Userid: CPM Schema: instrx Leadpct: 100% Pt. size: 9 Draft Ok to Print AH XSL/XML Fileid: … ns/i6627/202301/a/xml/cycle10/source (Init. & Date) _______ Page 1 of 7 18:29 - 14-Mar-2023 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Department of the Treasury Internal Revenue Service Instructions for Form 6627 (Rev. January 2023) Environmental Taxes Section references are to the Internal Revenue Code unless Form 720, Quarterly Federal Excise Tax Return. See Pub. 510, otherwise noted. Excise Taxes, for more information on environmental taxes. See the Instructions for Form 720 for information on when and where Future Developments to file Form 6627. For the latest information about developments related to Form 6627 and its instructions, such as legislation enacted after they Who Must File were published, go to IRS.gov/Form6627. For Petroleum What’s New 1. The operator of the refinery that receives crude oil; Due to the IRS' acquiescence in a recent court case, the 2. The user of crude oil before tax is imposed; and ! section 4611 tax on exported crude oil currently doesn’t 3. The person entering the petroleum products for CAUTION apply. See AOD 2023-01, at IRS.gov/Actions on consumption, use, or warehousing. Decisions. The Inflation Reduction Act of 2022 reinstates the section For Chemicals (other than ODCs) 4611 Hazardous Substance Superfund financing rate (petroleum The manufacturer, producer, or importer of chemicals who sells Superfund tax rate) on domestic crude oil and imported or uses those chemicals. petroleum products, effective January 1, 2023. See Part I. Tax on Petroleum (IRS Nos. 16, 18, 21, and 53), later. For Imported Chemical Substances The section 4681 tax rates for ozone-depleting chemicals The importer of substances who sells or uses those substances. (ODCs) are increased for 2023. See Part VI. Tax on Floor Stocks of ODCs, later. For ODCs 1. The manufacturer or importer of ODCs who sells or uses Reminders those ODCs; The Infrastructure Investment and Jobs Act reinstates the 2. The importer of taxable products who sells or uses those section 4661 excise tax on chemicals (other than ODCs) and the products; and section 4671 tax on imported chemical substances, effective 3. The person other than the manufacturer or importer of July 1, 2022 (they previously expired on December 31,1995). ODCs who holds ODCs for sale or use in manufacturing on • The tax rates for chemicals (other than ODCs) are listed on January 1, 2023. Form 6627, Part II. • See Table of Taxable Imported Chemical Substances for a listing of taxable imported chemical substances and the Specific Instructions IRS-provided tax rates for most of the substances. Any additional tax rates the IRS provides will be available either Part I. Tax on Petroleum (IRS Nos. 16, 18, 21, online or in the Table of Taxable Imported Chemical Substances and 53) when they become available. Taxpayers are reminded that they may calculate their own tax rates for imported chemical The tax rate on domestic crude oil and imported petroleum substances, regardless of whether the IRS has provided a tax products is the sum of the Oil Spill Liability Trust Fund financing rate. rate (petroleum oil spill tax rate) and the Hazardous Substance • Rev. Proc. 2022-26 provides procedures for requesting a Superfund financing rate (petroleum Superfund tax rate). The determination that a substance be added or removed. petroleum oil spill tax rate is $0.09 per barrel. For 2023, the • See Notice 2022-15 for information about temporary relief petroleum Superfund tax rate is $0.164 per barrel (this rate will from the penalty for failure to deposit the 2022 third and fourth be indexed annually for inflation). quarter taxes. Although the domestic crude oil or imported petroleum • For updates, such as the not yet shown tax rates for taxable products are reported separately, there is no difference in tax imported chemical substances, or substances recently added or rates. For domestic crude oil, report the petroleum oil spill tax removed, go to IRS.gov/Form6627. Also see frequently asked rate on IRS No. 18 and the petroleum Superfund tax rate on IRS questions and answers. No. 53. For imported petroleum products, report the petroleum oil spill tax rate on IRS No. 21 and the petroleum Superfund tax rate on IRS No. 16. General Instructions Crude oil. Tax is imposed on domestic crude oil when it is Purpose of Form