II 

108TH CONGRESS 

1ST SESSION S. 1979

To amend the Internal Revenue Code of 1986 to prevent the fraudulent 

avoidance of fuel taxes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 25, 2003

Mr. GRASSLEY (for himself and Mr. BAUCUS) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL

To amend the Internal Revenue Code of 1986 to prevent 

the fraudulent avoidance of fuel taxes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Fuel Fraud Prevention Act of 2003’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise provided, whenever in this Act an amendment or re8 peal is expressed in terms of an amendment to, or repeal 

9 of, a section or other provision, the reference shall be con-
2

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1 sidered to be made to a section or other provision of the 

2 Internal Revenue Code of 1986. 

3 (c) TABLE OF CONTENTS.—The table of contents for 

4 this Act is as follows:

Sec. 1. Short title; etc. 

TITLE I—AVIATION JET FUEL 

Sec. 101. Taxation of aviation fuel at the rack. 

TITLE II—DYED FUEL 

Sec. 201. Dye injection equipment. 

Sec. 202. Elimination of administrative review for taxable use of dyed fuel.

Sec. 203. Penalty on untaxed adulterated fuel mixtures. 

TITLE III—MODIFICATION OF INSPECTION OF RECORDS 

PROVISIONS 

Sec. 301. Expanded disclosure of records. 

Sec. 302. Authority to inspect on-site records. 

Sec. 303. Assessable penalty for refusal of entry. 

TITLE IV—REGISTRATION AND REPORTING REQUIREMENTS 

Sec. 401. Registration of pipeline or vessel operators required for exemption of 

bulk transfers to registered terminals or refineries. 

Sec. 402. Display of registration. 

Sec. 403. Certain reports filed electronically. 

Sec. 404. Failure to register. 

Sec. 405. Registration of persons within foreign trade zones. 

Sec. 406. Information reporting for persons claiming certain tax benefits. 

TITLE V—IMPORTS 

Sec. 501. Tax at point of entry where importer not registered. 

Sec. 502. Reconciliation of on-loaded cargo to entered cargo. 

TITLE VI—MISCELLANEOUS PROVISIONS 

Sec. 601. Tax on sale of diesel fuel whether suitable for use or not in a dieselpowered vehicle or train. 

Sec. 602. Ultimate vendor refund claims. 

Sec. 603. Taxable fuel refunds. 

Sec. 604. Two-party exchanges. 

Sec. 605. Modifications of tax on use of certain vehicles. 

Sec. 606. Dedication of revenues from certain penalties to the Highway Trust 

Fund.
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1 TITLE I—AVIATION JET FUEL 

2 SEC. 101. TAXATION OF AVIATION FUEL AT THE RACK. 

3 (a) TAX ON REMOVAL, ENTRY, OR SALE.—Section 

4 4091(a) (related to tax on sale) is amended to read as 

5 follows: 

6 ‘‘(a) TAX ON REMOVAL, ENTRY, OR SALE.—

7 ‘‘(1) IN GENERAL.—There is hereby imposed a 

8 tax at the rate specified in subsection (b) on—

9 ‘‘(A) the removal of aviation fuel from any 

10 refinery, 

11 ‘‘(B) the removal of aviation fuel from any 

12 terminal, 

13 ‘‘(C) the entry into the United States of 

14 any aviation fuel for consumption, use, or 

15 warehousing, 

16 ‘‘(D) the sale of aviation fuel to any person 

17 who is not registered under section 4101 unless 

18 there was a prior taxable removal or entry of 

19 such fuel under subparagraph (A), (B), or (C), 

20 and 

21 ‘‘(E) the sale or use of aviation fuel with 

22 respect to which section 4092 applies by a com23 mercial aviation registrant. 

24 ‘‘(2) EXEMPTION FOR BULK TRANSFERS.—The 

25 tax imposed by this subsection shall not apply to the 
4

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1 removal or entry of aviation fuel transferred in bulk 

2 by pipeline or vessel to a terminal or refinery if the 

3 person removing or entering the aviation fuel, the 

4 operator of such pipeline or vessel, and the operator 

5 of such terminal or refinery are registered under sec6 tion 4101.’’. 

7 (b) RATE OF TAX.—Paragraph (1) of section 

8 4091(b) is amended by striking ‘‘shall be 21.8 cents per 

9 gallon.’’ and inserting ‘‘shall be—

10 ‘‘(A) in the case of fuel delivered from a 

11 terminal directly to the fuel tank of an aircraft 

12 for use in commercial aviation or in the case of 

13 a sale or use described in subsection (a)(1)(E), 

14 4.3 cents per gallon, and 

15 ‘‘(B) in any other case, 21.8 cents per gal16 lon.’’. 

17 (c) NONTAXABLE USE.—

18 (1) IN GENERAL.—Section 4092 is amended to 

19 read as follows: 

20 ‘‘SEC. 4092. EXEMPTIONS. 

21 ‘‘(a) NONTAXABLE USES.—No tax shall be imposed 

22 by section 4091 on aviation fuel for use by the purchaser 

23 in a nontaxable use (as defined in section 6427(l)(2)(B)) 

24 other than for use in commercial aviation. 
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1 ‘‘(b) USE OF FUEL AS SUPPLIES FOR VESSELS OR

2 AIRCRAFT.—Notwithstanding subsection (a), no tax shall 

3 be imposed by section 4091 on aviation fuel for use by 

4 a commercial aviation registrant as supplies for vessels or 

5 aircraft (within the meaning of section 4221(d)(3)).’’. 

6 (2) REFUNDS.—Paragraph (4) of section 

7 6427(l) is amended to read as follows: 

8 ‘‘(4) CERTAIN TAXES ON FUEL USED IN COM9 MERCIAL AVIATION.—

10 ‘‘(A) NO REFUND IN CERTAIN CASES.—In 

11 the case of fuel used in commercial aviation (as 

12 defined in section 4093(c)) (other than supplies 

13 for vessels or aircraft within the meaning of 

14 section 4221(d)(3)), paragraph (1) shall not 

15 apply to so much of the tax imposed by section 

16 4091 as is attributable to—

17 ‘‘(i) the Leaking Underground Stor18 age Tank Trust Fund financing rate im19 posed by such section, and 

20 ‘‘(ii) in the case of fuel purchased 

21 after September 30, 1995, so much of the 

22 rate of tax specified in section 4091(b)(1) 

23 as does not exceed 4.3 cents per gallon. 

