Bulletin No. 2022–29

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Bulletin No. 2022–29

July 18, 2022

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

EMPLOYEE PLANS

EXCISE TAX

Notice 2022-31, page 85.

This notice provides guidance regarding the changes

made by section 9707 of the American Rescue Plan

Act of 2021 to the election of alternative minimum

funding standards under section 430(m) of the Internal

Revenue Code for a defined benefit pension plan that is

a community newspaper plan or any other plan that is

sponsored by an eligible newspaper plan sponsor.

Rev. Proc. 2022-26, page 90.

The Infrastructure Investment and Jobs Act, Public Law

117-58, 135 Stat. 429 (November 15, 2021), reinstates the Superfund excise taxes imposed by sections

4661 and 4671 of the Internal Revenue Code, effective July 1, 2022. This revenue procedure provides the

exclusive procedures for importers, exporters, and

interested persons to request a determination under

§ 4672(a)(2) of the Internal Revenue Code (Code) that

a substance be added to or removed from the list of

taxable substances under § 4672(a) of the Code.

Finding Lists begin on page ii.

The IRS Mission

Provide America’s taxpayers top-quality service by helping

them understand and meet their tax responsibilities and

enforce the law with integrity and fairness to all.

Introduction

The Internal Revenue Bulletin is the authoritative instrument

of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service

and for publishing Treasury Decisions, Executive Orders, Tax

Conventions, legislation, court decisions, and other items of

general interest. It is published weekly.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application

of the tax laws, including all rulings that supersede, revoke,

modify, or amend any of those previously published in the

Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of

internal practices and procedures that affect the rights and

duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service

on the application of the law to the pivotal facts stated in

the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices,

identifying details and information of a confidential nature are

deleted to prevent unwarranted invasions of privacy and to

comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not have the

force and effect of Treasury Department Regulations, but they

may be used as precedents. Unpublished rulings will not be

relied on, used, or cited as precedents by Service personnel in

the disposition of other cases. In applying published rulings and

procedures, the effect of subsequent legislation, regulations,

court decisions, rulings, and procedures must be considered,

and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless

the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on provisions

of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A,

Tax Conventions and Other Related Items, and Subpart B,

Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.

To the extent practicable, pertinent cross references to these

subjects are contained in the other Parts and Subparts. Also

included in this part are Bank Secrecy Act Administrative

Rulings. Bank Secrecy Act Administrative Rulings are issued

by the Department of the Treasury’s Office of the Assistant

Secretary (Enforcement).

Part IV.—Items of General Interest.

This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index

for the matters published during the preceding months. These

monthly indexes are cumulated on a semiannual basis, and are

published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

July 18, 2022

Bulletin No. 2022–29

Part III

Guidance Regarding

the Changes Made by

the American Rescue

Plan Act to the Election

of Alternative Minimum

Funding Standards for

Community Newspaper

Plans under Section

430(m)

Notice 2022-31

I. Purpose

This notice provides guidance regarding the changes made by section 9707 of

the American Rescue Plan Act of 2021

(the ARP), Pub. L. 117-2, 135 Stat. 4

(March 11, 2021) to the election of alternative minimum funding standards under

section 430(m) of the Internal Revenue

Code (Code) for a defined benefit pension

plan that is a community newspaper plan

or any other plan that is sponsored by an

eligible newspaper plan sponsor.

II. Background

Section 430(m) of the Code was added

by section 115 of the Setting Every Community Up for Retirement Enhancement

Act of 2019 (SECURE Act), enacted as

Division O of the Further Consolidated

Appropriations Act, 2020, Pub. L. 116-94,

133 Stat. 2534 (2019).1 Section 430(m)

provides alternative minimum funding

standards that may be elected for certain

community newspaper plans and other

defined benefit plans sponsored by members of a controlled group that includes

the sponsor of the community newspaper

plan. Pursuant to section 430(m)(2), as

added by the SECURE Act, any election to

apply section 430(m) is to be made at such

time and in such manner as prescribed

by the Secretary, and once an election is

made with respect to a plan year, it will

apply to all subsequent plan years unless

revoked with the consent of the Secretary.

Under section 115(c) of the SECURE Act,

section 430(m) of the Code applies to plan

years ending after December 31, 2017.

Notice 2020-60, 2020-36 I.R.B. 514,

provides guidance regarding the election

to apply the alternative minimum funding standards of section 430(m). Notice

2020-60 also provides additional flexibility to facilitate retroactive elections under

section 430(m) (including deemed immaterial treatment under section 436 for

changes in a plan’s adjusted funding target

attainment percentage due to an election

to apply section 430(m)) and provides

instructions for completing Schedule SB,

“Single-Employer Defined Benefit Plan

Actuarial Information,” of Form 5500,

“Annual Return/Report of Employee Benefit Plan,” to reflect the election.

Section 9707 of the ARP revised section 430(m) in a number of ways, including by modifying the requirements for

eligibility to make an election to apply

section 430(m). Prior to the ARP, section

430(m)(1) provided that the election to

apply the alternative minimum funding

standards of section 430(m) was made by

the plan sponsor of a community newspaper plan under which no participant has

had an increase in accrued benefits after

December 31, 2017 (whether because of

service or compensation), and the election

applied to all other defined benefit plans

sponsored by members of the sponsor’s

controlled group. Therefore, this notice

modifies the manner of the election set

forth in section IV.A of Notice 2020-60 to

eliminate the requirement to notify other

controlled group members of the election

(so that the election need only be provided

to the plan’s enrolled actuary and the plan

administrator).

An election to apply section 430(m) to

a plan must be made by a sponsor of that

plan, and that election does not apply to

other plans. The information that must be

included in the election set forth in section

IV.A of Notice 2020-60 is modified by this

notice. The election now must include the

following:

• The name and Employer Identification Number (EIN) of the employer,

• The name and plan number of the

plan,

• The first plan year for which the election applies,

• The date as of which the employer

first sponsored the plan,

• The date as of which benefit accruals

ceased under the plan,

• The name of the newspaper(s) published by the employer, and

• A certification that the sponsor of the

community newspaper plan satisfies the trade or business standard in

section 430(m)(5)(A)(i) and satisfies

the ownership and control standards

under section 430(m)(5)(A)(ii) and

(iii).

If the employer is an eligible newspaper plan sponsor but is not the sponsor of

a community newspaper plan, the election

must also include the following:

• A certification that, as of December

20, 2019, the employer was a member

of a controlled group that includes the

sponsor of a community newspaper

plan and that the employer is in the

Bulletin No. 2022–29

trade or business of publishing one or

more newspapers, and

• The name and EIN of the employer

that is the sponsor of the community

newspaper plan.

If a plan sponsor made an election to

apply section 430(m) on or after March

11, 2021, and that election did not comply with the requirements set forth in this

section III.D, the plan sponsor must make

a new election that complies with these

requirements no later than September 15,

2022, in order to retain the election.

The Appendix to this notice sets forth

a model for the written section 430(m)

election. This model replaces the model

election in Notice 2020-60.

E. Extension of time to make retroactive

section 430(m) elections and associated

funding balance elections

Section VI of Notice 2020-60 provides

flexibility in several areas to facilitate retroactive section 430(m) elections in light

of the retroactive effective date of section

430(m). Section VI.A of Notice 2020-60

provides an exception to the general timing rule restricting changes in actuarial

assumptions after they have been established for a plan year, to allow an election

to apply section 430(m) to be made for

a plan year for which Schedule SB has

already been filed. In order to fully reflect

the impact of the reduced minimum funding requirement resulting from a retroactive section 430(m) election, section VI.B

of Notice 2020-60 provides an extended

period of time for certain plan sponsor

elections to increase the plan’s prefunding

balance and to revoke an election to use

the plan’s prefunding balance or funding

standard carryover balance (or reduce the

portion of that balance to which an election applied). Pursuant to section VI of

Notice 2020-60, the extended deadline for

the actions was December 31, 2020.

