Form 6627

What Is Form 6627

Form 6627, or the Environmental Taxes Form, is issued by the Internal Revenue Service (IRS) in the United States. This form reports and calculates taxes related to environmental activities that a business might engage in. These activities often involve using or disposing of certain chemicals, fuels, and other materials that hurt the environment.

The form is designed to capture various environmental taxes under Internal Revenue Code sections 59A, 4611, 4661, 4662, 4681, and 4682. Taxes related to ozone-depleting chemicals, imported products containing such chemicals, crude oil, and petroleum products are just some of the areas covered under Form 6627.

How To Fill Out Tax Form 6627

Filling out Form 6627 can seem complex due to the different taxes and activities involved. However, understanding how to complete it properly is crucial for compliance and for avoiding potential penalties. Here’s how you can fill it out:

Personal and Business Information: Start by filling in your name or your business name along with your Employer Identification Number (EIN).

Part I - Ozone-Depleting Chemicals (ODC) and Imported Products: In this section, you'll need to list all the ozone-depleting chemicals your business has used or manufactured. The form will also ask for the weight or quantity of each chemical.

Part II - Petroleum and Chemical Taxes: Here, you have to mention the types and amounts of crude oil, petroleum products, or certain chemicals you’ve dealt with. The form provides tax rates for each type of substance.

Part III - Floor Stocks Tax: This section is for those who hold certain taxable products (like ODCs) on which tax has not been paid.

Part IV - Tax Computation: This is the part where you'll calculate the tax for each category by multiplying the rates given in the form by the quantities you’ve listed earlier.

Sign and Date: After thoroughly reviewing the form for accuracy, sign and date it to complete the form.

Attachments: Attach any supporting documents that might be required, such as invoices or receipts for the materials mentioned.

How To File Form 6627 Environmental Taxes

Once the form is filled out, the next step is to file it. You will usually attach Form 6627 to Form 720, Quarterly Federal Excise Tax Return. The filing deadline generally aligns with the Form 720 deadline, which is quarterly. Here’s how to go about it:

1. Compile All Information: Before you begin, gather all relevant information and documents related to the environmental taxes your business has incurred.
2. Fill Out Form 720: Since Form 6627 is usually an attachment to Form 720, make sure you also complete Form 720 accurately.
3. Attach Form 6627: Once both forms are complete, attach Form 6627 to Form 720.
4. Mail or E-file: You can mail the forms to the IRS address specified for excise taxes: Department of the Treasury Internal Revenue Service Ogden, UT  84201-0009, or use IRS-approved software to e-file.
5. Payment: Make your tax payment through an accepted payment method specified by the IRS.
6. Keep Records: Always keep a copy of the forms and any supporting documents for your records.