n-18-39.pdf

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

Notice 2018-39

SECTION 1. PURPOSE
This notice provides an extension of the temporary dyed fuel relief provided in
section 3.02 of Notice 2017-30, 2017-21 I.R.B.1248, published on May 22, 2017. The
extended relief will be available beginning May 4, 2018, and ending December 31,
2018. A claimant may submit a refund claim for the Internal Revenue Code (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
In section 3.02 of Notice 2017-30, the Department of the Treasury and the
Internal Revenue Service 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 is subsequently removed from a Green Bay terminal as dyed
fuel destined for a nontaxable use. This relief is available for the period beginning on
October 31, 2017, and ending on May 3, 2018.
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. The

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conditions and procedures for making such claims can be found in sections 3.02, 3.03,
and 3.04 of Notice 2017-59.
This notice extends the relief that section 3.02 of Notice 2017-30 provides. This
notice also expands the relief to permit claims for refund for fuel that is initially taxed
upon removal from a terminal in Madison and later removed from a Green Bay terminal
as dyed fuel.
SECTION 3. EXTENSION OF TEMPORARY DYED FUEL RELIEF
For the period beginning on May 4, 2018, and ending on December 31, 2018, 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 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
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.

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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 May 4,
2018, and on or before December 31, 2018.
SECTION 5. DRAFTING INFORMATION
The principal author of this notice is Danielle J. Mayfield of the Office of
Associate Chief Counsel (Passthroughs & Special Industries). For further information
regarding this notice contact Ms. Mayfield at (202) 317-6855 (not a toll-free call).