1.31.3  Procedures for the Certifications of Excise Tax Collections, Refunds and Credits

Manual Transmittal

February 17, 2015

Purpose

(1) This transmits revised IRM 1.31.3, CFO Internal Policy and Procedures, Procedures for the Certifications of Excise Tax Collections, Refunds, and Credits.

Material Changes

(1) In this revision of IRM 1.31.3, the content was significantly rearranged and updated to reflect new excise tax certification processes for refunds and credits and trust funds. The new processes include the consolidation of multiple single page certifications into a single workbook and the ability to populate the certifications via embedded formulas versus the prior manually intensive process reflected in the prior version of IRM 1.31.3, Procedures for the Certifications of Excise Tax Collections, Refunds, and Credits.

(2) Added the following new sections:

  1. IRM 1.31.3.3, Authorities.

  2. IRM 1.31.3.4, Definitions.

  3. IRM 1.31.3.5, Acronyms.

  4. IRM 1.31.3.6, Responsibilities.

(3) Updated Audience to reflect organizational changes since the last update.

(4) Moved paragraph 1 of manual transmittal background section to IRM 1.31.3.9(1), Certification of Trust Fund Collections and moved paragraph 2 to IRM 1.31.3.7(1), Certification of Refunds and Credits.

(5) Updated manual transmittal signature to reflect new signatory.

(6) IRM 1.31.3.1, Overview, moved contents to new section IRM 1.31.3.2(1), Background, and revised to reflect there are nine trust funds.

(7) IRM 1.31.3.1, Overview, moved contents to new section IRM 1.31.3.2(1), Background, added i) Patient-Centered Outcomes Research Trust Fund (PCORTF).

(8) IRM 1.31.3.1, Overview, moved contents to new section IRM 1.31.3.2(4), Background, revised to reflect Financial Management Service (FMS) new name, Bureau of the Fiscal Service.

(9) IRM 1.31.3.1, Overview, moved contents to new section IRM 1.31.3.2(5), Background, revised to reflect new responsible office name.

(10) IRM 1.31.3.1, Overview, moved contents to new section IRM 1.31.3.2(6), Background, revised to reflect Financial Management Service (FMS) new name, Bureau of the Fiscal Service.

(11) IRM 1.31.3.1, Overview, moved contents to new section IRM 1.31.3.2(7), Background, deleted the sentence, "To assist in determining the accuracy of the Collection Certification information, Revenue Accounting, Excise and Compliance Section used the Automated Quarterly Excise Tax Listing (AQETL)."

(12) Deleted IRM 1.31.3.2, Access and Use of the AQETL System, because this is a stand alone activity and has no impact on the certification process.

(13) IRM 1.31.3.3, Certification of Trust Fund Collections, moved to new section 1.31.3.9, Certification of Trust Fund Collections. The information in this section was revised to provide the excise analyst with background, a source documents list, and revised due dates for the Trust Fund certifications.

(14) IRM 1.31.3.4, Certification of Refunds and Credits, moved to new section 1.31.3.7, Certification of Refunds and Credits. The information in this section was revised to provide the excise analyst with background, a source documents list, and revised due dates for the Refunds and Credits certification.

(15) Added new section 1.31.3.8, Preparing the Refunds and Credits Certification, to provide the excise analyst with step-by-step instructions for preparing the Refunds and Credits certification.

(16) Added new section 1.31.3.10, Preparing the Trust Fund Certifications, to provide the excise analyst with step-by-step instructions for preparing the Trust Fund certifications.

(17) Added new section 1.31.3.11, Obtaining Treasury Concurrence of Changes to Excise Tax Certifications, to incorporate Interim Guidance CFO-01-0314-02, Interim Guidance on Treasury Concurrence to Excise Tax Certifications, into this IRM.

Effect on Other Documents

IRM 1.31.3, dated January 8, 2009, is superseded. This IRM incorporates Interim Guidance CFO-01-0314-02, Interim Guidance on Treasury Concurrence of Changes to Excise Tax Certifications, dated March 7, 2014.

Audience

These procedures are primarily for program analysts and managers in the Revenue Oversight and Support Office.

Effective Date

(02-17-2015)

William H. Maglin II
Associate Chief Financial Officer for
Financial Management

1.31.3.1  (02-17-2015)
Overview

  1. This Internal Revenue Manual (IRM) provides policies and procedures for the completion of certifications for excise tax refunds, credits, and trust funds.

  2. The Chief Financial Officer (CFO), Financial Management (FM), Revenue Oversight and Support Office, develops and maintains this IRM.

