3.11.23  Excise Tax Returns

Manual Transmittal

October 28, 2014

Purpose

(1) This transmits revised IRM 3.11.23, Returns and Document Analysis - Excise Tax Returns

Material Changes

(1) Minor editorial changes have been made throughout this IRM.

(2) IRM 3.11.23.1.6(2) - Updated routing guidance for Form 2848 and Form 8821.

(3) IRM 3.11.23.1.8(5)b) - Provided guidance for expedited Form 2290 Schedule 1 requests on amended returns.

(4) IRM 3.11.23.6 - Updated refund return procedures and the 45-day jeopardy period to apply to refunds of $10 million or more.

(5) IRM 3.11.23.10.7 - Added reminder to apply Patient Centered Outcomes Research Tax payments to second quarter accounts.

(6) IRM 3.11.23.11 - Updated IRS Received Date subsection to incorporate changes to Business Master File (BMF) consistency guidelines. BMF consistency symbols were removed as this subsection contains program specific information.

(7) IRM 3.11.23.11(2) and (5) - Bolded statement in (2) due to deviation from BMF return consistency guidelines that all excise returns require a received date. Corrected (5) to reflect that the received date will be stamped on the face of the return.

(8) IRM 3.11.23.11.1 - BMF consistency symbols were removed as this subsection contains program specific information.

(9) IRM 3.11.23.16(7) - Corrected typo in chart to reflect Taxable Medical Devices IRS Number to 136.

(10) IRM 3.11.23.16.1.3(4) - Added exception to table to reflect that no dummy return is required for the second quarter Form 720 when quarters 1, 3, and/or 4 are reporting zero, N/A, none, - (dash), etc. for IRS Number 133, Patient Centered Outcomes Research (PCOR) tax.

(11) IRM 3.11.23.16.1.3(6) - Revised table to address editing the PCOR Fee.

(12) IRM 3.11.23.16.7(2) - Added note to delete PCOR tax when Form 720 has been received for quarters 1, 3, and/or 4 when zero, N/A, none, - (dash), etc. has been entered for the PCOR tax amount.

(13) IRM 3.11.23.16.8(1) - Removed the word negative from the 9th row of the "Then" column so Form 720, Schedule C amounts will be totaled and edited to Form 720, Line 4.

(14) IRM 3.11.23.16.8.1 - Added a new paragraph 5 providing instructions when Form 720, Line 4 is blank and there are amounts present on Form 720, Schedule C to compute and edit the Schedule C amounts to Form 720, Line 4.

(15) IRM 3.11.23.17.11(2)a - Added routing procedures for amended Form 2290 when the taxpayer requests expedited return of Schedule 1.

(16) IRM 3.11.23.17.12 - Updated information regarding the Consent to Disclosure of Tax Information statement for Form 2290.

(17) IRM 3.11.23.26.1(1)a - Updated routing information for amended Form 8612 and amended Form 8613.

(18) IRM 3.11.23.27.2 - Added instruction to route Form 8613 to Non-Master File when editing is complete.

(19) IRM 3.11.23.28.1(1)a - Updated routing information for amended Form 8725.

(20) IRM 3.11.23.29.1(1)a - Updated routing information for amended Form 8876.

(21) IRM 3.11.23.30.1(1)a - Updated routing information for amended Form 8924.

(22) IRM 3.11.23.30.3(1) - Corrected the return due date for Form 8924 per the form instructions revised December 2013.

(23) IRM 3.11.23.31.2(1)a - Updated the routing information for amended Form 8928.

Effect on Other Documents

This IRM supersedes IRM 3.11.23 dated November 12, 2013 (effective January 1, 2014). This IRM also incorporates IRM Procedural Updates (IPUs) 14U1224, 14U1139, 14U0813, 14U0424, 14U0253, and 14U0127.

Audience

Wage and Investment Submission Processing Code and Edit

Effective Date

(01-01-2015)

Paul J. Mamo
Director, Submission Processing
Wage and Investment Division

3.11.23.1  (01-01-2015)
Introduction

  1. This section contains procedures for the Code and Edit of certain Excise Tax Returns.

  2. The returns to be processed based on the instructions in this chapter are:

    • Form 11-C, Occupational Tax and Registration Return for Wagering.

    • Form 720, Quarterly Federal Excise Tax Return.

    • Form 730, Monthly Tax Return for Wagers.

    • Form 2290 and Form 2290SP, Heavy Highway Vehicle Use Tax Return.

    • Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trusts.

    • Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies.

    • Form 8725, Excise Tax on Greenmail.

    • Form 8876, Excise Tax on Structured Settlement Factoring Transactions.

    • Form 8924, Excise Tax on Certain Transfers of Qualifying Geothermal or Mineral Interests.

    • Form 8928, Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code.

3.11.23.1.1  (01-01-2015)
General Instructions

  1. This IRM cannot address every possibility that may arise while perfecting returns or documents. Taxpayer intent must be taken into consideration. In some cases, it may be necessary to refer the issue to your subject matter expert (SME), lead and/or manager to determine the proper corrective action.

  2. The purpose of Code and Edit is to code and edit (perfect) returns and other documents to make them processable for transcription. This is necessary to input these items to the Integrated Submission and Remittance Processing (ISRP) system.

  3. Another purpose is to ensure that necessary action is taken on all attachments to the return, including preparation of other documents and initiating taxpayer correspondence when necessary to perfect the return.

  4. It is not the purpose of Code and Edit to mathematically verify or to check the validity of the returns and other documents being processed unless otherwise specified in the applicable section. The computer and/or Error Correction (Resolution) will perform these functions if the returns and other documents are coded and edited as prescribed in the applicable subsections of this section.

3.11.23.1.2  (01-01-2015)
♦ Business Master File (BMF) Consistency ♦

  1. The purpose of this initiative is to achieve consistency in the Business Master File (BMF) Code and Edit processing IRMs.

  2. Topics for BMF Consistency have been identified and developed as a coordinated effort between Cincinnati, Ogden and Paper Processing Branch BMF Code and Edit/Error Resolution System (ERS).

  3. BMF Consistency subsections are identified by a ♦ (diamond) before and after the title.

  4. Text in normal print is the common processes for BMF returns. The text in BOLD print is form specific and applies to this IRM only.