Like the original provisions of section 430(m) of the Code, the provisions

of section 430(m), as revised by section

9707 of the ARP, apply to plan years ending after December 31, 2017. As a result

of the changes made to section 430(m) of

the Code by the ARP, some plan sponsors

that publish newspapers and that were not

previously eligible to make an election to

apply section 430(m) may now be eligible.

Bulletin No. 2022–29

In addition, some plan sponsors that were

eligible to elect to apply section 430(m)

may not have made that election because

of the effect of the election on other controlled group members and may now wish

to do so. To facilitate retroactive section

430(m) elections and to fully reflect the

impact of the reduced minimum funding

requirement resulting from a retroactive

section 430(m) election, the guidance in

section VI of Notice 2020-60 is modified by substituting September 15, 2022,

for December 31, 2020, as the extended

deadline for the actions specified in that

section.

IV. Plan Sponsors That Applied the

Pre-ARP Provisions of Section 430(m)

Under section 430(m) prior to the

amendments made by the ARP, if an election to apply section 430(m) was made by

a plan sponsor of a community newspaper plan, that election also applied to all

other defined benefit plans sponsored by

members of the controlled group. However, after the amendments made by the

ARP, the election to apply section 430(m)

is made separately for each plan and is

available only to a plan sponsor that is in

the trade or business of publishing one or

more newspapers.

If the sponsor of a community newspaper plan made an election to apply section 430(m) prior to the enactment of the

ARP (that is, prior to March 11, 2021),

and a plan sponsored by a member of that

sponsor’s controlled group is eligible for

an election to apply section 430(m) after

the amendments made by the ARP, that

member will be deemed to have made an

election to apply section 430(m) after the

amendments made by the ARP. Thus, if

that member wishes to continue applying

section 430(m) for its plan, it does not

need to make a new election. However, if

that member does not wish to apply section 430(m) for its plan, then this notice

grants automatic approval to revoke that

deemed election retroactively for all previous plan years for which the election

applied, provided that the plan sponsor

provides written notice of the revocation

to the plan’s actuary and plan administrator no later than September 15, 2022,

and, for all plan years for which the election has been revoked, amended Forms

5500 with the revocation reflected on

revised Schedules SB are filed no later

than October 17, 2022. For a member

that revokes this deemed section 430(m)

election for all years for which it applies,

the elections described in section IV of

Notice 2021-48, 2021-33 I.R.B. 305

(relating to timing of implementation of

certain statutory changes made by the

ARP) are considered timely if they are

made no later than October 17, 2022,

and the actions described in sections V.A

through V.C of Notice 2021-48 (permitting an extended time for certain changes

relating to a plan’s funding balances) are

considered timely if they are completed

by that date.

If the sponsor of a community newspaper plan made an election to apply section 430(m) prior to the enactment of the

ARP (that is, prior to March 11, 2021),

and a plan sponsored by a member of that

sponsor’s controlled group is not eligible

for an election to apply section 430(m)

after the amendments made by the ARP

(for example, the sponsor of that plan is

not in the trade or business of publishing a newspaper, or a participant accrued

a benefit under that plan after April 2,

2019, and before the original election to

apply section 430(m) was made), then

the plan’s minimum required contribution under section 430 must be redetermined, and the plan may not be compliant

with section 436. However, the IRS will

not treat such a plan as failing to satisfy

qualification requirements or minimum

funding requirements merely because the

plan sponsor does not apply the changes

made to section 430(m) by the ARP until

the first plan year that begins after March

11, 2021.

V. Effect on Other Documents

Notice 2020-60 is modified.

Paperwork Reduction Act

The collections of information contained in this notice have been reviewed

and approved by the Office of Management and Budget in accordance with the

Paperwork Reduction Act (44 U.S.C.

§ 3507) under control number 1545-2095.

An agency may not conduct or sponsor,

and a person is not required to respond

July 18, 2022

to, a collection of information unless the

collection of information displays a valid

OMB control number.

The collections of information in this

notice are in the Appendix of this notice.

The collections of information are required

for a plan sponsor to elect to apply the

alternative minimum funding standards

under section 430(m). The collections of

information are mandatory for those plan

sponsors making a new election to apply

section 430(m) to a plan.

The likely respondents are sponsors

of defined benefit plans whose eligibility

to apply section 430(m) was affected by

July 18, 2022

the enactment of the ARP or who have

become eligible not to apply a section

430(m) election that was made by a controlled group member prior to the enactment of the ARP.

Any potential changes on burden will

be reported through the renewal of the

current OMB approval numbers.

Estimates of the annualized cost to

respondents are not available at this time.

Books or records relating to a collection of information must be retained as

long as their contents may become material in the administration of any internal

revenue law. Generally, tax returns and

tax return information are confidential, as

required by section 6103.

Drafting information

The principal author of this notice is

Tom Morgan of the Office of the Associate Chief Counsel (Employee Benefits,

Exempt Organizations, and Employment

Taxes). However, other personnel from

the IRS participated in the development

of this guidance. For further information

regarding this notice, contact Mr. Morgan

or Linda Marshall at 202-317-6700 (not a

toll-free number).

Bulletin No. 2022–29

Appendix

Model election

As an officer of the employer sponsoring a community newspaper plan as defined in section 430(m)(5) of the Internal Revenue Code,

or an officer of another eligible newspaper plan sponsor as defined in section 430(m)(2)(B), I hereby elect to apply the alternative

minimum funding standards under section 430(m)(4), beginning with the plan year beginning _______. I also provide the following

information about the employer and plan and hereby certify that the plan sponsor of the community newspaper plan meets the trade

or business standard described in section 430(m)(5)(A)(i) and the ownership and control standards under section 430(m)(5)(A)(ii)

and (iii) as set forth below:

Information about the employer and plan:

• Name of employer

• Employer Identification Number (EIN) of employer

• Name of plan for which election is made

• Plan number

• Date as of which employer first sponsored the plan

• Date as of which benefit accruals ceased

• Name of newspapers published by the employer

• Name and EIN of the sponsor of the community newspaper plan (if the election is being made by an eligible newspaper plan

sponsor described in section 430(m)(2)(B))

Certifications relating to trade or business, ownership, and control:

• For an employer that sponsors a community newspaper plan:

o The employer maintains the plan on behalf of participants and beneficiaries with respect to employment in the trade or

business of publishing one or more newspapers which were published by the employer at any time during the 11-year period

ending on December 20, 2019;

o The employer sponsoring the community newspaper plan is (indicate all that apply):

(1) Not publicly traded, and is not controlled, directly or indirectly, by a publicly traded company ____, or

(2) Controlled, directly or indirectly, during the entire 30-year period ending on December 20, 2019, by individuals who

are members of the same family, and does not publish or distribute a daily newspaper that is carrier-distributed in printed

form in more than five States____; and

o The employer is controlled directly or indirectly (indicate all that apply):

(1) By one or more persons residing primarily in the state in which the community newspaper is published or carrier-distributed ____

(2) For not less than the 30-year period ending on December 20, 2019, by individuals who are members of the same

family ____

(3) By one or more trusts, the sole trustees of which are persons described in (1) or (2) ____

(4) By a combination of persons described in (1), (2), or (3) ____

• For an eligible newspaper plan sponsor described in section 430(m)(2)(B):

o As of December 20, 2019, the employer is a member of a controlled group that includes the sponsor of a community newspaper plan

o The employer is in the trade or business of publishing one or more newspapers

Signature of employer __________________________ Date ______

Name ________________________ Title______________________

Bulletin No. 2022–29

July 18, 2022

26 CFR 601.601: Rules and Regulations.

(Also Part I, §§ 4672; 52.0-1.)