1.31.3.2  (02-17-2015)
Background

  1. Currently the Internal Revenue Code (IRC) provides for nine separate trust funds. The IRC Section and Trust Funds are:

    1. IRC Section 9501, Black Lung Disability Trust Fund.

    2. IRC Section 9502, Airport and Airway Trust Fund .

    3. IRC Section 9503, Highway Trust Fund .

    4. IRC Section 9504, Sports Fish Restoration and Boating Trust Fund.

    5. IRC Section 9506, Inland Waterways Trust Fund.

    6. IRC Section 9508, Leaking Underground Storage Tank Trust Fund.

    7. IRC Section 9509, Oil Spill Liability Trust Fund.

    8. IRC Section 9510, Vaccine Injury Compensation Trust Fund.

    9. IRC Section 9511, Patient-Centered Outcomes Research Trust Fund.

  2. Taxpayers are required to file a Form 720, Quarterly Federal Excise Tax Return, or Form 2290, Heavy Highway Vehicle Use Tax Return (HVUT), reporting the tax liability. The Form 720 reports the excise tax quarterly by abstract number, which identifies the tax. The Form 2290 reports taxes for the July 1 through June 30 period or for the period following a vehicle's first use.

  3. Form 720 tax deposits are generally made semi-monthly with Form 8109, Federal Tax Deposit Coupon Book, or electronically through the Electronic Federal Tax Payment System (EFTPS). Semi-monthly deposits are generally required in advance of the return.

  4. Under IRC Section 9601, Transfer of Amounts, excise taxes dedicated to the trust funds must be transferred, at least monthly, based on estimates from the general fund to the trust fund. When the Bureau of the Fiscal Service receives the certification reporting the actual collections for the affected quarter, adjustments are made to true-up the amounts transferred.

  5. The Revenue Oversight and Support Office is responsible for determining the amounts of trust fund collection credits and preparing both the Collection and the Refunds and Credits Certifications. The collection certification process is completed approximately five months after the end of the quarter or approximately four months after the return due date.

  6. The Trust Fund Collection Certifications and Refunds and Credits Certifications are due to the Bureau of the Fiscal Service on the 1st of February, May, and August. If the 1st is a non-work day, the due date is the next workday. Due to Government Accountability Office (GAO) requirements, the end of fiscal year certifications have different due dates and are dependent on agreed upon dates decided during the IRS and the GAO pre-audit meetings held in February of each fiscal year.

  7. To prepare the Refunds and Credits Certifications, the analyst utilizes information provided by the campuses and the Redesigned Revenue Accounting Control System (RRACS). To prepare the Trust Fund Collection Certifications, the analyst utilizes information provided by Information Technology (IT), which is obtained from master file extracts of collections made during the previous quarter for all Form 720 returns on the master files.

  8. The procedures used by the analyst to compile the Refunds and Credits and Trust Fund Certifications for collections, are discussed in the following areas:

    1. IRM 1.31.3.7, Certification of Refunds and Credits.

    2. IRM 1.31.3.8, Preparing the Refunds and Credits Certification.

    3. IRM 1.31.3.9, Certification of Trust Fund Collections.

    4. IRM 1.31.3.10, Preparing the Trust Fund Collection Certifications.

1.31.3.3  (02-17-2015)
Authorities

  1. The authorities for this IRM include:

    1. IRC Section 4081, Imposition of Tax (gasoline, diesel fuel, and kerosene).

    2. IRC Section 4261, Imposition of Tax (transportation of person by air).

    3. IRC Section 4271, Imposition of Tax (transportation of property by air).

    4. IRC Section 6427, Fuels Not Used for Taxable Purposes.

    5. IRC Section 9501, Black Lung Disability Trust Fund.

    6. IRC Section 9502, Airport and Airway Trust Fund.

    7. IRC Section 9503, Highway Trust Fund.

    8. IRC Section 9504, Sports Fish Restoration and Boating Trust Fund.

    9. IRC Section 9506, Inland Waterways Trust Fund.

    10. IRC Section 9508, Leaking Underground Storage Tank Trust Fund.

    11. IRC Section 9509, Oil Spill Liability Trust Fund.

    12. IRC Section 9510, Vaccine Injury Compensation Trust Fund.

    13. IRC Section 9511, Patient-Centered Outcomes Research Trust Fund.

    14. IRC Section 9601, Transfer of Amounts.

  2. Treatment of Kerosene for Use in Aviation, Pub. L. No. 109-59 (2005), Section 11161.

  3. Termination of Transfers from Highway Trust Fund for Certain Repayments and Credits, Pub. L. No. 111-147 (2010), Section 444.

