Petitions have been filed by a single petitioner requesting that four substances be added to the list of taxable substances under section 4672(a)
The U.S. Treasury Department and IRS today released the following notices announcing that petitions have been filed by a single petitioner requesting that four substances be added to the list of taxable substances under section 4672(a):
Each petition has been filed pursuant to Rev. Proc. 2022-26 as modified by Rev. Proc. 2023-20.
The notices also request comments on each petition. Written comments and requests for a public hearing must be received on or before the date that is 60 days after the notices are published in the Federal Register, which is scheduled to be January 21, 2025.
A provision of the “Infrastructure Investment and Jobs Act” (Pub. L. No. 117-58, enacted November 15, 2021) reinstated excise taxes imposed on certain chemicals and substances under sections 4661 and 4671 (often referred to as “Superfund” excise taxes) and modified the applicable rates of tax and other provisions related to such taxes.
The IRS previously provided guidance regarding the reinstated Superfund excise taxes in Notice 2021-66, which:
Rev. Proc. 2022-26 provides that an importer or exporter of any substance, or a person other than an importer or exporter of such substance (interested person), may request to add such substance to the list of taxable substances under section 4672(a), or remove such substance from the list, by submitting a petition to the IRS in accordance with the procedures described in sections 5 and 6 of the revenue procedure. Any requests to modify the lists that were submitted prior to publication of the revenue procedure or in response to the request for comments in Notice 2021-66 do not meet the requirements of sections 5 and 6 of the revenue procedure. Such requests will not be processed and must be submitted in accordance with the procedures described in sections 5 and 6 of the revenue procedure.
Rev. Proc. 2023-20 modified Rev. Proc. 2022-26 to clarify that for any petition accepted by the IRS, for purposes of refund claims under section 4662(e), the date on which a taxable substance is added to the Secretary’s list of taxable substances is the first day of the calendar quarter in which the petition is filed (for an interested person) or the day on which the petition is deemed filed (for an importer or exporter). Any petition submitted by an importer or an exporter between July 1, 2022, and December 31, 2022, that is subsequently accepted by the IRS is deemed to be filed on July 1, 2022. Any petition submitted by an importer or an exporter after December 31, 2022, that is subsequently accepted by the IRS is deemed to be filed on the first day of the calendar quarter during which the petition was received.
Taylor Cortright | tcortright@kpmg.com
Rachel Smith | rachelsmith1@kpmg.com