
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC6715]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
  CHAPTER 68--ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE 
                                PENALTIES
 
                   Subchapter B--Assessable Penalties
 
                       PART I--GENERAL PROVISIONS
 
Sec. 6715. Dyed fuel sold for use or used in taxable use, etc.


(a) Imposition of penalty

    If--
        (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, or
        (3) any person willfully alters, or attempts to alter, the 
    strength or composition of any dye or marking done pursuant to 
    section 4082 in any dyed 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--
            (A) $1,000, or
            (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).

(c) Definitions

    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 4082.

                         (2) Nontaxable use

        The term ``nontaxable use'' has the meaning given such term by 
    section 4082(b).

(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.

(Added Pub. L. 103-66, title XIII, Sec. 13242(b)(1), Aug. 10, 1993, 107 
Stat. 520, Sec. 6714; renumbered Sec. 6715, Pub. L. 104-188, title I, 
Sec. 1703(n)(9)(A), Aug. 20, 1996, 110 Stat. 1877; amended Pub. L. 105-
34, title X, Sec. 1032(e)(11), Aug. 5, 1997, 111 Stat. 935.)


                               Amendments

    1997--Subsec. (c)(1). Pub. L. 105-34 inserted ``or kerosene'' after 
``diesel fuel''.
    1996--Pub. L. 104-188 renumbered section 6714 of this title as this 
section.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-34 effective July 1, 1998, see section 
1032(f)(1) of Pub. L. 105-34, as amended, set out as a note under 
section 4041 of this title.


                             Effective Date

    Section effective Jan. 1, 1994, see section 13242(e) of Pub. L. 103-
66, set out as an Effective Date of 1993 Amendment note under section 
4041 of this title.