1.31.3.4  (02-17-2015)
Definitions

  1. In this IRM, the terms below have the following meanings:

    1. Excise Tax - A tax levied by the federal government to finance both general government activities and specific programs.

    2. Trust Fund - One of two major categories of funds established to carry out purposes of a trust agreement or statute, whereby receipts are earmarked for spending on specific purposes.

    3. Redesigned Revenue Accounting Control System (RRACS) - The IRS automated system used to provide accounting control for all revenue accounting transactions.

1.31.3.5  (02-17-2015)
Acronyms

  1. The following chart contains acronyms that are used throughout this IRM:

    Acronym Definition
    AATF Airport and Airways Trust Fund
    AQETL Automated Quarterly Excise Tax Listing
    BLDTF Black Lung Disability Trust Fund
    BMF Business Master File
    CRN Credit Reference Number
    EFTPS Electronic Federal Tax Payment System
    GAO Government Accountability Office
    HTF Highway Trust Fund
    HVUT Heavy Vehicle Use Tax
    IMF Individual Masterfile
    IT Information Technology
    IWTF Inland Waterway Trust Fund
    LUSTTF Leaking Underground Storage Tank Trust Fund
    MOU Memorandum of Understanding
    NTRR Net Tax Refund Report
    OSLTF Oil Spill Liability Trust Fund
    OTA Office of Tax Administration
    PCORTF Patient Centered Outcomes Research Trust Fund
    RRACS Redesigned Revenue Accounting Control System
    SFRBTF Sport Fish and Boating Restoration Trust Fund
    VICTF Vaccine Injury Compensation Trust Fund

1.31.3.6  (02-17-2015)
Responsibilities

  1. This section provides responsibilities for:

    1. Chief Financial Officer.

    2. Associate Chief Financial Officer for Financial Management.

    3. Director, Revenue Oversight and Support Office.

    4. Excise Analysts, Revenue Oversight and Support Office.

1.31.3.6.1  (02-17-2015)
Chief Financial Officer

  1. The Chief Financial Officer is responsible for establishing financial policy for the management and reporting of the custodial assets.

1.31.3.6.2  (02-17-2015)
Associate Chief Financial Office for Financial Management

  1. The Associate Chief Financial Officer for Financial Management is responsible for establishing, maintaining, and ensuring compliance with custodial revenue policy and procedures for internal accounting and financial reporting.

1.31.3.6.3  (02-17-2015)
Director, Revenue Oversight and Support Office

  1. The Director, Revenue Oversight and Support Office is responsible for:

    1. Analyzing data extracts to maximize data quality for excise tax certifications.

    2. Performing the final review of the excise certifications and signing the certification letters.

1.31.3.6.4  (02-17-2015)
Excise Analysts, Revenue Oversight and Support Office

  1. The Excise Analysts are responsible for:

    1. Completing the quarterly trust fund certification.

    2. Completing the quarterly refunds and credits certification.

    3. Retrieving and saving the quarterly GAS-01-42 Report of Credits, Claims, and Adjustments (Quarterly Treasury-90 Report).

    4. Retrieving and saving the monthly 555-42-11 Report of Excise Tax Collections

    5. Retrieving and saving the monthly 180-50-11 Report of U.S. Internal Revenue Receipts.

    6. Retrieving and saving the monthly 555-86-11 Report of Penalty Collection.

    7. Retrieving and saving the monthly RRACS-023 Report of Net Tax Revenue Refunds (NTRR).

    8. Retrieving and saving the monthly NMF Revenue Receipts report.

    9. Updating the NMF Revenue Receipts spreadsheet with the monthly data.

    10. Sending the updated NMF Revenue Receipts spreadsheet to Treasury.

    11. Updating the Earmark workbook with the monthly data.

    12. Issuing the quarterly Earmark letter to the Fish and Wildlife Service.

    13. Updating the HVUT spreadsheet with the monthly data.

    14. Retrieving and saving the 180-AB-11 Report of the Environmental Tax IRC Section 59A Based on Modified Alternative Minimum Taxable Income.

    15. Issuing annual Superfund certification letter to the Bureau of the Fiscal Service.

    16. Issuing annual Branded Prescription Drug certification letter to the Bureau of the Public Debt.

1.31.3.7  (02-17-2015)
Certification of Refunds and Credits

  1. Excise taxes reported and paid may also be credited or refunded. Credits or refunds can be claimed on Form 720, Quarterly Federal Excise Tax Return, Form 8849, Claim for Refund of Excise Taxes, Form 4136, Credit for Federal Tax Paid on Fuels, or Form 2290, Heavy Highway Vehicle Use Tax Return. In these cases, IRS certifies the amounts of the refunds paid or credits taken so adjustments can be made to the trust funds.

