How to File Superfund Excise Tax: Step-by-Step Guide

Before filing your Superfund Excise Tax return, it’s essential to choose your filing method and prepare accordingly. The IRS allows two methods of filing:

Filing Method Options:

• Manual Filing – Traditional paper-based form submission.

• Online Filing – Fast, secure filing through an IRS-authorized portal.

Based on the method you choose, here are the key preparations required:

If You Choose Manual Filing:

1. Download Required Forms: Obtain the latest versions of IRS Form 720 and Form 6627 pdf from the IRS website.

2. Gather Accurate Business Details: Ensure you have your legal business name, EIN, business address, and contact number. Mistakes in the EIN or other details can lead to rejection or delays.

3. Verify the IRS Number: Check the correct IRS Number applicable to your filing. Superfund Excise Taxes fall under the Environmental Taxes section in Form 720.

4. Understand Tax Rates and Categories: Form 6627 includes the tax rates corresponding to each IRS number. You must determine the correct taxable quantity (e.g., gallons, tons) for your chemical or substance.

5. Calculate with Care: Use a calculator or spreadsheet tool to compute your total tax liability. Always double-check your calculations for accuracy.

6. Ensure Consistency Across Forms: The final tax amount you enter in Form 6627 must match the amount reported on Form 720.

7. Complete the Payment Voucher: Fill out Form 720-V correctly and attach it if you are mailing a check.

8. Mail to the Right IRS Address: Refer to the IRS instructions for the appropriate mailing address based on your location and payment method.

If You Choose Online Filing:

1. Select an IRS-Authorized Portal: Choose a trusted, IRS-approved e-filing provider like Simple720 to ensure compliance and secure submission. We are the most affordable form 720 online portal in the US.

2. Compare Pricing: Look for a platform that offers a balance of affordability and features.

3. Prepare Your Filing Details: Keep your IRS number and quantity details ready before you start.

4. Follow Portal Navigation: Online platforms simplify the filing process with guided steps and automatic tax calculations. Just follow the on-screen prompts.

5. Get Filing Acknowledgment: After submission, ensure you receive an official IRS filing confirmation from the portal for your records.

Recommended Filing Option:

If you choose to file your Superfund Excise Tax manually, you’ll need to complete IRS Form 720 along with Form 6627, following specific steps to ensure accuracy and compliance. Here's a comprehensive guide to help you with the manual filing process:

Step 1: Complete Form 720

Begin with IRS Form 720 – the Quarterly Federal Excise Tax Return. Follow these steps:

Enter Basic Business Information:

Provide the following details on the first page:

• Business Name

• Employer Identification Number (EIN)

• Business Mailing Address and Phone Number

• Filing Quarter (e.g., Q1, Q2, etc.)

Choose the Applicable Superfund Tax Category:

Locate the Environmental Taxes section in Form 720 and select the correct IRS Number for your Superfund Excise Tax:

• IRS Number 16 – Imported Petroleum Products Superfund Tax

• IRS Number 53 – Domestic Petroleum Superfund Tax

• IRS Number 54 – Chemicals (Other Than ODCs)

• IRS Number 17 – Imported Chemical Substances

Enter Tax Amounts:

In the tax column next to the chosen IRS number(s), enter the amount calculated from Form 6627 (we will be discussing the steps in Step 2)

Complete Other Relevant Sections:

• Fill out Part III if it applies to your specific tax situation.

• Read instructions for Form 720-V (Payment Voucher) carefully and complete it if you’re mailing a payment.

Finalize the Form:

• Sign the form at the designated area.

• Attach the completed Form 6627.

• Mail both forms and the voucher to the IRS using the address listed in the IRS instructions.

Step 2: Fill Out Form 6627

Form 6627 (Environmental Taxes) is used to compute your actual Superfund Excise Tax amount. Here’s how to fill it out:

Repeat Business Information:

Make sure to match your business details exactly as they appear on Form 720. Avoid inconsistencies between the two forms.

Enter Tax Details:

• Under the appropriate IRS number section (16, 53, 54, or 17), go to Column (a) and enter the quantity (e.g., number of tons, gallons, etc.) for which the tax applies.

• Column (b) contains the applicable IRS tax rate (predefined on the form).

• Multiply Column (a) and Column (b) to calculate the tax amount, and enter the result in Column (c).

Cross-Verify with Form 720:

Ensure that the total from Column (c) on Form 6627 is transferred correctly to the matching IRS number field on Form 720.

Final Step: Submit Your Filing

Once both forms are filled and verified:

• Attach Form 6627 to Form 720.

• If applicable, attach Form 720-V with your payment.

• Sign the return and mail it to the IRS address indicated in the Form 720 instructions.

For a simplified and efficient experience, file online using Simple720, an IRS-authorized e-file provider. Here’s how it works:

Step 1 – Create an Account

New users must register for a free account. Existing users can log in with their credentials.

Step 2 – Enter Business Details

New filers can click “Add New Filings” and “Add New Business” to enter:

• Business Name

• EIN

• Business Type

• Contact Information
  Returning users can select previously saved businesses from the list.

Step 3 – Choose Form Type

Select Form 720 (Quarterly Federal Excise Tax) and choose the correct tax year and quarter before clicking “Proceed.”

Step 4 – Select Superfund Category

From the left-hand side panel, navigate to the Environmental Tax section and select the appropriate IRS Number based on your Superfund tax category.

Step 5 – Enter Tax Details

Provide the following:

• Tax date

• Chemical substance name

• Number of tons

• Conversion factor (if applicable)

• Tax rate

The system will automatically calculate the tax amount and display it for review.

Step 6 – Select Payment Method

Choose from available IRS payment methods:

• Electronic Funds Withdrawal (Direct Debit)

• EFTPS – Electronic Federal Tax Payment System

Step 7 – Submit Your Filing

Pay a small processing fee and complete your payment. Once payment is confirmed, your Superfund Excise Tax filing will be submitted instantly. You will receive an acknowledgment and confirmation in a few minutes. 

Conclusion

Filing the Superfund Excise Tax may seem complex, but with the right guidance and tools, it becomes a straightforward process. Whether you prefer manual filing or the streamlined online route, understanding the correct IRS categories, calculating your tax accurately, and submitting on time are crucial steps.