Rev. Proc. 2022-26

SECTION 1. PURPOSE

This revenue procedure provides the

exclusive procedures for requesting a

determination under § 4672(a)(2) of the

Internal Revenue Code (Code) that a substance be added to or removed from the

list of taxable substances under § 4672(a)

of the Code. The sale or use of any such

taxable substances by importers of such

substances is subject to the excise tax

imposed by § 4671(a) of the Code, subject

to certain exceptions. Unless otherwise

stated, all section references in this revenue procedure are to the Code.

SECTION 2. BACKGROUND

.01 Overview. The Comprehensive

Environmental Response, Compensation,

and Liability Act of 1980 (CERCLA),

Public Law 96-510, 94 Stat. 2767 (1980),

informally referred to as “Superfund,”

was enacted, in part, to create a hazardous

substance cleanup program. Section 221

of CERCLA established the “Hazardous

Substance Response Trust Fund,” which

was funded, in part, by the tax imposed

by § 4661(a) on sales or uses of taxable

chemicals (enacted by § 211 of CERCLA)

and the tax imposed by § 4671(a) on sales

or uses of imported taxable substances

that use one or more taxable chemicals in

their manufacture or production (enacted

by § 515 of the Superfund Amendments

and Reauthorization Act of 1986, Public Law 99-499, 100 Stat. 1613 (1986)),

collectively, referred to as the “Superfund

chemical taxes.” The Superfund chemical

taxes previously expired on December 31,

1995. As explained in section 2.04 of this

revenue procedure, the Superfund chemical taxes have been reinstated, effective

July 1, 2022, with several modifications.

.02 Tax on taxable chemicals. Section

4661(a) imposes a tax on any taxable

chemical sold or used by the manufacturer,

producer, or importer. See also § 4662(c)

(1). Section 4661(b) provides a list of

taxable chemicals and the amount of tax

imposed by § 4661(a) on those chemicals.

Section 4662 provides definitions and

July 18, 2022

special rules applicable to the § 4661 tax,

including definitions of the terms “taxable

chemical” and “United States.”

.03 Tax on taxable substances.

(1) Overview. Section 4671(a) imposes

a tax on any taxable substance sold or used

by the importer. Section 4671(b) generally

provides that the amount of tax imposed

by § 4671(a) with respect to any taxable

substance is equal to the amount of tax that

would have been imposed by § 4661 on

the taxable chemicals used as materials in

the manufacture or production of the taxable substance if such taxable chemicals

had been sold in the United States for use

in the manufacture or production of the

taxable substance. Section 4672, in part,

provides definitions for purposes of the

tax imposed by § 4671(a). As described

in section 2.03(2) of this revenue procedure, § 4672(a) defines the term “taxable

substance.” Section 4672(b)(1) defines the

term “importer” as the person entering the

taxable substance for consumption, use,

or warehousing. Section 4672(b)(2) provides that the terms “taxable chemical”

and “United States” have the respective

meanings given such terms by § 4662(a).

(2) List of taxable substances. Section 4672(a)(1) generally provides that

the term “taxable substance” means any

substance which, at the time of sale or use

by the importer, is listed as a taxable substance by the Secretary of the Treasury or

her delegate (Secretary). Section 4672(a)

(2) provides that a substance “shall be

listed” under § 4672(a)(1) if (A) the substance is contained in the statutory list of

taxable substances under § 4672(a)(3),

or (B) the Secretary determines, in consultation with the Administrator of the

Environmental Protection Agency (EPA)

and the Commissioner of U.S. Customs

and Border Protection (CBP), that taxable

chemicals constitute more than a specified percent of the weight (or more than

a specified percent of the value) of the

materials used to produce such substance

(determined on the basis of the predominant method of production). For purposes

of the tax imposed by § 4671(a) as previously in effect before January 1, 1996,

the specified percent required to be met by

either the weight or value test of § 4672(a)

(2)(B) was 50 percent.

(3) Addition or removal of listed taxable substances. The last sentence of

§ 4672(a)(2) provides that if an importer

or exporter of any substance requests that

the Secretary determine that such substance be added to or removed from the

list of taxable substances under § 4672(a)

(1), the Secretary must make that determination within 180 days after the date the

request was filed. Similarly, § 4672(a)(4)

provides that the Secretary “shall add to

the list” under § 4672(a)(3) substances

that meet either the weight or value tests

of § 4672(a)(2)(B) and that the Secretary “may remove from such list only

substances which meet neither of such

tests.” For purposes of the tax imposed

by § 4671(a) as previously in effect

before January 1, 1996, Notice 89-61,

1989-1 C.B. 717, as modified by Notice

95-39, 1995-1 C.B. 312, and suspended

by Notice 2021-66, 2021-52 I.R.B. 901,

prescribed the former process for certain

persons to request that certain substances

be added to or removed from the list of

taxable substances under § 4672(a).

.04 Reinstatement of Superfund chemical taxes. Effective July 1, 2022, § 80201

of the Infrastructure Investment and Jobs

Act (IIJA), Public Law 117-58, 135 Stat.

429 (November 15, 2021) reinstates the

Superfund chemical taxes with several

modifications, including adjustments

to the applicable rates of tax. Specifically, § 4672(a)(2)(B), as modified by

§ 80201(c)(1) of the IIJA, provides that

a substance is listed under § 4672(a)(1)

if the Secretary determines, in consultation with the EPA Administrator and the

CBP Commissioner, that taxable chemicals constitute more than 20 percent of

the weight (or more than 20 percent of the

value) of the materials used to produce

such substance (determined on the basis of

the predominant method of production). In

this regard, § 80201(c)(2) of the IIJA provides that except as otherwise determined

by the Secretary, any substance that was

determined to be a taxable substance by

reason of § 4672(a)(2) prior to November

15, 2021 (that is, the date of enactment of

the IIJA), “shall continue to be treated as

a taxable substance for purposes of such

section after such date.” As required by

§ 80201(c)(3) of the IIJA, Notice 2021-66

was published to provide the initial list of

taxable substances under § 4672(a). Section 4 of Notice 2021‑66 provides that the

initial list of taxable substances required

Bulletin No. 2022–29

to be published by § 80201(c)(3) of the

IIJA includes the taxable substances listed

in § 4672(a)(3) and the 101 taxable substances listed in the notice, based on the

presumption in § 80201(c)(2) of the IIJA

and other considerations, such as determinations regarding taxable substances

made pursuant to the process described in

Notice 89-61 prior to November 15, 2021,

and the reduction of the weight and value

thresholds in § 4672(a)(2)(B) made by

§ 80201(c)(1) of the IIJA. Therefore, as

of the date of publication of this revenue

procedure, the list of taxable substances

under § 4672(a) consists of the statutory

list of 50 taxable substances in § 4672(a)

(3), and the list of 101 additional taxable

substances listed in section 4 of Notice

2021-66. The Secretary will add substances to or remove substances from the

list of taxable substances under § 4672(a)

in accordance with § 4672(a)(2) and (4).

