Archives

June 3, 2024

Polyoxymethylene Added to List of Chemical Substances Subject to Superfund Excise Tax

The Internal Revenue Service (IRS) published a notice of determination on May 31, 2024, that the list of taxable substances is modified to include polyoxymethylene. 89 Fed. Reg. 47238. As reported in our December 29, 2022, blog item, the IRS announced in December 2022 that it received a petition requesting the addition of polyoxymethylene to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. Celanese Ltd., an exporter of polyoxymethylene, submitted...
February 29, 2024

Petition Filed to Add Iso-butanol to List of Chemical Substances Subject to Superfund Excise Tax

The Internal Revenue Service (IRS) announced on February 27, 2024, that it received a petition requested that iso-butanol (also known as isobutanol, iso butyl alcohol, 2-methyl propan-1-ol, or 2-methyl-1-propanol) be added to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. 89 Fed. Reg. 14558. OQ Chemicals Corporation, an exporter of iso-butanol, filed the petition. The notice states: According to the petition, iso-butanol is an isomer of n-butanol. Iso-butanol...
February 23, 2024

Petitions Filed to Add Caprolactam and Nylon 6 to List of Chemical Substances Subject to Superfund Excise Tax

The Internal Revenue Service (IRS) announced on February 22, 2024, that it received petitions requesting that caprolactam (89 Fed. Reg. 13400) and nylon 6 (89 Fed. Reg. 13399) be added to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. AdvanSix Inc., an exporter of caprolactam and nylon 6, filed the petitions. The notice for caprolactam states: According to the petition, caprolactam, a white solid, is primarily used to manufacture nylon...
July 17, 2023

Petition Filed to Add Methyl Ethyl Ketoxime to List of Chemical Substances Subject to Superfund Excise Tax

The Internal Revenue Service (IRS) announced on July 17, 2023, that it received a petition requesting that methyl ethyl ketoxime (MEKO) be added to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. 88 Fed. Reg. 45454. The petitioner is AdvanSix Inc., an exporter of MEKO. The notice includes the following description of the petition: According to the petition, MEKO is a clear liquid and a high-efficiency, anti-skinning agent that is used for...
March 31, 2023

IRS Proposes Regulations Regarding Superfund Tax on Chemicals, Extends Temporary Relief Related to Penalty for Failure to Deposit Excise Taxes

On March 29, 2023, the Internal Revenue Service (IRS) published a notice of proposed rulemaking (NPRM) relating to the Superfund excise taxes imposed on certain chemicals and certain imported substances, effective July 1, 2022. 88 Fed. Reg. 18446. There are two separate Superfund chemical excise taxes: a tax on the sale or use of “taxable chemicals” and a tax on the sale or use of imported “taxable substances.” The NPRM contains proposed regulations under Sections 4661,...
March 21, 2023

Petition Filed to Add Cellulose Acetate to List of Chemical Substances Subject to Superfund Excise Tax

The Internal Revenue Service (IRS) announced on March 16, 2023, that it received a petition requesting that cellulose acetate (degree of substitution (DS) = 1.5-2.0) be added to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. 88 Fed. Reg. 16307. The petitioner is Celanese Ltd., an exporter of cellulose acetate (DS = 1.5-2.0). According to the notice, cellulose acetate (DS = 1.5-2.0) “is made from cellulose (wood pulp) and methane. The...
January 24, 2023

Petition Filed to Add Polyphenylene Sulfide to List of Chemical Substances Subject to Superfund Excise Tax

The Internal Revenue Service (IRS) announced on December 30, 2022, that it received a petition requesting the addition of polyphenylene sulfide to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. 87 Fed. Reg. 80579. The petitioner is Celanese Ltd., an exporter of polyphenylene sulfide. According to the petition, “polyphenylene sulfide is a high-performance thermoplastic, has high heat and chemical resistance, and is used in applications such as filters,...
January 23, 2023

Petition Filed to Add Bisphenol A Epoxy Resin Copolymer to List of Chemical Substances Subject to Superfund Excise Tax

The Internal Revenue Service (IRS) announced on January 19, 2023, that it received a petition requesting the addition of 4,4′-isopropylidenediphenol-epichlorohydrin copolymer (bisphenol A epoxy resin) to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. 88 Fed. Reg. 3478. The petitioner is Westlake Epoxy Inc., an exporter of 4,4′-isopropylidenediphenol-epichlorohydrin copolymer. According to the petition, “4,4′-Isopropylidenediphenol-Epichlorohydrin...
December 29, 2022

Petition Filed to Add Polyoxymethylene to List of Chemical Substances Subject to Superfund Excise Tax

The Internal Revenue Service (IRS) announced on December 28, 2022, that it received a petition requesting the addition of polyoxymethylene to the list of taxable substances under Section 4672(a) of the Internal Revenue Code. 87 Fed. Reg. 79938. The petitioner is Celanese Ltd., an exporter of polyoxymethylene. According to the petition, “polyoxymethylene is an engineering thermoplastic used in precision parts requiring high stiffness, low friction, and excellent dimensional stability. It...
June 29, 2022

IRS Issues Procedures to Modify the List of Substances Subject to the Superfund Tax

As reported in our May 19, 2022, memorandum, the Superfund excise tax on certain chemical substances was reinstated beginning on July 1, 2022, under the Infrastructure Investment and Jobs Act. The Internal Revenue Service (IRS) announced on June 24, 2022, that it has posted frequently asked questions (FAQ) on the Superfund chemical excise tax. The IRS released Revenue Procedure 2022-26, which provides the exclusive procedures for requesting a determination under Section 4672(a)(2) of the...