  2. An official certification letter, signed by IRS management, is issued quarterly to Treasury and the Bureau of the Fiscal Service documenting any refunds issued and/or credits claimed for excise taxes for the Airport and Airways Trust Fund.

  3. The excise analyst uses data from the following to prepare the certification:

    1. GAS-01-42 report of Credits, Claims, and Adjustments (Quarterly Treasury-90 Report), also known as the T-90 Report, for each of the 10 campuses which contain the quarterly amounts for credits, claims, and adjustments by credit reference numbers for the following taxpayer filed documents:

      • Forms 4136, Credit for Federal Tax Paid on Fuels, for returns for Business Master File (BMF) and Individual Master File (IMF).

      • Forms 8849, Claims for Refund of Excise Tax, for returns for the BMF and IMF.

      • Schedule C, Claims, filed with Form 720, Quarterly Federal Excise Tax Returns.

      • Schedule C, Adjustments, filed with Form 720, Quarterly Federal Excise Tax Returns.

    2. Redesigned Revenue Accounting Control System (RRACS) Report 0023A, Net Tax Refund Report (NTRR).

    3. NTRR footnotes workbook.

  4. Due dates for the Refunds and Credits Certifications are as follows:

    Liability Period Ending Processing Period Ending Due Date
    September December February 1
    December March May 1
    March June August 1
    June August TBD Based on GAO deliverable dates

1.31.3.8  (02-17-2015)
Preparing the Refunds and Credits Certification

  1. The following steps walk the excise analyst through the completion of the refunds and credits certification:

    1. Validating the T-90 reports and the Monarch Totals.

    2. Completing the Refund and Credit Certification.

    3. Updating the NTRR Input Tab.

    4. Updating the Recap Tabs.

    5. Finalizing the Refunds and Credits Certification.

1.31.3.8.1  (02-17-2015)
Validating the T-90 and Monarch Totals

  1. Log in to Control-D and download the GAS-01-42 report for each of the 10 campuses.

  2. Save the downloaded files as both a .txt and .pdf to the Control-D Reports folder on the Excise shared drive: RFM\FMD\EXCISE\Control D Reports. Pay special attention to the Fresno download as the report contains the data twice. When saving, select the pages corresponding to ONE set of data.

  3. Email copies of the .txt versions of the GAS-01-42 reports to the analyst with access to Monarch so they can be loaded into Monarch. Monarch will produce a spreadsheet consolidating all of the GAS-01-42 information. The analyst will email back the completed spreadsheet.

  4. Save the Monarch produced spreadsheets to the corresponding Refund and Credits folder for the certification period.

  5. Using the “T-90 and Monarch Report Validation” spreadsheet, verify the Monarch spreadsheet totals match the source report totals:

    1. Enter the corresponding data from the T-90 reports into the correct columns for each campus. Imbedded formulas will produce campus and form type totals.

    2. Enter the form type totals from the Monarch report on the corresponding line.

    3. Verify there is no variance.

    4. If a variance exists, review the T-90 and Monarch reports to determine the cause.

1.31.3.8.2  (02-17-2015)
Completing the Refund and Credit Certification

  1. Open the refunds and credits workbook and the Monarch produced spreadsheet.

  2. Copy and paste the Monarch produced spreadsheet into the GASOIL (MONTH) tab. Press CTRL + A. Embedded formulas will automatically update the subsequent tabs including the refund and credit letters, but, excluding the NTRR Input tab (See section for updating this tab).

  3. Verify the TOTAL from the GASOIL (MONTH) tab matches the GRAND TOTAL on the CRN SHEET tab.

  4. If the TOTALS don’t match, compare the GASOIL (MONTH) and CRN SHEET tabs to determine missing CRNs on the CRN SHEET tab.

    1. If a CRN is missing, insert a line within the corresponding Trust Fund and insert the correct formulas to capture the amounts.

    2. Verify Trust Fund column formulas are correct to account for the new CRN.

    3. Re-verify the TOTAL from GASOIL (MONTH) tab matches the GRAND TOTAL on the CRN SHEET tab.

  5. Trace the amounts on the recap tabs to CRN Sheet tab to verify the amounts and the equations used to pull through the data.