Substances may be added to or removed

from the list of taxable substances under

§ 4672(a) through the determination process described in this revenue procedure.

SECTION 3. DEFINITIONS

The following definitions apply for

purposes of this revenue procedure:

.01 Conversion factor. The term “conversion factor” means the ratio of the

weight of an individual taxable chemical

used in the production of a substance to

the total weight of the substance.

.02 Exporter. The term “exporter”

means the person named as shipper or

consignor in the export bill of lading.

.03 Harmonized Tariff Schedule of the

United States number. The term “Harmonized Tariff Schedule of the United States

(HTSUS) number” means the 10-digit

tariff number within the HTSUS used to

determine customs duties to be paid on

all merchandise imported into the United

States and its statistical annotation. Additional information on HTSUS numbers

is available at: https://www.usitc.gov/

harmonized_tariff_information.

.04 Importer. The term “importer”

means the person entering the taxable

substance for consumption, use, or

warehousing.

.05 List. The term “List” means the list

of taxable substances under § 4672(a).

Unless the Secretary determines under

Bulletin No. 2022–29

§ 4672(a)(2) or (4) that the taxable substance is removed from the List, every taxable substance described in section 3.12 of

this revenue procedure is on the List.

.06 Material. The term “material”

means a chemical component used in the

predominant method of production of

the substance. The term “material” may

include a taxable chemical.

.07 Molecular formula. The term

“molecular formula” means a chemical

formula that shows the number and kinds

of atoms in the substance.

.08 Schedule B number. The term

“Schedule B number” is a 10-digit international export code used to classify

goods for export to another country.

Schedule B numbers are administered by

the United States Census Bureau. Additional information on Schedule B numbers

is available at: https://www.census.gov/

newsroom/blogs/global-reach/2017/12/

finding-your-schedule-b-number.html.

.09 Structural formula. The term “structural formula” means a chemical formula

that provides a graphic representation of

how the atoms are arranged and bonded in

the smallest unit of the substance.

.10 Substance. The term “substance”

means the chemical substance to which

the petition described in sections 5 and

6 of this revenue procedure relates. For

synthetic organic chemical substances, the

term “substance” does not include a textile fiber (other than a polymer in extruded

fiber form), yarn, or staple, or a fabricated

product that is molded, formed, woven, or

otherwise finished into an end-use product. For inorganic chemical substances,

the term “substance” does not include

fabricated products that are molded,

formed, or otherwise finished into end-use

products.

.11 Taxable chemical. The term “taxable chemical” means a chemical listed

under § 4661(b).

.12 Taxable substance. Except as provided in this section 3.12, the term “taxable substance” means—

(1) any substance that is one of the

50 taxable substances in the list under

§ 4672(a)(3),

(2) any substance that is one of the 101

taxable substances listed in section 4 of

Notice 2021-66, and

(3) any substance that the Secretary

has determined under § 4672(a)(2) or (4)

to add to the List described in section 3.05

of this revenue procedure.

The term “taxable substance” does not

include any substance that the Secretary

has removed from the List pursuant to

§ 4672(a)(2) or (4).

.13 United States. The term “United

States” has the meaning given such term

by § 4612(a)(4) by reason of §§ 4662(a)

(2) and 4672(b)(2).

.14 Value. The term “value” means the

average market price, during the preceding twelve months, of each material in

the stoichiometric material consumption

equation describing the production of the

substance.

SECTION 4. REQUESTS FOR

MODIFICATIONS TO THE LIST OF

TAXABLE SUBSTANCES UNDER

§ 4672(a)

.01 Importers, exporters, and interested persons. 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 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 this revenue procedure. Any requests

to modify the List that were submitted

prior to publication of this 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

this revenue procedure. Such requests

will not be processed and must be submitted in accordance with the procedures

described in sections 5 and 6 of this revenue procedure.

.02 Threshold requirements. An

importer, exporter, or interested person

may submit a petition to add a substance

to the List if such person determines that

taxable chemicals constitute more than

20 percent of the weight or value of the

materials used to produce such substance,

determined on the basis of the predominant method of production. An importer,

exporter, or interested person may submit

a petition to remove a substance from the

List if such person determines that taxable

chemicals constitute 20 percent or less of

the weight and 20 percent or less of the

value of the materials used to produce

July 18, 2022

such substance, determined on the basis

of the predominant method of production.

.03 Separate petitions required. An

importer, exporter, or interested person

must submit a separate petition for each

substance that the person seeks to have

added to or removed from the List.

.04 Publication of information in the

Federal Register. The determination

process described in this revenue procedure is a public process that is designed

to provide the public with notice of any

proposed modifications to the List and

the opportunity to comment on those

proposed modifications. Petitioners are

strongly discouraged from submitting

confidential business information or trade

secrets, because the determination process is a public process. As described in

sections 9.02 and 10.04 of this revenue

procedure, information the petitioner submits relating to the petition, including the

petitioner’s name, will be published in the

Federal Register as part of the notice and

comment process.

SECTION 5. HOW TO SUBMIT

PETITIONS

.01 Overview. An importer, exporter,

or interested person (each, a petitioner)

may submit a petition using electronic

facsimile, email, or certified mail as

described below. Petitioners are encouraged to submit petitions by electronic

facsimile.

.02 When a petition is considered

filed. A submitted petition is considered “filed” for purposes of the 180day determination period set forth in

§ 4672(a)(2) only when it is accepted

by the IRS. The filing date of a submitted petition is the date of the acknowledgement letter from the IRS accepting

the submitted petition, as described in

section 5.03 of this revenue procedure.

The IRS will accept a submitted petition only if the petition includes all of

the information required in section 6 of

this revenue procedure.

.03 Acknowledgement of petition’s

receipt. The IRS will acknowledge receipt

of a submitted petition by letter. Any petition received before July 1, 2022, will be

deemed received on July 1, 2022. The IRS

will acknowledge receipt of a submitted

petition by letter regardless of whether the

July 18, 2022

petition is submitted by electronic facsimile, email, or certified mail. The acknowledgement letter will indicate whether the

IRS has accepted the submitted petition,

or whether the IRS has rejected the submitted petition due to incomplete or insufficient information. If the IRS accepts

the submitted petition, the filing date of

the submitted petition is the date of the

acknowledgment letter accepting the

petition. If the IRS rejects the submitted

petition, the petitioner may submit a new

petition with the required additional information. The filing date is the date of the

acknowledgment letter accepting the new

petition.

.04 Submission by electronic facsimile. A petitioner may submit a petition

by electronic facsimile to the following

number: (855) 578-0543. Petitioners

and their representatives are encouraged to use a secure electronic facsimile

service for submitting petitions. When

compiling the petition for submission,

petitioners should provide clear titles for

the documents and number all pages. If

the submission is over 10MB or over 50

pages, petitioners should break it into

smaller components, number the components sequentially, and indicate the total

number of components (such as “1 of 4,”

“2 of 4,” “3 of 4,” and “4 of 4”). Petitioners should use a cover sheet when

submitting the petition by electronic

facsimile. The cover sheet should provide the petitioner’s contact information,

state that the electronic facsimile contains a determination request under Revenue Procedure 2022-26, and provide the

total number of pages of the electronic

facsimile.

.05 Submission by email

(1) Overview. Until further notice,

a petitioner may submit a petition by

emailing the petition to: sbse.excise.

policy@irs.gov. There are more risks

associated with submitting information

by email than by electronic facsimile,

such as the possibility that sensitive taxpayer information could be intercepted.

