Hello excise taxpayers! Superfund chemical excise taxes are reinstated on certain chemicals and imported chemical substances from July 1, 2022. There are separate Superfund chemical excise taxes under section 4661, tax on the sale or use of ‘taxable chemicals’ and under section 4671, tax on the sale or use of imported ‘taxable substances.’ These taxes are imposed after they expired in 1995. Now, the tax rates and tax-related provisions have been modified by the Infrastructure Investment and Jobs Act signed on November 15, 2021.
Form 720 and Form 6627 Environmental Taxes
Therefore, the dealers, manufacturers, importers and users of these taxable chemicals and imported taxable substances must report and pay the taxes to the IRS using the federal excise tax form 720. These taxes come under the IRS line 54 and line 17 in form 720. They must use the form 6627 to estimate the taxes and attach with the form 720. Form 6627 is the environmental tax form specially used to calculate the taxes on petroleum, ozone-depleting chemicals (ODCs), imported products that used ODCs as materials in the manufacture or production of the product, the floor stocks tax on ODCs, taxable chemicals and the applicable rates, and taxable imported chemicals substances and the applicable rates.
These are lines in form 720 which you must report and pay the Superfund Chemical Excise Taxes.
IRS line 54
Excise tax is imposed on the manufacturer, producer, or importer of chemicals who sells or uses these chemicals (other than ODCs). They should report and pay the 720 taxes under this category.
IRS line 17
Imported Taxable Substances
The importer of the chemical substances that are eligible for form 720 federal excise taxes must report and pay the taxes under this category.
Superfund Chemical Excise Tax Payments
You should pay the taxes on semimonthly period; that means you must pay the taxes twice a month. A semimonthly period is the first fifteen days of a calendar month and the following days from the 15th day of the month. You must carefully read the instructions from the IRS and pay your taxes accordingly. Or else, you will be subjected to penalties for not paying the tax dues on time. You can pay the taxes through the EFTPS system as per the IRS regulations.
E-file Form 720 at TaxExcise.com!
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