3.11.23.1.3  (01-01-2015)
General Guidelines

  1. General instructions are provided to eliminate the repetition of the same instructions for the specific return. If there is a conflict between the general instructions and the specific instructions, the specific instructions will prevail.

3.11.23.1.4  (01-01-2015)
♦ Taxpayer Advocate Service (TAS) ♦

  1. Refer taxpayers to the Taxpayer Advocate Service (TAS) when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service Case Criteria) and you can't resolve the taxpayer's issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer these cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same Day Resolution by Operations. When referring cases to TAS, use Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), and forward to TAS in accordance with your local procedures.

3.11.23.1.4.1  (01-01-2015)
♦ TAS Service Level Agreements (SLA) ♦

  1. The National Taxpayer Advocate has reached agreements with the Commissioners of the Wage and Investment (W&I) Division, Small Business and Self Employed (SB/SE) Division, Tax Exempt and Government Entities (TE/GE), Criminal Investigation (CI), Appeals, and Large Business and International (LB&I), that outline the procedures and responsibilities for the processing of Taxpayer Advocate Service casework when either the statutory or delegated authority to complete case transactions rests outside of TAS. These agreements are known as Service Level Agreements (SLAs).

  2. The SLAs contain basic requirements for handling TAS referred cases and includes specific actions to take on TAS referrals and specific time frames for completing those actions.

  3. The SLAs are located at http://tas.web.irs.gov/policy/default.aspx under the heading "Service Level Agreements" .

3.11.23.1.5  (01-01-2015)
♦ Frivolous Returns and Claims ♦

  1. Positions that are the same as or similar to the positions listed in Exhibit 3.11.23-11 are identified as frivolous for purposes of the penalty for a "frivolous tax return" under Internal Revenue Code (IRC) Section 6702(a) and the penalty for a "specified frivolous submission" under IRC Section 6702(b). Persons who file a purported return of tax, including an original or amended return, based on one or more of these positions are subject to a penalty of $5,000 if the purported return of tax does not contain information on which the substantial correctness of the self assessed determination of tax may be judged or contains information that on its face indicates the self assessed determination of tax is substantially incorrect. Likewise, persons who submit a "specified submission" (namely, a request for a collection due process hearing or an application for an installment agreement, offer-in-compromise, or Taxpayer Assistance Order) based on one or more of the positions listed in Exhibit 3.11.23-11 are subject to a penalty of $5,000. The penalty may also be applied if the purported return or any portion of the specified submission is not based on a position set forth in this notice, yet reflects a desire to delay or impede the administration of Federal tax laws for purposes of IRC Section 6702(a)(2)(B) or IRC Section 6702(b)(2)(A)(ii).

  2. IRC Section 407 of Tax Relief and Health Care Act of 2006, Pub. L. No. 109-432, 120 Stat. 2922 (2006), amended IRC Section 6702 to increase the amount of the penalty for frivolous tax returns from $500 to $5,000 and to impose a penalty of $5,000 on any person who submits a "specified frivolous submission." A submission is a "specified frivolous submission" if it is a "specified submission" (defined in IRC Section 6702(b)(2)(B) as a request for a hearing under IRC Section 6320 or IRC Section 6330 or an application under IRC Section 6159, IRC Section 7122 or IRC Section 7811) and any portion of the submission (i) is based on a position identified by the Secretary as frivolous or (ii) reflects a desire to delay or impede administration of the Federal tax laws. IRC Section 6702 was further amended to add a new subsection (c) requiring the Secretary to prescribe a list of positions identified as frivolous. See Exhibit 3.11.23-11 for the list of positions.

  3. Review the return to determine whether it appears to be a frivolous return.

    If... Then...
    The return meets any of the conditions shown in Exhibit 3.11.23-11.

    Caution:

    If the return shows Action Code (AC) 331, a CCC "X" and has a Form 4227, Intra SC Reject or Routing Slip, attached with the remarks, "Refer to Exam FRP for audit after processing" , continue to next procedure.

    Remove return from the batch and place the return in the locally designated basket for Examination, Frivolous Return Program (FRP) for review.

    Note:

    IRM 4.10.12, Examination of Returns - Frivolous Return Program, requires Examination to expedite the return and make a determination whether it qualifies as a frivolous return within two (2) business days. If a determination is not made within the allowed time frame, the Examination examiner will edit Action Code or 331

    Examination has selected the return as frivolous, (e.g., indicated by an Action Code 331), a CCC "X" and a Form 4227 with the remarks, "Refer to Exam FRP for audit after processing" , but sends the return for processing Continue processing the return using procedures in this IRM. However, do not circle or void the Action Code or CCC "X" indicating a frivolous return.

    Note:

    Returns having only zeros, no entries, are blank, or indicate "None" , "Not Liable" , etc. (with no evidence of a frivolous argument are not to be considered as frivolous returns).

3.11.23.1.6  (01-01-2015)
Centralized Authorization File (CAF) Power of Attorney (POA)

  1. The Centralized Authorization File (CAF) contains the type of authorization that taxpayers give to representatives regarding the taxpayers' accounts. Representatives may submit Form 2848, Power of Attorney (POA) and Declaration of Representative, or Form 8821, Tax Information Authorization (TIA).

    IF THEN
    Form 2848 or Form 8821 is attached,
    1. Detach Form 2848 or 8821 from the return.

    2. Edit taxpayer name and Employer Identification Number (EIN) on Form 2848 or Form 8821, if missing.

    3. Edit received date on Form 2848 or Form 8821.

    4. Route Form 2848 or Form 8821 to:
      Internal Revenue Service
      PO Box 268, Stop 8423
      Memphis, TN 38101-0268

    5. Edit action trail on tax return.

    A "General Power of Attorney" or a "Durable Power of Attorney" or "Tax Information Authorization" is submitted on any document other than Form 2848 or Form 8821, Take no action. Leave the Power of Attorney or Tax Information Authorization attached to the return. Do not route to the CAF function.

3.11.23.1.7  (01-01-2015)
♦ Statute Returns ♦

  1. Any return with a received date that is 2 years and 9 months or more after the Return Due Date is a potential statute control return.