Accordingly, the IRS encourages petitioners to use a secure electronic facsimile service for submitting petitions. As an

alternative, section 5.05(2) of this revenue procedure provides procedures for

using encrypted email attachments for

submitting a petition.

(2) Submission using encrypted

email attachments. Petitioners using

encrypted email attachments may

choose to use a compression utility

compatible with SecureZIP (note that

many open-source utilities are not compatible with SecureZIP), Adobe Acrobat Pro password encryption, or Microsoft Office 2016/365 Protect Document

to encrypt and send password-protected

files. Because these programs do not

encrypt the subject line or body of an

email or the file name of the attachment, all sensitive information should

be included only in the encrypted

attachment. These programs require

that a sender create a password for the

recipient to use to decrypt the attachments. The password should never be

sent in the same email as the encrypted

attachment. Instead, it should be provided to the IRS in a separate email

with a subject line that makes it easy to

connect the password to the email with

the encrypted attachment. When compiling the petition package for submission, the petitioner should provide clear

titles for the documents and file names.

The petitioner should also encrypt the

files or enable the encryption utility on

the email system before generating the

email. If the submission is over 5 MB

or over 50 pages, the petitioner should

break it into smaller components that do

not exceed 5 MB each, number the components sequentially, and indicate the

total number of components (such as “1

of 4,” “2 of 4,” “3 of 4,” and “4 of 4”).

Petitioners should refer to www.IRS.

gov/UsingEmail for additional information about encrypting files and sending

documents to the IRS by email. Petitioners should use strong passwords for

encrypting files (at least twelve characters, including a mix of upper- and

lower-case letters, numbers, and special

characters).

.06 Submission by certified mail. A

petitioner may submit a petition by certified mail, return receipt requested to:

Director SB/SE Exam, Specialty Policy

Internal Revenue Service

SE:S:E:HQ:SEP

c/o Specialty Exam Policy, Tech Advisor

5000 Ellin Rd., Mail Stop C3-255

Office C2-156

Lanham, MD 20784

Bulletin No. 2022–29

SECTION 6. WHAT MUST BE

INCLUDED IN THE PETITION

.01 Required information for all

petitions. Except as specifically provided in this section 6.01, the IRS will

accept a submitted petition only if the

petition includes all of the following

information:

(1) A statement identifying whether the

petitioner is an importer or exporter of the

substance, or an interested person.

(2) The name, address, taxpayer identification number (TIN) of the petitioner; if

someone is filing the petition on behalf of

the petitioner, the name of the person filing the petition and that person’s relationship to the petitioner. An interested person

submitting a petition is not required to

provide a TIN.

(3) A Form 2848, Power of Attorney

and Declaration of Representative, if the

petition is submitted by the petitioner’s

authorized representative.

(4) The name of the substance.

(5) A description of the substance and

its use.

(6) The molecular formula of the substance, the structural formula of the substance, and the physical form of the substance, as determined by the physical state

of the substance (gas, liquid, solid).

(7) The HTSUS number and the Schedule B number of the substance; the Chemical Abstract Service Registry (CAS)

number of the substance, if applicable. In

connection with the HTSUS number of

the substance, the petitioner should also

indicate whether the imported substance

is in forms or packings for retail sale at

entry; however, the information regarding

forms and packings is not required and a

petition will not be rejected if this information is not included.

(8) The name of the production process

that the petitioner has identified as the

predominant method of production of the

substance.

(9) The data supporting the petitioner’s position that the production process

identified as the predominant method of

production of the substance is, in fact, the

predominant method of production.

(10) An explanation of the production

process identified as the predominant

method of production of the substance

that emphasizes the overall chemical

reaction used to process the underlying

taxable chemical or chemicals into the

substance. The petitioner must include a

brief description of all reaction pathways

for materials used in the predominant

method of production that are derived

from a taxable chemical, as shown in the

example in section 7.02 of this revenue

procedure.

(11) The names, HTSUS numbers,

Schedule B numbers, and CAS numbers

(to the extent CAS numbers are applicable) of all taxable chemicals used as materials in the production of the substance,

based on the process identified as the

predominant method of production of the

substance.

(12) The molecular formula and the

structural formula for each material used in

the production of the substance, based on

the process identified as the predominant

method of production of the substance.

(13) The stoichiometric material consumption equation based on the process

identified as the predominant method of

production of the substance, assuming

a 100-percent yield. The equation must

include all materials that are consumed in

the process.

(14) The conversion factor for each

taxable chemical used to produce the substance, based on the process identified as

the predominant method of production of

the substance. Petitioner must use the stoichiometric material consumption equation

to determine the conversion factor(s). If

the request is to add a substance to the

List, the petitioner must show that taxable

chemicals constitute over 20 percent of the

weight or the value of the materials used

to produce the substance. If the request is

to remove a substance from the List, the

petitioner must show that the substance

meets neither the weight nor the value test

described in § 4672(a)(2)(B).

(15) If the substance is a mixture, the

percent composition by weight of each

component in the mixture, including solvents, stabilizers, and additives, as well as

a description of each component’s function in the mixture.

(16) Any tariff classification rulings the

petitioner has received from CBP under

the provisions of Part 177 of the Customs

Regulations (19 C.F.R. 177) with regard

to the substance. If a petitioner has submitted a tariff classification ruling request

under the provisions of 19 C.F.R. 177

for the substance, the petitioner must so

indicate, and include that ruling request’s

identification number in the petition. To

the extent the petitioner is aware of any

tariff classification rulings that classify the

same or a substantially similar substance

for which a petitioner seeks a determination, the petitioner should include such

ruling(s) in the petition; however, this

information is not required and a petition

will not be rejected if this information is

not included.1

(17) A statement identifying the extent

to which any information included in

the petition, other than the information

described in section 9.02 and 10.04 of

this revenue procedure, is confidential

business information that should not be

published as part of the Notice of Filing

or Notice of Determination. As noted in

section 4.04 of this revenue procedure,

petitioners are strongly discouraged from

submitting confidential business information because of the public nature of the

determination process. A determination to

add or remove a substance from the List

will not be based on confidential business

information.

(18) A statement, signed under penalties of perjury, that the petitioner has

examined the petition and to the best of

petitioner’s knowledge and belief, the

information in the petition is true, correct,

and complete.

.02 Additional information for petitions based on value. For petitions based

on value, the following additional information is required:

Such rulings may be researched on the Customs Rulings Online Search Service at https://rulings.cbp.gov/home. Pursuant to 19 CFR 177.1(c), any person who, as an importer or exporter of

merchandise, has a direct and demonstrable interest in the classification question presented in the ruling request, or their authorized agent, may request a binding Customs ruling at https://

erulings.cbp.gov/s/

Bulletin No. 2022–29

July 18, 2022

(1) The per-unit value of each taxable chemical used in the production of

the substance, based on the predominant

method of production.

(2) The total value of all materials used

in the production of the substance, based

on the per-unit value of each material used

in the predominant method of production.

The units of measurement must be the

same as those used in section 6.02(1) of

this revenue procedure.

.03 Optional summary of information

for Notice of Filing. As part of any submission, a petitioner may include a separate document that specifically identifies

or summarizes the information from the

petition that should be included in the

Notice of Filing described in section 9.02

of this revenue procedure.

