Form 6627 Environmental Taxes and Instructions

6627

Environmental Taxes

Form
(Rev. January 2014)

▶ Information

Department of the Treasury
Internal Revenue Service

Name (as shown on Form 720)

Part I

OMB No. 1545-0245

about Form 6627 and its instructions is at www.irs.gov/form6627.
▶ Attach to Form 720.

Employer identification number

Quarter ending

(a)
Barrels

Tax on Petroleum

(b)
Rate

(c)
Tax

1

Crude oil received at a U.S. refinery .

2
3

Crude oil taxed before receipt at refinery. . . . . . . .
Taxable crude oil. Subtract line 2 from line 1. Multiply column (a)
by column (b) and enter the amount of tax in column (c) . . .

$ .08 bbl.

$

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) . . . . . . . . . . . .

$ .08 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
▶
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
▶
on Form 720 on the line for IRS No. 21 . . . . . . .

Part II

.

.

.

.

.

.

.

.

$

$ .08 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 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
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 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 the Instructions for Form 720.

Cat. No. 43490I

$
Form 6627 (Rev. 1-2014)

Page 2

Form 6627 (Rev. 1-2014)

Part III

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
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
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
sheets. Enter the total here and on Form 720 on the line for IRS No. 20 . . . . . . . ▶

General Instructions
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 www.irs.gov/form6627.

What’s New
The tax rates for ozone-depleting chemicals (ODCs)
in Parts II and III have increased for 2014. 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, 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:
• The operator of the refinery that receives crude oil;
• The user or exporter of crude oil before tax is imposed; and
• 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; and
• The person other than the manufacturer or importer of
ODCs who holds ODCs for sale or use in manufacturing on
January 1, 2014.

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 United States. 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
United States for use, consumption, or warehousing.
Petroleum products include crude oil, refined and residual
Form 6627 (Rev. 1-2014)

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Form 6627 (Rev. 1-2014)

oil, and other liquid hydrocarbon refinery products. The
person entering the petroleum product into the country is
liable for the tax.
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 $.08 per barrel tax.

Part II. Tax on Ozone-Depleting Chemicals
(ODCs), IRS No. 98
The following ODCs are taxable.
Tax Per
Post-1989 ODCs:
Pound in 2014
CFC-11 . . . . . . . . . . . . . . . .$13.90
CFC-12 . . . . . . . . . . . . . . . . 13.90
CFC-113 . . . . . . . . . . . . . . . . 11.12
CFC-114 . . . . . . . . . . . . . . . . 13.90
CFC-115 . . . . . . . . . . . . . . . . 8.34
Halon-1211 . . . . . . . . . . . . . . . 41.70
Halon-1301 . . . . . . . . . . . . . . .139.00
Halon-2402 . . . . . . . . . . . . . . . 83.40
Post-1990 ODCs:
Carbon tetrachloride . . . . . . . . . . . . 15.30
Methyl chloroform . . . . . . . . . . . . . 1.40
CFC-13, CFC-111, CFC-112, and CFC-211 through
CFC-217 . . . . . . . . . . . . . . . . 13.90

!
▲
CAUTION

The tax per pound rates above are figured using
the ozone-depletion factor. Do not multiply the tax
per pound by the ozone-depletion factor.

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 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, earlier. 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.
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).

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Form 6627 (Rev. 1-2014)

Part IV. Tax on Floor Stocks of ODCs, IRS
No. 20

!
▲
CAUTION

The floor stocks tax for 2014 is imposed on the
following ODCs.
Tax Per
Pound in 2014
. . .$0.45
. . . 0.45
. . . 0.36
. . . 0.45
. . . 0.27
. . . 1.35
. . . 4.50
. . . 2.70
. . . 0.495
. . . 0.045

ODCs:
CFC-11 . . . . . . . . . . . . . .
CFC-12 . . . . . . . . . . . . . .
CFC-113 . . . . . . . . . . . . . .
CFC-114 . . . . . . . . . . . . . .
CFC-115 . . . . . . . . . . . . . .
Halon-1211 . . . . . . . . . . . . .
Halon-1301 . . . . . . . . . . . . .
Halon-2402 . . . . . . . . . . . . .
Carbon tetrachloride . . . . . . . . . .
Methyl chloroform . . . . . . . . . . .
CFC-13, CFC-111, CFC-112, and CFC-211 through
CFC-217 . . . . . . . . . . . . . . .

.

. 0.45

The tax per pound rates above are figured using
the ozone-depletion factor. Do not multiply the tax
per pound by the ozone-depletion factor.

For 2014, 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 2014. Payment of the tax is due
by June 30, 2014.
Column (c). Enter the tax per pound using the chart above.