SECTION 3. RELIEF REGARDING

SECTION 6656 PENALTY

(a) Deemed satisfaction of reasonable cause standard .

As noted in section 2(b) of this notice, a taxpayer may avoid penalties under section 6656 for underpayment of deposits of the Superfund chemical taxes if the taxpayer makes an affirmative showing that such failure is due to reasonable cause and not due to willful neglect (reasonable cause standard). For semimonthly periods in the third and fourth calendar quarters of 2022 and the first calendar quarter of 2023, a taxpayer owing Superfund chemical taxes will be deemed to have satisfied the reasonable cause standard and no penalty under section 6656 for failure to deposit Superfund chemical taxes will be imposed if (i) the taxpayer makes timely deposits of applicable Superfund chemical taxes, even if the deposit amounts are computed incorrectly, and (ii) the amount of any underpayment of the applicable Superfund chemical taxes for each calendar quarter is paid in full by the due date for filing the Form 720 return for that quarter.

(b) Non-exercise of authority to with- draw use of deposit safe harbor .

During the first, second, and third calendar quarters of 2023, the IRS will not exercise its authority under § 40.6302(c)1(b)(2)(v) to withdraw the taxpayer’s right to use the deposit safe harbor of § 40.6302(c)-1(b)(2) due to a failure to make deposits of Superfund chemical taxes as required, provided the taxpayer satisfies the requirements of section 3(a) of this notice for the look-back quarter at issue.