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Internal Revenue Code · 26 U.S.C.

§ 4105. Two-party exchanges

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 4105

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status
In force
Added
October 22, 2004 by Pub. L. 108–357
Length
2 subsections · 182 words · about 1 min to read
Defines
1 term
Cross-references
cites 2; cited by 0 Code sections and 0 other regulations
(a) In general

In a two-party exchange, the delivering person shall not be liable for the tax imposed under section 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 registered under section 4101 as a taxable fuel registrant 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 reflected in the records of the terminal operator.
(2) The exchange transaction occurs before or contemporaneous with completion of removal 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 person that removes the product across the terminal rack for purposes of reporting the transaction to the Secretary.
(4) The transaction is the subject of a written contract.

(Added Pub. L. 108–357, title VIII, § 866(a), Oct. 22, 2004, 118 Stat. 1621.)

Terms defined here

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Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 2 other sections

Amendment history

From the source credit and the official notes, newest first.

  1. Added by Pub. L. 108–357

Where it sits in the Code

  1. Subtitle D Miscellaneous Excise Taxes
  2. Chapter 32 MANUFACTURERS EXCISE TAXES
  3. Subchapter A Automotive and Related Items
  4. Part III PETROLEUM PRODUCTS
  5. Subpart B Special Provisions Applicable to Fuels Tax

Nearby sections

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

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 this section [enacting this section] shall take effect on the date of the enactment of this Act [Oct. 22, 2004].”