Federal Tax Day - Current, I.2, Oil Spill Liability Trust Fund Financing Rate Expiration Impact (Ann. 2026-2), (Jan 8, 2026)

The IRS released an Announcement regarding the expiration of the Oil Spill Liability Trust Fund financing rate. Code Sec. 4611(a) generally imposes a tax on certain crude oil and petroleum products at the rate specified in Code Sec. 4611(c). Code Sec. 4611(c)(1) provides that the rate of the Code Sec. 4611 tax is the sum of (1) the Hazardous Substance Superfund financing rate (Superfund tax rate); and (2) the Oil Spill Liability Trust Fund financing rate (OSLTF tax rate). Code Sec. 4611(c)(3) adjusts the Superfund tax rate for inflation and Code Sec. 4611(f)(2) provides that the OSLTF tax rate shall not apply after December 31, 2025. Section 4.45 of Rev. Proc. 2025-32, 2025-45 I.R.B. 695, stated that the inflation-adjusted amount for the Code Sec. 4611 tax rate for the 2026 calendar year is $0.27 per barrel, which represents the sum of the $0.18 per barrel inflation-adjusted Superfund tax rate and the $0.09 per barrel OSLTF tax rate. However, the OSLTF tax rate expired on December 31, 2025. As a result, the Code Sec. 4611 tax rate for calendar year 2026 is $0.18 per barrel, which represents only the inflation-adjusted Superfund tax rate. The $0.18 per barrel rate will apply for the entirety of the 2026 calendar year unless Code Sec. 4611(f)(2) is amended to extend the OSLTF tax rate. Accordingly, notwithstanding section 4.45 of Rev. Proc. 2025-32, for any period in calendar year 2026 to which the OSLTF tax rate does not apply, the inflation-adjusted amount for the Code Sec. 4611 tax rate is $0.18 per barrel.

Announcement 2026-2