How to File Form 6627[Federal Environmental Taxes]

Form 6627 is used to report taxes imposed on specific chemicals and petroleum products that pose a threat to the environment. This form is primarily concerned with the Environmental Excise Tax and the Federal Oil Spill Tax, both of which aim to mitigate environmental damage caused by hazardous substances. These taxes apply to manufacturers, importers, and sellers of products that contribute to environmental harm.

Form 6627 can be filed using two methods. Note that this form is always filed along with Form 720, which reports excise taxes. Here are the two options:

1. Manual Filing:

• Download the latest version of Form 6627 from the official IRS website

• Complete the form manually and send it to the IRS by mail. Since Form 6627 must be filed with Form 720, you will mail both forms to the appropriate Form 720 mailing address.

2. Online Filing:

• Use any IRS-approved online platform to file Form 6627 electronically. The online method is highly recommended by the IRS, as it is faster, more cost-effective, and helps minimize errors. Filing online saves time and offers more convenience compared to the manual process.

For a hassle-free experience, online filing is the preferred method.

When filing Form 6627 manually, you will need to complete both Form 6627 and Form 720. Here's how to properly fill them out:

Form 6627:

• Enter your name: Ensure that the name matches exactly as it appears on Form 720.

• Enter the quarter and EIN: Indicate the filing quarter and provide your Employer Identification Number (EIN).

• Form 6627 consists of six parts: Refer to the correct IRS number from Form 720 and enter the quantity of taxable chemicals or products in Column A.

• Calculate the tax: Multiply the values in Column A and Column B, and enter the result in Column C.

• Part 5 may require the weight of the ODC (Ozone-Depleting Chemical) product: Fill this out if applicable.

Form 720:

• Business details: Provide your business name, quarter-ending date, EIN, and contact information.

• Part 1: This section covers most tax categories from Form 6627.

• Part 2: Includes one additional tax category.

• Transfer values: Take the Column C values from Form 6627 and enter them into the corresponding tax columns on Form 720.

• Complete other applicable sections: Fill out any additional sections of Form 720 relevant to your business.

• Form 720-V (Payment Voucher): Complete this voucher as an acknowledgment of your filing, and include your payment check.

Finally, mail both completed forms, along with the payment voucher and check, to the official IRS mailing address.

Note: Manual filing requires the submission of two forms, but with the online filing method, this double-filing process is eliminated. You can complete everything in a single, streamlined process online.

Filing Form 6627 online is simple and efficient. Here's how you can do it using an IRS-approved portal like eFile720.com:

1. Choose an online portal: Select a trusted IRS-approved platform such as eFile720.com to file your Form 6627.

2. Create or log in to your account:

• If you’re a new user, create a free account.

• If you already have an account, log in to proceed.

3. Enter business details: Provide your business name, type, EIN, and contact information.

4. Enter tax details: Specify the tax year and quarter for your filing.

5. Select form type: Choose "Form 720" from the drop down menu. There's no need to separately select Form 6627 as it is automatically included in the process.

6. Input environmental tax details:

• In the left panel under Form 720, there is a section for environmental tax, where all the IRS numbers are listed.

• Select the relevant category for your business.

7. Enter quantities: Based on your selection, you will be prompted to input the required quantities. The system will automatically calculate the tax and display the total on your dashboard.

8. Complete payment: Finalize your filing by choosing a payment method. Available options include Electronic Funds Withdrawal (Direct Debit) or the Electronic Federal Tax Payment System (EFTPS).

With this online method, your Form 6627 is filed along with Form 720 in a single submission. Once your filing is approved by the IRS, an acknowledgment will be sent to your mailing address, completing the process efficiently and without the need for double filing.

File your Federal Excise Tax with us today and experience the comfort! 

WRAP:

After reading this blog, you should now have a clearer understanding of how to file your Form 6627, the two available filing methods, and how using our portal, eFile720, simplifies the process. By choosing the online method, you can save time, reduce errors, and complete your filing efficiently with minimal hassle.