Rev. Rul. 68-559

During an electrical storm a storage tank filled with gasoline was destroyed. The gasoline was owned by a dealer who had purchased it from a registered producer of gasoline in a transaction subject to the manufacturers excise tax on gasoline imposed by section 4081 of the Internal Revenue Code of 1954. The tax due was reported and paid by the producer and the amount thereof was passed on to the dealer as a separate charge. The dealer asks advice as to whether there is any provision of law whereby he or the producer may obtain credit or refund of the manufacturers excise tax paid on the destroyed gasoline.

Held, liability for the manufacturers excise tax imposed by section 4081 of the Code is incurred at the time of sale by the producer or importer of gasoline, and a subsequent loss of tax-paid gasoline through casualty does not give rise to a claim for credit or refund of the tax under any provision of the Code. Accordingly, neither the dealer nor the producer in this case may obtain credit or refund of the manufacturers excise tax paid on the destroyed gasoline.

The conclusion reached in this ruling is equally applicable to the other manufacturers excise taxes imposed under chapter 32 of the Code, and to the retailers excise taxes imposed under chapter 31.

S.T. 536, C.B. XI-2, 507 (1932), is hereby superseded, since the position set forth therein is restated under current law in this Revenue Ruling.

¹ Prepared pursuant to Rev. Proc. 67-6, C.B. 1967-1, 576.