24 ‘‘(B) PAYMENT TO REGISTERED VEN25 DOR.—The amount which would be paid under
6

•S 1979 IS 

1 paragraph (1) after the application of this para2 graph with respect to any fuel shall be paid to 

3 the vendor of such fuel, if such vendor—

4 ‘‘(i) is registered under section 4101, 

5 and 

6 ‘‘(ii) meets the requirements of sub7 paragraph (A), (B), or (D) of section 

8 6416(a)(1).’’. 

9 (d) DEFINITIONS.—

10 (1) AVIATION FUEL.—Subsection (a) of section 

11 4093 is amended to read as follows: 

12 ‘‘(a) AVIATION FUEL.—For purposes of this subpart, 

13 the term ‘aviation fuel’ means any fuel, other than avia14 tion-grade gasoline, which is destined for use in an air15 craft.’’. 

16 (2) COMMERCIAL AVIATION REGISTRANT.—Sub17 section (b) of section 4093 is amended to read as 

18 follows: 

19 ‘‘(b) COMMERCIAL AVIATION REGISTRANT.—

20 ‘‘(1) IN GENERAL.—The term ‘commercial avia21 tion registrant’ means any person who is—

22 ‘‘(A) a wholesale distributor, 

23 ‘‘(B) registered under section 4101 with 

24 respect to the tax imposed by section 4091, and 
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1 ‘‘(C) in the business of commercial avia2 tion. 

3 ‘‘(2) CERTAIN PERSONS TREATED AS COMMER4 CIAL AVIATION REGISTRANTS.—Any person to whom 

5 aviation fuel is sold at a reduced rate under this 

6 subpart shall be treated as a commercial aviation 

7 registrant with respect to such fuel. 

8 ‘‘(3) WHOLESALE DISTRIBUTOR.—For purposes 

9 of paragraph (1), the term ‘wholesale distributor’ in10 cludes any person who sells aviation fuel to commer11 cial registrants, retailers, or to users who purchase 

12 in bulk quantities and accept delivery into bulk stor13 age tanks. Such term does not include any person 

14 who is a producer or importer.’’. 

15 (3) COMMERCIAL AVIATION.—Section 4093 is 

16 amended by adding at the end the following new 

17 subsection: 

18 ‘‘(c) COMMERCIAL AVIATION.—For purposes of this 

19 subpart, the term ‘commercial aviation’ means any use of 

20 an aircraft other than in noncommercial aviation (as de21 fined in section 4041(c)(2)).’’. 

22 (e) NON-AIRCRAFT USE OF AVIATION FUEL.—

23 (1) IN GENERAL.—Section 4041 (relating to 

24 tax on special fuels) is amended by adding at the 

25 end the following new subsection: 
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•S 1979 IS 

1 ‘‘(n) NON-AIRCRAFT USE OF AVIATION FUEL.—

2 ‘‘(1) IN GENERAL.—If any fuel on which a tax 

3 was imposed under section 4091 is used other than 

4 for fuel in an aircraft, there is hereby imposed a tax 

5 in an amount equal to the rate specified in section 

6 4081(a)(2)(A)(iii). 

7 ‘‘(2) REFUND OF INITIAL TAX.—For refund of 

8 initial tax paid, see section 6429.’’. 

9 (2) REFUNDS.—

10 (A) IN GENERAL.—Subchapter B of chap11 ter 65 is amended by adding at the end the fol12 lowing new section: 

13 ‘‘SEC. 6429. AVIATION FUEL USED ON HIGHWAYS. 

14 ‘‘(a) IN GENERAL.—If any fuel on which a tax was 

15 imposed under section 4091 is also taxed under section 

16 4041(n), the Secretary shall pay (without interest) to the 

17 ultimate purchaser of such fuel an amount equal to the 

18 tax imposed on the fuel under section 4091. 

19 ‘‘(b) TIME FOR FILING OF CLAIMS.—Rules similar 

20 to the rules of paragraphs (1) and (2) of section 6427(i) 

21 shall apply with respect to this section. 

22 ‘‘(c) APPLICABLE LAWS.—Rules similar to the rules 

23 of section 6427(j) shall apply with respect to this sec24 tion.’’. 
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1 (B) CONFORMING AMENDMENT.—The 

2 table of sections for subchapter B of chapter 65 

3 is amended by inserting at the end the following 

4 new item:

‘‘Sec. 6429. Aviation fuel used on highways.’’.

5 (f) FLOOR STOCK TAXES.—

6 (1) IN GENERAL.—On aviation fuel subject to 

7 tax under section 4091 of the Internal Revenue 

8 Code of 1986 which, on January 1, 2004, is held by 

9 a producer for sale or use, with respect to which no 

10 tax has been imposed under such section, and with 

11 respect to which tax would have been imposed under 

12 such section if such section, as amended by this Act, 

13 were applied to such fuel at the time of a prior re14 moval, entry, or sale, there is hereby imposed a tax 

15 at the rate of—

16 (A) in the case of fuel held for use or sale 

17 for use in commercial aviation (within the 

18 meaning of section 4093(c) of the Internal Rev19 enue Code of 1986), 4.4 cents a gallon, and 

20 (B) in any other case, 21.9 cents a gallon.. 

21 (2) DUE DATE OF TAXES.—The taxes imposed 

22 by this subsection shall be paid before February 16, 

23 2004. 

24 (3) TRANSFER OF FLOOR STOCK TAX REVE25 NUES TO TRUST FUNDS.—For purposes of deter-
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1 mining the amount transferred to any trust fund, 

2 the tax imposed by this section shall be treated as 

3 imposed by section 4091 of the Internal Revenue 

4 Code of 1986—

5 (A) at the Highway Trust Fund financing 

6 rate under such section—

7 (i) in the case of fuel taxed under 

8 paragraph (1)(A), to the extent of 4.3 

9 cents per gallon, and 

10 (ii) in any other case, to the extent of 

11 21.8 cents per gallon, and 

12 (B) at the Leaking Underground Storage 

13 Tank Trust Fund financing rate under such 

14 section to the extent of 0.1 cents per gallon. 

