McGlinchey in the News
Absent IRS Superfund Tax Guide, Lawyers Look To Withdrawn 1983 ProposalRead Time: 1 min
As the first payments for the renewed Superfund tax fall due, many companies are still waiting for the Internal Revenue Service (IRS) to provide guidance on several key issues.
Member Douglas Charnas (Washington, DC) spoke with Inside EPA about whether it would be “reasonable” to look at a 1983 draft IRS rule in the absence of formal IRS guidance, even though the measure was eventually withdrawn.
“There are a lot of definitions in the proposed regulations, and in speaking with the IRS Chief Counsel, they made very clear that it’s not something they’ve issued recently under the new tax,” Charnas told Inside EPA. “But the reality of life is the industry has to make some decisions, and in the absence of any current guidance from the IRS, that old guidance is pretty good.”
“A company could make deposits based on 10 percent of appraised value. This would be costly. A company could apply the highest current published rate for a taxable substance, which is $23.65 per ton. This also would be costly,” Charnas told Inside EPA. “If the company knows the taxable chemicals used to produce the taxable substances, but not the amount of such chemicals used, it could use the tax rate for the taxable chemical with the highest tax rate to estimate the deposit. If it knows the taxable chemical with the most amount by weight in the taxable substance, it could use the rate for that taxable chemical.”
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