  2. Statute returns must be routed to the Statute Control Unit daily or more often as needed. Exception: Edit a CCC W, continue processing and do not route to the Statute Control Unit for clearance if any of the following conditions are present:

    • Compliance (IRC Section 6020(b)) returns

    • A return with TC 59X or ICS notated on the face of the return

    • Returns that are substitute returns prepared by Examination (SFR (Substitute for Return) in top margin) with Form 13133, Expedite Processing Request attached

  3. Statute returns are unprocessable until they are cleared by Statute Control.

  4. Edit CCC "W" if the return has been cleared by Statute Control Unit. Statute will stamp or indicate clearance on the front of the return.

    If... Then...
    The return is numbered
    1. Edit Action Code 310, or CCC "U" , on the return.

    2. Attach Form 4227, Intra SC Reject or Routing Slip, and check the box for Statute Control Unit.

    3. Leave the return in the batch and continue processing.

    The return is unnumbered
    1. Do not continue processing.

    2. Pull the return from the batch.

    3. Attach Form 4227 and check the box for Statute Control Unit.

    Note:

    CCC "U" is only valid for Form 11-C and Form 730.

3.11.23.1.8  (01-01-2015)
♦ Amended Returns ♦

  1. An amended return may be identified by such words as "Amended" , "Supplemental" (except Form 11-C), "Duplicate" , "Additional" , or any other positive indication that the taxpayer has filed previously. Filing a "Copy" of a return is not sufficient proof to label a return "Amended" unless accompanied by a positive statement from the taxpayer.

    Note:

    Form 2290 has two check boxes for Amended Return and Vehicle Identification Number (VIN) Correction added under the entity area. If either or both of these two boxes are checked process the return as an Amended Return.

    Reminder:

    If the Amended Return Check Box has been completed, but Form 2290 is being processed as an original return, circle out the Amended Return Check Box.

  2. Examine the return for attachments. Do not separate any related attachments from the return that the taxpayer has submitted to explain the reason for the amended return, this information will be used by the Excise Operations area. Detach any unrelated documents and route them to the appropriate function using Form 4227, Intra SC Reject or Routing Slip. Edit an action trail on the return.

  3. There is an indication the return is amended and:

    If... Then...
    TC 59X or ICS was entered on the return by Compliance Services, and/or The return is stamped "Delinquent Original Cleared for Processing" by Statute Do not edit CCC "G" . Process the return as an original.
    None of the above are present Edit CCC "G" . No other codes may be used with CCC "G" except CCC, "W" , "3" and/or ERS Action Codes.
  4. The following data must be present or edited on all amended returns:

    • Name Control

    • Employer Identification Number (EIN)

    • Tax Period

    • CCC "G"

    • Received Date

    • Signature

  5. If a Form 2290 is filed because of the following, edit CCC "G" :

    1. If the vehicle(s) is (are) later driven over the mileage limitation (e.g., 5,000/7,500) during the tax period, the vehicle is taxable for the entire tax period and the taxpayer must file Form 2290 by the end of the month following the month in which the mileage limitation is exceeded. This return must be "G" coded since a return was previously filed for the nontaxable status.

    2. If the taxpayer is filing a second Form 2290 just to correct the Vehicle Identification Number (VIN). Do not return Sch. 1.

      Note:

      When the taxpayer has filed an amended Form 2290 and requests that the Sch. 1 be returned on an expedited basis (e.g., "as soon as possible" , "ASAP" , "need Sch. 1 to get tags" , etc.), route the amended Form 2290 with the Sch. 1 request to the Excise Operation at Stop 5701G. Notate on the routing slip "Expedite Sch. 1" and attach a red flag to indicate special handling required.

3.11.23.2  (01-01-2015)
Controls

  1. Block Control Document - Each block of documents processed under the ISRP system is required to have a Block Control Document attached for control and identification purposes.

  2. If blocks, or unblocked documents which should have been blocked, are received without a Block Control Document, return the block to the originating area (through Accounting) for correction. These returns can be identified by the Remittance Processing System (RPS) imprinted Document Locator Numbers (DLN) and are considered non-remittance returns since the payments have been posted to the Business Master File (BMF) to provide "Fact of Filing" . The Block Control Documents are:

  3. Form 813, Document Register - Used with remittance documents.

  4. Form 1332, Block and Selection Record - Used for non-remittance documents.

    1. If a numbered remittance document(s) is in a numbered non-remittance block controlled by Form 1332, the document must be "U" coded (Action Code 611 on Form 720) and have to be reblocked for account maintenance.

    2. If every document in a non-remittance block has a remittance attached, return the block to Receipt and Control for reblocking.

  5. Form 3893, Re-Entry Document Control - Used for reinput control of a document under its original DLN.

    1. If a single document is being reinput, the Form 3893 will be attached to the face of the document.

    2. If more than one document from the same original block is being reinput, the Form 3893 will be attached to the first document in the reinput block. See Figure 3.11.23-1.

    Figure 3.11.23-1

    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.23.2.1  (01-01-2015)
Document Locator Number

  1. The document locator number (DLN) is the basic identification number assigned to each document processed in the ISRP System. This number is assigned when the document is blocked and brought under Accounting Control.

  2. It will be used to locate the document as long as it (or a substitute document) remains in the files, unless it becomes the subject of subsequent action. See Figure 3.11.23-2.

    Figure 3.11.23-2

    This image is too large to be displayed in the current screen. Please click the link to view the image.
    The parts of the DLN are as follows:
    Part 1 File Locator - The location where the tax return was filed.

    Example:

    - 00 - (In the 1st and 2nd position of the DLN).

     
    Part 2 Tax Class - Identifies the type of return or document.

    Example:

    - 4 - (In the 3rd position of the DLN).

    Tax Class 4 represents Excise Tax (Business Master File).
     
     
     
    Part 3 Document Code - A specific type of return or document within a tax class.

    Example:

    - 20 - (In the 4th and 5th position) Doc Code 20 is for Form 720.

     
     
    Part 4 Julian Date - The day of the year the return or document is numbered (001 through 365).

    Example:

    The Julian Date, - 019 -, represents the Calendar Date of January 19 because it is the 19th day of the year (In the 6th, 7th, and 8th position of the DLN).

     
     
    Part 5 Block Number - The block number specifically identifies each block of numbered documents. Example: 

    Example:

    - 000 - (In the 9th, 10th, and 11th position of the DLN).

    This block, 000, indicates the blocking series for non-remittance documents.
     
     
     
    Part 6 Serial Number - The sequence of a document within a block.

    Example:

    - 00 - (In the 12th and 13th position of the DLN).