  6. Validate the amounts on the AATF, HTF, and the RRACS Reclass letters on the last three tabs of the spreadsheet.

1.31.3.8.3  (02-17-2015)
Updating the Net Tax Refund Report Input Tab

  1. The excise analyst will need the following in order to complete this section.

    1. Prior quarter Refund and Credit certification.

    2. Current month NTRR report.

    3. NTRR Footnotes workbook.

  2. There are two lines on the NTRR Input tab that require updating for each quarterly refund and credit certification:

    1. FY Cumulative (FY Cum) – use the NTRR report which corresponds to the Fiscal Year’s certification month:

      1. December, March, June, August/September.

      2. In the corresponding columns, enter the amounts from the Headquarters FYTD section of the NTRR Report for:

        • Line 71 – Gasoline (CRN 362).

        • Line 72 – Gasohol (CRN 359).

        • Line 73 – Diesel (CRN 360).

        • Line 74 – LPG (CRN 361).

        • Line 75 – Diesel (CRN 360).

        • Line 76 – Dyed Diesel Buses (CRN 378).

        • Line 77 – N/A.

        • Line 78 – Aviation Gas (CRN 324).

        • Line 79 – Aviation Fuel (CRN 369).

    2. Less Applied Footnotes

      1. There are 12 monthly tabs that make up the fiscal year NTRR Footnotes workbook. Historically, the tabs which require updating are as follows:

        • February

        • May

        • August

        • September

      2. To update the corresponding tab, use the refund and credit certification from the prior quarter for:

        • Section I - use the amounts from the AATF Consolidated Recap tab and enter the amounts which correspond to the row titles and column headers.

        • Section III – use the amounts from the HTF Consolidated Recap tab and enter the amounts which correspond to the row titles and column headers.

        • NTRR Footnote Data section – existing formulas combine amounts from Section I and III.

        • Enter the Cumulative total amounts onto the Less Applied Footnotes line of the NTRR Input tab of the refunds and credits certification.

1.31.3.8.4  (02-17-2015)
Updating the Recap Tabs

  1. AATF Consolidated Recap Tab

    1. This tab is automatically populated.

    2. Verify the amounts pulled forward.

    3. Change the processing and liability dates to reflect the period being certified.

  2. AATF Recap Tab

    1. This tab is automatically populated.

    2. Verify the amounts pulled forward.

    3. Change the processing period to reflect the period being certified.

  3. HTF Consolidated Recap Tab

    1. This tab is automatically populated.

    2. Verify the amounts pulled forward.

    3. Change the processing period to reflect the period being certified.

  4. HTF Diesel Recap Tab

    1. This tab is automatically populated.

    2. Verify the amounts pulled forward.

    3. Change the processing period to reflect the period being certified.

  5. HTF Gasohol Recap Tab

    1. This tab is automatically populated.

    2. Verify the amounts pulled forward.

    3. Change the processing period to reflect the period being certified.

  6. HTF SMF Recap Tab

    1. This tab is automatically populated.

    2. Verify the amounts pulled forward.

    3. Change the processing period to reflect the period being certified.

  7. HTF Gasoline Recap Tab

    1. This tab is automatically populated.

    2. Verify the amounts pulled forward.

    3. Change the processing period to reflect the period being certified.

  8. AATF Letter Tab

    1. This tab is automatically populated.

    2. Verify the amounts pulled forward.

    3. Change the processing period to reflect the period being certified.

  9. HTF Letter Tab

    1. This tab is automatically populated.

    2. Verify the amounts pulled forward.

    3. Change the processing period to reflect the period being certified.

  10. RRACS Reclass Letter Tab

    1. This tab is automatically populated.

    2. Verify the amounts pulled forward.

    3. Change the processing period to reflect the period being certified.

1.31.3.8.5  (02-17-2015)
Finalizing the Refunds and Credits Certification

  1. Upon completion of the above steps, assemble a review package which contains the following:

    1. Entire refunds and credits certification workbook.

    2. T-90 report and Monarch validation spreadsheet.

    3. Prior quarter refunds and credits AATF and HTF Recap tabs (used on NTRR Footnotes spreadsheet).

    4. NTRR Footnotes Spreadsheet (used on NTRR input tab).

    5. RRACS 0023 Report (NTRR Report)(used on NTRR input tab).

    6. Review check sheets for preparer, first reviewer, team lead/manager, and Director.

  2. The preparer will initial and date their check sheet prior to forwarding the review package to the first reviewer.

  3. If the first reviewer finds any discrepancies, the review package is returned to the preparer for correction. This continues until there are no discrepancies. Once all discrepancies are resolved, the first reviewer will initial and date their check sheet and forward the package to the team lead/manager for review.

