Diesel Fuel and Kerosene Excise Tax; Dye Injection, 21361-21362 [05-8235]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 70, Number 79 (Tuesday, April 26, 2005)]
[Proposed Rules]
[Pages 21361-21362]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-8235]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 48

[REG-154000-04]
RIN 1545-BE04


Diesel Fuel and Kerosene Excise Tax; Dye Injection

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross reference to temporary 
regulations and notice of public hearing.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
the mechanical dye injection of diesel fuel and kerosene. The text of 
those regulations also serves as the text of these proposed 
regulations. These regulations affect certain enterers, refiners, 
terminal operators, and throughputters.

DATES: Written and electronic comments must be received by June 27, 
2005. Requests to speak and outlines of topics to be discussed at the 
public hearing scheduled for July 19, 2005, must be received by June 
27, 2005.

ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-154000-04), room 5203, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington DC 
20044. Submissions may be hand-delivered Monday through Friday between 
the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-154000-04), 
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue, 
NW., Washington, DC or submitted electronically via the IRS Internet 
site at: https://www.irs.gov/regs or via the Federal eRuling portal at 
https://www.regulations.gov (IRS and REG-154000-04). The public hearing 
will be held in the IRS Auditorium, Internal Revenue Building, 1111 
Constitution Avenue, NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
William Blodgett at (202) 622-3090; concerning submissions of comments, 
the hearing, and/or to be placed on the building access list to attend 
the hearing, Sonya Cruse at (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collection of information contained in this notice of proposed 
rulemaking has been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)). Comments on the collection of information should be 
sent to the Office of Management and Budget, Attn: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503, with copies to the Internal Revenue 
Service, Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP, 
Washington, DC 20224. Comments on the collection of information should 
be received by June 27, 2005.
    Comments are specifically requested concerning:
    Whether the proposed collection of information is necessary for the 
proper performance of the functions of the Internal Revenue Service, 
including whether the information will have practical utility;
    The accuracy of the estimated burden associated with the proposed 
collection of information (see below);
    How the quality, utility, and clarity of the information to be 
collected may be enhanced;
    How the burden of complying with the proposed collection of 
information may be minimized, including through the application of 
automated collection techniques or other forms of information 
technology; and
    Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of service to provide information.
    The collection of information in this proposed regulation is in 
Sec. Sec.  48.4082-1(d)(2), 48.4082-1(d)(4), 48.4082-1(d)(6) and 
48.4101-1(h)(3). This collection of information is necessary to obtain 
a tax benefit. The likely recordkeepers are terminal operators and 
enterers.
    Estimated total annual reporting and/or recordkeeping burden: 1,400 
hours.
    Estimated average annual burden hours per recordkeeper: 7 hours.
    Estimated number of respondents and/or recordkeepers: 200.

[[Page 21362]]

    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally, tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend Manufacturers and Retailers Excise 
Taxes Regulations (26 CFR part 48) under sections 4082 and 4101. The 
temporary regulations set forth requirements regarding the mechanical 
dye injection systems for diesel fuel and kerosene and are required by 
the American Jobs Creation Act of 2004. The text of those temporary 
regulations also serves as the text of these proposed regulations. The 
preamble to the temporary regulations explains the temporary 
regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory flexibility 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. 
It is hereby certified that the collection of information in these 
regulations will not have a significant economic impact on a 
substantial number of small entities. This certification is based on 
the fact that the time required to maintain the required records and 
report to the IRS is minimal and will not have a significant impact on 
those small entities. Therefore, a Regulatory Flexibility Analysis 
under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not 
required. Pursuant to section 7805(f) of the Internal Revenue Code, 
this notice of proposed rulemaking will be submitted to the Chief 
Counsel for Advocacy of the Small Business Administration for comment 
on its impact on small business.

Comments and Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written (a signed original and eight 
(8) copies) or electronic comments that are submitted timely to the 
IRS. All comments will be available for public inspection and copying.
    A public hearing has been scheduled for July 19, 2005, at 10 a.m. 
in the IRS Auditorium, Internal Revenue Building, 1111 Constitution 
Ave., NW., Washington, DC. All visitors must present photo 
identification to enter the building. Because of access restrictions, 
visitors will not be admitted beyond the immediate entrance area at the 
Constitution Avenue entrance more than 30 minutes before the hearing 
starts. For information about having your name placed on the building 
access list to attend the hearing, see the FOR FURTHER INFORMATION 
CONTACT section of this preamble.
    The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who 
wish to present oral comments at the hearing must submit written 
comments and an outline of the topics to be discussed and the time to 
be devoted to each topic (signed original and eight copies (8) copies) 
by June 27, 2005. A period of 10 minutes will be allotted to each 
person for making comments. An agenda showing the scheduling of 
speakers will be prepared after the deadline for receiving outlines has 
passed. Copies of the agenda will be available free of charge at the 
hearing.

Drafting Information

    The principal author of these regulations is William Blodgett, 
Office of Associate Chief Counsel (Passthroughs and Special 
Industries), IRS. 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.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 48 is proposed to be 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. In Sec.  48.4082-1, paragraphs (d) and (e)(2) are revised 
to read as follows:


Sec.  48.4082-1  Diesel fuel and kerosene; exemption for dyed fuel.

* * * * *
    (d) [The text of this proposed paragraph (d) is the same as the 
text of Sec.  48.4082-1T(d) published elsewhere in this issue of the 
Federal Register].
    (e) * * *
    (e)(2) [The text of this proposed paragraph (e)(2) is the same as 
the text of Sec.  48.4082-1T(e)(2) published elsewhere in this issue of 
the Federal Register].
    Par. 3. Section 48.4101-1 is amended by revising paragraph 
(h)(3)(iv) to read as follows:


Sec.  48.4101-1  Taxable Fuel; registration.

* * * * *
    (h) * * *
    (3) * * *
    (iv) [The text of this proposed paragraph (h)(3)(iv) is the same as 
the text of Sec.  48.4101-1T(h)(3)(iv) published elsewhere in this 
issue of the Federal Register].

Cono R. Namorato,
Acting Deputy Commissioner for Services and Enforcement.
[FR Doc. 05-8235 Filed 4-25-05; 8:45 am]
BILLING CODE 4830-01-P