Instructions for Form 6627, Environmental Taxes

• Issuer: Treasury Department
• Section: Treasury Department

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Instructions for Form 6627

(Rev. January 2024)

Environmental Taxes

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code unless

otherwise noted.

Future Developments

For the latest information about developments related to Form

6627 and its instructions, such as legislation enacted after they

were published, go to IRS.gov/Form6627.

What’s New

The Inflation Reduction Act of 2022 reinstated the section 4611

Hazardous Substance Superfund financing rate (petroleum

Superfund tax rate) on domestic crude oil and imported

petroleum products, effective January 1, 2023, and stated that

the tax will be indexed for inflation beginning in 2024. The

financing rate is actually two taxes: the Hazardous Substance

Superfund rate that's annually adjusted for inflation, on lines 3a,

4a, and 7; and the $.09 per barrel Oil Spill Liability Trust Fund

financing rate on lines 3b, 4b, and 8. For 2024, the Hazardous

Substance Superfund rate is adjusted for inflation and increased

to $.17 per barrel. See Part I. Tax on Petroleum (IRS Nos. 16, 18,

21, and 53), later, and IRS.gov/irb/2023-48_IRB#NOT-2023-34.

The section 4681 tax rates for ozone-depleting chemicals

(ODCs) are increased for 2024. See Part VI. Tax on Floor

Stocks of ODCs, later.

Reminders

Due to the IRS′ acquiescence in a recent court case, the

section 4611 tax on exported crude oil currently doesn’t

apply. See AOD 2023-01, at IRS.gov/Actions on

Decisions.

The Infrastructure Investment and Jobs Act reinstated the

section 4661 excise tax on chemicals (other than ODCs) and the

section 4671 tax on imported chemical substances, effective

July 1, 2022 (they previously expired on December 31,1995).

•The tax rates for chemicals (other than ODCs) are listed on

Form 6627, Part II.

•See Table of Taxable Imported Chemical Substances for a

listing of taxable imported chemical substances and the

IRS-provided tax rates for most of the substances. Any

additional tax rates the IRS provides will be available either

online or in the Table of Taxable Imported Chemical Substances

when they become available. Taxpayers are reminded that they

may calculate their own tax rates for imported chemical

substances, regardless of whether the IRS has provided a tax

rate.

•Rev. Proc. 2022-26 provides procedures for requesting a

determination that a substance be added or removed.

•See Notice 2022-15 for information about temporary relief

from the penalty for failure to deposit the 2022 third and fourth

quarter taxes.

•For updates, such as the not yet shown tax rates for taxable

imported chemical substances, or substances recently added or

removed, go to IRS.gov/Form6627. Also see frequently asked

questions and answers.

CAUTION

!

General Instructions

Purpose of Form

Use this form to figure the environmental taxes on domestic

crude oil and imported petroleum products, chemicals (other

than ozone-depleting chemicals (ODCs)), imported chemical

substances, ODCs, imported products that used ODCs as

materials in the manufacture or production of the product, and

the floor stocks tax on ODCs. If you need more lines for any part

of the form, prepare a continuation sheet using the same format

as the part. Attach the continuation sheet with Form 6627 to

Form 720, Quarterly Federal Excise Tax Return. See Pub. 510,

Excise Taxes, for more information on environmental taxes. See

the Instructions for Form 720 for information on when and where

to file Form 6627.

Who Must File

For Petroleum

1. The operator of the refinery that receives crude oil;

2. The user of crude oil before tax is imposed; and

3. The person entering the petroleum products for

consumption, use, or warehousing.

For Chemicals (other than ODCs)

The manufacturer, producer, or importer of chemicals who sells

or uses those chemicals.

For Imported Chemical Substances

The importer of substances who sells or uses those substances.

For ODCs

1. The manufacturer or importer of ODCs who sells or uses

those ODCs;

2. The importer of taxable products who sells or uses those

products; and

3. The person other than the manufacturer or importer of

ODCs who holds ODCs for sale or use in manufacturing on

January 1, 2024.

Specific Instructions

Part I. Tax on Petroleum (IRS Nos. 16, 18, 21,

and 53)

The tax rate on domestic crude oil and imported petroleum

products is the sum of the Oil Spill Liability Trust Fund financing

rate (petroleum oil spill tax rate) and the Hazardous Substance

Superfund financing rate (petroleum Superfund tax rate). The

petroleum oil spill tax rate is $0.09 per barrel. For 2024, the

petroleum Superfund tax rate is $.17 per barrel (this rate will be

indexed annually for inflation).

Although the domestic crude oil or imported petroleum

products are reported separately, there is no difference in tax

rates. For domestic crude oil, report the petroleum oil spill tax

rate on IRS No. 18 and the petroleum Superfund tax rate on IRS

No. 53. For imported petroleum products, report the petroleum

Feb 26, 2024 Cat. No. 11548F