Part IV. Items — Internal Revenue Bulletin 2000-17

based upon a conversion factor for propylene of 0.663, a conversion factor for chlorine of 1.11, a conversion factor for sodium hydroxide of 1.21, and a conversion factor for ethylene of 0.123.

Poly(propyleneoxy)glycerol

Tax on Certain Imported Substances; Filing of Petitions

Announcement 2000–43

This announces the acceptance, under Notice 89–61 (1989–1 C.B. 717), of petitions requesting that nine polyether polyol substances be added to the list of taxable substances in § 4672(a)(3). Publication of this notice is in compliance with Notice 89–61. This is not a determination that the list of taxable substances should be modified. Any modification of the list of taxable substances based upon these petitions would be effective October 1, 1992.

Before a determination is made, consideration will be given to any written and electronic comments that are submitted timely to the IRS. Comments and requests for a public hearing relating to these petitions must be received by May 15, 2000. Send submissions to: CC:DOM:CORP:R (Petition), room 5226, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (Petition), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC. Alternatively, taxpayers may send submissions electronically to the IRS at Sharon.Y.Horn@m1.irscounsel.treas.gov. All comments will be available for public inspection and copying. A public hearing may be scheduled if requested in writing by a person that timely submits written or electronic comments. If a public hearing is scheduled, notice of the date, time, and place for the hearing will be published in the Federal Register.

The petitions were received on November 21, 1991. The petitioner is Dow Chemical Company, a manufacturer and exporter of these substances. The following is a summary of the information contained in the petitions. The complete petitions are available in the Internal Revenue Service Freedom of Information Reading Room.

The nine polyether polyol substances are liquids. They are produced predominantly by the base-catalyzed reaction of cyclic ethers, usually ethylene oxide and

propylene oxide, with active hydrogencontaining compounds (initiators) such as water, glycols, polyols, and amines. The reaction is carried out by a discontinuous batch process at elevated temperatures and pressures and under an inert atmosphere. The particular substance produced depends upon the oxides, initiators, reaction conditions, and catalysts used. The stoichiometric amounts of oxide reacted on the initiator determine the chain lengths and thus the molecular weights. HTS number: 3907.20.00

Poly(propylene)glycol

CAS number: 053637–25–5

Poly(propylene/ethylene)glycol is derived from the taxable chemicals propylene, chlorine, sodium hydroxide, and ethylene.

The stoichiometric material consumption formula for this substance is: n+1(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) + H2O (water) + m/2(2 C2H4 (ethylene) + O2 (oxygen)) ¡ C3H8O2(C3H6O)n(C2H4O)m (poly(propylene/ethylene)glycol) + n+1(2 NaCl (sodium chloride) + H2O (water))

CAS number: 025322–69–4

Poly(propylene)glycol is derived from the taxable chemicals propylene, chlorine, and sodium hydroxide.

The stoichiometric material consumption formula for this substance is: n+1(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) + H2O (water) ¡ C3H8O2(C3H6O)n (poly(propylene)glycol) + n+1(2 NaCl (sodium chloride) + H2O (water))

According to the petition, taxable chemicals constitute at least 90 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $7.74 per ton. This is based upon a conversion factor for propylene of 0.781, a conversion factor for chlorine of 1.31, and a conversion factor for sodium hydroxide of 1.43.

Poly(propylene/ethylene)glycol

CAS number: 025791–96–2

Poly(propyleneoxy)glycerol is derived from the taxable chemicals propylene, chlorine, and sodium hydroxide.

The stoichiometric material consumption formula for this substance is: C3H8O3 (glycerine) + n(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) ¡ C3H8O3(C3H6O)n (poly(propyleneoxy)glycerol) + n(2 NaCl (sodium chloride) + H2O (water))

According to the petition, taxable chemicals constitute at least 85 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $6.38 per ton. This is based upon a conversion factor for propylene of 0.645, a conversion factor for chlorine of 1.08, and a conversion factor for sodium hydroxide of 1.18.

Poly(ethyleneoxy)glycerol

CAS number: 031694–55–0

Poly(ethyleneoxy)glycerol is derived from the taxable chemical ethylene.

The stoichiometric material consumption formula for this substance is: C3H8O3 (glycerine) + m/2(2 C2H4 (ethylene) + O2 (oxygen)) ¡ C3H8O3(C2H4O)m (poly(ethyleneoxy)glycerol)

According to the petition, taxable chemicals constitute more than 50 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $3.31 per ton. This is based upon a conversion factor for ethylene of 0.681.

Poly(propyleneoxy/ethyleneoxy)glycerol

CAS number: 009082–00–2

Poly(propyleneoxy/ethyleneoxy)glycerol is derived from the taxable chemicals propylene, chlorine, sodium hydroxide, and ethylene.

The stoichiometric material consumption formula for this substance is: C3H8O3 (glycerine) + n(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide))

2000–17 I.R.B. 957 April 24, 2000

m/2(2 C2H4 (ethylene) + O2 (oxygen)) ¡ C3H8O3(C3H6O)n(C2H4O)m (poly(propyleneoxy/ethyleneoxy)glycerol) + n(2 NaCl (sodium chloride) + H2O (water))

According to the petition, taxable chemicals constitute at least 85 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $7.20 per ton. This is based upon a conversion factor for propylene of 0.71, a conversion factor for chlorine of 1.05, a conversion factor for sodium hydroxide of 1.05, and a conversion factor for ethylene of 0.126.

