SUPERFUNd Tax Refunds Wanted – Get Your Claim Contained

As the reinstated Federal Chemical Superfund Tax nears its second year, taxpayers need to have all statutorily required documentation necessary to substantiate a claim for credit or refund of tax paid on chemicals that are exported from the United States.

Weaver Insight – the IRS is enforcing the provisions of Internal Revenue Code Section 4662(e)(3) providing which party can claim a refund of tax paid on exported taxable chemicals and what support is required for these claims. Under this section, the exporter of taxable chemicals may claim a credit or refund of the Federal Chemical Superfund Tax to the extent the original taxpayer waives its claim to the credit or refund and the exporter has proof of export.

In recent IRS exams of such refund claims made by an exporter, the IRS has requested proof of payment of the Federal Superfund Tax by the party exporting, proof of export, as well as the claim waiver from the original taxpayer of the Federal Chemical Superfund Tax on the ultimately exported chemicals.

While many suppliers of chemicals include waiver language in their contracts and/or invoices, it is important that exporters ensure that they have a written waiver (either as part of the transaction documents or a separate statement) from the original taxpayer of the tax. Absent this written waiver, the statute does not allow an exporter to file a refund or credit claim and the IRS may deny such claims.

If you need assistance in obtaining documentation to support refund claims, or with filing claims, please contact us. We are here to help.

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