SECTION 7. STOICHIOMETRIC

MATERIAL CONSUMPTION

EQUATION EXPLANATION AND

EXAMPLE

.01 Overview. Section 6.01(13) of this

revenue procedure requires the petitioner

to include the stoichiometric material

consumption equation for the substance,

based on the process identified as the

predominant method of production of the

substance. The petitioner must determine

the stoichiometric material consumption

equation by examining the established

chemical process. Some of the materials

used in the predominant method of production may be derived from one or more

taxable chemicals. If so, such materials

must be examined stoichiometrically

to capture all taxable chemicals used to

produce the substance. In such instances,

the established chemical process must be

further expanded to include individual

chemical reactions/processes that may

be required to produce the substance

from the taxable chemical or chemicals.

The final stoichiometric material consumption equation is produced by summing any individual reactions of taxable

chemicals.

.02 Example. The following is an

example that satisfies the requirements

of section 6.01(13) of this revenue procedure. This example is for illustrative

purposes only. In addition, this example

assumes that the syngas used to produce

the methanol was not derived from coal.

See § 4662(b)(4).

Substance: Dimethyl terephthalate

HTSUS item number of substance: 2917.37.00.00

CAS number of substance: 120-61-6

Schedule B number of substance: 2917.37.0000

Predominant method of production: Dimethyl terephthalate is produced by the esterification of terephthalic acid with methanol.

Terephthalic acid is made from p-xylene (an isomer of xylene) and oxygen. Methanol is made from syngas. Hydrogen for the

syngas is made from methane via the steam methane reforming process.

The chemical equation for the production of dimethyl terephthalate is:

C8H6O4 (terephthalic acid) + 2 CH3OH (methanol)  C10H10O4 (dimethyl terephthalate) + 2 H2O (water)

Derived taxable chemicals:

Terephthalic acid is made from p-xylene and oxygen:

C8H10 (xylene) + 3 O2  C8H6O4 (terephthalic acid) + 2 H2O

Methanol is made from syngas:

2 [CO + 2H2  CH3OH (methanol)]

Hydrogen is made from steam-methane reforming:

CH4 (methane) + 2 H2O  4 H2 (hydrogen) + CO2

Xylene and methane are taxable chemicals. Therefore, the derived stoichiometric material consumption equation is:

[C8H10 (xylene) + 3 O2 - 2 H2O] + [2 CO +(CH4 (methane) + 2 H2O - CO2)]  C10H10O4 (dimethyl terephthalate) + 2 H2O

Simplifying to the stoichiometric material consumption equation:

C8H10 (xylene) + CH4 (methane) + 3 O2 + 2 CO  C10H10O4 (dimethyl terephthalate) + 2 H2O + CO2

SECTION 8. CONVERSION

FACTOR EXPLANATION AND

EXAMPLE

.01 Overview. When submitting a

petition to the IRS, the petitioner must

July 18, 2022

identify the predominant method of production of the substance. The petitioner

must also provide the stoichiometric

material consumption equation for the

substance, based on the process identified

as the predominant method of production,

as shown in section 7.02 of this revenue

procedure. In addition, the petitioner must

use the stoichiometric material consumption equation to determine the conversion

factor for each taxable chemical used to

produce the substance. The conversion

Bulletin No. 2022–29

factors are used to determine whether taxable chemicals constitute more than 20

percent, by weight, of the materials used

in the production of the substance, based

on the predominant method of production.

If the taxable chemicals used in the production of the substance meet the 20 percent weight (or value) threshold, the conversion factors may be used to determine

the tax rate of the substance.

.02 Percent composition of taxable

chemicals in a substance. The petitioner

must use consistent weight units and

should note the units in the petition (the

example in section 8.03 of this revenue

procedure uses grams). The petitioner

must add the weights of all the taxable

chemicals used to produce the substance

(the Tax Weight). The petitioner must also

add the weights of all materials, including

taxable chemicals, used to produce the

substance (the Total Weight). If the ratio of

Tax Weight to Total Weight multiplied by

100 percent ((Tax Weight/Total Weight)

x 100%) is greater than 20 percent, the

substance meets the weight threshold for

a taxable substance set forth in § 4672(a)

(2)(B).

.03 Example. The following is an

example that satisfies the requirements

of section 6.01(14) of this revenue procedure. This example is for illustrative purposes only.

Stoichiometric material consumption equation for dimethyl terephthalate:

C8H10 (xylene) + CH4 (methane) + 3 O2 + 2 CO  C10H10O4 (dimethyl terephthalate)+ 2 H2O + CO2

Stoichiometric material consumption equation used to determine the weight (in grams) of materials used to produce dimethyl

terephthalate:

C8H10 (xylene) + CH4 (methane)

106.16 g + 16.06 g = 122.22 g

3 O2 + 2 CO



96.00 g + 56.02 g = 152.02 g

C10H10O4

2 H2O + CO2

194.19 g

Total Weight = 122.22 g + 152.02 g = 274.24 g

Percent of dimethyl terephthalate produced with taxable chemicals:

(122.22 g Tax Weight) / (274.24 g Total Weight) x 100% = 44.57%

Conversion factors of taxable chemicals: The weight of an individual taxable chemical used in the stoichiometric material consumption equation is divided by the weight of the substance. This ratio is a multiplier, i.e. a conversion factor, that is used for each

taxable chemical used in the predominant method of production of the substance to determine an overall tax rate for the substance.

For example:

If:

Taxable chemical A + Taxable chemical B  Substance X

Then: A conversion factor = (Chemical Weight A) / (Chemical Weight X)

B conversion factor = (Chemical Weight B) / (Chemical Weight X)

C8H10 (p-xylene) + CH4 (methane) + 3 O2 + 2 CO  C10H10O4 (dimethyl terephthalate) + 2 H2O + CO2

Both p-xylene and methane are taxable chemicals.

Conversion factor p-xylene: (106.16 g p-xylene) / (194.19 g dimethyl terephthalate) = 0.55

Conversion factor methane: (16.06 g methane) / (194.19 g dimethyl terephthalate) = 0.08

In summary, dimethyl terephthalate should be added to the list of taxable substances and p-xylene and methane are the taxable

chemicals used to produce dimethyl terephthalate.

Percent Composition Taxable

Conversion factor for p-xylene

Conversion factor for methane

44.57 %

0.55

0.08

The tax rate for dimethyl terephthalate is calculated as follows: [($9.74 rate of tax for p-xylene) x 0.55] + [($6.88 rate of tax for

methane) x 0.08]

Total tax rate for dimethyl terephthalate = $5.91 per ton

Bulletin No. 2022–29

July 18, 2022

SECTION 9. PUBLIC NOTICE,

COMMENTS, REQUESTS FOR A

PUBLIC HEARING

.01 Notice of Filing. After a submitted

petition has been filed, the IRS will publish a “Notice of Filing” in the Federal

on www.regulations.gov. The Notice of

Filing will summarize the petition and

request comments.

.02 Information included in Notice of

Filing. The Notice of Filing will be based

upon the information provided by the petitioner in the filed petition and will include

all of the following information:

(1) The name of the substance that is

the subject of the petition.

(2) The name of the petitioner and

whether the petitioner is an importer of the

substance, an exporter of the substance, or

an interested person.

(3) The HTSUS number and the

Schedule B number of the substance,

and the CAS number of the substance, if

applicable.

(4) The filing date of the petition.

(5) A brief description of the petition.

(6) The process identified in the petition as the predominant method of production of the substance.

(7) The stoichiometric material consumption equation for the substance,

based on the process identified as the

predominant method of production of the

substance.