received at a U.S. refinery. Crude oil includes crude oil Use this form to figure the environmental taxes on domestic condensates and natural gasoline. The operator of the refinery is crude oil and imported petroleum products, chemicals (other liable for the tax. Tax is imposed on imported crude oil received than ozone-depleting chemicals (ODCs)), imported chemical at a U.S. refinery unless the imported petroleum products tax substances, ODCs, imported products that used ODCs as was imposed when the imported crude oil was entered into the materials in the manufacture or production of the product, and United States. The operator of a U.S. refinery that receives the floor stocks tax on ODCs. If you need more lines for any part imported crude oil must establish that tax was previously of the form, prepare a continuation sheet using the same format imposed on the imported crude oil. as the part. Attach the continuation sheet with Form 6627 to Mar 14, 2023 Cat. No. 11548F |
Page 2 of 7 Fileid: … ns/i6627/202301/a/xml/cycle10/source 18:29 - 14-Mar-2023 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. User of crude oil. Tax is imposed on domestic crude oil that’s rate, multiply column (b) by column (e). If you don’t have enough used before it is received at a U.S. refinery. The user is liable for information to determine the conversion factor and the IRS the tax. Crude oil used for extracting oil or natural gas on the hasn’t provided a tax rate, you must use the appraised entry premises where the crude oil is produced is not taxable. value to figure the tax. To figure the tax using appraised entry value, multiply the appraised entry value in column (d) by the Imported petroleum products. Tax is imposed on imported rate (10%) in column (e). petroleum products when they are entered into the United States for use, consumption, or warehousing. Petroleum products Part IV. Tax on Ozone-Depleting Chemicals include crude oil, refined and residual oil, and other liquid (ODCs), IRS No. 98 hydrocarbon refinery products. The person entering the petroleum product into the country is liable for the tax. The following ODCs are taxable. 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. Post -1989 ODCs Tax per Fractional barrels. Fractional barrels are taxed at a Pound in 2023 proportionate rate using the fraction produced by the number of gallons in the barrel over 42 gallons. Multiply the resulting CFC-11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17.95 fraction by the sum of the $0.09 per barrel petroleum oil spill tax CFC-12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.95 rate and the $0.164 per barrel petroleum Superfund tax rate. CFC-113 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.36 Part III. Tax on Imported Chemical Substances, CFC-114 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.95 IRS No. 17 CFC-115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.77 The imported chemical substance tax is equal to the chemical tax that would have been imposed on the taxable chemicals Halon-1211 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.85 (listed in Part II of Form 6627) used as materials in the Halon-1301 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179.50 manufacture of the substance if such substance had been manufactured in the United States. See Table of Taxable Halon-2402 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107.70 Imported Chemical Substances for the substances to which the Post-1990 ODCs Tax per imported substance tax applies. Pound in 2023 To figure the tax, you’ll generally need to know the ratio of the Carbon tetrachloride . . . . . . . . . . . . . . . . . . . . . . 19.74 weight of each taxable chemical used to make the substance to the total weight of the substance (the conversion factor). If you Methyl chloroform . . . . . . . . . . . . . . . . . . . . . . . . 1.79 don’t have enough information to determine the conversion CFC-13, CFC-111, CFC-112, and CFC-211 through factor and the IRS has provided a tax rate for the substance, CFC-217 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.95 either online or in Table of Taxable Imported Chemical Substances, then that tax rate applies. If you don’t have enough information to determine the conversion factor and the IRS The tax per pound rates above are figured using the hasn’t provided a tax rate for the substance, then the tax is 10% ! ozone-depletion factor. Do not multiply the tax per of the appraised entry value of the substance. CAUTION pound by the ozone-depletion factor. Follow the steps, next, to figure the tax for Part III, lines 1 Mixture elections. Generally, the creation of a mixture through 3. containing one or more ODCs by the manufacturer or importer of Column (a). Enter the imported chemical substance subject to an ODC is treated as the use of the ODC in the mixture. tax. 