15 (4) DEFINITIONS.—For purposes of this sub16 section—

17 (A) PRODUCER.—

18 (i) IN GENERAL.—The term ‘pro19 ducer’ includes any person described in 

20 clause (ii) and registered under section 

21 4101 of the Internal Revenue Code of 

22 1986 with respect to the tax imposed by 

23 section 4091 of such Code.
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1 (ii) PERSONS DESCRIBED.—A person 

2 is described in this clause if such person 

3 is—

4 (I) a refiner, blender, or whole5 sale distributor (as defined in section 

6 6416(a)(4)(B) of the Internal Rev7 enue Code of 1986) of aviation fuel, 

8 or 

9 (II) a dealer selling aviation fuel 

10 exclusively to producers of aviation 

11 fuel. 

12 (iii) REDUCED RATE PURCHASERS

13 TREATED AS PRODUCERS.—Any person to 

14 whom aviation fuel is sold at a reduced 

15 rate under subpart B of part III of chapter 

16 32 of such Code shall be treated as the 

17 producer of such fuel. 

18 (iv) WHOLESALE DISTRIBUTOR.—For 

19 purposes of clause (ii), the term ‘wholesale 

20 distributor’ includes any person who sells 

21 aviation fuel to producers, retailers, or to 

22 users who purchase in bulk quantities and 

23 accept delivery into bulk storage tanks. 

24 Such term does not include any person 

25 who (excluding the term ‘wholesale dis-
12

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1 tributor’ from clause (ii)) is a producer or 

2 importer.’’. 

3 (B) HELD BY A PRODUCER.—Aviation fuel 

4 shall be considered as ‘held by a producer’ if 

5 title thereto has passed to such producer 

6 (whether or not delivery to the producer has 

7 been made). 

8 (C) AVIATION FUEL.—The term aviation 

9 fuel has the same meaning given such term by 

10 section 4093(a) of the Internal Revenue Code 

11 of 1986. 

12 (g) CONFORMING AMENDMENTS.—

13 (1) Section 4041(c)(1) is amended by striking 

14 ‘‘if there was a taxable sale of such liquid’’ and in15 serting ‘‘if tax was imposed on such liquid’’. 

16 (2) Section 4041(d) is amended by striking ‘‘if 

17 there was a taxable sale of such liquid’’ and insert18 ing ‘‘if tax was imposed on such liquid’’. 

19 (3) Section 4082(d)(1) is amended by striking 

20 ‘‘determines is destined for use as a fuel in an air21 craft’’ and inserting ‘‘determines is subject to the 

22 provisions of section 4091’’. 

23 (4) Section 4091(c) is amended—

24 (A) by striking ‘‘The rate’’ in paragraph 

25 (1), and inserting ‘‘Except in the case of avia-
13

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1 tion fuel to which subsection (b)(1)(A) applies, 

2 the rate’’, 

3 (B) by striking ‘‘sale’’ each place it ap4 pears in paragraphs (1), (2), and (5) and in5 serting ‘‘removal or entry’’, and 

6 (C) by striking ‘‘producer’’ in paragraph 

7 (3) and inserting ‘‘refiner’’. 

8 (5) Section 4091 is amended by striking sub9 section (d). 

10 (6) Section 6416(a)(4)(B) is amended to read 

11 as follows: 

12 ‘‘(B) WHOLESALE DISTRIBUTOR.—For 

13 purposes of subparagraph (A), the term ‘whole14 sale distributor’ includes any person who sells 

15 any gasoline taxable under section 4081 to pro16 ducers, retailers, or to users who purchase in 

17 bulk quantities and accept delivery into bulk 

18 storage tanks. Such term does not include any 

19 person who is a producer or importer. Such 

20 term includes any person who makes retail sales 

21 of gasoline at 10 or more retail motor fuel out22 lets.’’. 

23 (7) Section 6724(d)(1)(B) is amended by strik24 ing clause (xv) and by redesignating clauses (xvi) 
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1 through (xviii) as clauses (xv) through (xvii), respec2 tively. 

3 (8)(A) Section 6724(d)(2) is amended by strik4 ing clause (W) and by redesignating clauses (X) 

5 through (BB) as clauses (W) through (AA), respec6 tively. 

7 (B) Section 6652(e) is amended by striking ‘‘sec8 tion 6724(d)(2)(Y)’’ and inserting ‘‘section 

9 6724(d)(2)(X)’’. 

10 (C) Section 6693 (a)(2) is amended by striking 

11 ‘‘section 6724(d)(2)(X)’’ and inserting ‘‘section 

12 6724(d)(2)(W)’’. 

13 (h) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to aviation fuel removed, entered 

15 into the United States, or sold after December 31, 2003. 

16 TITLE II—DYED FUEL 

17 SEC. 201. DYE INJECTION EQUIPMENT. 

18 (a) IN GENERAL.—Section 4082(a)(2) (relating to 

19 exemptions for diesel fuel and kerosene) is amended by 

20 inserting ‘‘by mechanical injection’’ after ‘‘indelibly dyed’’. 

21 (b) DYE INJECTOR SECURITY.—Not later than 1 

22 year after the date of the enactment of this Act, the Sec23 retary of the Treasury shall issue regulations regarding 

24 mechanical dye injection systems described in the amend25 ment made by subsection (a), and such regulations shall 
15

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1 include standards for making such systems tamper resist2 ant. 

3 (c) PENALTY FOR TAMPERING WITH OR FAILING TO

4 MAINTAIN SECURITY REQUIREMENTS FOR MECHANICAL

5 DYE INJECTION SYSTEMS.—

6 (1) IN GENERAL.—Part I of subchapter B of 

7 chapter 68 (relating to assessable penalties) is 

8 amended by adding after section 6715 the following 

9 new section: 

10 ‘‘SEC. 6715A. TAMPERING WITH OR FAILING TO MAINTAIN 

11 SECURITY REQUIREMENTS FOR MECHAN12 ICAL DYE INJECTION SYSTEMS. 

13 ‘‘(a) IMPOSITION OF PENALTY—

14 ‘‘(1) TAMPERING.—If any person tampers with 

15 a mechanical dye injection system used to indelibly 

16 dye fuel for purposes of section 4082, such person 

17 shall pay a penalty. 

