Form 6627 Environmental Taxes

6627

Environmental Taxes

Form
(Rev. January 2007)

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Department of the Treasury
Internal Revenue Service

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Attach to Form 720.

Name (as shown on Form 720)

Part I

OMB No. 1545-0245

See instructions on page 3.
Quarter ending

(a)
Barrels

Tax on Petroleum

Employer identification number

(b)
Rate

(c)
Tax

1 Crude oil received at a U.S. refinery
2 Crude oil taxed before receipt at refinery
3 Taxable crude oil. Subtract line 2 from line 1. Multiply column (a)
by column (b) and enter the amount of tax in column (c)
4 Crude oil used in or exported from the U.S. before the tax was
imposed. Multiply column (a) by column (b) and enter the amount
of tax in column (c)

$

.05 bbl.

$

$

.05 bbl.

$

5 Total domestic petroleum oil spill tax. Add lines 3 and 4,
column (c). Enter the total here and on Form 720 on the line for
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IRS No. 18

$

6 Imported petroleum products oil spill tax. Enter the number of
barrels imported in column (a). Multiply column (a) by column (b)
and enter the amount of tax in column (c). Also enter the amount
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on Form 720 on the line for IRS No. 21

Part II

$

.05 bbl.

$

Tax on Ozone-Depleting Chemicals (ODCs), IRS No. 98

Elections. If you elect to report the tax on post-1989 ODCs at the time you sell or use a mixture containing such chemicals instead
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of when you make the mixture, check this box (the 1990 election)
If you elect to report the tax on post-1990 ODCs at the time you sell or use a mixture containing such chemicals instead of when
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you make the mixture, check this box (the 1991 election)
(a)
ODC

(b)
Number of pounds

(c)
Tax per pound
(see Part II instructions)

(d)
Tax (multiply column (b)
by column (c))

1
2
3
4 Total ozone-depleting chemicals tax. Add all amounts in column (d), include amounts from any
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additional sheets. Enter the total here and on Form 720 on the line for IRS No. 98
For Privacy Act and Paperwork Reduction Act Notice, see Form 720 instructions.

Cat. No. 43490I

$
Form

6627

(Rev. 1-2007)

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Form 6627 (Rev. 1-2007)

Part III

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ODC Tax on Imported Products, IRS No. 19

Election. If you elect to report the tax on imported products at the time you import the products instead of when you sell or use
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the products, check this box
(a)
Imported product and the
applicable ODC

(b)
Number of
products

(c)
ODC weight of
product

(d)
Tax per pound

(f)
Tax
(see Part III instructions)

(e)
Entry value

1
2
3
4 Total ODC tax on imported products. Add all amounts in column (f), include amounts from any
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additional sheets. Enter the total here and on Form 720 on the line for IRS No. 19

Part IV

$

Tax on Floor Stocks of ODCs, IRS No. 20
(a)
ODC

(b)
Number of pounds

(c)
Tax per pound
(see Part IV instructions)

(d)
Tax (multiply column (b)
by column (c))

1
2
3
4 Total floor stocks tax. Add all amounts in column (d), include amounts from any additional
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sheets. Enter the total here and on Form 720 on the line for IRS No. 20

$
Form

6627

(Rev. 1-2007)

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Form 6627 (Rev. 1-2007)

General Instructions
Section references are to the Internal Revenue Code
unless otherwise noted.

What’s New
The tax rates for ozone-depleting chemicals (ODCs) in
Parts II and III have increased for 2007. See the listing
below.

Purpose of Form
Use this form to figure the environmental tax on
petroleum, 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 additional
sheets using the same format as the part. Attach the
additional sheets with Form 6627 to Form 720. See
Pub. 510, Excise Taxes for 2007, 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:

● The operator of the refinery that receives crude oil.
● The user or exporter of crude oil before tax is imposed.
● The person entering the petroleum products for
consumption, use, or warehousing.
For ODCs:

● The manufacturer or importer of ODCs who sells or
uses those ODCs.
● The importer of taxable products who sells or uses
those products.
● The person other than the manufacturer or importer
of ODCs who holds ODCs for sale or use in
manufacturing on January 1, 2007.

Specific Instructions
Part I. Tax on Petroleum (IRS Nos. 18 and 21)
Crude oil. Tax is imposed on domestic crude oil when
it is received at a U.S. refinery. Crude oil includes crude
oil condensates and natural gasoline. The operator of
the refinery is liable for the tax. Tax is imposed on
imported crude oil received at a U.S. refinery unless the
imported petroleum products tax was imposed when
the imported crude oil was entered into the U.S. The
operator of a U.S. refinery that receives imported crude
oil must establish that tax was previously imposed on
the imported crude oil.
User or exporter of crude oil. Tax is imposed on
domestic crude oil used or exported before it is
received at a U.S. refinery. The user or exporter is
liable for the tax. Crude oil used for extracting oil or
natural gas on the premises where the crude oil is
produced is not taxable.
Imported petroleum products. Tax is imposed on
imported petroleum products when they are entered
into the U.S. for use, consumption, or warehousing.
Petroleum products include crude oil, refined and
residual oil, and other liquid hydrocarbon refinery
products. The person entering the petroleum product
into the country is liable for the tax.