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 Column (b). Enter the number of tons of the substance the mixture. imported and sold or used. Post-1989 ODCs (the 1990 election). If this election is Column (c). Enter each taxable chemical (listed in Part II of made, the tax on the post-1989 ODCs (listed earlier) contained Form 6627) used in the manufacture of the substance. If using in the mixture is imposed on the date of sale or use of the an IRS-provided tax rate or a tax rate based on 10% of the mixture. To make the election, check the first box in Part IV, appraised entry value of the substance, there’s no need to enter under Elections. This election may be revoked only with the information in column (c). consent of the IRS. Column (d). Enter the conversion factor for each taxable Post-1990 ODCs (the 1991 election). If this election is chemical or the appraised entry value of the total amount of the made, the tax on the post-1990 ODCs (listed earlier) contained substance. If using an IRS-provided tax rate, there’s no need to in the mixture is imposed on the date of sale or use of the enter information in column (d). mixture. To make the election, check the second box in Part IV, under Elections. This election may be revoked only with the Column (e). Enter the tax rate of each taxable chemical from consent of the IRS. Part II of Form 6627. If you don’t have enough information to determine the conversion factor and are using an IRS-provided Column (c). Enter the tax per pound using the chart earlier. tax rate, enter that tax rate here. If you don’t have enough information to determine the conversion factor and you’re Part V. ODC Tax on Imported Products, IRS No. figuring the tax based on appraised entry value, enter 10% here. 19 Column (f). Multiply the number of tons in column (b) by the An imported taxable product is any product entered into the conversion factor in column (d) by the rate in column (e) for each United States for consumption, use, or warehousing if any ODC taxable chemical listed. If you don’t have enough information to was used as material in the manufacture or production of the determine the conversion factor and the IRS has provided a tax product. The product must also be listed in the imported -2- Instructions for Form 6627 (Rev. January 2023) |
Page 3 of 7 Fileid: … ns/i6627/202301/a/xml/cycle10/source 18:29 - 14-Mar-2023 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. products table issued by the IRS. See Regulations section multiply the 1% (0.01) rate in column (d) by the entry value in 52.4682-3(f)(6). The tax is based on the weight of ODCs used in column (e). the manufacture of the product. If the weight can’t be determined under the exact method or table method (see below), the tax is Part VI. Tax on Floor Stocks of ODCs 1% of the entry value of the product (value method). The floor stocks tax for 2023 is imposed on the following ODCs. Importer election. Generally, an imported taxable product is taxed when sold or used by the importer. However, an importer may elect to treat the entry of products into the United States as ODCs Tax per the use of such products. This election applies to all products Pound in 2023 held by the importer when the election becomes effective, and all products the importer enters into the United States after the CFC-11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.45 election becomes effective. If an election applies to an imported CFC-12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.45 taxable product, tax is imposed on the product on the date of entry. To make the election, check the box in Part V, under CFC-113 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.36 Elections.This election may be revoked only with the consent of CFC-114 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.45 the IRS. CFC-115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.27 Figure the ODC Weight of the Product as Follows Halon-1211 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.35 Exact method. If you determine the weight of each ODC Halon-1301 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.50 used as a material in the manufacture of the product and you can support this determination, the ODC weight is the weight Halon-2402 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.70 you determine. Carbon tetrachloride . . . . . . . . . . . . . . . . . . . . . . 