ACD Press Release

Arlington, VA –Today, National Association of Chemical Distributors (NACD) sent a letter to the Internal Revenue Service (IRS) urging the agency to consider its penalty relief request and calling for greater clarification of its guidance following the reinstatement of the Superfund tax, which went into effect July 1, 2022. This is the fourth request the NACD has submitted to the IRS in less than a year as distributors continue to navigate these changes.

On June 24, 2022, NACD sent a letter to the IRS requesting further guidance ahead of its effective date. NACD followed up with the IRS by sending another letter on August 3, 2022. Representative John Moolenaar (R-MI) and other members of Congress also sent a letter to the IRS requesting a delay in the enforcement on the reinstated Superfund tax.

In the most recent letter, NACD Vice President of Regulatory Affairs Jennifer Gibson underscored the impact of these regulatory changes to the chemical industry and the lack of guidance that has made it difficult for businesses to comply.

“NACD members have dedicated hundreds of working hours in an attempt to understand their new regulatory obligations, to incorporate the Superfund tax into their business operations, and to comply with the law. These tasks have been arduous, and many technical questions remain unanswered. Taxpayers should not be penalized when they have made a good-faith effort to comply with a law that lacks clarity regarding how to meet the requirements. Given the points outlined throughout this letter, NACD urges the IRS to leverage its authority to manage the impact of the taxes on taxpayers through penalty relief and enforcement discretion.”

Gibson concluded by calling on the IRS to better define its guidance for the resurrected Superfund taxes on certain chemicals.

“We eagerly await the proposed regulations on the Superfund taxes, urge the IRS to extend the penalty relief until adequate guidance is provided, and to rely on the industry for technical expertise.”

To read NACD’s full letter submitted to the IRS, click here.

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NACD and its over 400 member and Affiliate companies are vital to the chemical supply chain providing products to over 750,000 end users. NACD members are leaders in health, safety, security, and environmental performance through implementation of Responsible Distribution, established in 1991 as a condition of membership and a third party-verified management practice. For more information on NACD, visit www.nacd.com.