    This serial number, 00, indicates it is the first document of the block.
     
     
     
    Part 7 Year - The year the document is being processed. This digit is assigned later on in the processing cycle (14th position).

    Example:

    - 3 - A return filed in 2013 will have processing year digit "3" . For Form 3893 and Form 13596, this is the year digit that the DLN was originally assigned.

     
     
  3. On numbered blocks, compare the first return in the block to Form 813, Document Register, or Form 1332, Block and Selection Record.

    1. If the documents have not been blocked, all documents in a block or a batch should be of the same type. The type of document is determined by a specific Tax Class and Document Code.

    2. The first eleven digits of the DLN of each document in a block should be the same as the corresponding digits stamped on the face of the Form 813 or Form 1332.

      Note:

      If there is a difference, give the block to the supervisor to reassociate the documents with the correct block control document.

    3. It is necessary to check only the DLN of the first document in a block to make the above comparisons of DLNs. A document may have two different DLNs stamped on it because of reblocking. If this happens, circle the Incorrect DLN. The correct DLN can be determined from Form 813, or Form 1332.

3.11.23.2.2  (01-01-2015)
Blocking Returns and Documents

  1. All returns and documents to be input to the ISRP System are assembled into blocks of 100 documents or less before being numbered. A separate control is put on each block.

  2. A document must not be taken out of a numbered block during the code and edit process. However, a document can be withdrawn from a batch before it is numbered. A document may be taken out of a batch when the return is unprocessable because of reasons specified in IRM 3.11.23.8, Unprocessable Returns.

3.11.23.2.3  (01-01-2015)
Document Count

  1. The total number of returns in a numbered block is usually shown on the Form 813, Document Register, or Form 1332, Block and Selection Record, by a circled number for a partial block or blank for a full block of 100. If the block is a partial and the number is not shown then take the following actions:

    1. Form 813 - circle one number higher than the last sequence number on the form.

    2. Form 1332 - circle one number higher than the last DLN, Document Locator Number, in the block.

    Note:

    Do not circle the total number of documents for an unnumbered block.

3.11.23.3  (01-01-2015)
♦ Edit Marks ♦

  1. Edit marks are edited on the return for transcription to the Automatic Data Processing (ADP) System through ISRP. The editing can be entered in brown, red, orange, purple, or green pencil/pen.

  2. The only items edited on the return are those to be transcribed except where specific instructions require editing of a non-transcribed item. Lines are left blank if the entry would be a zero amount unless otherwise instructed.

  3. The original entry on a return is never obliterated, altered, or erased when deleting or correcting an entry. Always exercise care to ensure that the original entry remains legible. Perfected entries provide a legible "edit trail" for anyone who may work with the return later.

  4. For a description of specific edit marks, see the table below:

    EDIT MARK DESCRIPTION
    "X" The "X" is used to delete tax data or to indicate that an item is not to be transcribed.
    "/" A "/" is used when deleting a form or schedule not being transcribed.
    "//$" The //$ is used in the entity area to identify the beginning and ending of a foreign country code. For example, /EI/$ is edited for "Ireland" and /GM/$ is edited for Germany.
    "c/o" or "%" Indicates an "in-care-of" name for transcription.
    Circle Indicates that an entry is not to be transcribed. Also used to delete Entity data or a Received Date.

    Note:

    If the taxpayer circles an entry, edit the entry.

    Underline Indicates that an entry is to be transcribed. Examples are: Name Control, Tax Period, and a Received Date that is other than IRS Stamped date.
    Arrow Indicates the correct placement of a misplaced entry. An arrow may be used if the misplaced item is close to the correct line and there is no question where the entry belongs.

    Note:

    A double arrow may be used if the same figure is to be transcribed in two different places (along with any required transcription data between the two arrows).

    Check Mark Indicates that an entry has been manually math verified and is correct.
    Bracket/Parenthesis Indicates a negative numerical amount.
    Vertical Line or Decimal Point Indicates the separation of dollars and cents if no distinction has been made by the taxpayer.
    Zero, Dash, or None "Zero" , "dash" or "none" are considered valid entries except when specific instructions require editing of an entry.

    Exception:

    Form 720 see IRM 3.11.23.16.8, Part III Form 720 Line 3 - Total Tax.

    Edit Marks Made by Other IRS Functions Edit marks entered by another area (such as Collection, Entity, or Excise) are not to be reedited except to place the marks in the correct area. Do not edit or write over another area's edit marks.

    Exception:

    If RPS or the Lock Box function has edited data that is obviously incorrect, circle the incorrect information and reedit appropriately.

    Rocker Indicates excess money was submitted with return and remittance needs split and applied to multiple periods or forms.

3.11.23.4  (01-01-2015)
Transcription Lines (T-Lines)

  1. Transcription lines (T-Lines) are located on various IRS forms and schedules. T-lines entries must be entered by the tax examiner when amounts are available (if not already entered by the taxpayer/tax preparer), but amounts do not need to be computed unless otherwise instructed.

  2. Attachments must be used to perfect T-lines. T-line entries will be picked up by the ISRP. T-lines for specific forms and schedules are explained in this manual. When necessary to compute T-lines, use tax form and instructions unless otherwise instructed.

  3. If an entry on a T-line must be supported by another form or schedule, and an attachment is present with the necessary information, a "dummy" form or schedule may be prepared by entering the T-line data to a blank form or schedule.

3.11.23.5  (01-01-2015)
♦ Action Codes ♦

  1. Action Codes are used to indicate whether correspondence, research, or some other action is needed. The Action Code will set the suspense period to be assigned to the return and place the return in the workable or unworkable suspense inventory. See Exhibit 3.11.23-10.

  2. When necessary, a three digit Action Code will be assigned by the tax examiner. See Figure 3.11.23-3.

    Figure 3.11.23-3

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Note:

    Action codes are valid on Form 720 and Form 2290 series. Form 11-C and Form 730 are still processed through a manual correction system. Use Computer Condition Code "U" on these returns when action such as correspondence is needed.

  3. Assign Action Codes in the following priority order:

    • Action Code 310 (Statute Control)

    • Action Code 320 (Entity Control)

    • Action Code 4XX

    • Action Code 6XX

    • Action Code 3XX

    • Action Code 2XX (Correspondence)

    Exception:

    Use Action 211, 215, 225, or 226 before Action Code(s) 341 and 480 to ensure the return is complete before a manual refund is issued or the document being placed in early-filed suspense.