  4. The team lead/manager will review the package and initial and date the items indicated on their check sheet. The package is then forwarded to the Director.

  5. The Director will review the package and initial and date the items indicated on their check sheet. The package is then returned to the preparer.

  6. The preparer will provide the Director with a pdf version of the AATF certification letter ONLY for electronic signature. Once signed by the Director, the letter is returned to the preparer via email.

  7. The preparer will email the scanned letter and any supporting documentation to the appropriate parties according to the distribution list.

  8. All source documentation, check sheets, and signed letters are retained on the excise shared drive for 10 years.

  9. Submit the RRACS Reclass letter to the RRACS analyst responsible for making the reclassification journal entry.

1.31.3.9  (02-17-2015)
Certification of Trust Fund Collections

  1. An excise tax liability is reported on Form 720, Quarterly Federal Excise Tax Return. Semi-monthly deposits are required in advance of the return. Form 2290, Heavy Highway Vehicle Use Tax (HVUT) Return is filed annually to report highway use tax liability. Quarterly, the IRS certifies trust funds based on the amount collected to the Department of Treasury and the Bureau of the Fiscal Service.

  2. Official certification letters, signed by IRS management, are issued quarterly to Treasury and the Bureau of the Fiscal Service documenting excise tax collections for the trust funds listed in Section 1.31.3.2(1), Background. The exception to this is the certification for PCOR which is only done annually.

  3. The excise analyst uses the data from the following to prepare the certification:

    1. 555-42-11, Report of Excise Tax Collections.

    2. 180-50-11, Report of U.S. Internal Revenue Receipts.

    3. 555-86-11, Report of Penalty Collection.

    4. Trust Fund Certifications workbook.

    5. CRN Sheet from Refund and Credit Certification.

    6. Coal Credit information from IDRS and AQETL.

    7. HVUT 2290 Spreadsheet.

    8. Excise tax Rate Sheet from Treasury.

    9. Penalties Spreadsheet.

  4. Due dates for the Trust Fund Certifications are as follows:

    Liability Period Ending Processing Period Ending Due Date
    September December February 1
    December March May 1
    March June August 1
    June August TBD Based on GAO deliverable dates

1.31.3.10  (02-17-2015)
Preparing the Trust Fund Certifications

  1. The following steps walk the excise analyst through the completion of the refunds and credits certification:

    1. Retrieving the Control-D reports.

    2. Completing the Trust Fund Certifications.

    3. Updating the COLL 1 Tab.

    4. Updating the COLL 2 Tab.

    5. Updating the COLL 3 Tab.

    6. Updating the Penalties Tab.

    7. Finalizing the Trust Fund Certifications.

1.31.3.10.1  (02-17-2015)
Retrieving the Control-D Reports

  1. Log in to SYSM in Control-D.

  2. Select Filter from the menu bar. A box will pop up called Filter Report List.

  3. In the Report Name field, enter 555-42-11.

  4. Check to make sure the Migrated box is checked in the Report Status box on the right,

  5. Select Apply at the bottom.

  6. Find and open the most recent month for the report.

  7. Save the file as a .pdf and .txt following the naming conventions already present in the folder.

  8. Email the .txt version to the Monarch analyst for input into Monarch to produce an Excel spreadsheet. The analyst will email back the completed spreadsheet.

  9. Save the Monarch produced spreadsheet to the folder corresponding to the Trust Fund Certification you are working on.

1.31.3.10.2  (02-17-2015)
Completing the Trust Fund Certification

  1. Open the trust fund certification workbook and the Monarch spreadsheet.

  2. Copy and paste the Monarch spreadsheet to the first tab of the trust fund certification workbook. Do the following to make the data usable:

    1. Delete the column for “Cycle” and “Period”.

    2. Type a 1 in any open cell. Copy the cell and highlight Column A. Right click in the highlighted area and choose Paste Special. Select Multiply.

    3. Highlight all rows under the column headers and sort the data by Column A.

    4. Highlight all data a press Control + A. Embedded formulas will automatically update the subsequent tabs including the Trust Fund letters, but, excluding the CRN tab.

  3. Open the current quarter refund and credit certification workbook.

    1. Copy the CRN tab and paste the information to the CRN tab of the trust fund certification workbook.

    2. Starting with and including AATF, highlight all data down to Grand Total. Sort the data using Column A.

    3. There will be CRNs not associated with an abstract number. Cut and paste the CRNs below the last Abstract/CRN combination.

