26 U.S.C. § 4105 — Two-party exchanges

Page 2917 TITLE 26—INTERNAL REVENUE CODE § 4105 EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97–424 applicable to articles sold after Jan. 6, 1983, see section 515(c) of Pub. L. 97–424, set out as a note under section 34 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–455 effective Jan. 1, 1977, see section 1202(i) of Pub. L. 94–455, set out as a note under section 6103 of this title. § 4103. Certain additional persons liable for tax where willful failure to pay In any case in which there is a willful failure to pay the tax imposed by section 4041(a)(1) or 4081, each person— (1) who is an officer, employee, or agent of the taxpayer who is under a duty to assure the payment of such tax and who willfully fails to perform such duty, or (2) who willfully causes the taxpayer to fail to pay such tax, shall be jointly and severally liable with the taxpayer for the tax to which such failure re- lates. (Added Pub. L. 101–508, title XI, § 11212(c), Nov. 5, 1990, 104 Stat. 1388–431; amended Pub. L. 103–66, title XIII, § 13242(d)(1), Aug. 10, 1993, 107 Stat. 522; Pub. L. 108–357, title VIII, § 853(d)(2)(F), Oct. 22, 2004, 118 Stat. 1613.) Editorial Notes AMENDMENTS 2004—Pub. L. 108–357 substituted ‘‘or 4081’’ for ‘‘, 4081, or 4091’’ in introductory provisions. 1993—Pub. L. 103–66 substituted ‘‘4041(a)(1), 4081,’’ for ‘‘4081’’ in introductory provisions. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Amendment by Pub. L. 108–357 applicable to aviation- grade kerosene removed, entered, or sold after Dec. 31, 2004, see section 853(e) of Pub. L. 108–357, set out as a note under section 4041 of this title. EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–66 effective Jan. 1, 1994, see section 13242(e) of Pub. L. 103–66, set out as a note under section 4041 of this title. EFFECTIVE DATE Section effective Dec. 1, 1990, see section 11212(f)(2) of Pub. L. 101–508, set out as an Effective Date of 1990 Amendment note under section 4081 of this title. § 4104. Information reporting for persons claim- ing certain tax benefits (a) In general The Secretary shall require any person claim- ing tax benefits— (1) under the provisions of sections 34, 40, and 40A, to file a return at the time such per- son claims such benefits (in such manner as the Secretary may prescribe), and (2) under the provisions of section 4041(b)(2), 6426, or 6427(e) to file a quarterly return (in such manner as the Secretary may prescribe). (b) Contents of return Any return filed under this section shall pro- vide such information relating to such benefits and the coordination of such benefits as the Sec- retary may require to ensure the proper admin- istration and use of such benefits. (c) Enforcement With respect to any person described in sub- section (a) and subject to registration require- ments under this title, rules similar to rules of section 4222(c) shall apply with respect to any requirement under this section. (Added Pub. L. 108–357, title III, § 303(a), Oct. 22, 2004, 118 Stat. 1466; amended Pub. L. 115–141, div. U, title IV, § 401(a)(220), Mar. 23, 2018, 132 Stat. 1194.) Editorial Notes AMENDMENTS 2018—Subsec. (a)(1). Pub. L. 115–141 substituted ‘‘sec- tions 34’’ for ‘‘section 34’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 108–357, title III, § 303(c), Oct. 22, 2004, 118 Stat. 1466, provided that: ‘‘The amendments made by this section [enacting this section] shall take effect on Jan- uary 1, 2005.’’ § 4105. Two-party exchanges (a) In general In a two-party exchange, the delivering person shall not be liable for the tax imposed under sec- tion 4081(a)(1)(A)(ii). (b) Two-party exchange The term ‘‘two-party exchange’’ means a transaction, other than a sale, in which taxable fuel is transferred from a delivering person reg- istered under section 4101 as a taxable fuel reg- istrant to a receiving person who is so registered where all of the following occur: (1) The transaction includes a transfer from the delivering person, who holds the inventory position for taxable fuel in the terminal as re- flected in the records of the terminal operator. (2) The exchange transaction occurs before or contemporaneous with completion of re- moval across the rack from the terminal by the receiving person. (3) The terminal operator in its books and records treats the receiving person as the per- son that removes the product across the ter- minal rack for purposes of reporting the trans- action to the Secretary. (4) The transaction is the subject of a writ- ten contract. (Added Pub. L. 108–357, title VIII, § 866(a), Oct. 22, 2004, 118 Stat. 1621.) Editorial Notes PRIOR PROVISIONS Prior sections 4111 to 4113, 4121, and 4131 of this title constituted a former subchapter B of this chapter, see Prior Provisions note set out preceding section 4121 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 108–357, title VIII, § 866(c), Oct. 22, 2004, 118 Stat. 1622, provided that: ‘‘The amendment made by Page 2918 TITLE 26—INTERNAL REVENUE CODE § 4121 this section [enacting this section] shall take effect on the date of the enactment of this Act [Oct. 22, 2004].’’ Subchapter B—Coal Sec. 4121. Imposition of tax. Editorial Notes PRIOR PROVISIONS A prior subchapter B consisted of sections 4111 to 4113, 4121, and 4131 of this title. Section 4111, acts Aug. 16, 1954, ch. 736, 68A Stat. 485; Sept. 2, 1958, Pub. L. 85–859, title I, § 111(a), 72 Stat. 1277, imposed a manufacturers excise tax of 5 percent on household type refrigerators, quick freeze or frozen storage units, or combinations, and a tax of 10 percent on self-contained air-conditioning units, prior to repeal by Pub. L. 89–44, title II, § 203, June 21, 1965, 79 Stat. 139, applicable with respect to articles sold on or after June 22, 1956. Section 4112, acts Aug. 16, 1954, ch. 736, 68A Stat. 485; Aug. 11, 1955, ch. 805, § 1(e), 69 Stat. 689, defined refrig- erator components, prior to repeal by Pub. L. 85–859, title I, § 111(b)(1), Sept. 2, 1958, 72 Stat. 1277, effective the first day of the first calendar quarter beginning more than 60 days after Sept. 2, 1958. Section 4113, act Aug. 16, 1954, ch. 736, 68A Stat. 485, related to exemptions for manufacturers of refrigerator components, prior to repeal by act Aug. 11, 1955, ch. 805, § 1(d), 69 Stat. 689, effective on the first day of the first month beginning more than 10 days after Aug. 11, 1955. Section 4121, acts Aug. 16, 1954, ch. 736, 68A Stat. 486; Sept. 2, 1958, Pub. L. 85–859, title I, § 112, 72 Stat. 1277, imposed a 5 percent tax on electric, gas, and oil house- hold appliances and their accessories, prior to repeal by Pub. L. 89–44, title II, § 203, June 21, 1965, 79 Stat. 139, applicable with respect to articles sold on or after June 22, 1965. Section 4131, act Aug. 16, 1954, ch. 736, 68A Stat. 486, imposed a 10 percent tax on electric light bulbs and tubes, prior to repeal by Pub. L. 89–44, title II, § 203, June 21, 1965, 79 Stat. 139, applicable with respect to ar- ticles sold on or after Jan. 1, 1965. § 4121. Imposition of tax (a) Tax imposed (1) In general There is hereby imposed on coal from mines located in the United States sold by the pro- ducer, a tax equal to the rate per ton deter- mined under subsection (b). (2) Limitation on tax The amount of the tax imposed by paragraph (1) with respect to a ton of coal shall not ex- ceed the