0.495 Table method. If you don’t use the exact method and the ODC weight is listed in the imported products table, use the Methyl chloroform . . . . . . . . . . . . . . . . . . . . . . . . 0.045 ODC weight listed to figure the tax. See Pub. 510 for more CFC-13, CFC-111, CFC-112, and CFC-211 through information. CFC-217 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.45 Follow the steps, next, to figure the tax for Part V, lines 1 through 3. The tax per pound rates above are figured using the ozone-depletion factor. Do not multiply the tax per Column (a). Enter the imported product and the applicable CAUTION! pound by the ozone-depletion factor. ODC. Use additional lines if there is more than one ODC. Column (b). Enter the number of taxable products imported. For 2023, you are liable for the floor stocks tax if, on January 1, you hold any of the following. Column (c). Enter the ODC weight of the product in pounds. If you are using the value method, don’t complete this column. 1. At least 400 pounds of ODCs, other than halons or methyl chloroform, subject to the floor stocks tax. Column (d). Enter the tax per pound from the chart in the 2. At least 50 pounds of halons. instructions for Part IV, earlier. If you are using the value method, enter 1% (0.01). 3. At least 1,000 pounds of methyl chloroform. Column (e). If you are using the value method to figure the tax, Report the tax on Form 6627 and Form 720 for the second enter the entry value of the total number of imported products. calendar quarter of 2023. Payment of the tax is due by June 30, 2023. Column (f). Figure the tax due by multiplying the number of products in column (b) by the ODC weight in column (c) by the Column (c). Enter the tax per pound using the chart above. tax per pound in column (d). If you are using the value method, Table of Taxable Imported Chemical Substances (Beginning July 1, 2022) * Tax rate per ton (Rate/Ton) to be determined at a later date and published at IRS.gov/Form6627 as soon as they become available. Imported Chemical Substance Rate/Ton ($) Effective Date 1,3-butylene glycol 7.28 7/1/2022 1,4 butanediol 4.68 7/1/2022 1,5,9-cyclododecatriene 9.74 7/1/2022 2,2,4-trimethyl-1,3-pentanediol diisobutyrate * 7/1/2022 2,2,4-trimethyl-1,3-pentanediol monoisobutyrate * 7/1/2022 2-ethyl hexanol 7.16 7/1/2022 2-ethylhexyl acrylate 7.34 7/1/2022 acetic acid * 7/1/2022 acetone 20.06 7/1/2022 acetylene black 10.52 7/1/2022 acrylic acid resins 5.65 7/1/2022 Instructions for Form 6627 (Rev. January 2023) -3- |
Page 4 of 7 Fileid: … ns/i6627/202301/a/xml/cycle10/source 18:29 - 14-Mar-2023 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Imported Chemical Substance Rate/Ton ($) Effective Date methacrylic acid resins 14.94 7/1/2022 acrylonitrile 9.38 7/1/2022 adipic acid 6.13 7/1/2022 adiponitrile 8.57 7/1/2022 allyl chloride 10.38 7/1/2022 alpha-methylstyrene 9.93 7/1/2022 ammonium nitrate 1.49 7/1/2022 aniline 9.40 7/1/2022 benzaldehyde 8.47 7/1/2022 benzoic acid 7.31 7/1/2022 bisphenol-A 10.23 7/1/2022 butanol 6.31 7/1/2022 butyl acrylate 6.84 7/1/2022 butyl benzyl phthalate 12.15 7/1/2022 carbon tetrachloride 10.62 7/1/2022 chlorinated polyethylene 10.25 7/1/2022 chloroform 10.51 7/1/2022 chromic acid 4.37 7/1/2022 cumene 9.74 7/1/2022 cyclododecanol 9.05 7/1/2022 cyclohexane 10.02 7/1/2022 decabromodiphenyl oxide 17.99 7/1/2022 di-2 ethyl hexyl phthalate 7.37 7/1/2022 diethanolamine 6.01 7/1/2022 diglycidyl ether of bisphenol-A 13.86 7/1/2022 diisopropanolamine 12.76 7/1/2022 dimethyl terephthalate 5.91 7/1/2022 dimethyl-2, 6-naphthalene dicarboxylate 6.81 7/1/2022 di-n-hexyl adipate 8.23 7/1/2022 diphenyl oxide 13.73 7/1/2022 diphenylamine 10.28 7/1/2022 epichlorohydrin 12.89 7/1/2022 ethyl acetate * 7/1/2022 ethyl acrylate 4.09 7/1/2022 ethyl alcohol for nonbeverage use 5.94 7/1/2022 ethyl chloride 4.52 7/1/2022 ethyl methyl ketone 7.60 7/1/2022 ethyl benzene 9.74 7/1/2022 ethylene dibromide 9.03 7/1/2022 ethylene dichloride 6.62 7/1/2022 ethylene glycol 4.38 7/1/2022 ethylene oxide 6.23 7/1/2022 ethylene bistetrabromophthalimide * 7/1/2022 ferrochrome ov 3 pct. carbon 4.83 7/1/2022 -4- Instructions for Form 6627 (Rev. January 2023) |