18 ‘‘(2) FAILURE TO MAINTAIN SECURITY RE19 QUIREMENTS.—If any operator of a mechanical dye 

20 injection system used to indelibly dye fuel which is 

21 destined for a nontaxable use under section 4082 

22 fails to maintain the security standards for such sys23 tem as established by the Secretary, then such oper24 ator shall pay a penalty.
16

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1 ‘‘(b) AMOUNT OF PENALTY.—The amount of the 

2 penalty under subsection (a) shall be—

3 ‘‘(1) for each violation described in paragraph 

4 (1), the greater of—

5 ‘‘(A) $25,000, or 

6 ‘‘(B) $10 for each gallon of fuel involved, 

7 and 

8 ‘‘(2) for each—

9 ‘‘(A) failure to maintain security standards 

10 described in paragraph (2), $1,000, and 

11 ‘‘(B) failure to correct a violation described 

12 in paragraph (2), $1,000 per day. 

13 ‘‘(c) JOINT AND SEVERAL LIABILITY.—

14 ‘‘(1) IN GENERAL.—If a penalty is imposed 

15 under this section on any business entity, each offi16 cer, employee, or agent of such entity or other con17 tracting party who willfully participated in any act 

18 giving rise to such penalty shall be jointly and sever19 ally liable with such entity for such penalty. 

20 ‘‘(2) AFFILIATED GROUPS.—If a business entity 

21 described in paragraph (1) is part of an affiliated 

22 group (as defined in section 1504(a)), the parent 

23 corporation of such entity shall be jointly and sever24 ally liable with such entity for the penalty imposed 

25 under this section.’’. 
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1 (2) CLERICAL AMENDMENT.—The table of sec2 tions for part I of subchapter B of chapter 68 is 

3 amended by adding after the item related to section 

4 6715 the following new item:

‘‘Sec. 6715A. Tampering with or failing to maintain security requirements for mechanical dye injection systems.’’.

5 (d) EFFECTIVE DATE.—The amendments made by 

6 subsections (a) and (c) shall take effect 1 year after the 

7 date on which the Secretary issues the regulations de8 scribed in subsection (b). 

9 SEC. 202. ELIMINATION OF ADMINISTRATIVE REVIEW FOR 

10 TAXABLE USE OF DYED FUEL. 

11 (a) IN GENERAL.—Section 6715 is amended by in12 serting at the end the following new subsection: 

13 ‘‘(e) NO ADMINISTRATIVE APPEAL FOR THIRD AND

14 SUBSEQUENT VIOLATIONS.—In the case of any person 

15 who is subject to the penalty under this section after a 

16 chemical analysis of such fuel and who has been penalized 

17 under this section at least twice after the date of the en18 actment of this subsection, no administrative appeal or re19 view shall be allowed with respect to such finding except 

20 in the case of a claim regarding—

21 ‘‘(1) fraud or mistake in the chemical analysis, 

22 or 

23 ‘‘(2) mathematical calculation of the amount of 

24 the penalty.’’. 
18

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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to penalties assessed after the date 

3 of the enactment of this Act. 

4 SEC. 203. PENALTY ON UNTAXED ADULTERATED FUEL MIX5 TURES. 

6 (a) IN GENERAL.—Section 6715(a) (relating to dyed 

7 fuel sold for use or used in taxable use, etc.) is amended 

8 by striking ‘‘or’’ in paragraph (2), by inserting ‘‘or’’ at 

9 the end of paragraph (3), and by inserting after paragraph 

10 (3) the following new paragraph: 

11 ‘‘(4) any person who has knowledge that a dyed 

12 fuel which has not been previously taxed or has only 

13 been partially taxed has been chemically altered in 

14 an attempt to remove the dye sells or holds for sale 

15 such fuel for any use which the person knows or has 

16 reason to know is not a nontaxable use of such 

17 fuel,’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall take effect on the date of the enactment 

20 of this Act. 
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1 TITLE III—MODIFICATION OF IN2 SPECTION OF RECORDS PRO3 VISIONS 

4 SEC. 301. EXPANDED DISCLOSURE OF RECORDS. 

5 (a) INSPECTION BY OTHER ENFORCEMENT AGEN6 CIES.—Section 4102 is amended by striking ‘‘by such offi7 cers’’ and all that follows and inserting ‘‘by—

8 ‘‘(1) such officers of a State, or a political sub9 division of any such State, as shall be charged with 

10 the enforcement or collection of any tax on any tax11 able fuel (as defined in section 4083), and 

12 ‘‘(2) such officers and employees of the Depart13 ment of Transportation of the Federal Government 

14 and of the State equivalent of such department as 

15 shall be charged with such enforcement or collec16 tion.’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall take effect on the date of the enactment 

19 of this Act. 

20 SEC. 302. AUTHORITY TO INSPECT ON-SITE RECORDS. 

21 (a) IN GENERAL.—Section 4083(c)(1)(A) (relating to 

22 administrative authority) is amended by striking ‘‘and’’ at 

23 the end of clause (i) and by inserting after clause (ii) the 

24 following new clause: 
20

•S 1979 IS 

1 ‘‘(iii) inspecting any books and 

2 records and any shipping papers pertaining 

3 to such fuel, and’’. 

4 (b) EFFECTIVE DATE.—The amendments made by 

5 this section shall take effect on the date of the enactment 

6 of this Act. 

7 SEC. 303. ASSESSABLE PENALTY FOR REFUSAL OF ENTRY. 

8 (a) IN GENERAL.—Part I of subchapter B of chapter 

9 68 (relating to assessable penalties) is amended by adding 

10 at the end the following new section: 

11 ‘‘SEC. 6717. REFUSAL OF ENTRY. 

12 ‘‘(a) IN GENERAL.—In addition to any criminal pen13 alty provided by law, any person who refuses to admit 

14 entry or refuses to permit any other action by the Sec15 retary authorized by section 4083(c)(1) shall pay a pen16 alty of $1,000 for such refusal. 

17 ‘‘(b) JOINT AND SEVERAL LIABILITY.—

18 ‘‘(1) IN GENERAL.—If a penalty is imposed 

19 under this section on any business entity, each offi20 cer, employee, or agent of such entity or other con21 tracting party who willfully participated in any act 

22 giving rise to such penalty shall be jointly and sever23 ally liable with such entity for such penalty. 