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The tax on petroleum is imposed only once on any
imported petroleum product. The enterer must provide
documentation of the tax imposed on imported crude
oil to the refinery operator if requested by the refinery
operator.
Fractional barrels. Fractional barrels are taxed at a
proportionate rate using the fraction produced by the
number of gallons in the barrel over 42 gallons.
Multiply the resulting fraction by the $.05 per barrel
tax.

Part II. Tax on Ozone-Depleting Chemicals
(ODCs), IRS No. 98
The following ODCs are taxable.
Post-1989 ODCs:
CFC-11
CFC-12
CFC-113
CFC-114
CFC-115
Halon-1211
Halon-1301
Halon-2402

Tax Per
Pound in 2007
$10.75
10.75
8.60
10.75
6.45
32.25
107.50
64.50

Post-1990 ODCs:
Carbon tetrachloride
Methyl chloroform
CFC-13, CFC-111, CFC-112, and CFC-211 through
CFC-217

11.825
1.075
10.75

Mixture elections. Generally, the creation of a mixture
containing one or more ODCs by the manufacturer or
importer of an ODC is treated as the use of the ODC in
the mixture. However, the manufacturer or importer
may elect to treat the sale or use of the mixture as the
first sale or use of the ODC in the mixture.
Post-1989 ODCs (the 1990 election). If this election
is made, the tax on the post-1989 ODCs (listed above)
contained in the mixture is imposed on the date of sale
or use of the mixture. To make the election, check the
first box in Part II, under Elections. This election may
be revoked only with the consent of the IRS.
Post-1990 ODCs (the 1991 election). If this election
is made, the tax on the post-1990 ODCs (listed above)
contained in the mixture is imposed on the date of sale
or use of the mixture. To make the election, check the
second box in Part II, under Elections. This election
may be revoked only with the consent of the IRS.
Column (c). Enter the tax per pound using the chart
above.

Part III. ODC Tax on Imported Products,
IRS No. 19
An imported taxable product is any product entered
into the United States for consumption, use, or
warehousing if any ODC was used as material in the
manufacture or production of the product. The product
must also be listed in the imported products table
issued by the IRS. See Regulations section
52.4682-3(f)(6). The tax is based on the weight of
ODCs used in the manufacture of the product. If the

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Form 6627 (Rev. 1-2007)

weight cannot be determined under the exact method
or table method (see below), the tax is 1% of the entry
value of the product (value method).
Importer election. Generally, an imported taxable
product is taxed when it is sold or used by the
importer. However, an importer may elect to treat the
entry of products into the United States as the use of
such products. This election applies to all products
held by the importer when the election becomes
effective. It also applies to all products the importer
enters into the United States after the election
becomes effective. If an election applies to an
imported taxable product, tax is imposed on the
product on the date of entry. To make the election,
check the box in Part III, under Election. This election
may be revoked only with the consent of the IRS.
Figure the ODC weight of the product as follows:
Exact method. If you determine the weight of each
ODC used as a material in the manufacture of the
product and you can support this determination, the
ODC weight is the weight you determine.
Table method. If you do not use the exact method
and the ODC weight is listed in the imported products
table, use the ODC weight listed to figure the tax. See
Pub. 510 for more information.
Figure the tax for Part III:
Column (a). Enter the imported product and the
applicable ODC. Use additional lines if there is more
than one ODC.
Column (b). Enter the number of taxable products
imported.
Column (c). Enter the ODC weight of the product in
pounds. If you are using the value method, do not
complete this column.
Column (d). Enter the tax per pound from the chart
in the instructions for Part II on page 3. If you are
using the value method, enter 1% (.01).
Column (e). If you are using the value method to
figure the tax, enter the entry value of the total number
of imported products.

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Column (f). Figure the tax due by multiplying the
number of products in column (b) by the ODC weight
in column (c) by the tax per pound in column (d). If you
are using the value method, multiply the 1% (.01) rate
in column (d) by the entry value in column (e).

Part IV. Tax on Floor Stocks of ODCs, IRS
No. 20
The floor stocks tax for 2007 is imposed on the
following ODCs.
Tax Per
ODCs:
Pound in 2007
CFC-11
$ 0.45
CFC-12
0.45
CFC-113
0.36
CFC-114
0.45
CFC-115
0.27
Halon-1211
1.35
Halon-1301
4.50
Halon-2402
2.70
Carbon tetrachloride
0.495
Methyl chloroform
0.045
CFC-13, CFC-111, CFC-112, and CFC-211 through
CFC-217
0.45

For 2007, you are liable for the floor stocks tax if, on
January 1, you hold any of the following:
1. At least 400 pounds of ODCs, other than halons or
methyl chloroform, subject to the floor stocks tax,
2. At least 50 pounds of halons, or
3. At least 1,000 pounds of methyl chloroform.
Report the tax on Form 6627 and Form 720 for the
second calendar quarter of 2007. Payment of the tax is
due by June 30, 2007.
Column (c). Enter the tax per pound using the chart
above.