  4. Form 4227, Intra SC Reject or Routing Slip, is required except when Action Code 211 is used for correspondence.

  5. Only one Action Code can be assigned to a return at one time. If more than one Action Code is needed, edit the second Action Code on Form 4227.

  6. If more than one Action Code of the same priority is required (e.g., Action Code 342 and Action Code 355), edit the action code with the shortest suspense period and attach Form 4227 to indicate the second unprocessable condition.

  7. For a complete list of action codes and suspense times. See Exhibit 3.11.23-10. Edit the following Action Codes when a return cannot be perfected from the information present:

    Action Code Description
    211 (First Correspondence) or 215 (International Correspondence)
    • Return is so illegible, incomplete or contradictory that it is not acceptable for computer processing

    • Unsigned returns

    • The taxpayer notates on the return or attachment that they are reporting tax for more than one Tax Period or for more than one type of tax

    225 - Correspondence (Signature Only)
    • Unsigned return

    226– International Correspondence (Signature Only)
    • Unsigned return

    610 (Renumbered Non Remittance) or 611 (Renumbered with Remittance)
    • A return is mis-blocked (e.g., Form 720 found in a Form 2290 batch of work.)

    650 (International)
    • Excise International returns are worked in CSPC.

    Note:

    An Army Post Office/Diplomatic Post Office/Fleet Post Office (APO/DPO/FPO) address is not considered foreign.

    480 The return is an early filed current year return.
    640 To delete the assigned DLN on the return (e.g., Re-Entry Returns).
  8. Continue perfecting the return after editing the Action Codes.

3.11.23.6  (01-01-2015)
♦ Refund Returns (45 Day Jeopardy and $10 Million or More Refunds) ♦

  1. Document Perfection is responsible for identifying refunds and for initiating requests for manual refunds.

    Note:

    Expeditious processing of refund returns is critical if the 45 day period is about to expire.

    IF THEN
    A refund return is batched in a non-refund batch
    1. Pull the return from the non-refund batch and merge into a refund batch using local procedures.

    2. Code and edit the return as completely as possible.

      Note:

      Follow the instructions below when the processing date is more than 20 days after the received date or the return due date OR the refund is $10,000,000 or more.

    The processing date is more than 20 days after the Received Date or the Return Due Date (whichever is later) and the refund amount is $25,000 or more. Unnumbered Returns:
    1. Pull the return from the batch.

    2. Code and edit the return as completely as possible.

    3. Edit Action Code 341 or CCC "U" (whichever is applicable).

      Note:

      For returns with CCC "U" , attach Form 4227 and check the "Reject Correction" box.

    4. Give the return to the manager for expedite processing.



    Numbered Returns:
    1. Code and edit the return as completely as possible.

    2. Edit Action Code 341 (or CCC "U" as applicable) and leave in batch.

      Note:

      For returns with CCC "U" , attach Form 4227 and check the "Reject Correction" box.

    The refund is $10,000,000 or more.




    Note:

    Refund in this instruction means only the amount requested to be refunded to the taxpayer, not overpayments transferred to other periods.

    Unnumbered Returns:
    1. Pull the return from the batch.

    2. Code and edit the return as completely as possible.

    3. Edit Action Code 341 or CCC "U" (whichever is applicable).

      Note:

      For returns with CCC "U" , attach Form 4227 and check the "Reject Correction" box.

    4. Give the return to the manager for expedite processing.



    Numbered Returns:
    1. Code and edit the return as completely as possible.

    2. Edit Action Code 341 (or CCC "U" as applicable) and leave in batch.

      Note:

      For returns with CCC "U" , attach Form 4227 and check the "Reject Correction" box.

    Note:

    CCC "U" is only valid for Form 11-C and Form 730.

3.11.23.7  (01-01-2015)
♦ Routing Guide For Attachments ♦

  1. All attachments to the return must be reviewed before the return can be considered processable.

    1. Attachments should only be detached when specifically instructed.

    2. Attachment must contain Name, Address, EIN, Social Security Number(SSN), and Received Date. Enter if missing.

    3. Edit Action Trail(s) (e.g., "2848 detached" ) in the lower left margin of the return.

  2. Follow the general guidelines below written for each attachment:

    Note:

    These instructions pertain to all excise tax form types unless otherwise noted in parenthesis ().

    DOCUMENT DETACH ACTION
    CP 504/504B NO
    1. Pull CP 504/504B to the front.

    2. Route notice and return to Accounts Management.

    CP 259, 515-518 NO Route notice and return to Collections.

    Exception:

    Do not route to Collections if "599" is notated.

    Includes tax liability for Multiple Tax Periods or Types of tax

    Note:

    Always correspond for a breakdown and Schedule 1 for Form 2290. Heavy Vehicle Use Tax Return.

    NO
    • Numbered returns route to Rejects.

    • Unnumbered returns prepare a dummy return, if possible; otherwise correspond.

    Other Tax Returns (original signature) YES Edit received date and route to appropriate function unless specifically directed otherwise (such as returns attached to a consolidated return).
    State Tax Returns, original or copy with original signature YES Route to Receipt and Control.
    Statement establishing Reasonable Cause for delinquent filing NO
    1. Issue Letter 1382C.

    2. Continue editing the return.

    Remittance found NO Immediately hand carry return and remittance to supervisor.
    Request for information or inquiries YES
    1. Photocopy the attachment if it contains any data necessary to continue processing the return.

    2. Attach the copy to the return.

    3. Route original attachment to the proper office for necessary action.

    Request for Adjustment to another document YES Route to the appropriate function. Attachment must contain Name, Address, EIN, and Received Date. Enter if missing.
    Request for money transfer YES If the taxpayer notates transfer of money to the return you are processing:
    1. Prepare Form 3465.

    2. Indicate in the Routing box "Rejects" .

    3. Notate "See attached money transfer request" in the Remarks box.

    4. Edit Action Code 450 to route the request to Rejects.



    If the taxpayer notates transfer of money FROM the return you are working:
    1. Edit CCC "X" to freeze overpayment.

