b'Marketer Member NewsRules & Regulations continuedIRS DYED FUEL ENFORCEMENT INSPECTIONS Your Rights and Responsibilities continuedInspecting forwarded to a testing laboratory if any anomalies Retailer Records are identified during the field inspection. Testing will Retailer inspections, including truckidentify if there is visible evidence of dye in clear stops, are conducted to look primarilyfuel or if dyed fuel lacks the required concentra-for motor fuel excise tax evasion. Thetion of red dye. Samples obtained for sulfur testing inspecting field agent will: will likely be taken if information in retailer records indicates the fuel may exceed the allowable sulfur Verify dyed fuel dispensers containlevel. Gasoline sample and testing for adulterants the required notice. are less common and are taken only during special IRS enforce-ment projects or under orders by IRS field office management. Verify that the strength or composition of dyed fuel has not been altered. Inspecting Dispensers Verify fuel dispensed from undyed diesel and undyed keroseneLabelsField agents will inspectpumps do not show visible evidence of dye. dispensers for required IRS labels.Dyed diesel fuel pumps must display aDetermine the concentration of sulfur in samples obtainedlabel reading: DYED DIESEL FUEL, from diesel fuel pumps. NONTAXABLE USE ONLY, Verify registered IRS FormPENALTY FOR TAXABLE USE.637 UP Activity LetterLikewise, dyed kerosene pumps mustmeets the IRS blockeddisplay a label reading: DYED KERO-pump criteria for the saleSENE, NONTAXABLE USE ONLY, PENALTY of tax-free clear keroseneFOR TAXABLE USE. These labels must be legible, placed on from a retail dispenser. both sides of the dispenser face or just above the nozzle on sideDetermine if gasoline has been adulterated. hanging equipment. Ripped, faded, torn or missing labels will likely result in a violation and penalty. Educate taxpayers concerning fuel tax laws.Blocked PumpsPumps that dispense nontaxed clear kerosene must be configured in a way that prevents fueling into the tank of Inspecting the Facility a motor vehicle. Field agents will inspect the pump for compli-Next, the field agent will tour theance by determining if it is in a fixed location, equipped with retail facility and request informationa short hose, blocked by pylons or unlocked and locked by an needed to understand the operation ofattendant after each sale to prevent vehicle fueling. In addition, the business, including the hours ofthe pump must display labels stating: UNDYED UNTAXED operation, location of all pumps andKEROSENE, NONTAXABLE USE ONLY. Finally, the field tanks, the types of fuel stored and/ agent will inspect retailer records for a valid IRS or sold at this location, identity of the637 UP registration required for the sale of fuel supplier(s), types of records kept foruntaxed clear kerosene from a blocked pump. sales and deliveries, sales of dyed products to end users, source of the fuel in the propulsion tanks of theViolation Determinationretailers trucks and IRS 637 registration information.After examining records, inspecting This information must be provided by the retailerthe facility and sampling fuel from upon request, there are no exceptions.dispensers, IRS field agents will issue a notice of violation if any Fuel Sampling of the following occurred; the dye After, inspecting the retail facility, the fieldconcentration in any dispenser sample agent will obtain a nozzle sample from eachis altered; the presence of red dye is found in a sample tank holding diesel fuel and kerosene if from a dispenser not bearing the USED applicable warranted. Dyed fuel samples will be nontaxable use only warning label; red dye is found in 48 www.wpma.com / Winter 2023'