Notice2024-19603

Superfund Tax on Chemical Substances; Request to Modify List of Taxable Substances; Notice of Filing for Ethylene Glycol Phenyl Ether

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
September 3, 2024

Issuing agencies

Treasury DepartmentInternal Revenue Service

Abstract

This notice of filing announces that a petition has been filed requesting that ethylene glycol phenyl ether be added to the list of taxable substances. This notice of filing also requests comments on the petition. This notice of filing is not a determination that the list of taxable substances is modified.

Full Text

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<title>Federal Register, Volume 89 Issue 170 (Tuesday, September 3, 2024)</title>
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[Federal Register Volume 89, Number 170 (Tuesday, September 3, 2024)]
[Notices]
[Pages 71785-71786]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19603]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Superfund Tax on Chemical Substances; Request to Modify List of 
Taxable Substances; Notice of Filing for Ethylene Glycol Phenyl Ether

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of filing and request for comments.

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SUMMARY: This notice of filing announces that a petition has been filed 
requesting that ethylene glycol phenyl ether be added to the list of 
taxable substances. This notice of filing also requests comments on the 
petition. This notice of filing is not a determination that the list of 
taxable substances is modified.

DATES: Written comments and requests for a public hearing must be 
received on or before November 4, 2024.

ADDRESSES: Commenters are encouraged to submit public comments or 
requests for a public hearing relating to this petition electronically 
via the Federal eRulemaking Portal at <a href="http://www.regulations.gov">http://www.regulations.gov</a> 
(indicate public docket number IRS-2024-0039 or ethylene glycol phenyl 
ether) by following the online instructions for submitting comments. 
Comments cannot be edited or withdrawn once submitted to the Federal 
eRulemaking Portal. Alternatively, comments and requests for a public 
hearing may be mailed to: Internal Revenue Service, Attn: CC:PA:01:PR 
(Notice of Filing for Ethylene Glycol Phenyl Ether), Room 5203, P.O. 
Box 7604, Ben Franklin Station, Washington DC 20044. All

[[Page 71786]]

comments received are part of the public record and subject to public 
disclosure. All comments received will be posted without change to 
<a href="http://www.regulations.gov">www.regulations.gov</a>, including any personal information provided. You 
should submit only information that you wish to make publicly 
available. If a public hearing is scheduled, notice of the time and 
place for the hearing will be published in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Camille Edwards Bennehoff at (202) 
317-6855 (not a toll-free number).

Request To Add Substance to the List

    (a) Overview. A petition was filed pursuant to Rev. Proc. 2022-26 
(2022-29 I.R.B. 90), as modified by Rev. Proc. 2023-20 (2023-15 I.R.B. 
636), requesting that ethylene glycol phenyl ether be added to the list 
of taxable substances under section 4672(a) of the Internal Revenue 
Code (List). The petition requesting the addition of ethylene glycol 
phenyl ether to the List is based on weight and contains the 
information detailed in paragraph (b) of this document. The information 
is provided for public notice and comment pursuant to section 9 of Rev. 
Proc. 2022-26. The publication of petition information in this notice 
of filing is not a determination and does not constitute Treasury 
Department or IRS confirmation of the accuracy of the information 
published.
    (b) Petition Content.
    (1) Substance name: Ethylene glycol phenyl ether.
    (2) Petitioner: The Dow Chemical Company, an exporter of ethylene 
glycol phenyl ether.
    (3) Proposed classification numbers:
    (i) HTSUS number: 2909.49.60.00.
    (ii) Schedule B number: 2909.49.0000.
    (iii) CAS number: 122-99-6.
    (4) Petition filing dates:
    (i) Petition filing date for purposes of making a determination: 
June 13, 2024.
    (ii) Petition filing date for purposes of section 11.02 of Rev. 
Proc. 2022-26, as modified by section 3 of Rev. Proc. 2023-20: July 1, 
2022.
    (5) Description from petition: According to the petition, ethylene 
glycol phenyl ether is an aromatic, slow-evaporating glycol ether. 
Ethylene glycol phenyl ether acetate is a liquid used in a variety of 
applications including industrial coatings, solvents, emulsification, 
and plasticizing.
    Ethylene glycol phenyl ether is made from ethylene, benzene, and 
propylene. Taxable chemicals constitute 76.00 percent by weight of the 
materials used to produce this substance.
    (6) Process identified in petition as predominant method of 
production of substance: Glycol ethers are predominantly produced by 
reacting an epoxide (typically ethylene oxide or propylene oxide) with 
an alcohol; this reaction process is referred to as alkoxylation. 
Ethylene glycol phenyl ether (C<INF>8</INF>H<INF>10</INF>O<INF>2</INF>) 
is produced by the alkoxylation process using phenol (CH<INF>3</INF>OH) 
and ethylene oxide (C<INF>2</INF>H<INF>4</INF>O). Ethylene oxide is 
made by oxidizing ethylene (C<INF>2</INF>H<INF>4</INF>). Phenol is made 
via the Hock process (sometimes called the cumene process). The Hock 
process has two stages. In stage 1, benzene 
(C<INF>6</INF>H<INF>6</INF>) is alkylated with propylene 
(C<INF>3</INF>H<INF>6</INF>) to make cumene (isopropyl benzene). In 
stage 2, cumene 
(C<INF>6</INF>H<INF>5</INF>(C<INF>3</INF>H<INF>7</INF>)) is partially 
oxidized to make phenol (C<INF>6</INF>H<INF>5</INF>OH) and side product 
dimethyl ketone ((CH<INF>3</INF>)<INF>2</INF>CHO)).
    (7) Stoichiometric material consumption equation, based on process 
identified as predominant method of production:
C<INF>2</INF>H<INF>4</INF> (ethylene) + 1.5 O<INF>2</INF> (oxygen) + 
C<INF>6</INF>H<INF>6</INF> (benzene) + C<INF>3</INF>H<INF>6</INF> 
(propylene) [rarr] C<INF>3</INF>H<INF>6</INF>O (dimethyl ketone) + 
C<INF>8</INF>H<INF>10</INF>O<INF>2</INF> (ethylene glycol phenyl ether)
    (8) Tax rate calculated by Petitioner, based on Petitioner's 
conversion factors for taxable chemicals used in production of 
substance:
    (i) Tax rate: $10.42 per ton.
    (ii) Conversion factors: 0.20 for ethylene, 0.57 for benzene, and 
0.30 for propylene.
    (9) Public docket number: IRS-2024-0039.

Michael Beker,
Senior Counsel (Passthroughs and Special Industries), IRS Office of 
Chief Counsel.
[FR Doc. 2024-19603 Filed 8-30-24; 8:45 am]
BILLING CODE 4830-01-P


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Indexed from Federal Register on September 3, 2024.

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