# Bulletin No. 2022–29

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A539384c15a2179f9

## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

HIGHLIGHTS
OF THIS ISSUE




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 any member of that plan
sponsor’s controlled group as of December 20, 2019 (the date of enactment of the
SECURE Act). As amended by section
9707 of the ARP, section 430(m)(1) now
provides that the election to apply section
430(m) is made by an eligible newspaper
plan sponsor of a plan under which no
participant has had an increase in accrued

benefits after April 2, 2019 (whether
because of service or compensation),
and the election applies only to the plan
for which the election is made. Section
430(m)(2)(A) was added to define an “eligible newspaper plan sponsor” as the plan
sponsor of a community newspaper plan.2
Under section 430(m)(2)(B), the definition
of an eligible newspaper plan sponsor also
includes a member of the controlled group
of a plan sponsor described in the preceding sentence (determined as of December
20, 2019) if that member is in the trade
or business of publishing one or more
newspapers, and that member sponsored
the plan for which it is making the election as of April 2, 2019. Section 430(m) as
amended by the ARP is effective for plan
years ending after December 31, 2017 (the
same as the original effective date of section 430(m) under the SECURE Act).
III. Modifications to Notice 2020-60
In light of the changes to section 430(m)
made by the ARP, this notice modifies the
guidance provided in Notice 2020-60.
Any guidance provided in Notice 2020-60
that is not addressed in this notice continues to apply.
A. Definition of a community newspaper
plan
The term “community newspaper plan”
means any plan to which section 430
applies that is maintained as of December
31, 2018, by an employer that satisfies the
following three conditions:
• 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;

1
Section 115(b) of the SECURE Act also added section 303(m) to the Employee Retirement Income Security Act of 1974, Pub. L. 93-406 (88 Stat. 829), as amended (ERISA). Section 303(m)
of ERISA provides rules that generally are parallel to the rules of section 430(m) of the Code, and section 9707 of the ARP includes amendments to section 303(m) of ERISA that are parallel
to the amendments made to section 430(m) of the Code. Under section 101 of Reorganization Plan No. 4 of 1978, 5 U.S.C. App., as amended, and section 3002(c) of ERISA, the Secretary
of the Treasury has interpretive jurisdiction over the subject matter addressed in this notice for purposes of ERISA, as well as the Code. Thus, the provisions of this notice relating to section
430 of the Code also apply for purposes of section 303 of ERISA.
2
Section 430(m)(5)(A), as revised by section 9707 of the ARP, includes minor changes to the definition of community newspaper plan (which was formerly in section 430(m)(4)(A)). Section
430(m)(5)(B) defines the term “newspaper” to exclude any newspaper that: is not in general circulation, is published (on newsprint or electronically) less frequently than 3 times per week,
has not ever been regularly published on newsprint, or does not have a bona fide list of paid subscribers.

Bulletin No. 2022–29

85

July 18, 2022

•

The employer is either:
(1) Not a company the stock of
which is publicly traded (on a stock
exchange or in an over-the-counter
market), and is not controlled, directly
or indirectly, by such a 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
• The employer is controlled, directly
or indirectly-(1) By one or more persons residing
primarily in a State in which the community newspaper has been published
on newsprint or carrier-distributed,
(2) During the entire 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), or
(4) By a combination of persons
described in (1), (2), or (3).
Section 430(m)(5)(C) provides a definition of “control” for purposes of these
rules. Under that provision, a first person
is treated as controlled by a second person
if the second person possesses, directly or
indirectly, the power to direct or cause the
direction and management of the first person (including the power to elect a majority of the members of the board of directors of that person) through the ownership
of voting securities.
B. Definition of eligible newspaper plan
sponsor and applicability of election to
controlled group members
The term “eligible newspaper plan
sponsor” means an employer that sponsors any of the following plans:
• A community newspaper plan, or
• A defined-benefit plan sponsored by
the employer as of April 2, 2019, provided that the employer is a member
of the same controlled group as the
plan sponsor of a community newspaper plan, and the employer is in the
trade or business of publishing one or
more newspapers.

July 18, 2022

Under section 430(m)(1) as originally
enacted, an election to apply section
430(m) made by a plan sponsor of a community newspaper plan also applies to any
plan sponsored by any member of its controlled group, and section IV.D of Notice
2020-60 provides rules for determining how long that election continues to
apply to a plan sponsored by a controlled
group member. Because amended section
430(m) now requires a separate election to
be made by each plan sponsor, the rules
of section IV.D under Notice 2020-60 no
longer apply.
If an eligible newspaper plan sponsor
that is not the sponsor of a community
newspaper plan elects to apply section
430(m), that election will continue to
apply (unless revoked) until the plan
year following the plan year in which the
employer ceases to be an eligible newspaper plan sponsor. Thus, the election
ceases to apply beginning with the plan
year following the plan year in which
the controlled group member either
leaves the controlled group or is no longer in the trade or business of publishing
newspapers.
Section IV.C of Notice 2020-60 provides that a sponsor of a community
newspaper plan that has made an election to apply section 430(m) to its plan
may request permission to revoke that
election under section 430(m) using
the procedures for obtaining a private
letter ruling set forth in Rev. Proc.
2020-4, 2020-1 I.R.B. 148, or its successor. Pursuant to this notice, other
eligible newspaper plan sponsors may
request permission to revoke an election under section 430(m) using those
same procedures.
C. Renumbering of paragraphs of section
430(m)
The numbering of several paragraphs
of section 430(m) that are referenced in
Notice 2020-60 has been changed by the
enactment of the ARP. Those references
in Notice 2020-60 are replaced as follows:
• The reference to section 430(m)(2)
is replaced by a reference to section
430(m)(3).
• References to section 430(m)(3) are
replaced by references to section
430(m)(4).

86

•

References to section 430(m)(5) are
replaced by references to section
430(m)(6).

D. Manner and content of election
Pursuant to the amendments made
by the ARP, an election to apply section
430(m) that was made by a sponsor of
a community newspaper plan no longer applies to 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

87

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

88

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

89

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

90

§ 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)

91

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.

92

(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/
1

Bulletin No. 2022–29

93

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,

94

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

95

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
Register on www.federalregister.gov and
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
2

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
Register is not the same date that a substance is added to or removed from the
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

96

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

97

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

98

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.

i

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.
1

July 18, 2022

ii

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.
1

Bulletin No. 2022–29

iii

July 18, 2022

Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300

INTERNAL REVENUE BULLETIN

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletins are available at www.irs.gov/irb/.

We Welcome Comments About the Internal Revenue Bulletin

If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,
we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page
www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave.
NW, IR-6230 Washington, DC 20224.

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A539384c15a2179f9. Public record. Not legal advice.