24 ‘‘(2) AFFILIATED GROUPS.—If a business entity 

25 described in paragraph (1) is part of an affiliated
21

•S 1979 IS 

1 group (as defined in section 1504(a)), the parent 

2 corporation of such entity shall be jointly and sever3 ally liable with such entity for the penalty imposed 

4 under this section. 

5 ‘‘(c) REASONABLE CAUSE EXCEPTION.—No penalty 

6 shall be imposed under this section with respect to any 

7 failure if it is shown that such failure is due to reasonable 

8 cause.’’. 

9 (b) CONFORMING AMENDMENTS.—

10 (1) Section 4083(c)(3) is amended—

11 (A) by striking ‘‘ENTRY.—The penalty’’ 

12 and inserting: ‘‘ENTRY.—

13 ‘‘(A) FORFEITURE.—The penalty’’, and 

14 (B) by adding at the end the following new 

15 subparagraph: 

16 ‘‘(B) ASSESSABLE PENALTY.—For addi17 tional civil penalty for the refusal to admit 

18 entry or other refusal to permit an action by 

19 the Secretary authorized by paragraph (1), see 

20 section 6717.’’. 

21 (2) The table of sections for part I of sub22 chapter B of chapter 68, as amended by this Act, 

23 is amended by adding at the end the following new 

24 item:

‘‘Sec. 6717. Refusal of entry.’’.
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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on January 1, 2004. 

3 TITLE IV—REGISTRATION AND 

4 REPORTING REQUIREMENTS 

5 SEC. 401. REGISTRATION OF PIPELINE OR VESSEL OPERA6 TORS REQUIRED FOR EXEMPTION OF BULK 

7 TRANSFERS TO REGISTERED TERMINALS OR 

8 REFINERIES. 

9 (a) IN GENERAL.—Section 4081(a)(1)(B) (relating 

10 to exemption for bulk transfers to registered terminals or 

11 refineries) is amended—

12 (1) by inserting ‘‘by pipeline or vessel’’ after 

13 ‘‘transferred in bulk’’, and 

14 (2) by inserting ‘‘, the operator of such pipeline 

15 or vessel,’’ after ‘‘the taxable fuel’’.

16 (b) CIVIL PENALTY FOR CARRYING TAXABLE FUELS

17 BY NONREGISTERED PIPELINES OR VESSELS.—

18 (1) IN GENERAL.—Part I of subchapter B of 

19 chapter 68 (relating to assessable penalties), as 

20 amended by this Act, is amended by adding at the 

21 end the following new section: 

22 ‘‘SEC. 6718. CARRYING TAXABLE FUELS BY NONREG23 ISTERED PIPELINES OR VESSELS. 

24 ‘‘(a) IMPOSITION OF PENALTY.—If any taxable fuel 

25 (as defined in section 4083(a)(1)) is transferred in bulk 
23

•S 1979 IS 

1 by a person registered under section 4101, any person who 

2 knowingly transfers such fuel to an unregistered person 

3 shall pay a penalty in addition to the tax (if any). 

4 ‘‘(b) AMOUNT OF PENALTY.—

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (2), the amount of the penalty under sub7 section (a) on each act shall be an amount equal to 

8 the greater of—

9 ‘‘(A) $10,000, or 

10 ‘‘(B) $1 per gallon. 

11 ‘‘(2) MULTIPLE VIOLATIONS.—In determining 

12 the penalty under subsection (a) on any person, 

13 paragraph (1) shall be applied by increasing the 

14 amount in paragraph (1) by the product of such 

15 amount and the number of prior penalties (if any) 

16 imposed by this section on such person (or a related 

17 person or any predecessor of such person or related 

18 person). 

19 ‘‘(c) JOINT AND SEVERAL LIABILITY.—

20 ‘‘(1) IN GENERAL.—If a penalty is imposed 

21 under this section on any business entity, each offi22 cer, employee, or agent of such entity or other con23 tracting party who willfully participated in any act 

24 giving rise to such penalty shall be jointly and sever25 ally liable with such entity for such penalty. 
24

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1 ‘‘(2) AFFILIATED GROUPS.—If a business entity 

2 described in paragraph (1) is part of an affiliated 

3 group (as defined in section 1504(a)), the parent 

4 corporation of such entity shall be jointly and sever5 ally liable with such entity for the penalty imposed 

6 under this section. 

7 ‘‘(d) REASONABLE CAUSE EXCEPTION.—No penalty 

8 shall be imposed under this section with respect to any 

9 failure if it is shown that such failure is due to reasonable 

10 cause.’’. 

11 (2) CLERICAL AMENDMENT.—The table of sec12 tions for part I of subchapter B of chapter 68, as 

13 amended by this Act, is amended by adding at the 

14 end the following new item:

‘‘Sec. 6718. Carrying taxable fuels by nonregistered pipelines or 

vessels.’’.

15 (c) EFFECTIVE DATE.—The amendments made by 

16 this section shall take effect on January 1, 2004. 

17 SEC. 402. DISPLAY OF REGISTRATION. 

18 (a) IN GENERAL.—Subsection (a) of section 4101 

19 (relating to registration) is amended—

20 (1) by striking ‘‘Every’’ and inserting the fol21 lowing: 

22 ‘‘(1) IN GENERAL.—Every’’, and 

23 (2) by adding at the end the following new 

24 paragraph: 
25

•S 1979 IS 

1 ‘‘(2) DISPLAY OF REGISTRATION.—Every oper2 ator of a vessel required by the Secretary to register 

3 under this section shall display proof of registration 

4 through an electronic identification device prescribed 

5 by the Secretary on each vessel used by such oper6 ator to transport any taxable fuel.’’. 

7 (b) CIVIL PENALTY FOR FAILURE TO DISPLAY REG8 ISTRATION.—

9 (1) IN GENERAL.—Part I of subchapter B of 

10 chapter 68 (relating to assessable penalties) is 

11 amended by adding at the end the following new sec12 tion: 

13 ‘‘SEC. 6719. FAILURE TO DISPLAY REGISTRATION OF VES14 SELS. 

15 ‘‘(a) FAILURE TO DISPLAY REGISTRATION.—Every 

16 operator of a vessel who fails to display proof of registra17 tion pursuant to section 4101(a)(2) shall pay a penalty 

18 of $500 for each such failure. With respect to any vessel, 

19 only one penalty shall be imposed by this section during 

20 any calendar month. 