(8) In the case of a petition to add a

substance to the List, the rate of tax for the

substance, based upon the conversion factors of the taxable chemicals used in the

production of the substance, as provided

by the petitioner.

(9) The public docket on www.regulations.gov for the Notice of Filing and

other information needed for submitting

comments.

.03 Written comments. As part of the

determination process, the Secretary will

consider all written comments submitted

within 60 days of the date the Notice of

Filing is published in the Federal Register on www.federalregister.gov, provided

the comments are submitted in accordance

with the comment submission instructions

contained in the Notice of Filing. All

commenters are strongly encouraged to

submit public comments electronically via

the Federal Rulemaking Portal at www.

regulations.gov in accordance with the

instructions for submitting comments contained in the Notice of Filing. The Treasury Department and the IRS will publish

any comment submitted in response to the

Notice of Filing to the public docket for

the Notice of Filing on www.regulations.

gov.

.04 Public hearing. Any person submitting a written comment in response to the

Notice of Filing may include a request for

a public hearing in such person’s written

comment. If a public hearing is scheduled,

notice of the time and place of the hearing

will be published in the Federal Register.

SECTION 10. DETERMINATIONS

.01 Actions prior to making determination. The Secretary will make a determination under § 4672(a)(2) or (4) on a filed

petition only after each of the following

has occurred:

(1) Publication of the Notice of Filing.

(2) Consideration of all written comments received in response to the Notice

of Filing.

(3) A public hearing, if held.

(4) Consultation with the EPA Administrator and the CBP Commissioner.

.02 Petition by importer or exporter.

In the case of a petition submitted by

an importer or exporter of a substance,

the Secretary will make a determination

within 180 days after the date the petition

is filed. The 180-day determination period

may be extended by agreement between

the petitioner and the IRS.

.03 Petition by interested person. The

180-day determination period does not

apply to petitions submitted by interested

persons.

.04 Notice of Determination. When

the Secretary makes a determination on

a petition, the IRS will publish a “Notice

of Determination” in the Federal Register.

The Notice of Determination will include

the following information:

(1) The name of the petitioner.

(2) The Secretary’s determination regarding whether to add the substance to the List

or remove the substance from the List.

(3) The HTSUS number and the

Schedule B number of the substance,

and the CAS number of the substance, if

applicable.

(4) The predominant method of production of the substance.

(5) A synopsis of the reasons for the

determination.

(6) The date of the determination.

(7) The effective date for any modification to the List.

(8) In the case of substances added to

the List, the rate of tax prescribed by the

Secretary for the substance, based upon

conversion factors and the predominant

method of production of the substance.

SECTION 11. EFFECTIVE DATE

FOR MODIFICATIONS TO THE

LIST

.01 In general. The date the Secretary’s

determination is filed with the Federal

List. Determinations made during a calendar quarter will be effective and reflected

in the List as of the first day of the second

quarter following the quarter in which the

determination is made. Therefore, importers that will be liable for the tax imposed

by § 4671(a) on the sale or use of taxable

substances added to the List, and persons

that will no longer be eligible to claim

a credit or refund of the tax imposed by

§ 4661(a) paid on taxable chemicals

used in the manufacture, for export, of

substances removed from the List, will

have a minimum of 90 days’ notice of

the changes. Because the tax imposed by

§ 4671(a) is reported on a quarterly basis

on Form 6627, Environmental Taxes,

which is attached to Form 720, Quarterly

Federal Excise Tax Return, the effective

dates of modifications to the List align

with the beginning of a calendar quarter.

Thus, the effective date of any modification to the List will be as follows:

Determinations made between Effective date2

July 1 and September 30 ........ January 1

October 1 and December 31 ...... April 1

January 1 and March 31 .............. July 1

April 1 and June 30 .............. October 1

The Secretary may prescribe the extent, if any, to which any ruling relating to the internal revenue laws shall be applied without retroactive effect. See § 7805(b)(8).

July 18, 2022

Bulletin No. 2022–29

.02 Retroactive effect of determinations for purposes of refund claims under

§ 4662(e); protective claims for refund of

§ 4661(a) tax paid.

(1) If the Secretary makes a determination to add a substance to the List and

that substance is exported, for purposes

of claims for refund, that substance is

deemed to have been added to the List

as of the date the petition was filed. As

a result, a person that paid the § 4661(a)

tax to the IRS on taxable chemicals used

in the production of a substance that was

exported on or after the filing date of the

petition may be entitled to a refund, if

a determination is ultimately made to

add the substance to the List. A refund

is available to the person that paid the

tax if the person establishes that it has

repaid or agreed to repay the amount

of the tax to the exporter of the taxable

substance or has obtained the written

consent of the exporter to the making of

the refund. See § 4662(e)(2). Under certain circumstances, the exporter of the

taxable substance may claim the refund

if the person that paid the tax waives its

claim to the amount of the refund. See

§ 4662(e)(3).

(2) Taxpayers are reminded of the

need to file a claim for refund of tax

within the applicable period of limitations, even if a determination to add a

substance to the List has not yet been

made. Under § 6511, a claim for refund

of an overpayment of tax for which a

return is required must be filed within

three years from the time the return was

filed or two years from the time the tax

was paid, whichever is later. A person

that paid the § 4661(a) tax to the IRS on

the taxable chemicals used as materials

in the production of the substance may

file a protective claim for refund of the

tax while the petition is pending.

(3) Refunds of tax related to a substance for which a petition is pending are

available only for exports made on or after

the filing date of the pending petition and

only if a determination is ultimately made

to add the substance to the List. In addition, a refund of tax is available only if the

claim is filed within the statutory period

of limitations.

(4) In order to expedite processing,

claims for refund should be filed on

Schedule 6 (Form 8849), Other Claims.

Bulletin No. 2022–29

If the claim is filed while the petition

is pending, the claimant should write

“PROTECTIVE REFUND CLAIM-EXPORT OF SUBSTANCE FOR WHICH

A PETITION IS PENDING” across

the top of the claim form to alert the

IRS Service Center of the nature of the

claim.

.03 Petitions filed between July 1,

2022, and December 31, 2022. The Treasury Department and the IRS recognize

the short time frame between publication

of this revenue procedure and reinstatement of the Superfund chemical taxes.

If certain substances are listed as taxable substances under § 4672(a) at the

time of export, then § 4662(e) allows the

taxpayer or exporter to claim a credit or

refund of the tax paid under § 4661(a)

with respect to the taxable chemicals

used in the production of the exported

substance. In consideration of this issue,

the Treasury Department and the IRS

have determined that for purposes of

section 11.02 of this revenue procedure,

it is in the interest of sound tax administration to deem any submitted petition by

an importer or exporter that is accepted

by the IRS between July 1, 2022, and

December 31, 2022, as filed on July 1,

2022. However, for purposes of the time

frame within which the Secretary must

make a determination, a petition submitted by an importer or exporter will be

considered filed on the date it is accepted

by the IRS as described in section 5.02 of

this revenue procedure.

334; Notice 94-11, 1994-1 C.B. 335;

Notice 94-29, 1994-1 C.B. 344; Notice

94-30, 1994-1 C.B. 345; Notice 94-31,

1994-1 C.B. 345; Notice 94-32, 1994-1

C.B. 346; Notice 94-33, 1994-1 C.B.

346; Notice 94-34, 1994-1 C.B. 347;

Notice 94-35, 1994-1 C.B. 348; Notice

94-44, 1994-1 C.B. 355; Notice 94-45,

1994-1 C.B. 355; Notice 94-64, 1994-1

C.B. 374; Notice 94-65, 1994-1 C.B.

