IRS issues FAQs on reinstated Superfund tax

Accounting

The Internal Revenue Service has issued FAQs regarding the reinstated Superfund chemical excise tax, detailing what the tax is, how it’s computed and who may be liable.

The Superfund chemical taxes are reported on Form 720, “Quarterly Federal Excise Tax Return” and Form 6627, “Environmental Taxes”. The excise taxes imposed on certain chemicals and imported chemical substances were reinstated as of July 1 under the Infrastructure Investment and Jobs Act.

The taxes help support the federal Superfund program created in 1980, which investigates and cleans up polluted and contaminated sites.

There are two Superfund chemical excise taxes: one on the sale or use of “taxable chemicals” and one on the sale or use of imported “taxable substances.” The reinstated taxes impose an excise tax on the sale or use of a taxable chemical by the manufacturer, producer or importer of the chemical. They also impose an excise tax on the sale or use of a taxable substance by the importer of the substance.

The new FAQs provide general information. At the time of publication, 151 substances are listed as taxable; that number will likely change as substances are added to or removed from the list.

More information is here on IRS.gov.

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