    4. Total all columns.

  4. There are VLOOKUP formulas in place on the COLL1 tab to pull through data from Column S on the CRN tab, because of this, similar abstracts must be added together to provide a total for each abstract.

    1. Copy and paste the abstracts in Column A below the sorted list. Delete duplicate abstract numbers.

    2. Under the abstracts, add lines for CRNs 365, 367, 368, 417, and 418.

    3. Under the CRNs, add a line item for MISC. This will capture all stand alone CRNs not captured in b) above.

    4. Insert formulas to pull in the abstract and CRN data. The exception is abstract 35. Do not include CRN 417 and 418 in the abstract 35 total as they are broken out as their own line items.

    5. Total all columns of the summarized abstract and CRN data.

    6. Compare the summarized totals to the totals of the original data to determine if there are any variances.

    7. Resolve any variances before continuing.

1.31.3.10.3  (02-17-2015)
Updating the COLL 1 Tab

  1. Columns C, E, K, and O contain formulas to automatically pull through data from the 555-42-11 and CRN tabs.

  2. Column M is updated from two sources:

    1. Coal Credits output from AQETL and the corresponding tracking spreadsheet (see section below for details).

    2. HVUT 2290 spreadsheet (see section below for details).

  3. Once the coal credits and HVUT amounts are entered, the totals need to be validated.

    1. From the 555-42-11 tab, copy and paste the total from the Reclass column to Column C and the total from the New Collect column to column E. Once these amounts are entered there will be a variance. Reconciling amounts should eliminate the variance. Resolve any variances before moving on.

    2. From the CRN tab, copy and paste the total from Column S - Rev Cert Amount to Column K. Once these amounts are entered there will be a variance. Reconciling amounts should eliminate the variance. Resolve any variances before moving on.

1.31.3.10.3.1  (02-17-2015)
Coal Credit Procedures

  1. Open the coal credit workbook.

  2. Login to AQETL.

  3. Select Reports/Miscellaneous/Coal Credits.

  4. Use the following steps for each tax cycle that occurred during the quarter being certified:

    1. From the drop down box, select the tax cycle.

    2. Once the report appears, copy the table data to the coal credit workbook.

    3. Save the page as a pdf for supporting documentation.

  5. Once the workbook has been updated with the AQETL data, an analyst will use the data to get information from IDRS to support whether or not the amounts for each coal abstract (36, 37, 38, 39) should be counted towards the coal credits. The analyst will create a pdf from the IDRS screen for supporting documentation.

    1. Using the IDRS pdfs, the excise analyst will compare the money amounts under each abstract. If the money amount is going from one abstract to another using TC290 or TC300, the excise analyst will input a "NO" in the appropriate box and are not counted as coal credits. If the money amount is a decrease in tax using TC291 or TC301 it is counted on the coal report. Insert a formula in the corresponding cell to include the amount in the calculation for the abstract.

  6. The abstract totals are entered in Column M of the COLL 1 tab.

1.31.3.10.3.2  (02-17-2015)
Heavy Vehicle Use Tax Form 2290 Procedures

  1. On a monthly basis an excise analyst should retrieve the 180-50-11, Report of U.S. Internal Revenue Receipts. The Form 2290 total amount needs to entered into the HVUT spreadsheet.

  2. Enter the corresponding quarterly total from the HVUT 2290 spreadsheet to Column M.

1.31.3.10.4  (02-17-2015)
Updating the COLL 2 Tab

  1. This tab is automatically populated using embedded formulas.

  2. Verify the amounts pulled forward from the COLL 1 tab.

1.31.3.10.5  (02-17-2015)
Updating the COLL 3 Tab

  1. This tab is automatically populated using embedded formulas.

  2. Verify the amounts pulled forward from the COLL 2 tab.

  3. Verify the rates using the Rate Sheet provided by Treasury.

1.31.3.10.6  (02-17-2015)
Updating the Penalties Tab

  1. This is populated using data from the 555-86-11 report and represents excise penalties collected during the quarter.

1.31.3.10.7  (02-17-2015)
Updating All Other Trust Fund Certification Tabs

  1. HTF-AATF Adj Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify the correct amounts are pulled in from the Rev Cert Amount column for CRN 417 and 418 from the CRN tab.

    3. Change the dates to reflect the proper liability and processing periods.

  2. HTF Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify amounts pulled forward from the COLL 3, HTF-AATF Adj, and Penalties tabs.