Poly(propyleneoxy)sucrose

CAS number: 009049–71–2

Poly(propyleneoxy)sucrose is derived from the taxable chemicals propylene, chlorine, and sodium hydroxide.

The stoichiometric material consumption formula for this substance is: C12H22O11(sucrose) + n(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) ¡ C12H22O11(C3H6O)n (poly(propyleneoxy)sucrose) + n(2 NaCl (sodium chloride) + H2O (water))

According to the petition, taxable chemicals constitute at least 65 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $4.18 per ton. This is based upon a conversion factor for propylene of 0.423, a conversion factor for chlorine of 0.707, and a conversion factor for sodium hydroxide of 0.773.

Poly(propyleneoxy/ethyleneoxy)sucrose

chlorine of 0.918, a conversion factor for sodium hydroxide of 1.0, and a conversion factor for ethylene of 0.14.

Poly(propyleneoxy/ethyleneoxy)diamine

CAS number: 031568–06–6 Poly(propyleneoxy/ethyleneoxy)diamine is derived from the taxable chemicals propylene, chlorine, and sodium hydroxide.

The stoichiometric material consumption formula for this substance is: C4H12N2O (aminoethylethanolamine) + n(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) ¡ C4H12N2O(C3H6O)n (poly(propyleneoxy/ ethyleneoxy)diamine) + n(2 NaCl (sodium chloride) + H2O (water))

According to the petition, taxable chemicals constitute at least 60 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $4.92 per ton. This is based upon a conversion factor for propylene of 0.498, a conversion factor for chlorine of 0.833, and a conversion factor for sodium hydroxide of 0.91.

Poly(propyleneoxy/ethyleneoxy)benzen ediamine

Hoffman on (202) 622-3130 (not a tollfree number).

Requirement to Maintain List of Investors in Potentially Abusive Tax Shelters; Correction

Announcement 2000–44

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to cross-reference notice of proposed rulemaking and notice of public hearing.

SUMMARY: This document contains a correction to a notice of proposed rulemaking and notice of public hearing (REG–103736–00, 2000–11 I.R.B. 768), which were published in the Federal Register on Thursday, March 2, 2000 (65 FR 11271), relating to the maintenance of lists of potentially abusive tax shelters described in section 6112.

FOR FURTHER INFORMATION CONTACT: Guy Traynor at (202) 622-7180.

SUPPLEMENTARY INFORMATION:

Background

The regulations that are subject to this correction are under section 6112 of the Internal Revenue Code.

Need for Correction

As published, the regulations

[REG–103736–00] contain an error in the preamble that may prove to be misleading and is in need of clarification.

Correction of Publication

Accordingly, the publication of the notice of proposed rulemaking [REG–103736–00], which was the subject of FR Doc. 00–4847, is corrected as follows:

On page 1272, column 2, fifth line from the top of the column, the language “June 22, 2000,” is corrected to read “June 20, 2000,”.

Dale D. Goode, Federal Register Liaison, Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on April 3, 2000, 8:45 a.m., and published in the issue of the Federal Register on April 4, 2000, 65 F.R. 17617)

CAS number: 026301–10–0

Poly(propyleneoxy/ethyleneoxy)sucrose is derived from the taxable chemicals propylene, chlorine, sodium hydroxide, and ethylene.

The stoichiometric material consumption formula for this substance is: C12H22O11 (sucrose) + n(C3H6 (propylene) + Cl2 (chlorine)

2 NaOH (sodium hydroxide)) + m/2(2 C2H4 (ethylene) + O2 (oxygen)) ¡ C12H22O11(C3H6O)n(C2H4O)m (poly(propyleneoxy/ethyleneoxy)sucrose) + n(2 NaCl (sodium chloride) + H2O (water))

According to the petition, taxable chemicals constitute at least 75 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $6.11 per ton. This is based upon a conversion factor for propylene of 0.549, a conversion factor for

CAS number: 067800–94–6

Poly(propyleneoxy/ethyleneoxy)benzenediamine is derived from the taxable chemicals propylene, chlorine, sodium hydroxide, and ethylene.

The stoichiometric material consumption formula for this substance is: C7H10N2 (ortho-toluenediamine) + n(C3H6 (propylene) + Cl2 (chlorine) + 2 NaOH (sodium hydroxide)) + m/2(2 C2H4 (ethylene) + O2 (oxygen)) ¡ C7H10N2(C3H6O)n(C2H4O)m (poly(propyleneoxy/ethyleneoxy)benzenediamine) + n(2 NaCl (sodium chloride) + H2O (water))

According to the petition, taxable chemicals constitute at least 60 percent by weight of the materials used to produce this substance. The rate of tax for this substance would be $5.25 per ton. This is based upon a conversion factor for propylene of 0.491, a conversion factor for chlorine of 0.821, a conversion factor for sodium hydroxide of 0.897, and a conversion factor for ethylene of 0.081.

The principal author of this announcement is Ruth Hoffman, Office of Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this announcement contact Ruth

April 24, 2000 958 2000–17 I.R.B.