Page 5 of 7 Fileid: … ns/i6627/202301/a/xml/cycle10/source 18:29 - 14-Mar-2023 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Imported Chemical Substance Rate/Ton ($) Effective Date ferrochromium nov 3 pct. 4.83 7/1/2022 ferronickel * 7/1/2022 formaldehyde * 7/1/2022 formic acid * 7/1/2022 glycerine * 7/1/2022 hexabromocyclododecane 9.11 7/1/2022 hexamethylenediamine 8.93 7/1/2022 hydrogen peroxide * 7/1/2022 isobutyl acetate 4.47 7/1/2022 isophthalic acid 6.23 7/1/2022 isopropyl acetate 4.54 7/1/2022 isopropyl alcohol 6.82 7/1/2022 linear alpha olefins 9.74 7/1/2022 maleic anhydride 5.75 7/1/2022 melamine 4.28 7/1/2022 methanol * 7/1/2022 methyl acrylate 5.39 7/1/2022 methyl chloroform 6.37 7/1/2022 methyl isobutyl ketone 23.65 7/1/2022 methyl methacrylate 14.75 7/1/2022 methylene chloride 10.33 7/1/2022 monochlorobenzene 10.12 7/1/2022 monoethanolamine 5.96 7/1/2022 monoisopropanolamine 11.74 7/1/2022 nickel oxide 7.03 7/1/2022 nickel powders * 7/1/2022 nickel waste and scrap * 7/1/2022 normal butyl acetate 4.47 7/1/2022 normal propyl acetate 3.73 7/1/2022 nylon 6/6 8.67 7/1/2022 ortho-dichlorobenzene 10.35 7/1/2022 ortho-nitrochlorobenzene 7.49 7/1/2022 para-dichlorobenzene 10.35 7/1/2022 paraformaldehyde * 7/1/2022 para-nitrochlorobenzene 7.49 7/1/2022 para-nitrophenol 8.59 7/1/2022 pentaerythritol 3.86 7/1/2022 perchloroethylene 10.89 7/1/2022 phenol 12.47 7/1/2022 phenolic resins 9.86 7/1/2022 phosphorous pentasulfide 2.49 7/1/2022 phosphorous trichloride 6.21 7/1/2022 phthalic anhydride 7.01 7/1/2022 poly (69/31 ethylene/cyclohexylenedimethylene terephthalate) * 7/1/2022 Instructions for Form 6627 (Rev. January 2023) -5- |
Page 6 of 7 Fileid: … ns/i6627/202301/a/xml/cycle10/source 18:29 - 14-Mar-2023 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Imported Chemical Substance Rate/Ton ($) Effective Date poly (96.5/3.5 ethylene/cyclohexylenedimethylene terephthalate) * 7/1/2022 poly (98.5/1.5 ethylene/cyclohexylenedimethylene terephthalate) * 7/1/2022 poly 1,4 butyleneterephthalate 7.21 7/1/2022 poly(ethyleneoxy)glycerol * 7/1/2022 poly(propylene)glycol 10.38 7/1/2022 poly(propylene/ethylene)glycol 8.84 7/1/2022 poly(propyleneoxy)glycerol * 7/1/2022 poly(propyleneoxy)sucrose 2.04 7/1/2022 poly(propyleneoxy/ethyleneoxy)benzenediamine * 7/1/2022 poly(propyleneoxy/ethyleneoxy)diamine * 7/1/2022 poly(propyleneoxy/ethyleneoxy)glycerol * 7/1/2022 poly(propyleneoxy/ethyleneoxy)sucrose 2.57 7/1/2022 polyalphaolefins 11.37 7/1/2022 polybutadiene 9.74 7/1/2022 polybutene 9.74 7/1/2022 polybutylene 9.74 7/1/2022 polybutylene/ethylene 9.74 7/1/2022 polycarbonate 10.84 7/1/2022 polyethylene resins (total) 9.74 7/1/2022 polyethylene terephthalate pellets 6.82 7/1/2022 polypropylene 9.74 7/1/2022 polypropylene resins 9.74 7/1/2022 polystyrene homopolymer resins 9.93 7/1/2022 polystyrene resins and copolymers * 7/1/2022 polyvinylchloride resins 7.46 7/1/2022 propanol 5.47 7/1/2022 propylene glycol 10.38 7/1/2022 propylene oxide 13.60 7/1/2022 sodium nitriolotriacetate monohydrate * 7/1/2022 styrene 9.93 7/1/2022 styrene-butadiene (latex) 9.84 7/1/2022 styrene-butadiene (snpf) * 7/1/2022 synthetic linear fatty alcohol ethoxylates 7.12 7/1/2022 synthetic linear fatty alcohols 9.29 7/1/2022 synthetic rubber (not containing fillers) * 7/1/2022 terephthalic acid 6.23 7/1/2022 tetrabromobisphenol-A 14.79 7/1/2022 tetrachlorophthalic anhydride 8.95 7/1/2022 tetrahydrofuran 5.78 7/1/2022 texanol benzyl phthalate * 7/1/2022 toluene diisocyanate 10.85 7/1/2022 toluenediamine 9.18 7/1/2022 trichloroethylene 10.79 7/1/2022 triethanolamine 6.04 7/1/2022 -6- Instructions for Form 6627 (Rev. January 2023) |
Page 7 of 7 Fileid: … ns/i6627/202301/a/xml/cycle10/source 18:29 - 14-Mar-2023 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Imported Chemical Substance Rate/Ton ($) Effective Date triisopropanolamine 12.84 7/1/2022 trimethylolpropane 4.63 7/1/2022 unwrought nickel * 7/1/2022 urea 3.01 7/1/2022 vinyl acetate 3.83 7/1/2022 vinyl chloride 7.46 7/1/2022 vinyl resins (nspf) * 7/1/2022 vinyl resins * 7/1/2022 wrought nickel rods and wire * 7/1/2022 Instructions for Form 6627 (Rev. January 2023) -7- |