375; Notice 94-66, 1994-1 C.B. 375;

Notice 94-74, 1994-2 C.B. 554; Notice

94-75, 1994-2 C.B. 554; Notice 94-76,

1994-2 C.B. 555; Notice 94-80, 1994-2

C.B. 557; Notice 94-81, 1994-2 C.B.

557; Notice 94-82, 1994-2 C.B. 558;

Notice 94-83, 1994-2 C.B. 558; Notice

94-92, 1994-2 C.B. 562; Notice 94-98,

1994-2 C.B. 566; Notice 94-99, 1994-2

C.B. 566; Notice 95-12, 1995-1 C.B.

295; Notice 95-27, 1995-1 C.B. 306;

Notice 95-29, 1995-1 C.B. 307; Notice

95-38, 1995-1 C.B. 312; Notice 95-40,

1995-1 C.B. 312; Notice 95-43, 1995-2

C.B. 328; Notice 95-44, 1995-2 C.B.

330; Notice 95-58, 1995-2 C.B. 337;

Notice 95-59, 1995-2 C.B. 338; Notice

96-28, 1996-1 C.B. 376; Notice 97-22,

1997-1 C.B. 408; and Notice 2000-54,

2000-2 C.B. 356.

.03 The substance of the notices

revoked by section 12.02 of this revenue

procedure was often published concurrently in the Federal Register in the form

of a determination. The determinations

published in the Federal Register may no

longer be relied upon.

SECTION 12. EFFECT ON OTHER

DOCUMENTS

SECTION 13. PAPERWORK

REDUCTION ACT

.01 Notice 89-61, as modified by Notice

95-39 and suspended by Notice 2021-66,

and Notice 95-39, are superseded.

.02 The following notices that were

issued pursuant to Notice 89-61 are

revoked: Notice 90-47, 1990-2 C.B.

338; Notice 90-48, 1990-2 C.B. 338;

Notice 90-50, 1990-2 C.B. 340; Notice

90-51, 1990-2 C.B. 342; Notice 91-31,

1991-2 C.B. 631; Notice 91-32, 1991-2

C.B. 631; Notice 91-33, 1991-2 C.B.

632; Notice 91-34, 1991-2 C.B. 632;

Notice 92-11, 1992-1 C.B. 500; Notice

94-7, 1994-1 C.B. 332; Notice 94-8,

1994-1 C.B. 333; Notice 94-9, 1994-1

C.B. 334; Notice 94-10, 1994-1 C.B.

The collections of information contained in this revenue procedure have

been submitted to the Office of Management and Budget for review under OMB

control number 1545-2304 in accordance

with the Paperwork Reduction Act (44

U.S.C. 3507(d)). An agency may not

conduct or sponsor, and a person is not

required to respond to, a collection of

information unless the collection of information displays a valid OMB control

number. The collections of information

in this revenue procedure are in sections

5 and 6 of this revenue procedure. This

information is necessary and will be used

to determine whether a substance should

July 18, 2022

be added to or removed from the list of

taxable substances under § 4672(a). The

collections of information are required for

an importer, exporter, or interested person to obtain a determination regarding

whether a substance is subject to tax under

§ 4671(a).

July 18, 2022

SECTION 14. DRAFTING

INFORMATION

The principal authors of this revenue procedure are Stephanie Bland and

Amanda Dunlap of the Office of Associate

Chief Counsel (Passthroughs & Special

Industries). For legal questions regarding

this revenue procedure, contact Elisabeth

Shellan or Camille Edwards Bennehoff

at (202) 317-6855 (not a toll-free number). For questions regarding submitting a

petition, please contact Alan Anderson at

(503) 265-3736 (not a toll-free number).

Bulletin No. 2022–29

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as “rulings”) that

have an effect on previous rulings use the

following defined terms to describe the

effect:

Amplified describes a situation where

no change is being made in a prior published position, but the prior position is

being extended to apply to a variation of

the fact situation set forth therein. Thus,

if an earlier ruling held that a principle

applied to A, and the new ruling holds that

the same principle also applies to B, the

earlier ruling is amplified. (Compare with

modified, below).

Clarified is used in those instances

where the language in a prior ruling is

being made clear because the language

has caused, or may cause, some confusion. It is not used where a position in a

prior ruling is being changed.

Distinguished describes a situation

where a ruling mentions a previously published ruling and points out an essential

difference between them.

Modified is used where the substance

of a previously published position is being

changed. Thus, if a prior ruling held that a

principle applied to A but not to B, and the

new ruling holds that it applies to both A

and B, the prior ruling is modified because

it corrects a published position. (Compare

with amplified and clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions.

This term is most commonly used in a ruling

that lists previously published rulings that

are obsoleted because of changes in laws or

regulations. A ruling may also be obsoleted

because the substance has been included in

regulations subsequently adopted.

Revoked describes situations where the

position in the previously published ruling

is not correct and the correct position is

being stated in a new ruling.

Superseded describes a situation where

the new ruling does nothing more than

restate the substance and situation of a

previously published ruling (or rulings).

Thus, the term is used to republish under

the 1986 Code and regulations the same

position published under the 1939 Code

and regulations. The term is also used

when it is desired to republish in a single

ruling a series of situations, names, etc.,

that were previously published over a

period of time in separate rulings. If the

new ruling does more than restate the substance of a prior ruling, a combination of

terms is used. For example, modified and

superseded describes a situation where the

substance of a previously published ruling

is being changed in part and is continued

without change in part and it is desired to

restate the valid portion of the previously

published ruling in a new ruling that is

self contained. In this case, the previously

published ruling is first modified and then,

as modified, is superseded.

Supplemented is used in situations in

which a list, such as a list of the names of

countries, is published in a ruling and that

list is expanded by adding further names

in subsequent rulings. After the original

ruling has been supplemented several

times, a new ruling may be published that

includes the list in the original ruling and

the additions, and supersedes all prior rulings in the series.

Suspended is used in rare situations

to show that the previous published rulings will not be applied pending some

future action such as the issuance of new

or amended regulations, the outcome of

cases in litigation, or the outcome of a

Service study.

Abbreviations

The following abbreviations in current

use and formerly used will appear in

material published in the Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

E.O.—Executive Order.

ER—Employer.

Bulletin No. 2022–29

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contributions Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statement of Procedural Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

July 18, 2022

Numerical Finding List1

Bulletin 2022–29

Notices:

2022-29, 2022-28 I.R.B. 66

2022-30, 2022-28 I.R.B. 70

2022-31, 2022-29 I.R.B. 85

Proposed Regulations:

REG-130975-08, 2022-28 I.R.B. 71

Revenue Procedures:

2022-25, 2022-27 I.R.B. 3

2022-28, 2022-27 I.R.B. 65

2022-26, 2022-29 I.R.B. 90

Revenue Rulings:

2022-12, 2022-27 I.R.B. 1

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2021–27 through 2021–52 is in Internal Revenue Bulletin

2021–52, dated December 27, 2021.

July 18, 2022

Bulletin No. 2022–29

Finding List of Current Actions on

Previously Published Items1

Bulletin 2022–29

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2021–27 through 2021–52 is in Internal Revenue Bulletin

2021–52, dated December 27, 2021.

Bulletin No. 2022–29

iii

July 18, 2022

Internal Revenue Service

Washington, DC 20224

Official Business

Penalty for Private Use, $300

INTERNAL REVENUE BULLETIN

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