Reg. § 48.6715-1 Penalty for misuse of dyed fuel.
(a) In general If any person willfully alters, or attempts to alter, the strength or composition of any dye or marking done pursuant to in any dyed fuel, then section provides that such person shall pay a penalty in addition to any tax. The penalty imposed by section will not apply in the following cases:
(1) Diesel fuel or kerosene that satisfies the dyeing and marking requirements of and is blended with any undyed liquid and the resulting product satisfies the dyeing and marking requirements of and .
(2) Diesel fuel or kerosene that satisfies the dyeing and marking requirements of and is blended with any other liquid (other than diesel fuel or kerosene) that contains the type and amount of dye and marker required for diesel fuel or kerosene dyed and marked in accordance with and .
(3) The alteration or attempted alteration occurs in an exempt area of Alaska after September 30, 1996.
(4) Diesel fuel or kerosene that does not satisfy the dyeing and marking requirements of and is blended with diesel fuel or kerosene that satisfies the dyeing and marking requirements of and and the blending occurs as part of a use described in or or .
(b) Effective date This section is effective January 1, 1994.
[T.D. 8659, 61 FR 10465, Mar. 14, 1996, as amended by T.D. 8685, 61 FR 58007, Nov. 12, 1996; T.D. 8748, 63 FR 26, Jan. 2, 1998; T.D. 8879, 65 FR 17163, Mar. 31, 2000]