### Question
What is the definition of two-party exchange?


### Answer
The definition of **two-party exchange** is as follows in *26 U.S.C. § 4105*:

> a transaction, other than a sale, in which taxable fuel is transferred from a delivering person registered under section 4101 as a taxable fuel registrant to a receiving person who is so registered where all of the following occur:



(1) The transaction includes a transfer from the delivering person, who holds the inventory position for taxable fuel in the terminal as reflected in the records of the terminal operator

#### Citation:
  - *26 U.S.C. § 4105*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 32-MANUFACTURERS EXCISE TAXES > Subchapter A-Automotive and Related Items > PART III-PETROLEUM PRODUCTS > Subpart B-Special Provisions Applicable to Fuels Tax**

