Revenue Ruling 2022-13 describes the determination of deemed critical status under section 432(b)(7) with respect to the merger of a multiemployer defined benefit pension plan that receives special financial assistance (SFA) pursuant to section 432(k) (section 4262 of the Employee Retirement Income Security Act of 1974) from the Pension Benefit Guaranty Corporation into a multiemployer defined benefit pension plan that does not receive SFA.

Revenue Ruling 2022-13 will be in IRB:  2022-30, dated July 25, 2022.

Today, the IRS published the latest executive column, “A Closer Look,” which features IRS Commissioner, Chuck Rettig, discussing how the IRS has prioritized enhancing services to the many diverse communities that comprise the United States. “Over the course of the past few years, during the pandemic, IRS employees have demonstrated our respect for all people by successfully expanding our outreach into multiple languages and in historically underserved communities across the country,” said Rettig. “We have made a significant difference in the lives of millions of people.” Read more here. Read the Spanish version here.

“A Closer Look” is a column from IRS executives that covers a variety of timely issues of interest to taxpayers and the tax community. It also provides a detailed look at key issues affecting everything from IRS operations and employees to issues involving taxpayers and tax professionals.

Check here for prior posts and new updates.

Notice 2022-31 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. 

Notice 2022-31 will be in IRB: 2022-29, dated July 18, 2022.

WASHINGTON — The Electronic Tax Administration Advisory Committee (ETAAC) today released its annual report to Congress, featuring recommendations focused on budget support for the Internal Revenue Service and enhancements to e-filing.

“The entire IRS leadership team appreciates the work that ETAAC’s volunteer members have put into their annual report, and we look forward to reviewing their recommendations,” said IRS Commissioner Chuck Rettig.

The 2022 report groups a total of five recommendations into two sections: recommendations to Congress and recommendations to the IRS.

The recommendations to Congress include:

The recommendations to the IRS include:

The full 2022 report is available on IRS.gov.

At today’s annual meeting, Rettig and IRS leaders thanked five members of the committee ending their terms this year:

The ETAAC is a public forum whose members work closely with the Security Summit, a joint effort of the IRS, state tax administrators and the nation’s tax industry established in 2015 to fight tax-related identity theft and cybercrime.

ETAAC members represent various segments of the tax community, including individual and business taxpayers, tax professionals and preparers, tax software developers, payroll service providers, the financial industry and state and local governments.

Revenue Procedure 2022-26 provides the exclusive procedures for importers, exporters, and interested parties 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. 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.

Revenue Procedure 2022-26 will be in IRB:  2022-29, dated 7/18/2022.

Notice 2022-30 announces that the Treasury Department and the IRS intend to amend the regulations under sections 59A and 6038A to defer the applicability date of certain provisions of the regulations relating to the reporting of section 59A qualified derivative payments until taxable years beginning on or after January 1, 2025.

 

Notice 2022-30 will be published in Internal Revenue Bulletin 2022-29 on July 18, 2022

WASHINGTON — The Internal Revenue Service announced today that it has prescribed tax rates for 121 taxable substances that are subject to the Superfund chemical excise tax imposed by section 4671(a) of the Internal Revenue Code (Code).

Taxable substances are those substances listed in either section 4672(a)(3) of the Code or Notice 2021-66.  Substances may be added or removed from the list of taxable substances at a later date.

The rates will be included in the instructions to Form 6627, Environmental Taxes, and under Recent Developments for Form 6627, Environmental Taxes. 

