IRS Form 6069 – In the complex world of tax compliance, certain specialized forms address niche industries and obligations. IRS Form 6069, officially titled “Return of Certain Excise Taxes on Mine Operators, Black Lung Trusts, and Other Persons Under Sections 4951, 4952, and 4953,” plays a crucial role for entities involved in coal mining and black lung benefit programs. This form helps report specific excise taxes and compute deductions related to black lung benefit trusts, ensuring adherence to federal regulations established under the Black Lung Benefits Revenue Act of 1977. Whether you’re a coal mine operator, a trustee, or a disqualified person associated with these trusts, understanding Form 6069 is essential to avoid penalties and maintain compliance.
This article provides an in-depth overview of IRS Form 6069, including its purpose, who must file it, the taxes it covers, step-by-step filing instructions, deadlines, and potential penalties. We’ll draw from official IRS resources to ensure accuracy and relevance for the 2025 tax year and beyond. For the latest form, you can download the PDF directly from the IRS website at https://www.irs.gov/pub/irs-pdf/f6069.pdf.
What Is IRS Form 6069 and Its Purpose?
IRS Form 6069 serves multiple functions, primarily as a reporting tool for excise taxes imposed on black lung benefit trusts and related parties. These trusts, exempt under section 501(c)(21) of the Internal Revenue Code, are funded to provide medical benefits for miners suffering from pneumoconiosis (black lung disease) when not covered by individual mine operators.
The form’s key purposes include:
- Reporting initial excise taxes on acts of self-dealing (section 4951) and taxable expenditures (section 4952) for black lung benefit trusts, disqualified persons, and trustees.
- Computing the maximum allowable income tax deduction under section 192 for contributions by coal mine operators to these trusts.
- Calculating and reporting the excise tax under section 4953 for excess contributions by coal mine operators that exceed the allowable deduction.
Established by the Black Lung Benefits Revenue Act of 1977, these provisions ensure that funds are used appropriately for black lung benefits while imposing taxes on misuse or excess. For tax years starting on or after January 1, 2021, black lung benefit trusts primarily use Form 990 to meet section 6033 reporting requirements, but Form 6069 is still required for specific excise tax liabilities.
Who Must File IRS Form 6069?
Not everyone needs to file Form 6069—it’s targeted at specific entities and individuals involved with black lung benefit trusts. Here’s a breakdown:
- Disqualified Persons: Anyone liable for excise tax on self-dealing under section 4951 must file.
- Trustees: Required if liable for taxes on self-dealing (section 4951) or taxable expenditures (section 4952).
- Black Lung Benefit Trusts: Must file if liable for excise tax on taxable expenditures under section 4952.
- Coal Mine Operators: File only if contributions to a black lung benefit trust exceed the maximum allowable deduction under section 192, resulting in a positive excise tax under section 4953. If there’s no excess (Part IV, line 7 is zero or less), no filing is needed.
If you’re a coal mine operator, the form acts as a worksheet to verify your deduction limits. For trusts and related parties, it’s a direct reporting mechanism for prohibited activities.
Excise Taxes Covered Under Sections 4951, 4952, and 4953
Form 6069 addresses three specific excise taxes related to black lung benefit trusts. Understanding these sections is key to compliance:
Section 4951: Taxes on Self-Dealing
This imposes a 10% initial excise tax on disqualified persons for each act of self-dealing with a black lung benefit trust (calculated per year or part of a year in the taxable period). Trustees who knowingly participate face a 2.5% tax, unless the participation wasn’t willful or due to reasonable cause. Self-dealing includes sales, leases, loans, compensation, or transfers of trust assets. The “amount involved” is the greater of the money or fair market value exchanged, determined at the time of the act.
Section 4952: Taxes on Taxable Expenditures
Black lung benefit trusts pay a 10% initial tax on expenditures not aligned with their exempt purposes under section 501(c)(21). Trustees agreeing to such expenditures are liable for 2.5%, again with exceptions for non-willful actions. Taxable expenditures might include funds used outside of providing black lung benefits.
Section 4953: Taxes on Excess Contributions by Mine Operators
Coal mine operators face a 5% excise tax on contributions exceeding the maximum deductible amount under section 192. This is computed in Part IV of the form, factoring in actuarial estimates for claims, administrative expenses, trust assets, and prior excesses. The tax applies only to cash contributions, and operators must use reasonable actuarial assumptions.
These taxes are initial; additional taxes may apply if issues aren’t corrected, but Form 6069 focuses on the first tier.
How to Fill Out IRS Form 6069: Step-by-Step Guide?
Filling out Form 6069 requires careful attention to the applicable parts based on your role. Use the accounting method from your books and round to whole dollars. Here’s a simplified line-by-line overview:
Preliminary Items (A-I)
- Enter your tax year, filer type, name, address, TIN, and trust details if applicable. Check if it’s an amended return.
Part I: Tax and Payment
- Lines 1-5: Enter taxes from other parts (e.g., line 2 for section 4953 tax).
- Line 8: Total tax due—pay in full electronically via IRS.gov/Payments or by check.
- Lines 9a-d: For overpayments, provide direct deposit info.
Part II: Initial Taxes on Self-Dealing (Section 4951)
- List acts, amounts involved, and compute 10% tax for disqualified persons and 2.5% for trustees. Carry totals to Part I.
Part III: Initial Taxes on Taxable Expenditures (Section 4952)
- Detail expenditures, compute 10% tax for trusts and 2.5% for trustees, and carry to Part I.
Part IV: Tax on Coal Mine Operators (Section 4953)
- Calculate allowable contributions using actuarial data for claims, expenses, and assets. If excess exists (line 7 > 0), compute 5% tax on line 8 and carry to Part I.
Sign the form, and if using a paid preparer, include their details. Attach extra sheets as needed.
Filing Deadlines and Where to Submit
File Form 6069 by the 15th day of the 5th month after your tax year ends (e.g., May 15 for calendar-year filers). If the due date falls on a weekend or holiday, use the next business day. Mail to: Internal Revenue Service Center, 333 W. Pershing Road, Kansas City, MO 64108. Request an extension using Form 8868.
Penalties for Non-Compliance
Failing to file or pay on time can lead to severe consequences:
- Late filing penalties under section 6651.
- Willful failure or fraudulent returns under sections 7203, 7206, and 7207.
- Additional excise tax penalties under section 6684.
- Interest on underpayments at the rate set by section 6621.
To avoid these, correct any self-dealing or taxable expenditures promptly and document reasonable cause if applicable.
Recent Updates and Related Resources
The December 2025 revision of Form 6069 emphasizes electronic payments and adds fields for direct deposit of overpayments. For future developments, check IRS.gov/Form6069. Related publications include Publication 557 (Tax-Exempt Status for Your Organization) for more on trusts.
In summary, IRS Form 6069 is a vital tool for ensuring fair use of black lung benefit funds and proper tax deductions for coal mine operators. By staying informed and filing accurately, you can navigate these excise tax requirements effectively. Consult a tax professional for personalized advice, and always refer to the official IRS instructions for the most current guidance.