IRS EXPLAINS PROCEDURES FOR FILING RETURNS AND PAYING OZONE-DEPLETING CHEMICALS TAX.

Notice 90-35

This Notice informs taxpayers that the Internal Revenue Service will issue temporary regulations setting forth procedures for filing returns under sections 4681 and 4682 of the Internal Revenue Code and paying the taxes imposed by section 4681. The temporary regulations will provide that the due date of a taxpayer's first return (Form 720, Quarterly Federal Excise Tax Return) under sections 4681 and 4682 will be April 30, 1990, but will grant an extension of time for filing the return until 30 days after the issuance of the temporary regulations (taxpayers do not need to apply for an extension). No penalty will be imposed on account of failure to file the return before the date for filing, as extended.

The due date of the first payment of tax imposed by section 4681 will be April 30, 1990. However, no penalty will be imposed on account of failure to deposit or pay the tax imposed by section 4681 prior to the due date for filing the return, as extended.

Interest on any amount of tax due for the quarter ended March 31, 1990, under section 4681 will be imposed from April 30, 1990. In order to avoid the interest charge, taxpayers may deposit the tax due under section 4681, on or before April 30, 1990, together with Form 8109, Federal Tax Deposit Coupon, at an authorized depository or the Federal Reserve Bank serving the taxpayer's area.

Taxpayers are reminded, however, that section 4682(h)(3) prescribes the date for the payment of the floor stocks tax on ozone- depleting chemicals and that payments of the floor stocks tax were due on April 1, 1990. Guidance relating to the floor stocks tax is provided in section V of Notice 90-8, 1990-5 I.R.B. 14.

Taxpayers who are liable for other excise taxes and must file Form 720 to report that liability may file the return relating to those other excise taxes without reporting any liability for the taxes imposed by sections 4681 and 4682. The temporary regulations will provide instructions for reporting the taxpayer's additional liability under sections 4681 and 4682.

The principal author of this Notice is Ruth Hoffman, Office of Assistant Chief Counsel (Passthroughs and Special Industries), Internal Revenue Service. For further information, contact Ruth Hoffman, (202) 566-4475 (not a toll-free call).