IRS Instruction 6069 – IRS Form, Instructions, Pubs 2026

IRS Instruction 6069 – In the complex world of tax compliance, understanding specialized forms like IRS Form 6069 is crucial for coal mine operators, black lung benefit trusts, and related parties. This form addresses certain excise taxes under Internal Revenue Code (IRC) sections 4951, 4952, and 4953, focusing on self-dealing, taxable expenditures, and excess contributions. Whether you’re a trustee, disqualified person, or mine operator, this SEO-optimized article provides a detailed breakdown of the instructions for Form 6069, helping you navigate filing requirements efficiently. We’ll cover the purpose, who must file, key taxes, step-by-step completion, deadlines, penalties, and recent updates to ensure you’re using the most current information for 2025 tax years and beyond.

What Is IRS Form 6069 and Its Purpose?

IRS Form 6069, titled “Return of Certain Excise Taxes on Mine Operators, Black Lung Trusts, and Other Persons Under Sections 4951, 4952, and 4953,” serves multiple roles in reporting excise taxes related to black lung benefit trusts. These trusts, exempt under section 501(c)(21), provide benefits for coal miners affected by black lung disease.

Primarily, the form is used to:

  • Report initial excise taxes on self-dealing (section 4951) and taxable expenditures (section 4952) by black lung benefit trusts, trustees, and disqualified persons.
  • Compute the maximum allowable income tax deduction under section 192 for contributions made by coal mine operators to these trusts.
  • Calculate and report the excise tax on excess contributions under section 4953 if contributions exceed the allowable deduction.

For tax years starting on or after January 1, 2021, black lung benefit trusts report under section 6033 using Form 990, but Form 6069 remains essential for the specified excise taxes. This dual functionality makes it a key tool for ensuring compliance while optimizing deductions.

Who Must File Form 6069?

Not everyone involved with black lung benefit trusts needs to file Form 6069—it’s targeted at specific liable parties. Here’s who is required to submit:

  • Disqualified persons liable for excise taxes on self-dealing under section 4951.
  • Trustees of black lung benefit trusts who are liable for taxes on self-dealing (section 4951) or taxable expenditures (section 4952).
  • Black lung benefit trusts themselves, if liable for initial taxes on taxable expenditures under section 4952.
  • Coal mine operators who have made excess contributions under section 4953. Importantly, operators only file if there’s an excess (computed in Part IV); if no excess exists, retain the form with your records but don’t submit it.

If you’re a coal mine operator with no excess contributions, you still use Part IV as a worksheet for your section 192 deduction on your income tax return. Always check the boxes in Item B to indicate your filing status, and provide accurate taxpayer identification numbers (TINs) to avoid processing delays.

Understanding the Excise Taxes Covered by Form 6069

Form 6069 addresses three specific excise taxes, each with unique triggers and rates. Below, we break them down for clarity.

Section 4951: Taxes on Self-Dealing

This section imposes an initial 10% tax on the amount involved in any act of self-dealing between a disqualified person and a black lung benefit trust. Self-dealing includes:

  • Selling, exchanging, or leasing property.
  • Lending money or extending credit.
  • Furnishing goods, services, or facilities.
  • Paying excessive compensation.
  • Transferring trust income or assets for personal use.

The “amount involved” is the greater of the money or fair market value (FMV) exchanged, determined at the time of the act. Disqualified persons include contributors, trustees, significant owners, family members, and controlled entities. Trustees face a separate 2.5% tax if they knowingly participate (unless not willful and due to reasonable cause). Exceptions apply for reasonable compensation, certain investments, and benefit payments for black lung claims.

Correction involves undoing the transaction to restore the trust’s position, and the taxable period runs from the act date until resolution.

Section 4952: Taxes on Taxable Expenditures

An initial 10% tax applies to any expenditure by a black lung benefit trust not aligned with its exempt purposes under section 501(c)(21), such as benefits for black lung disease claims. Trustees may also owe a 2.5% tax for knowing agreement to the expenditure.