    2. Prepare Form 3465.

    3. Indicate in the Routing box "CEO Stop 5701" .

    4. Notate the requested action in the Remarks box.

    5. Attach Form 3465 to the request and rout to the Centralized Excise Operation.

    6. Continue editing the return.

    Request for Form 8109, Deposit Slips or Coupon Books (Form 720) YES Route request to Entity on Form 4227.
    Request for current year forms or schedules NO
    1. Prepare Form 4190, Order Blank for Tax Forms and Publications.

    2. Forward to Forms Distribution Center for processing.

    Note:

    Form 4190 is generally used for IMF requests. Enter all BMF requests for forms and/or schedules in the "WRITE-IN" portions of the form.

    Request for prior year forms or schedules NO
    1. Prepare Form 6112, Prior Year Tax Forms Order.

    2. Forward to Forms Distribution Center for Processing.

    Note:

    Form 6112 is generally used for IMF requests. Enter all BMF requests for forms and/or schedules in the "WRITE-IN" portions of the form.

    Form 637 YES Route to:
    Excise
    Stop 5701G
    Team 204
    Form 843 YES Route to the Excise Operations Area unless it is used to support line 4 on the Form 720.
    Schedule A (Form 720) NO Leave attached to the return.
    Schedule C (Form 720) NO Leave attached to the return.
    Letter 3670 YES Route to:
    Excise
    Team 202
    Stop 5701G.
    First Taxpayer's Report (Form 720) YES (original only see NOTE) Route to:
    Excise
    Team 201
    Stop 5701G

    NOTE: Copies of First Taxpayer's Report should not be detached, if there is evidence that the original has been sent to Excise. Examples of evidence would be things, such as, remarks edited to the margin of return, taxpayer note that original had been sent to Excise, etc.
    Form 2848, Power of Attorney and Declaration of Representative Yes Ogden - route to Stop 6737
    Cincinnati - route to:
    Internal Revenue Service PO Box 268, Stop 8423 Memphis, TN 38101-0268
    Form 3244 (Form 720) NO Leave attached
    Form 3753 NO See IRM 3.11.23.12.6 CCC "O" - Module Freeze.
    Form 5792 NO See IRM 3.11.23.12.6 CCC "O" - Module Freeze.
    Form 6197 (Form 720) NO Verify information. Leave attached.
    Form 6627 (Form 720) NO Verify information. Leave attached.
    Form 8712 YES Send the Form 8712 to Receipt and Control to be rebatched. Leave an action trail.
    Form 8713 YES Send the Form 8713 to Receipt and Control to be rebatched. Leave an action trail.
    Form 8725 YES Send the Form 8725 to Receipt and Control to be rebatched. Leave an action trail.
    Form 8821, Tax Information Authorization Yes Ogden - route to Stop 6737
    Cincinnati - route to:
    Internal Revenue Service PO Box 268, Stop 8423 Memphis, TN 38101-0268
    Form 8822, Change of Address, or Form 8822-B, Change of Address-Business, (attached to Form and address is the same.) NO No Action
    Form 8822, Change of Address, or Form 8822-B, Change of Address-Business, (attached to Form and address is different.) YES Forward to Entity Control using local procedures for expedite processing
    Form 8833 (Form 720) NO Edit CCC "L" if form is attached or "Section 6114 Election" is notated on the return. See IRM 3.11.23.16.4, Foreign Insurance Taxes - IRS Number 30, and IRM 3.11.23.12.5, CCC "L" - IRC Section 6114 Election.
    Form 8849 YES If it is not used to support a line entry on Form 720 or Form 2290 detach and forward to Excise Operations Stop 5701G with a copy of the return. If the Form 8849 is the same tax period as the Form 720 or Form 2290, treat the Form 720 or Form 2290 as an attachment to the Form 8849, pull out of the batch and send to the Excise Operations Stop 5701G. The tax period can be found on the second page of the Form 8849.
    Form 12587 NO IRM 3.11.23.12.6, CCC "O" - Module Freeze.
    SS-4 Application for Employer Identification Number (Entity Control assigned an EIN to the SS-4 YES Route to Entity Control.
    SS-4 Application for Employer Identification Number (Entity Control has not assigned an EIN to the Form SS-4) NO Route return and Form SS-4 to Entity Control for EIN assignment.
    Form 1099   Refer to Campus Mail Routing Guide for Procedures

3.11.23.8  (01-01-2015)
Unprocessable Returns

  1. A return must contain specific items before it is considered processable. Perfect all returns to the extent possible from schedules, taxpayer letters and other attachments. The specific items needed are:

    • TIN,

    • Legible name (for name control),

    • Valid tax period,

    • Legible tax data, if tax liability is indicated, and

    • Signature.

  2. Conditions that make a return unprocessable are:

    1. Name so illegible or incomplete that the name control cannot be determined.

    2. EIN or SSN are other than 9 numeric digits (XX-XXXXXXX), and cannot be perfected from information on the return or attachment.

    3. Taxpayer has combined liability for more than one tax period or more than one type of tax.

    4. Tax data entries on the return are so incomplete, illegible or contradictory that the tax liability cannot be determined.

    5. The return has been mis-blocked (e.g., Form 2290 in a Form 720 block).

    6. The return is unsigned.

    7. The return has only entity data and no other statements, attachments or signature by the taxpayer.

    8. Any condition set forth as unprocessable in the specific instructions.

3.11.23.8.1  (01-01-2015)
Perfecting of Unprocessable Returns

  1. Perfect all returns if possible. Examine schedules and other attachments for the information necessary to make the return processable. If an EIN is found on an attachment or schedule, edit to the appropriate area on the return.

  2. Returns with unresolved entity problems should be routed to Entity Control function after utilization of Integrated Data Retrieval System (IDRS) research (includes CC NAMEE and INOLE).

  3. On a numbered return with multiple EINs or SSNs, or illegible name, take the following action:

    1. Form 720 / Form 2290 Series - Circle the multiple/partial EIN(s). The return will automatically be placed on the Error Inventory of ERS.

    2. Form 11-C and Form 730 - Edit CCC "U" and prepare Form 4227 for research action.

  4. If the return is unnumbered, pull the return from the block and route the return to the Research function.

    Note:

    If the return is unnumbered and the EIN is missing, applied for, pending, etc., send for research per IDRS. If unable to locate the EIN, send to the Entity Control function for research of the EIN.

  5. If the return is identified by the words "Copy Secured or Prepared by Examination" , see IRM 3.11.23.22.3, Examination Prepared.