Taxable Substance                             Tax Rate per Ton

1,3-butylene glycol                                $ 7.28
1,4 butanediol                                       $ 4.68
1,5,9-cyclododecatriene                         $ 9.74
2-ethyl hexanol                                     $ 7.16
2-ethylhexyl acrylate                             $ 7.34
acetone                                                $ 20.06
acetylene black                                     $ 10.52
acrylic acid resins                                  $ 5.65
methacrylic acid resins                           $ 14.94
acrylonitrile                                           $ 9.38
adipic acid                                             $ 6.13
adiponitrile                                            $ 8.57
allyl chloride                                          $ 10.38
alpha-methylstyrene                               $ 9.93
ammonium nitrate                                 $ 1.49
aniline                                                  $ 9.40
benzaldehyde                                        $ 8.47
benzoic acid                                          $ 7.31
bisphenol-A                                           $ 10.23
butanol                                                 $ 6.31
butyl acrylate                                        $ 6.84
butyl benzyl phthalate                            $ 12.15
carbon tetrachloride                               $ 10.62
chlorinated polyethylene                         $ 10.25
chloroform                                            $ 10.51
chromic acid                                         $ 4.37
cumene                                                $ 9.74
cyclododecanol                                     $ 9.05
cyclohexane                                         $ 10.02
decabromodiphenyl oxide                      $ 17.99
di-2 ethyl hexyl phthalate                      $ 7.37
diethanolamine                                     $ 6.01
diglycidyl ether of bisphenol-A                $ 13.86
diisopropanolamine                               $ 12.76
dimethyl terephthalate                          $ 5.91
dimethyl-2, 6-naphthalene dicarboxylate $ 6.81
di-n-hexyl adipate                                 $ 8.23
diphenyl oxide                                      $ 13.73
diphenylamine                                      $ 10.28
epichlorohydrin                                     $ 12.89
ethyl acrylate                                       $ 4.09
ethyl alcohol for nonbeverage use           $ 5.94
ethyl chloride                                        $ 4.52
ethyl methyl ketone                               $ 7.60
ethyl benzene                                        $ 9.74
ethylene dibromide                                $ 9.03
ethylene dichloride                                 $ 6.62
ethylene glycol                                      $ 4.38
ethylene oxide                                      $ 6.23
ferrochrome ov 3 pct. carbon                  $ 4.83
ferrochromium nov 3 pct                        $ 4.83
hexabromocyclododecane                       $ 9.11
hexamethylenediamine                           $ 8.93
isobutyl acetate                                      $ 4.47
Isophthalic acid                                      $ 6.23
isopropyl acetate                                    $ 4.54
Isopropyl alcohol                                    $ 6.82
linear alpha olefins                                  $ 9.74
maleic anhydride                                    $ 5.75
melamine                                               $ 4.28
methyl acrylate                                       $ 5.39
methyl chloroform                                   $ 6.37
methyl isobutyl ketone                            $ 23.65
methyl methacrylate                               $ 14.75
methylene chloride                                  $ 10.33
monochlorobenzene                                $ 10.12
monoethanolamine                                 $ 5.96
monoisopropanolamine                           $ 11.74
nickel oxide                                            $ 7.03
normal butyl acetate                               $ 4.47
normal propyl acetate                             $ 3.73
nylon 6/6                                               $ 8.67
ortho-dichlorobenzene                             $ 10.35
ortho-nitrochlorobenzene                         $ 7.49
para-dichlorobenzene                              $ 10.35
para-nitrochlorobenzene                          $ 7.49
para-nitrophenol                                     $ 8.59
pentaerythritol                                        $ 3.86
perchloroethylene                                    $ 10.89
phenol                                                    $ 12.47
phenolic resins                                        $ 9.86
phosphorous pentasulfide                         $ 2.49
phosphorous trichloride                            $ 6.21
phthalic anhydride                                   $ 7.01
poly 1,4 butyleneterephthalate                  $ 7.21
poly(propylene)glycol                               $ 10.38
poly(propylene/ethylene)glycol                  $ 8.84
poly(propyleneoxy)sucrose                        $ 2.04
poly(propyleneoxy/ethyleneoxy)sucrose     $ 2.57
polyalphaolefins                                        $ 11.37
polybutadiene                                           $ 9.74
polybutene                                               $ 9.74
polybutylene                                            $ 9.74
polybutylene/ethylene                              $ 9.74
polycarbonate                                          $ 10.84
polyethylene resins, total                          $ 9.74
polyethylene terephthalate pellets              $ 6.82
polypropylene                                           $ 9.74
polypropylene resins                                  $ 9.74
polystyrene homopolymer resins                 $ 9.93
polyvinylchloride resins                               $ 7.46
propanol                                                    $ 5.47
propylene glycol                                         $ 10.38
propylene oxide                                         $ 13.60
styrene                                                     $ 9.93
styrene-butadiene, latex                            $ 9.84
synthetic linear fatty alcohol ethoxylates     $ 7.12
synthetic linear fatty alcohols                     $ 9.29
terephthalic acid                                       $ 6.23
tetrabromobisphenol-A                              $ 14.79
tetrachlorophthalic anhydride                     $ 8.95
tetrahydrofuran                                         $ 5.78
toluene diisocyanate                                  $ 10.85
toluenediamine                                         $ 9.18
trichloroethylene                                       $ 10.79
triethanolamine                                         $ 6.04
triisopropanolamine                                   $ 12.84
trimethylolpropane                                    $ 4.63
urea                                                         $ 3.01
vinyl acetate                                             $ 3.83
vinyl chloride                                            $ 7.46

