Federal Register #2026-20061

IRS seeks comments on petition to classify SIS Rubber as a taxable substance

The Internal Revenue Service is seeking public input on a petition concerning the tax treatment of SIS Rubber, not soliciting products or services. - Government agency: U.S. Department of the Treasury, Internal Revenue Service (IRS). - Named company: Zeon Chemicals L.P. submitted the petition; the notice does not identify any reseller or supplier for a purchase. - Subject of the petition: Styrene isoprene block copolymer, also called SIS Rubber, described as a pellet-form elastomer primarily used in adhesive formulations. - HTSUS/Schedule B classification: 4002.99.0000. - CAS number: 25038-32-8. - Petition’s chemical composition: (C₈H₈)ₓ-(C₅H₈)ᵧ-(C₈H₈)𝓏-(C₃₃H₅₆N₄OS₂)ₐ, with x+z=482, y=2,178.51, and a=1.70. - Proposed tax treatment: Zeon Chemicals L.P. calculates a proposed tax rate of $2.56 per ton if SIS Rubber is added to the taxable-substances list. - The IRS is requesting public comments and requests for a public hearing. The notice is not a determination that the list has changed. - No products or services are being purchased, and no OEM is identified as part of a procurement.

Description

A petition requests that styrene isoprene block copolymer, also known as SIS Rubber, be added to the list of taxable substances under section 4672(a) of the Internal Revenue Code. The notice provides details from the petition, including the substance’s proposed classification numbers, production description, and petitioner-calculated tax rate of $2.56 per ton. The IRS requests comments on the petition and states that publication of the notice is not a determination that the taxable-substances list has been modified. Written comments and requests for a public hearing are due by November 30, 2026.

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