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INCOME TAXES
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES
Note 6 — INCOME TAXES
During the three and nine months ended September 30, 2025, the Company’s effective tax rates were 23.5% and 23.9%, respectively, compared to the U.S federal statutory rate of 21.0%. The differences were primarily due to earnings mix and withholding taxes on foreign earnings. These impacts were partially offset by research and development tax credits.
During the three and nine months ended September 30, 2024, the Company's effective tax rates of 22.5% and 24.3%, respectively, were above the U.S. federal statutory rate of 21.0% primarily due to withholding tax on foreign earnings and the impacts of global intangible low-taxed income (GILTI), partially offset by research and development tax credits.
In December 2024, Avient received a Notice of Deficiency (Notice) from the U.S. Internal Revenue Service (IRS) proposing an adjustment to the 2019 tax year resulting from a disallowed capital loss. The proposed incremental tax associated with the Notice is $23.8 million plus estimated interest of $6.9 million. We contested the Notice by filing a petition in U.S. Tax Court on March 4, 2025. The IRS' answer to Avient's petition included an additional accuracy-related penalty of $4.8 million and is subject to interest. The Company believes that the proposed penalty is also without merit, and we intend to contest the penalty vigorously in U.S. Tax Court. However, there can be no assurance this dispute with the IRS will be resolved favorably. As of September 30, 2025, the Company has not recorded any income tax provision related to this matter; therefore an unfavorable ruling or settlement in U.S. Tax Court would adversely impact our effective tax rate and result in a cash tax payment.
The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025. The OBBBA includes tax law changes that impact Avient, such as changes to the limitation on the business interest expense deductions, effective in 2025, and updates to the rules for GILTI and foreign-derived intangible income, effective in 2026. The Company is currently evaluating the OBBBA's impact, however, does not expect it to have a material impact to the current year consolidated financial statements.