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Comments cannot be edited or withdrawn once submitted to the Federal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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