 2, 1998 may be treated, to the extent the district director determines appropriate, as a qualified dealer for the period before that date.

§ 48.6416(b)(4)–1 [Removed] Par. 7. Section 48.6416(b)(4)-1 is removed.

§ 48.6421–3 [Amended] Par. 8. In § 48.6421–3, paragraph (d)(2) is amended by removing the last sentence.

§ 48.6427–3 [Amended] Par. 9. In § 48.6427–3, paragraph (d)(2) is amended by removing the last sentence.

Par. 10. In § 48.6715–1, paragraph (a)(3) is revised to read as follows:

§ 48.6715–1 Penalty for misuse of dyed diesel fuel.

(a) * - (3) The alteration or attempted alteration occurs in an exempt area of Alaska after September 30, 1996.

§ 48.6715–2T [Removed] Par. 11. Section 48.6715–2T is removed.

Approved: November 6, 1997. Michael P. Dolan, Acting Commissioner of Internal Revenue. Donald C. Lubick, Acting Assistant Secretary of the Treasury.

[FR Doc. 97–33988 Filed 12–31–97; 8:45 am]

BILLING CODE 4830–01–P

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[FRL–5937–7]

Final Determination to Extend Deadline for Promulgation of Action on Section 126 Petitions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

SUMMARY: The EPA is extending by an additional three-day period the deadline for taking final action on petitions that eight States have submitted to require EPA to make findings that sources upwind of those States contribute significantly to nonattainment problems in those States. Under the Clean Air Act (CAA), EPA is authorized to grant this time extension if EPA determines that the extension is necessary, among other things, to meet the purposes of the Act’s rulemaking requirements. By this document, EPA is making that determination.

extension established the deadline at December 14, 1997, but because that date fell on a Sunday, the deadline became the following Monday, December 15, 1997. In the November 20, 1997 document, EPA indicated that it was reserving its option to extend the date for final action by all or part of the remaining four months of the six-month extension period provided under section 307(d)(10).

EPA is today extending the deadline for an additional three days, to December 18, 1997. In the November 20, 1997 document, EPA justified the second one-month extension as necessary in part to allow the agency, working with the section 126 petitioners and other interested parties, to conclude the process for determining an appropriate schedule for action on the section 126 petitions. This schedule would include, as important elements, timetables for proposed rulemaking, a public hearing, and a public comment period. In this manner, the extension furthered the purposes of section 307(d)(10) by promoting public participation in the rulemaking process.

EPA believes that these same reasons continue to apply to favor another, brief extension, at this time. In particular, EPA seems to be in the final stages of finalizing with the section 126 petitioners an appropriate schedule for section 126 rulemaking. Accordingly, EPA again concludes today that extending the date for action on the section 126 petitions for another three days is necessary.

As EPA indicated in its previous notices, EPA, even with today’s action, continues not to use the entire six months provided under section 307(d)(10) for the extension. EPA continues to reserve the right to apply the remaining period, or a portion thereof, as an additional extension, if necessary, immediately following the conclusion of the three-day period, or to apply the remaining time to the period following EPA’s proposed rulemaking.

II. Final Action

A. Rule

Today, EPA is determining, under CAA section 307(d)(10), that an additional three-day period is necessary to assure the development of an appropriate schedule for rulemaking on the section 126 petitions, which schedule would allow EPA adequate time to prepare a notice for proposal that will best facilitate public comment, as well as allow the public sufficient time to comment. Under this extension, the date for action on each of the section 126 petitions is December 18, 1997.

EFFECTIVE DATE: This action is effective as of December 15, 1997.

FOR FURTHER INFORMATION CONTACT: Howard J. Hoffman, Office of General Counsel, MC–2344, 401 M St., SW, Washington, D.C. 20460, (202) 260– 5892.

SUPPLEMENTARY INFORMATION:

I. Background

Today’s action follows closely EPA’s final actions taken by notice dated October 22, 1997 (62 FR 54769) and November 20, 1997 (62 FR 61914). Familiarity with those documents is assumed, and background information in them will not be repeated here.

In the November 20, 1997 document, EPA extended by one month, pursuant to its authority under CAA section 307(d)(10), the time-frame for taking final action on petitions submitted by Connecticut, Maine, Massachusetts, New Hampshire, New York, Pennsylvania, Rhode Island, and Vermont under CAA section 126. This