Member of National Association of Chemical Distributors (NACD), Jeffrey Wright, executive vice president and CFO of TRInternational, Inc., testified during a public hearing conducted by the United States Internal Revenue Service (IRS) on the substantial challenges of the reinstated Superfund excise tax on chemicals and chemical substances.
In his testimony, Wright underscored the impacts of the reinstated Superfund tax on the chemical distribution industry and urged the IRS to clarify its guidance following more than two years of regulatory uncertainty since the tax was restored through the passage of the Infrastructure Investment and Jobs Act.
“The wide range of services performed by NACD members, mostly small businesses like TRI, places them in a unique position when it comes to complying with the obligations of the newly reinstated Superfund tax,” said Wright. “It is imperative for these companies to have as much clarity and guidance as possible to meet their responsibilities under the law.”
Wright also stressed the importance of aligning regulations with the Toxic Substances Control Act. He highlighted the need for clearer rules concerning tax applicability to imported substances to minimize confusion regarding tax liability and emphasized that the cost of compliance can often exceed the taxes collected.
Furthermore, Wright called attention to the issue of overlapping taxes for crude oil and petroleum in relation to the Superfund tax on taxable chemicals, pointing out the pressing need for clarity on the tax’s precedence.
Wright concluded by urging the IRS to extend the semi-monthly deposit relief.
“The relief is set to expire at the end of this calendar year, but taxpayers do not have the extensive guidance they need to comply with the tax. The IRS should extend this relief, ensuring it remains in effect 90 days after the final regulations on the Superfund chemical excise tax are published in the Federal Register.”
To learn more, visit nacd.com.