applicable percentage (determined under subsection (b)) of the price at which such ton of coal is sold by the producer. (b) Determination of rates and limitation on tax For purposes of subsection (a)— (1) the rate of tax on coal from underground mines shall be $1.10, (2) the rate of tax on coal from surface mines shall be $.55, and (3) the applicable percentage shall be 4.4 per- cent. (c) Tax not to apply to lignite The tax imposed by subsection (a) shall not apply in the case of lignite. (d) Definitions For purposes of this subchapter— (1) Coal from surface mines Coal shall be treated as produced from a sur- face mine if all of the geological matter above the coal being mined is removed before the coal is extracted from the earth. Coal ex- tracted by auger shall be treated as coal from a surface mine. (2) Coal from underground mines Coal shall be treated as produced from an underground mine if it is not produced from a surface mine. (3) United States The term ‘‘United States’’ has the meaning given to it by paragraph (1) of section 638. (4) Ton The term ‘‘ton’’ means 2,000 pounds. (Added Pub. L. 95–227, § 2(a), Feb. 10, 1978, 92 Stat. 11; amended Pub. L. 97–119, title I, § 102(a), Dec. 29, 1981, 95 Stat. 1635; Pub. L. 99–272, title XIII, § 13203(a), (c), Apr. 7, 1986, 100 Stat. 312, 313; Pub. L. 99–514, title XVIII, § 1897(a), Oct. 22, 1986, 100 Stat. 2941; Pub. L. 100–203, title X, § 10503, Dec. 22, 1987, 101 Stat. 1330–446; Pub. L. 110–343, div. B, title I, § 113(a), Oct. 3, 2008, 122 Stat. 3824; Pub. L. 116–94, div. Q, title I, § 105(a), Dec. 20, 2019, 133 Stat. 3228; Pub. L. 116–260, div. EE, title I, § 149(a), Dec. 27, 2020, 134 Stat. 3056; Pub. L. 117–169, title I, § 13901(a), Aug. 16, 2022, 136 Stat. 2013.) Editorial Notes PRIOR PROVISIONS For prior section 4121, see Prior Provisions note set out preceding this section. AMENDMENTS 2022—Subsec. (e). Pub. L. 117–169 struck out subsec. (e) which related to reduction in amount of tax. 2020—Subsec. (e)(2)(A). Pub. L. 116–260 substituted ‘‘December 31, 2021’’ for ‘‘December 31, 2020’’. 2019—Subsec. (e)(2)(A). Pub. L. 116–94 substituted ‘‘De- cember 31, 2020’’ for ‘‘December 31, 2018’’. 2008—Subsec. (e)(2)(A). Pub. L. 110–343, § 113(a)(1), sub- stituted ‘‘December 31, 2018’’ for ‘‘January 1, 2014’’. Subsec. (e)(2)(B). Pub. L. 110–343, § 113(a)(2), sub- stituted ‘‘December 31 after 2007’’ for ‘‘January 1 after 1981’’ in introductory provisions. 1987—Subsec. (e)(2)(A). Pub. L. 100–203 substituted ‘‘2014’’ for ‘‘1996’’. 1986—Subsec. (a). Pub. L. 99–272, § 13203(a), amended subsec. (a) generally. Prior to amendment subsec. (a) read as follows: ‘‘There is hereby imposed on coal sold by the producer a tax at the rates of— ‘‘(1) 50 cents per ton in the case of coal from under- ground mines located in the United States, and ‘‘(2) 25 cents per ton in the case of coal from surface mines located in the United States.’’ Subsec. (b). Pub. L. 99–514 struck out ‘‘, in the case of sales during any calendar year beginning after Decem- ber 31, 1985’’ after ‘‘subsection (a)’’. Pub. L. 99–272, § 13203(a), amended subsec. (b) gen- erally. Prior to amendment subsec. (b), limitation on tax, read as follows: ‘‘The amount of the tax imposed by subsection (a) with respect to a ton of coal shall not exceed 2 percent of the price at which such ton of coal is sold by the producer.’’ Subsec. (e). Pub. L. 99–272, § 13203(c), substituted ‘‘Re- duction in amount of tax’’ for ‘‘Temporary increase in amount of tax’’ in heading and amended par. (1) gen- erally. Prior to amendment par. (1) read as follows: ‘‘Effective with respect to sales after December 31, 1981, and before the temporary increase termination date—