21 ‘‘(b) MULTIPLE VIOLATIONS.—In determining the 

22 penalty under subsection (a) on any person, subsection (a) 

23 shall be applied by increasing the amount in subsection 

24 (a) by the product of such amount and the number of 

25 prior penalties (if any) imposed by this section on such
26

•S 1979 IS 

1 person (or a related person or any predecessor of such per2 son or related person).’’. 

3 (2) CLERICAL AMENDMENT.—The table of sec4 tions for part I of subchapter B of chapter 68, as 

5 amended by this Act, is amended by adding at the 

6 end the following new item:

‘‘Sec. 6719. Failure to display registration of vessels.’’.

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall take effect on January 1, 2004. 

9 SEC. 403. CERTAIN REPORTS FILED ELECTRONICALLY. 

10 (a) IN GENERAL.—Subpart D of part II of sub11 chapter A of chapter 61 (relating to information and re12 turns) is amended by adding the following new section: 

13 ‘‘SEC. 6022. REPORTS REQUIRED TO BE FILED ELECTRONI14 CALLY. 

15 ‘‘Any person required to file a report under section 

16 4101 shall file such report in electronic format.’’. 

17 (b) FORMAT FOR FILING.—The Secretary of the 

18 Treasury shall prescribe regulations describing the format 

19 for electronic filing of reports under section 6022 of the 

20 Internal Revenue Code of 1986 (as added by subsection 

21 (a)), including a simplified procedure for small terminal 

22 operators, not later than 30 days after the date of the 

23 enactment of this Act. 
27

•S 1979 IS 

1 (c) CLERICAL AMENDMENT.—The table of sections 

2 for subpart D of part II of subchapter A of chapter 61 

3 is amended by adding at the end the following item:

‘‘Sec. 6022. Reports required to be filed electronically.’’.

4 (d) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to reports due 30 days after the 

6 day the Secretary of the Treasury issues the regulations 

7 described under subsection (b). 

8 SEC. 404. FAILURE TO REGISTER. 

9 (a) INCREASED PENALTY.—Subsection (a) of section 

10 7272 (relating to penalty for failure to register) is amend11 ed by inserting ‘‘($10,000 in the case of a failure to reg12 ister under section 4101)’’ after ‘‘$50’’. 

13 (b) INCREASED CRIMINAL PENALTY.—Section 7232 

14 (relating to failure to register under section 4101, false 

15 representations of registration status, etc.) is amended by 

16 striking ‘‘$5,000’’ and inserting ‘‘$10,000’’. 

17 (c) ASSESSABLE PENALTY FOR FAILURE TO REG18 ISTER.—

19 (1) IN GENERAL.—Part I of subchapter B of 

20 chapter 68 (relating to assessable penalties) is 

21 amended by adding at the end the following new sec22 tion: 
28

•S 1979 IS 

1 ‘‘SEC. 6720. FAILURE TO REGISTER. 

2 ‘‘(a) FAILURE TO REGISTER.—Every person who is 

3 required to register under section 4101 and fails to do 

4 so shall pay a penalty in addition to the tax (if any). 

5 ‘‘(b) AMOUNT OF PENALTY.—The amount of the 

6 penalty under subsection (a) shall be—

7 ‘‘(A) $10,000 for each initial failure to 

8 register after the date of the enactment of this 

9 section, and 

10 ‘‘(B) $1,000 for each day such person fails 

11 to register.’’. 

12 (2) CLERICAL AMENDMENT.—The table of sec13 tions for part I of subchapter B of chapter 68, as 

14 amended by this Act, is amended by adding at the 

15 end the following new item:

‘‘Sec. 6720. Failure to register.’’.

16 (d) ASSESSABLE PENALTY FOR FAILURE TO RE17 PORT.—

18 (1) IN GENERAL.—Part II of subchapter B of 

19 chapter 68 (relating to assessable penalties) is 

20 amended by adding at the end the following new sec21 tion: 

22 ‘‘SEC. 6725. FAILURE TO REPORT INFORMATION UNDER 

23 SECTION 4101. 

24 ‘‘Every person who is required to make a report and 

25 furnish information with respect to a terminal, vessel, or 
29

•S 1979 IS 

1 pipeline under section 4101(d) and fails to do so shall pay 

2 a penalty of $10,000 with respect to each such terminal, 

3 vessel, or pipeline for which information is required to be 

4 furnished in addition to the tax (if any).’’. 

5 (2) CLERICAL AMENDMENT.—The table of sec6 tions for part II of subchapter B of chapter 68, as 

7 amended by this Act, is amended by adding at the 

8 end the following new item:

‘‘Sec. 6725. Failure to report information related to the transfer 

of taxable fuels.’’.

9 (e) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to penalties imposed after the date 

11 of the enactment of this Act. 

12 SEC. 405. REGISTRATION OF PERSONS WITHIN FOREIGN 

13 TRADE ZONES. 

14 Section 4101(a), as amended by this Act, is amended 

15 by redesignating paragraph (2) as paragraph (3), and by 

16 inserting after paragraph (1) the following new paragraph: 

17 ‘‘(2) REGISTRATION OF PERSONS WITHIN FOR18 EIGN TRADE ZONES.—The Secretary shall require 

19 registration by any person which operates a terminal 

20 or refinery within a foreign trade zone the registra21 tion of which the Secretary determines is necessary 

22 to carry out this part.’’. 
30

•S 1979 IS 

1 SEC. 406. INFORMATION REPORTING FOR PERSONS CLAIM2 ING CERTAIN TAX BENEFITS. 

3 (a) IN GENERAL.—Subpart C of part III of sub4 chapter A of chapter 32 is amended by adding at the end 

5 the following new section: 

6 ‘‘SEC. 4104. INFORMATION REPORTING FOR PERSONS 

7 CLAIMING CERTAIN TAX BENEFITS. 

8 ‘‘(a) IN GENERAL.—The Secretary shall require any 

9 person claiming tax benefits under the provisions of sec10 tion 34, 40, 4041(b)(2), 4041(k), 4081(c), 4091(c), or 

11 6427(f) to file a quarterly return (in such manner as the 

12 Secretary may prescribe) providing such information relat13 ing to such benefits and the coordination of such benefits 

14 as the Secretary may require to ensure the proper admin15 istration and use of such benefits. 

