n-20-04.pdf

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Part III - Administrative, Procedural, and Miscellaneous

Additional Extension of Temporary Relief for Fuel Removals Destined for Nontaxable
Use Due to West Shore Pipeline Shutdown

Notice 2020-04

# SECTION 1. PURPOSE

This notice provides an additional extension of the temporary dyed fuel relief
initially provided in section 3.02 of Notice 2017-30, 2017-21, I.R.B. 1248, then extended
through December 31, 2018, by section 3 of Notice 2018-39, 2018-20, I.R.B. 582, and
further extended through December 31, 2019, by section 3 of Notice 2019-04, 2019-02
I.R.B. 282. This additional relief will be available for the period beginning on January 1,
2020, and ending on December 31, 2020. A claimant may submit a refund claim for the
Internal Revenue Code § 4081(a)(1) tax imposed on undyed diesel fuel and kerosene
for fuel that is (1) removed from a Milwaukee or Madison terminal; (2) entered into a
Green Bay terminal within 24 hours of removal from the Milwaukee or Madison terminal;
and (3) subsequently dyed and removed from that Green Bay terminal.

# SECTION 2. BACKGROUND

Section 3.02 of Notice 2017-30 provided a temporary refund mechanism for the
§ 4081(a)(1) tax imposed upon removal of undyed diesel fuel and kerosene from a
Milwaukee terminal when such fuel was subsequently transported to, then removed

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from a Green Bay terminal as dyed fuel destined for a nontaxable use. This relief was
available for the period beginning on October 31, 2017, and ending on May 3, 2018.
Section 3 of Notice 2018-39 extended this relief for the period beginning on May 4,
2018, and ending on December 31, 2018. Additionally, Notice 2018-39 expanded the
relief to include refund claims for fuel that is taxed on removal from a Madison terminal,
transported to a Green Bay terminal, and then removed from that Green Bay terminal as
dyed fuel. Section 3 of Notice 2019-04 extended this relief as expanded for the period
beginning on January 1, 2019, and ending on December 31, 2019.

Notice 2017-59, 2017-45 I.R.B. 484, provides guidance on how persons eligible
for relief under section 3.02 of Notice 2017-30 may submit claims for refund. Sections
3.02, 3.03, and 3.04 of Notice 2017-59 describe the conditions and procedures required
to make such claims.

## SECTION 3. EXTENSION OF TEMPORARY DYED FUEL RELIEF

For the period beginning on January 1, 2020, and ending on December 31, 2020,
if any person (that is, the position holder) that removes diesel fuel or kerosene that
satisfies the requirements of § 4082 from a Green Bay terminal establishes to the
satisfaction of the Secretary of the Treasury or his delegate that a prior tax was paid
with respect to the removal of such fuel from a Milwaukee or Madison terminal, then an
amount equal to the prior tax paid shall be allowed as a refund (without interest) to the
position holder in the same manner as if it were an overpayment of tax imposed by
§ 4081.

The relief described in this section is not available with respect to any transaction

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for which one or more conditions set forth in section 3.02 of Notice 2017-59 are not
satisfied or for any refund claim that fails to comply with the procedures set forth in
sections 3.03 and 3.04 of Notice 2017-59. For purposes of this notice, any reference in
Notice 2017-59 to removals from a Milwaukee terminal shall be read to also include
removals from a Madison terminal.

## SECTION 4. EFFECTIVE DATE

The temporary dyed fuel relief described in section 3 of this notice applies to
removals of dyed diesel fuel and kerosene from Green Bay terminals on or after
January 1, 2020, and on or before December 31, 2020.

## SECTION 5. DRAFTING INFORMATION

The principal author of this notice is Elisabeth S. Shellan of the Office of
Associate Chief Counsel (Passthroughs & Special Industries). For further information
regarding this notice contact Elisabeth S. Shellan or Jacob W. Peeples at (202) 317-
6855 (not a toll-free call).