IRS resinstates Superfund taxes

The IRS issued Notice 2021-66 to reinstate excise taxes imposed on chemical substances by sections 4661 and 4671 of the Internal Revenue Code, effective July 1, 2022. Taxes are imposed on 101 listed substances sold by a manufacturer, producer, or importer or sold or used by an importer. Affected persons will report Superfund chemical taxes on Form 6627, which is attached to Form 720.

The notice lists taxable substances, requires registration for exceptions, modifies tax rates, and changes related code provisions. It also modifies how to determine whether a substance is taxable by lowering the required percentage of chemicals used to produce the substance.