Rev. Rul. 72-480

Advice has been requested as to the applicability of the manufacturers excise tax imposed by section 4081 of the Internal Revenue Code of 1954 on sales of gasoline by the producer or importer thereof, under the circumstances described below. The books and records of a vendor of gasoline were audited by the Internal Revenue Service to determine whether the vendor was liable for manufacturers excise tax on his sales of gasoline. The vendor was not registered as a "producer" of gasoline under the provisions of section 48.4083-1 of the Manufacturers and Retailers Excise Tax Regulations.

In the course of the audit of the vendor, certain sales of gasoline were noted with respect to which the books and records did not disclose the source from which the vendor had obtained the gasoline. Although given the opportunity to do so, the vendor offered no explanation as to how he obtained the gasoline in question. The question presented is whether, based on his failure to explain the source of the gasoline, the Service will presume that the vendor is the "producer or importer" of such gasoline within he meaning of section 4081 of the Code, and assess against the vendor the tax imposed on sales of gasoline by that section.

Section 4081 of the Code imposes a tax on gasoline sold by the producer or importer thereof, or by any producer of gasoline.

Section 4082 of the Code provides that the term "producer" includes a refiner compounder, or blender, or wholesale distributor and a dealer selling gasoline exclusively to producers of gasoline, as well as a producer.

In any instance where a vendor of gasoline is requested by the Service to disclose the source from which gasoline sold by the vendor was obtained, and the vendor does not comply with such request, for purposes of the tax imposed by section 4081 of the Code it will be presumed that the vendor is the producer or importer of such gasoline. Accordingly, it is held that the vendor's sales of such gasoline are subject to the tax imposed by section 4081 of the Code.