16 ‘‘(b) ENFORCEMENT.—With respect to any person 

17 described in subsection (a) and subject to registration re18 quirements under this title, rules similar to rules of section 

19 4222(c) shall apply with respect to any requirement under 

20 this section.’’. 

21 (b) CONFORMING AMENDMENT.—The table of sec22 tions for subpart C of part III of subchapter A of chapter 

23 32 is amended by adding at the end the following new 

24 item:

‘‘Sec. 4104. Information reporting for persons claiming certain tax benefits.’’.
31

•S 1979 IS 

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on the date of the enactment 

3 of this Act. 

4 TITLE V—IMPORTS 

5 SEC. 501. TAX AT POINT OF ENTRY WHERE IMPORTER NOT 

6 REGISTERED. 

7 (a) TAX AT POINT OF ENTRY WHERE IMPORTER

8 NOT REGISTERED.—

9 (1) IN GENERAL.—Subpart C of part III of 

10 subchapter A of chapter 31, as amended by this Act, 

11 is amended by adding at the end the following new 

12 section: 

13 ‘‘SEC. 4105. TAX AT ENTRY WHERE IMPORTER NOT REG14 ISTERED. 

15 ‘‘(a) IN GENERAL.—Any tax imposed under this part 

16 on any person not registered under section 4101 for the 

17 entry of a fuel into the United States shall be imposed 

18 at the time and point of entry. 

19 ‘‘(b) ENFORCEMENT OF ASSESSMENT.—If any per20 son liable for any tax described under subsection (a) has 

21 not paid the tax or posted a bond, the Secretary may—

22 ‘‘(1) seize the fuel on which the tax is due, or 

23 ‘‘(2) detain any vehicle transporting such fuel, 

24 until such tax is paid or such bond is filed. 
32

•S 1979 IS 

1 ‘‘(c) LEVY OF FUEL.—If no tax has been paid or no 

2 bond has been filed within 5 days from the date the Sec3 retary seized fuel pursuant to subsection (b), the Secretary 

4 may sell such fuel as provided under section 6336.’’. 

5 (2) CONFORMING AMENDMENT.—The table of 

6 sections for subpart C of part III of subchapter A 

7 of chapter 31 of the Internal Revenue Code of 1986, 

8 as amended by this Act, is amended by adding after 

9 the last item the following new item:

‘‘Sec. 4105. Tax at entry where importer not registered.’’.

10 (b) AUTHORIZATION TO DENY ENTRY WHERE TAX

11 NOT PAID.—The Secretary of Homeland Security shall 

12 deny entry into the United States of any shipment of a 

13 fuel which is taxable under section 4041(a)(1), 4081, or 

14 4091 of the Internal Revenue Code of 1986 if the person 

15 entering such shipment fails to pay the tax imposed under 

16 such section or post a bond in accordance with the provi17 sions of section 4105 of such Code. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall take effect on the date of the enactment 

20 of this Act. 

21 SEC. 502. RECONCILIATION OF ON-LOADED CARGO TO EN22 TERED CARGO. 

23 (a) IN GENERAL.—Subsection (a) of section 343 of 

24 the Trade Act of 2002 is amended by inserting at the end 

25 the following new paragraph: 
33

•S 1979 IS 

1 ‘‘(4) IN GENERAL.—Subject to paragraphs (2) 

2 and (3), not later than 1 year after the enactment 

3 of this paragraph, the Secretary of Homeland Secu4 rity, together with the Secretary of the Treasury, 

5 shall promulgate regulations providing for the trans6 mission to the Internal Revenue Service, through an 

7 electronic data interchange system, of information 

8 pertaining to cargo of taxable fuels destined for im9 portation into the United States prior to such impor10 tation.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall take effect on the date of the enactment 

13 of this Act. 

14 TITLE VI—MISCELLANEOUS 

15 PROVISIONS 

16 SEC. 601. TAX ON SALE OF DIESEL FUEL WHETHER SUIT17 ABLE FOR USE OR NOT IN A DIESEL-POW18 ERED VEHICLE OR TRAIN. 

19 (a) IN GENERAL.—Section 4083(a)(3) (defining die20 sel fuel) is amended by inserting ‘‘sold as, offered for sale 

21 as, or’’ after ‘‘(other than gasoline) which is’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall take effect on the date of the enactment 

24 of this Act. 
34

•S 1979 IS 

1 SEC. 602. ULTIMATE VENDOR REFUND CLAIMS 

2 (a) IN GENERAL.—Clause (i) of section 

3 6427(l)(5)(A) is amended by inserting ‘‘in quantities of 

4 less than 500 gallons’’ after ‘‘section 6420(c))’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 this section shall apply to fuels used for nontaxable use 

7 after the date of the enactment of this Act. 

8 SEC. 603. TAXABLE FUEL REFUNDS. 

9 (a) IN GENERAL.—Paragraph (4) of section 6416(a) 

10 (relating to abatements, credits, and refunds) is amended 

11 to read as follows: 

12 ‘‘(4) REGISTERED ULTIMATE VENDOR TO AD13 MINISTER CREDITS AND REFUNDS OF GASOLINE

14 TAX.—For purposes of this subsection, if an ulti15 mate vendor (within the meaning of section 

16 6427(l)(5)(C)) purchases any gasoline on which tax 

17 imposed by section 4081 has been paid and sells 

18 such gasoline to an ultimate purchaser described in 

19 subparagraph (C) or (D) of subsection (b)(2) (and 

20 such gasoline is for a use described in such subpara21 graph), such ultimate vendor shall be treated as the 

22 person (and the only person) who paid such tax. The 

23 procedure and timing of the claim shall be the same 

24 as refunds of diesel fuel under section 6427(i)(4).’’. 
35

•S 1979 IS 

1 (b) TIMING OF REFUND.—Subparagraph (B) of sec2 tion 6427(i)(3) (relating to time for filing claims) is 

3 amended by—

4 (1) striking ‘‘20 days’’ and inserting ‘‘45 days’’, 

5 and 

6 (2) inserting at the end the following sentence: 

7 ‘‘If the claim filed under this subsection is filed by 

8 electronic means, the preceding sentence shall apply 

9 by substituting ‘20 days’ for ‘45 days’.’’. 