WASHINGTON — The Internal Revenue Service today issued frequently asked questions (FAQs) regarding the reinstated Superfund chemical excise tax to help those taxpayers who may be impacted and tax professionals.

These FAQs detail what the Superfund chemical excise tax is, how the tax is computed and who may be liable for the tax. The Superfund chemical taxes will be reported on Form 720, Quarterly Federal Excise Tax Return, and Form 6627, Environmental Taxes.

The excise taxes imposed on certain chemicals and imported chemical substances were reinstated beginning on July 1, 2022, under the Infrastructure Investment and Jobs Act (IIJA).

There are two separate Superfund chemical excise taxes: a tax on the sale or use of “taxable chemicals” and a tax on the sale or use of imported “taxable substances.”

Specifically, the reinstated taxes impose an excise tax on the sale or use of a taxable chemical by the manufacturer, producer or importer of the taxable chemical. They also impose an excise tax on the sale or use of a taxable substance by the importer of the taxable substance.

These FAQs provide general information. At the time of publication of these FAQs, 151 substances are listed as taxable substances. That number will likely change as substances are added to or removed from the list of taxable substances.

More information can be found at Excise Tax on IRS.gov.

WASHINGTON — The Internal Revenue Service announced today that more forms can now be amended electronically. These include people filing corrections to the Form 1040-NR, U.S. Nonresident Alien Income Tax Return and Forms 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) and Forms 1040-PR, Self-Employment Tax Return – Puerto Rico.

“This initiative has come a long way from 2020 when we first launched the ability to file amended returns, which was an important milestone to help taxpayers and the tax community," said IRS Commissioner Chuck Rettig. "This new feature will further help people needing to make corrections. This development will also assist the IRS with its inventory work on the current backlog of amended returns. This is another tool we’re using to help get us back on track.”

Additionally, a new, electronic checkbox has been added for Forms 1040/1040-SR, 1040-NR and 1040-SS/1040-PR to indicate that a superseding return is being filed electronically. A superseded return is one that is filed after the originally filed return but submitted before the due date, including extensions.

Taxpayers can also amend their return electronically if there is change to their filing status or to add a dependent who was previously claimed on another return.

About 3 million Forms 1040-X are filed by taxpayers each year. Taxpayers can still use the "Where's My Amended Return?" online tool to check the status of their electronically-filed Form 1040-X.

Forms 1040, 1040-NR and 1040-SR can still be amended electronically for tax years 2019, 2020 and 2021 along with corrected Forms 1040-SS and Form 1040-PR for tax year 2021.

In general, taxpayers still have the option to submit a paper version of the Form 1040-X and should follow the instructions for preparing and submitting the paper form.

The IRS continues to look at this important area, and more enhancements are planned for the future.