Taxpayers are required to make deposits of the petroleum tax for each semimonthly period in which tax liability is incurred. Tax is also imposed on imported petroleum products when they are entered into the U.S. Tax is imposed on crude oil when it is received at a U.S. Form 720, Quarterly Federal Excise Tax Return.Report the petroleum tax on a quarterly basis on both of the following forms: The petroleum Superfund tax rate is $0.164 per barrel for 2023 (rate is indexed annually for inflation)įor 2023, this equals $0.254 per barrel.The petroleum oil spill tax rate is $0.09 per barrel.Public Law 117-169, 136 Statute 1818 (August 16, 2022), commonly known as the Inflation Reduction Act of 2022, reinstates the Hazardous Substance Superfund financing rate, effective January 1, 2023.Īs a result, starting January 1, 2023, the petroleum tax rate is the sum of the Oil Spill Liability Trust Fund financing rate (petroleum oil spill tax rate) and the Hazardous Substance Superfund financing rate (petroleum Superfund tax rate): See Formal Memorandum 2023-01 PDF prepared by the IRS Office of Chief Counsel and Internal Revenue Bulletin 2023-10 (March 6, 2023). As a result of the court case and the IRS' acquiescence in the court's decision, the Section 4611(b) tax no longer applies to crude oil exports. A recent court case held that the tax is unconstitutional. Section 4611(b) of the Code imposes a tax on certain domestic crude oil exports. Section 4611 of the Internal Revenue Code (Code) imposes a per-barrel tax on certain crude oil and imported petroleum products (petroleum tax).
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