10 (c) FLEET FUEL CREDIT CARDS.—Section 

11 6427(l)(5)(C) (relating to nontaxable uses of diesel fuel, 

12 kerosene, and aviation fuel) is amended by adding at the 

13 end the following new sentence: ‘‘For purposes of this sub14 paragraph, if the sale of taxable fuel is made by means 

15 of a fleet fueling credit card, the person extending the 

16 credit to the ultimate purchaser shall be deemed to be the 

17 ultimate vendor.’’. 

18 (d) RULES FOR ELECTRONIC CLAIMS.—Not later 

19 than 6 months after the date of the enactment of this Act, 

20 the Secretary of the Treasury shall prescribe regulations 

21 for filing electronic claims under this section. 

22 (e) EFFECTIVE DATE.—The amendments made by 

23 this section shall take effect on the date of the enactment 

24 of this Act.
36

•S 1979 IS 

1 SEC. 604. TWO-PARTY EXCHANGES. 

2 (a) IN GENERAL.—Subpart C of part III of sub3 chapter A of chapter 32, as amended by this Act, is 

4 amended by adding at the end the following new section: 

5 ‘‘SEC. 4106. TWO-PARTY EXCHANGES. 

6 ‘‘(a) IN GENERAL.—In a two-party exchange, the de7 livering person shall not be liable for the tax imposed 

8 under clause (i) or (ii) of section 4081(a)(1)(A). 

9 ‘‘(b) TWO-PARTY EXCHANGE.—The term ‘two-party 

10 exchange’ means a transaction, other than a sale, in which 

11 taxable fuel is transferred from a delivering person reg12 istered under section 4101 for exempt bulk transfers of 

13 taxable fuel to a receiving person registered under section 

14 4101 for exempt bulk transfers of taxable fuel where all 

15 of the following occur: 

16 ‘‘(1) The transaction includes a transfer from 

17 the delivering person, who holds the original inven18 tory position for taxable fuel in the terminal as re19 flected in the records of the terminal operator. 

20 ‘‘(2) The exchange transaction occurs before or 

21 contemporaneous with completion of removal across 

22 the rack from the terminal by the receiving person. 

23 ‘‘(3) The terminal operator in its books and 

24 records treats the receiving person as the person 

25 that removes the product across the terminal rack 
37

•S 1979 IS 

1 for purposes of reporting the transaction to the Sec2 retary. 

3 ‘‘(4) The transaction is the subject of a written 

4 contract.’’. 

5 (b) CONFORMING AMENDMENT.—The table of sec6 tions for subpart C of part III of subchapter A of chapter 

7 32, as amended by this Act, is amended by adding after 

8 the last item the following new item:

‘‘Sec. 4106. Two-party exchanges.’’.

9 (c) EFFECTIVE DATE.—The amendment made by 

10 this section shall take effect on the date of the enactment 

11 of this Act. 

12 SEC. 605. MODIFICATIONS OF TAX ON USE OF CERTAIN VE13 HICLES. 

14 (a) NO PRORATION OF TAX UNLESS VEHICLE IS DE15 STROYED OR STOLEN.—

16 (1) IN GENERAL.—Section 4481(c) (relating to 

17 proration of tax) is amended to read as follows: 

18 ‘‘(c) PRORATION OF TAX WHERE VEHICLE SOLD, 

19 DESTROYED, OR STOLEN.—

20 ‘‘(1) IN GENERAL.—If in any taxable period a 

21 highway motor vehicle is sold, destroyed, or stolen 

22 before the first day of the last month in such period 

23 and not subsequently used during such taxable pe24 riod, the tax shall be reckoned proportionately from 

25 the first day of the month in such period in which 
38

•S 1979 IS 

1 the first use of such highway motor vehicle occurs 

2 to and including the last day of the month in which 

3 such highway motor vehicle was sold, destroyed, or 

4 stolen. 

5 ‘‘(2) DESTROYED.—For purposes of paragraph 

6 (1), a highway motor vehicle is destroyed if such ve7 hicle is damaged by reason of an accident or other 

8 casualty to such an extent that it is not economic to 

9 rebuild.’’. 

10 (2) DISPLAY OF TAX CERTIFICATE.—Paragraph 

11 (2) of section 4481(d) (relating to one tax liability 

12 for period) is amended to read as follows: 

13 ‘‘(2) DISPLAY OF TAX CERTIFICATE.—Every 

14 person, agency, or instrumentality which pays the 

15 tax imposed under this section with respect to a 

16 highway motor vehicle shall, not later than October 

17 1 with respect to each taxable period, receive and 

18 display on such vehicle an electronic identification 

19 device prescribed by the Secretary.’’. 

20 (3) CONFORMING AMENDMENTS.—

21 (A) Section 6156 (relating to installment 

22 payment of tax on use of highway motor vehi23 cles) is repealed. 
39

•S 1979 IS 

1 (B) The table of sections for subchapter A 

2 of chapter 62 is amended by striking the item 

3 relating to section 6156. 

4 (b) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable periods beginning after 

6 the date of the enactment of this Act. 

7 SEC. 606. DEDICATION OF REVENUES FROM CERTAIN PEN8 ALTIES TO THE HIGHWAY TRUST FUND. 

9 (a) IN GENERAL.—Subsection (b) of section 9503 

10 (relating to transfer to Highway Trust Fund of amounts 

11 equivalent to certain taxes) is amended by redesignating 

12 paragraph (5) as paragraph (6) and inserting after para13 graph (4) the following new paragraph: 

14 ‘‘(5) CERTAIN PENALTIES.—There are hereby 

15 appropriated to the Highway Trust Fund amounts 

16 equivalent to the penalties assessed under sections 

17 6715, 6715A, 6717, 6718, 6719, 6720, 6725, 7232, 

18 and 7272 (but only with regard to penalties under 

19 such section related to failure to register under sec20 tion 4101).’’. 

21 (b) CONFORMING AMENDMENTS.—

22 (1) The heading of subsection (b) of section 

23 9503 is amended by inserting ‘‘AND PENALTIES’’ 

24 after ‘‘TAXES’’. 
40

•S 1979 IS 

1 (2) The heading of paragraph (1) of section 

2 9503(b) is amended by striking ‘‘IN GENERAL’’ and 

3 inserting ‘‘CERTAIN TAXES’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to penalties assessed after the date 

6 of the enactment of this Act.

Æ