The taxable period starts on the expenditure date and ends upon IRS action or correction. Correction requires recovering the funds if possible or offsetting with new contributions. Trusts paying taxes on behalf of others could trigger additional liabilities under sections 4951 or 4952.

Section 4953: Taxes on Excess Contributions by Mine Operators

This imposes a 5% excise tax on contributions exceeding the maximum allowable deduction under section 192. It’s calculated in Part IV of the form, focusing on actuarial costs, administrative expenses, and trust asset values to determine excesses.

Step-by-Step Guide to Completing Form 6069

Filling out Form 6069 requires attention to detail. Use your regular accounting method and round amounts to the nearest dollar. Here’s a breakdown by part:

General Information

  • Enter your tax year in Item A.
  • Check applicable boxes in Item B (e.g., trust for section 4952).
  • Provide name, address (Item C), TIN (Item D), and other details like amendment status (Item E) and trust information (Items F-G).
  • Include contact info for books and records (Items H-I).

Part I: Tax and Payment

  • Lines 1-5: Carry totals from Parts II-IV.
  • Liabilities are joint and several; prorate among parties and attach a statement.
  • Line 8: Compute and pay total tax due.
  • Lines 9a-d: For overpayments, opt for credit or refund via direct deposit.

Part II: Initial Taxes on Self-Dealing (Section 4951)

  • Line 1: List acts with dates and descriptions.
  • Line 2: Detail amounts involved, compute 10% tax for disqualified persons, and 2.5% for trustees.
  • Line 3: Total taxes; carry to Part I as applicable.
  • Line 4: Describe corrections.

Part III: Initial Taxes on Taxable Expenditures (Section 4952)

  • Line 1: List expenditures with recipients and descriptions.
  • Line 2: Include dates, amounts, and liable trustees.
  • Line 3: Compute 10% trust tax and 2.5% trustee tax.
  • Line 4: Totals; carry to Part I.
  • Line 5: Describe corrections.

Part IV: Tax on Coal Mine Operators (Section 4953)

  • Lines 1-2: Input actuarial amounts for claims, payments, and trust FMV.
  • Lines 3-7: Calculate net contributions, excesses, and carryovers.
  • Line 8: If excess on line 7, compute 5% tax and carry to Part I line 2.

Sign the form, and if using a paid preparer, authorize IRS contact.

Filing Deadlines, Where to File, and Payment Options

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. Request an automatic extension with Form 8868.

Mail to: Internal Revenue Service Center, 333 W. Pershing Road, Kansas City, MO 64108.

Pay taxes electronically via EFTPS or IRS Direct Pay for efficiency. Include full payment with the return; overpayments can be refunded or credited.

Penalties for Non-Compliance

Failing to file or pay can lead to severe consequences:

  • Late filing or failure to file: Penalties under section 6651.
  • Willful neglect or fraud: Criminal penalties under sections 7203, 7206, and 7207.
  • Underpayment interest: Charged at rates under section 6621.
  • Additional excise taxes: Under section 6684 for chapter 42 violations.

Liable parties must pay from personal funds—trust reimbursements trigger more taxes. Retain records to support your filing.

Recent Updates and Changes to Form 6069 Instructions

The December 2025 revision emphasizes electronic payments and adds fields for direct deposit refunds. No major structural changes, but confirm updates at IRS.gov/Form6069. For 2021 and later, trusts shifted section 6033 reporting to Form 990.

  • Visit IRS.gov/Form6069 for the latest form and instructions.
  • Related forms: Form 990 (trust reporting), Form 8868 (extensions), Form W-12 (preparer TIN).
  • Regulations: Review section 53.4951-1 for self-dealing details.
  • Submit comments on the form via IRS.gov/FormComments.

Conclusion: Stay Compliant with IRS Form 6069

Mastering IRS Form 6069 ensures compliance with excise taxes on black lung benefit trusts and maximizes deductions for coal mine operators. By following these instructions, you can avoid penalties and streamline your tax process. Consult a tax professional for personalized advice, and always use official IRS resources for the most accurate information. If you’re dealing with sections 4951, 4952, or 4953, proactive filing is key to financial health in the mining industry.