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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...

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...

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...

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,...

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...

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,...

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...

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...

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...

The Internal Revenue Service announced on June 24, 2022, that it has posted frequently asked questions (FAQ) on the Superfund chemical excise tax. The FAQs detail what the Superfund chemical excise tax is, how the tax is computed, and who may be liable for the tax. The Superfund chemical taxes will be reported on Form 720, Quarterly Federal Excise Tax Return, and Form 6627, Environmental Taxes. The excise taxes were reinstated beginning on July 1, 2022, under...