26 U.S.C. § 6715 — Dyed fuel sold for use or used in taxable

Page 3814 TITLE 26—INTERNAL REVENUE CODE § 6714 tion 7216 of this title] shall apply to disclosures or uses after December 31, 1988.’’ § 6714. Failure to meet disclosure requirements applicable to quid pro quo contributions (a) Imposition of penalty If an organization fails to meet the disclosure requirement of section 6115 with respect to a quid pro quo contribution, such organization shall pay a penalty of $10 for each contribution in respect of which the organization fails to make the required disclosure, except that the total penalty imposed by this subsection with respect to a particular fundraising event or mailing shall not exceed $5,000. (b) Reasonable cause exception No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause. (Added Pub. L. 103–66, title XIII, § 13173(b), Aug. 10, 1993, 107 Stat. 456.) Editorial Notes CODIFICATION Another section 6714 was renumbered section 6715 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable to quid pro quo contributions made on or after Jan. 1, 1994, see section 13173(d) of Pub. L. 103–66, set out as a note under section 6115 of this title. § 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 non- taxable 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, (3) any person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye or marking done pursuant to section 4082 in any dyed fuel, or (4) any person who has knowledge that a dyed fuel which has been altered as described in paragraph (3) sells or holds for sale such fuel for any use which the person knows or has reason to know is not a nontaxable use of such 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 in- volved. (2) Multiple violations In determining the penalty under subsection (a) on any person, paragraph (1) shall be ap- plied 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 per- son or any predecessor of such person or re- lated 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. (e) No administrative appeal for third and subse- quent violations In the case of any person who is found to be subject to the penalty under this section after a chemical analysis of such fuel and who has been penalized under this section at least twice after the date of the enactment of this subsection, no administrative appeal or review shall be allowed with respect to such finding except in the case of a claim regarding— (1) fraud or mistake in the chemical anal- ysis, or (2) mathematical calculation of the amount of the penalty. (Added Pub. L. 103–66, title XIII, § 13242(b)(1), Aug. 10, 1993, 107 Stat. 520, § 6714; renumbered § 6715, Pub. L. 104–188, title I, § 1703(n)(9)(A), Aug. 20, 1996, 110 Stat. 1877; amended Pub. L. 105–34, title X, § 1032(e)(11), Aug. 5, 1997, 111 Stat. 935; Pub. L. 108–357, title VIII, §§ 855(a), 856(a), (b), Oct. 22, 2004, 118 Stat. 1616, 1617.) Editorial Notes REFERENCES IN TEXT The date of the enactment of this subsection, referred to in subsec. (e), is the date of enactment of Pub. L. 108–357, which was approved Oct. 22, 2004. AMENDMENTS 2004—Subsec. (a)(2). Pub. L. 108–357, § 856(a), which di- rected amendment of par. (2) by striking ‘‘or’’, was exe- cuted by striking ‘‘or’’ at the end. Subsec. (a)(3). Pub. L. 108–357, § 856(b), substituted ‘‘alters, chemically or otherwise, or attempts to so alter,’’ for ‘‘alters, or attempts to alter,’’. Pub. L. 108–357, § 856(a), inserted ‘‘or’’ at end. Subsec. (a)(4). Pub. L. 108–357, § 856(a), added par. (4). Subsec. (e). Pub. L. 108–357, § 855(a), added subsec. (e). 1997—Subsec. (c)(1). Pub. L. 105–34 inserted ‘‘or ker- osene’’ after ‘‘diesel fuel’’. 1996—Pub. L. 104–188 renumbered section 6714 of this title as this section. Page 3815 TITLE 26—INTERNAL REVENUE CODE § 6717 Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2004 AMENDMENT Pub. L. 108–357, title VIII, § 855(b), Oct. 22, 2004, 118 Stat. 1616, provided that: ‘‘The amendment made by this section [amending this section] shall apply to pen- alties assessed after the date of the enactment of this Act [Oct. 22, 2004].’’ Pub. L. 108–357, title VIII, § 856(c), Oct. 22, 2004, 118 Stat. 1617, provided that: ‘‘The amendments made by this section [amending this section] shall take effect on the date of the enactment of this Act [Oct. 22, 2004].’’ 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. § 6715A. Tampering with or failing to maintain security requirements for mechanical dye in- jection systems (a) Imposition of penalty (1) Tampering If any person tampers with a mechanical dye injection system used to indelibly dye fuel for purposes of section 4082, such person shall pay a penalty in addition to the tax (if any). (2) Failure to maintain security requirements If any operator of a mechanical dye injec- tion system used to indelibly dye fuel for pur- poses of section 4082 fails to maintain the se- curity standards for such system as estab- lished by the Secretary, then such operator shall pay a penalty in addition to the tax (if any). (b) Amount of penalty The amount of the penalty under subsection (a) shall be— (1) for each violation described in paragraph (1), the greater of— (A) $25,000, or (B) $10 for each gallon of fuel involved, and (2) for each— (A) failure to maintain security standards described in paragraph (2), $1,000, and (B) failure to correct a violation described in paragraph (2), $1,000 per day for each day after which such violation was discovered or such person should have reasonably known of such violation. (c) Joint and several liability (1) In general If a penalty is imposed under this section on any business entity, each officer, employee, or agent of such entity or other contracting party who willfully participated in any act giving rise to such penalty shall be jointly and severally liable with such entity for such pen- alty. (2) Affiliated groups If a business entity described in paragraph (1) is part of an affiliated group (as defined in section 1504(a)), the parent corporation of such entity shall be jointly and severally liable with such entity for the penalty imposed under this section. (Added Pub. L. 108–357, title VIII, § 854(c)(1), Oct. 22, 2004, 118 Stat. 1615.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the 180th day after the date on which the Secretary of the Treasury issues the regula- tions described in section 854(b) of Pub. L. 108–357, see section 854(d) of Pub. L. 108–357, set out as an Effective Date of 2004 Amendment note under section 4082 of this title. [§ 6716. Repealed. Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010, 124 Stat. 3300] Section, added Pub. L. 107–16, title V, § 542(b)(4), June 7, 2001, 115 Stat. 83, related to failure to file informa- tion with respect to certain transfers at death and gifts. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal of section applicable to estates of decedents dying, and transfers made after Dec. 31, 2009, except as otherwise provided, see section 301(e) of Pub. L. 111–312, set out as an Effective and Termination Dates of 2010 Amendment note under section 121 of this title. § 6717. Refusal of entry (a) In general In addition to any other penalty provided by law, any person who refuses to admit entry or refuses to permit any other action by the Sec- retary authorized by section 4083(d)(1) shall pay a penalty of $1,000 for such refusal. (b) Joint and several liability (1) In general If a penalty is imposed under this section on any business entity, each officer, employee, or agent of such entity or other contracting party who willfully participated in any act giving rise to such penalty shall be jointly and severally liable with such entity for such pen- alty. (2) Affiliated groups If a business entity described in paragraph (1) is part of an affiliated group (as defined in section 1504(a)), the parent corporation of such entity shall be jointly and severally liable with such entity for the penalty imposed under this section. (c) Reasonable cause exception No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause. (Added Pub. L. 108–357, title VIII, § 859(a), Oct. 22, 2004, 118 Stat. 1617.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 2005, see section 859(c) of Pub. L. 108–357, set out as an Effective Date of 2004 Amendment note under section 4083 of this title.