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Domestic Petroleum Oil Spill Tax
Domestic Petroleum Oil Spill Tax

What Is the Domestic Petroleum
Oil Spill Tax(IRS No 18)?

The Domestic Petroleum Oil Spill Tax under Section 4611 is a federal excise tax imposed on domestic crude oil received at a United States refinery. The purpose of this tax is to fund the Oil Spill Liability Trust Fund, which supports cleanup and response efforts related to petroleum oil spills. This tax is part of the environmental excise taxes and is reported as part of quarterly excise tax filings.

Key Points
  • The Domestic Petroleum Oil Spill Tax is reported on Form 720 under environmental taxes and requires Form 6627 for calculation
  • The tax is calculated on each barrel of domestic crude oil received at a refinery
  • The tax is filed and paid on a quarterly basis
 
  • The applicable tax rate is 0.09 dollars per barrel for periods through December 31 2025 unless extended or reinstated by law
  • The tax applies specifically to crude oil and not to refined petroleum products
Who Is Responsible for Paying This Tax?

The responsibility for paying the Domestic Petroleum Oil Spill Tax generally falls on the operator of the United States refinery that receives the domestic crude oil. The liable party must report the tax each quarter using Form 720 and include Form 6627 to calculate the environmental tax amount accurately.

Why Opt for Electronic Filing for Your Domestic
Petroleum Oil spill tax(IRS No 18)?

Fast and Simple Filing Process
Electronic filing provides a streamlined experience that lets you complete and submit your Domestic Petroleum Oil Spill Tax quickly, with minimal effort and clear step by step guidance.
Instant IRS Acknowledgement
Once your filing is submitted, you receive immediate confirmation that your Domestic Petroleum Oil Spill Tax return has been successfully transmitted to the IRS, eliminating uncertainty and delays.
Easy Tracking of Filing Status
Electronic filing allows you to track the status of your Domestic Petroleum Oil Spill Tax return in real time, keeping you informed from submission through IRS acceptance.

Steps to Complete Your Domestic Petroleum
Oil spill tax(IRS No 18) Filing with Simple720

STEP 1
Enter Business Details
Provide your business name, address, EIN, and contact information.
Filing Steps Image 1
Filing Steps Image 2
STEP 2
Tax Information
Navigate to Environmental Tax and select Domestic Petroleum Oil spill tax (18).
Enter
  • Tax date
  • Tax type
  • Crude oil received at a U.S. refinery
  • Crude oil taxed before receipt at refinery
  • Crude oil used in the U.S. before the tax was imposed
STEP 3
Payment Information
Review the tax amount and select your preferred payment method to finalize the filing.
Filing Steps Image 3

Why Choose Simple720 for Filing Your Domestic
Petroleum Oil spill tax(IRS No 18)?

IRS Authorized Electronic Filing
Simple720 is an IRS-authorized e-file provider for Form 720, allowing you to electronically submit your Domestic Petroleum Oil Spill Tax with confidence. Your filing is transmitted securely and in full compliance with IRS requirements.
AICPA SOC Compliant and Secure Platform
Simple720 operates on an AICPA SOC compliant system, designed to protect your sensitive tax and business data through strong security controls and industry-recognized safeguards.
Affordable and Cost-Effective Filing Solution
Simple720 offers a budget-friendly filing option without compromising on quality or compliance, making it a practical choice for businesses looking to file their Domestic Petroleum Oil Spill Tax efficiently and economically.

Simple720 Vs Others

IRS Authorized e-Filer Brand X Brand Y Brand Z
Cloud-Based No No No
Software Download Yes-PC Only Yes Yes
License Required Required Required
Annual Contract Required Required Required
All Excise Taxes Fuel Taxes Only No No
Cost $1,000+/yr. $1,500+/yr. $5,000+/yr.
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Frequently Asked Questions

The Domestic Petroleum Oil Spill Tax is a federal excise tax imposed on domestic crude oil received at a United States refinery. The tax helps fund oil spill cleanup and environmental response activities.

The tax is generally paid by the operator of the U.S. refinery that receives the crude oil. In certain situations, other parties may be responsible based on how the oil is used or transferred.

The applicable tax rate is 0.09 dollars per barrel of domestic crude oil. This rate applies through December 31 2025 unless extended or reinstated by law.

The tax is filed quarterly using IRS Form 720 along with Form 6627 for environmental tax calculations. Electronic filing is the fastest and most efficient method.

Yes, Form 6627 is required to calculate and report the Domestic Petroleum Oil Spill Tax. It must be submitted along with Form 720 for the applicable quarter.

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