Superfund Chemical Excise Taxes

 

Effective July 1, 2022, excise taxes are reinstated on certain chemicals and imported chemical substances. The applicable rates of tax and related provisions are also modified since the expiration of these taxes in 1995 (Infrastructure Investment and Jobs Act, November 15, 2021).

Frequently Asked Questions: Superfund Chemical Excise Taxes

How to Report

Report and deposit these taxes quarterly with both:

When to Pay

You must pay the Superfund chemical excise tax twice a month.  A semimonthly period is the first fifteen (15) days of a calendar month or the portion of a calendar month following the 15th day of the month.

Semimonthly deposit FAQ

How to Pay

Deposit payments with the Electronic Federal Tax Payment System (EFTPS). How you pay in EFTPS depends on the excise tax:

If you only pay Superfund chemical excise tax (IRS No. 54 or 17)

Do not break the total payment into Sub Categories in EFTPS.

If you pay Superfund chemical excise tax and any other excise tax

Make two separate payments in EFTPS—one for Superfund chemical excise tax and another for any other excise tax listed in Sub Categories in EFTPS.

Penalty Relief for Failure to Deposit

Temporary relief from the penalty for failure to deposit Superfund chemical taxes for 2022 (third and fourth calendar quarters) and the first calendar quarter of 2023 is in Notice 2022-15.

Tax Rates for Taxable Substances

Find the tax rates for 121 taxable substances.

Taxable Chemical Substances and Procedures

A list of taxable chemical substances and procedures for the reinstated Superfund chemical taxes are in Notice 2021-66. The notice also addresses registration requirements to exempt certain sales and uses of taxable chemicals from tax.

Requesting Changes to Listed Taxable Substances

Procedures to request an IRS determination to add or remove a substance from the list of taxable substances under Internal Revenue Code Section 4672(a) are in Revenue Procedure 2022-26PDF.

Form 637 Registration for Superfund Chemical Taxes

To apply to participate in tax-free sales of intermediate hydrocarbon streams containing organic taxable chemicals or tax-free inventory exchanges of taxable chemicals, file Form 637, Application for Registration (For Certain Excise Tax Activities) with activity letter G.