    3. Verify the HTF Roll Up total amount matches the Total Tax amount.

    4. Change the dates in the body of the letter.

  3. MASS - AATF Adj Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify the correct amounts are pulled in from the Rev Cert Amount column for CRN 417 and 418 from the CRN tab.

    3. Change the dates to reflect the proper liability and processing periods.

  4. MTA Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify amounts pulled forward from the COLL 3 and MASS - AATF Adj tabs.

    3. Verify the MTA Roll Up total amount matches the Total Tax amount.

    4. Change the dates in the body of the letter.

  5. LUST Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify amounts pulled forward from the COLL 3 tab.

    3. Verify the LUST Roll Up total amount matches the Total Tax amount.

    4. Change the dates in the body of the letter.

  6. AATF - HTF Adj Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify the correct amounts are pulled in from the Rev Cert Amount column for CRN 417 and 418 from the CRN tab.

    3. Change the dates to reflect the proper liability and processing periods.

  7. AATF Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify amounts pulled forward from the COLL 2, COLL 3, and AATF - HTF Adj tabs.

    3. Change the dates in the body of the letter to reflect the proper liability and processing periods.

  8. VICTF Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify the amount pulled forward from the COLL 2 tab.

    3. Change the dates in the body of the letter to reflect the proper liability and processing periods.

  9. IWTF Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify the amount pulled forward from the COLL 3 tab.

    3. Change the dates in the body of the letter to reflect the proper liability and processing periods.

  10. Sport Fish Rest Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify the amount pulled forward from the COLL 2 tab.

    3. Change the dates in the body of the letter to reflect the proper liability and processing periods.

  11. BLTF Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify the amount pulled forward from the COLL 2 tab.

    3. Change the dates in the body of the letter to reflect the proper liability and processing periods.

  12. OSLT Tab

    1. This tab is automatically populated using embedded formulas.

    2. Verify the amount pulled forward from the COLL 2 tab.

    3. Change the dates in the body of the letter to reflect the proper liability and processing periods.

  13. PCORTF Tab

    1. Per a MOU between IRS Financial Management and the Bureau of the Fiscal Service, the PCORTF will not be certified on a quarterly basis due to the unique filing requirements for PCORTF entities. The IRS excise team will delay the PCORTF certification until February/March of the following calendar year. This allows the certification to be in sync with the Office of Tax Administration (OTA) estimation and the Bureau of the Fiscal Service transfer processes.

1.31.3.10.8  (02-17-2015)
Finalizing the Trust Fund Certifications

  1. Upon completion of the above steps, the preparer will assemble a review package which contains the following:

    • Entire trust fund certification workbook.

    • Coal credit workbook.

    • HVUT 2290 spreadsheet.

    • Trust Fund Tax Rates and Distribution to Accounts Sheet.

    • 555-86-11 report.

    • Review check sheets for preparer, first reviewer, team lead/manager, and Director.

  2. The preparer will initial and date their check sheet prior to forwarding the review package to the first reviewer.

  3. If the first reviewer finds any discrepancies, the review package is returned to the preparer for correction. This continues until there are no discrepancies. Once all discrepancies are resolved, the first reviewer will initial and date their check sheet and forward the package to the team lead/manager for review.

  4. The team lead/manager will review the package and initial and date the items indicated on their check sheet. The package is then forwarded to the Director.

  5. The Director will review the package and initial and date the items indicated on their check sheet. The package is then returned to the preparer.

  6. The preparer will provide the Director with pdf versions of the certification letters for electronic signature. Once signed by the Director, they are returned to the preparer via email.

  7. The preparer will email the scanned letter and any supporting documentation to the appropriate parties according to the distribution list.

  8. All source documentation, check sheets, and signed letters are retained on the excise shared drive for 10 years.

1.31.3.11  (02-17-2015)
Obtaining Treasury Concurrence of Changes to Excise Tax Certifications

  1. This section establishes procedures to obtain concurrence from impacted Treasury agencies related to changes in how the IRS Excise Team manages and performs excise tax calculations or distribution processes.

    1. Prior to making any changes, the IRS Excise team will discuss the scenario with the potentially impacted Treasury offices. The offices this would most likely impact are the Office of Tax Administration (OTA) and the Bureau of the Fiscal Service as they are responsible for the Trust Fund estimates and transfers, respectively.

    2. Upon obtaining documented concurrence from the Office of Tax Administration (OTA) and the Bureau of the Fiscal Service for any changes to the certification and distribution process, the IRS will issue a Memorandum of Understanding (MOU) containing Director level signatures to document the agreement.

    3. The IRS Excise team will maintain an electronic folder of the MOUs on its Excise shared drive.


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