3.11.23.8.2  (01-01-2015)
Rejection Of Returns

  1. Rejection action of excise tax returns.

    1. Prepare Form 4227. Indicate the reason for rejection, and attach the form to the document immediately under the entity data.

    2. If the return is unnumbered, do not process; take it out of the block and forward it to the Receipt and Control function.

    3. If the return has been numbered, edit CCC "U" for Form 11-C and Form 730 or Action Code (AC) for Form 720 / Form 2290 and leave it in the block. See Figure 3.11.23-4.

    Figure 3.11.23-4

    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.23.8.3  (01-01-2015)
♦ Correspondence ♦

  1. There are two types of correspondence that Code and Edit may encounter:

    1. Correspondence received from taxpayers.

    2. Issuing correspondence to taxpayers.

3.11.23.8.3.1  (01-01-2015)
♦ Definition of Correspondence from Taxpayers ♦

  1. Correspondence is all written communications from a taxpayer or his/her representative, excluding tax returns, whether solicited or unsolicited. This includes:

    1. Written communications in response to IRS requests for information or data.

    2. Written communications, including annotated notice responses, that provide additional information or dispute a notice.

    3. A telephone call that results in a written referral or research (Form e-4442, Inquiry Referral).

  2. The key to identifying taxpayer correspondence is to ask the following questions:

    1. Is taxpayer waiting for a response from us?

    2. Is taxpayer waiting for an action to be taken by us?

    3. Is taxpayer asking a question?

    Note:

    A Post-It-Note, Sticky Note, or some other type of note stuck on the return by another function does not constitute correspondence from the taxpayer. For instance the note may state something like the following: "Taxpayer (TP) requests penalties be waived" .

3.11.23.8.3.2  (01-01-2015)
♦ Issuing Correspondence ♦

  1. Issue correspondence to resolve any conditions causing the return to be unworkable or unprocessable.

    Exception:

    Do not correspond on returns prepared by Collections, IRC Section 6020(b) or by Examination, "Substitute for Return" (SFR).

  2. Examine the return so that all of the conditions can be included in the same correspondence.

    If... And... Then...
    Correspondence is needed, Requires a response,
    1. Complete an approved Correspondence Action Sheet indicating the letter number (86C, 854C, 1355C, 3875C, etc.), MFT, and the appropriate paragraphs.

      Note:

      Within these paragraphs, there may be fill-ins that the tax examiner will be required to enter, such as, tax period, form number, DLN, etc.

    2. Attach the Correspondence Action Sheet to the front of the return below the Entity area.

    3. Edit Action Code 211 (First Correspondence) or 215 (International Correspondence) on the return.

    4. Finish editing the return and leave in the batch.

    Correspondence is needed, Does not require a response,
    1. Complete an approved Correspondence Action Sheet indicating the letter number (86C, 854C, 1355C, 3875C, etc.), MFT, and the appropriate paragraphs.

      Note:

      Within these paragraphs, there may be fill-ins that the tax examiner will be required to enter such as tax period, form number, DLN, etc.

    2. Photocopy first page of return and attach the Correspondence Action Sheet below the Entity area on the front of the copy of the return. Be sure the name and address shows clearly above the Correspondence Action Sheet.

    3. Forward the copy to the Correspondence Area.

    4. Edit an Action Trail (e.g., "3875C SENT" ) in the lower left corner going vertically up the side of the return.

    5. Finish editing the return and leave in batch.

    Note:

    There may be additional letters that are exclusive to the Tax Examiner's campus. These letters are for specific forms or conditions where it was deemed necessary for processing. The Tax Examiner should go to his or her Lead or Manager for copies of these letters to facilitate processing.


    Note:

    If through research efforts, you find the return has been e-filed, do not correspond. Process as original.

3.11.23.8.3.3  (01-01-2015)
♦ Correspondence Imaging System (CIS) Returns ♦

  1. Correspondence Imaging System (CIS) is an inventory system for scanning all Account Management (AM) receipts into digital images and working the cases from those images.

  2. "CIS" returns are identified with "CIS Image - Do not correspond for signature" stamped below the signature line or "CIS" annotated on the front of the return.

  3. Verify all edit marks on a "CIS" return.

    If... Then...
    The edit marks are black, Underline the edit mark if correct or circle if incorrect.
    The edit marks are red or green, Circle if incorrect.
  4. Follow the correspondence instructions below for "CIS" returns,

    If... And... Then...
    The "CIS" return has a Form 13596 attached

    Note:

    If there is an indication on the return that correspondence has been sent (e.g., CCC "3" is edited on the return), do not route the return to Accounts Management. Continue processing the return.

    It is not a complete return (i.e., missing signature, schedules, or forms) Remove the return from the batch and route to Accounts Management.

    Note:

    Do not correspond for missing information on "CIS" reprocessable/reinput returns.

    The "CIS" return does not have a Form 13596 attached, It is not a complete return (i.e., missing signature, schedules, or forms) Follow normal correspondence procedures.

3.11.23.8.3.4  (01-01-2015)
♦ Use of Fax for Taxpayer Submissions ♦

  1. Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, fax signatures are acceptable.

    Note:

    Before disclosing any tax information, you must be sure you are speaking with the taxpayer or authorized representative. See the Taxpayer Authentication guidelines in IRM 21.1.3, Operational Guidelines Overview. Also, before leaving any messages on a taxpayers answering machine, review IRM 11.3.2.6.1, Leaving Information on Answering Machines/Voice Mail. Fax procedures contained in IRM 11.3.1.11, Facsimile Transmission of Tax Information must be reviewed prior to faxing confidential information to the taxpayer.

  2. Contact with the taxpayer may be by telephone or correspondence. Follow local procedures to determine which method of contact will be used.

  3. Code and Edit examiners will indicate the fax paragraph on the Form 3696, Correspondence Action Sheet, to advise taxpayers of the option to fax their response.

3.11.23.8.3.5  (01-01-2015)
♦ Internal Revenue Code (IRC) Section 3705(a) - IRS Employee Contacts ♦

  1. Background: The Restructuring and reform Act of 1998, IRC Section 3705 provides identification requirements for all IRS employees working tax related matters.

  2. IRS employees are required to give their name and unique identification number during taxpayer telephone, face to face, and written contact. In addition, a telephone number is required on all taxpayer correspondence.

  3. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax related matters.

  4. Key Points: All IRS employees, in the field, territory and area offices, who communicate by telephone, correspondence, or face to face, with taxpayers or personal representatives on tax matters are required to provide (at a minimum) the following information:

    1. In Telephone Contact: Their title, their last name, and their badge identification (ID card) number.

    2. In Face to Face Contact: Their title (e.g., Mr., Mrs., Ms., Miss) provided as appropriate, their last name, and their badge identification (ID card) number.

    3. Correspondence: All correspondence must include a telephone number where the taxpayers question(s) can be answered. In addition, manually generated and handwritten correspondence must include their title (e.g., Mr., Mrs., Ms., Miss), their last name, and their IDRS, letter system, or badge identification (ID card) number.

  5. The IDRS numbers for some other letter systems are automatically generated. If it is not generated, or handwritten note is prepared, the badge identification (ID card) number must be used.

  6. Correspondence, whether sent directly to the taxpayer or to the taxpayers personal representative, must contain the required information.

  7. When a taxpayer insists on speaking with a specific employee who previously handled their request or inquiry, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayers inquiry. If the issue cannot be resolved, the employee should refer the inquiry using established procedures to his or her manager.

    Note:

    During a taxpayer contact, when it appears that there may be a hardship situation, the taxpayer insists on being referred to TAS, or the contact meets TAS criteria, and you can't resolve the taxpayers issue the same day, then prepare and forward Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), to the Local Taxpayer Advocate.

  8. Correspondex letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions that the taxpayer may have about the correspondence, or the employee is asking the taxpayer to provide additional case related information.

  9. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

  10. Secretaries, receptionists or other people who answer the telephone in functional offices need to identify themselves by providing their badge identification (ID card) number only if they are answering telephones which are routinely used to provide tax or account information.

  11. It is not necessary to repeat the ID card (badge) number on a subsequent contact, when the nature of an employees work involves multiple contacts with the same taxpayer, and the employee has given the taxpayer, (either by telephone or in person), their ID card (badge) number on the first contact.

3.11.23.8.4  (01-01-2015)
Processing No Reply Cases

  1. Only one correspondence attempt is required. If a reply is not received after the prescribed suspense period, input the return.

    1. Complete the return without jeopardizing IRS compliance.

    2. Edit CCC X on an overpaid return to prevent any credits from refunding.

      Note:

      DO NOT change the received date.

    3. Always edit a CCC 3 and continue processing on all no reply cases. See Figure 3.11.23-5.

    Figure 3.11.23-5

    This image is too large to be displayed in the current screen. Please click the link to view the image.
  2. Conditions requiring correspondence and the suggested correspondence action are shown in the following chart.

    Conditions Requiring Correspondence Correspond for: Action for No Reply or Undeliverable:
    All Excise Returns
    Signature is missing Signature Edit CCC 3. If the return is overpaid, also edit CCC X. Then continue processing.
    Multiple quarter or period return, unnumbered, and no return breakdown present Separate returns for each Quarter or tax period Edit CCC 3. If return is also overpaid, edit CCC X. Continue processing.
    Form 720
    Entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ present on IRS Number(s) 18, 19, 20, 21 or 98 on Form 720 without Form 6627 Form 6627, Environmental Taxes Continue processing.
    Entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on IRS # 40 without Form 6197 Form 6197, Gas Guzzler Tax Continue processing.
    FTDs or remittance of ≡ ≡ ≡ ≡ ≡ ≡ ≡ is the only tax data entry Missing information Enter Action Code 355 and CCC 3 and attach Form 4227 and notate "Excess Remittance" Continue processing.
    Schedule A is missing or blank and Part I, Line 1, Form 720 shows a total of ≡ ≡ ≡ ≡ ≡ ≡ ≡ which consists of an IRS Number entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (Exception: one time filers) Schedule A Continue processing. Enter CCC 3.
    ZIP Codes of Frivolous Filers missing (see Exhibit 3.11.23-12) ZIP codes needed on current and future returns Continue processing. Enter CCC 3.
    IRS # 40 - Form 6197, Gas Guzzler Tax-Number of cars sold, or identity of all models missing. Only correspond if the IRS # 40 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Information needed on number of cars sold Continue processing. Enter CCC 3.
    Form(s) 6197 or 6627 - Discrepancy of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ between amounts on Form(s) 6197 or 6627 and Form 720 Correct tax Continue Processing.
    Form 2290 and Form 2290SP
    A discrepancy between the tax rate and the amount of tax being reported, and no number is entered in Column 3, page 2 Number of vehicles Continue processing. Enter CCC 3. Do not return Schedule 1.
    Unable to determine the number of vehicles Number of vehicles Continue processing. Enter CCC 3. Do not return Schedule 1.
    Schedule 1 - Lines a and b do not agree with the entries reported in Column 3 on page 2 of Form 2290 Correct information Continue processing. Enter CCC 3. Do not return Schedule 1.
    Vehicle Identification Number(s) (VIN) missing on Schedule 1 VIN(s) Do not return the Schedule 1 to the taxpayer. Continue processing. Enter CCC 3.
    Form 2290 received without Schedule 1 Schedule 1 Prepare a dummy Schedule 1 if possible; otherwise, continue processing. Enter CCC 3.
    Form 730
    Entry on Line 5 but no explanation is attached The required explanation Cross (X) out the Line 5 entry. Add the taxpayer entry on line 5 to entry on line 6. Enter the new dollar total to line 6. Continue processing.
    An entry on Line 6 but no entries on Lines 1 through 5 Correspond for the information Enter CCC 3 and continue processing.

3.11.23.9  (01-01-2015)
Signature

  1. A signature and jurat is required on all returns except the following:

    • Returns prepared under IRC Section 6020(b). These returns must be signed by a Revenue Officer or Compliance Services representative.

      Note:

      Starting July 1, 2013 we will accept the Revenue Officer's (RO) electronic signature or typed signature as a valid signature on the return.

    • Returns prepared by Examination, i.e., SFR (Substitute for Return).

    • Dummy returns prepared by IRS.

    • Form 2290 with no tax stating that they are "under 55,000 pounds" , "out of business" , "no longer in business for several years" , checked the "Final Return" box, stated "NOT LIABLE" , "deceased" , etc.

      Note:

      Reporting tax as suspended is different than not being liable for the tax. Vehicles reported as tax suspended may still be registered and used on the public highways not to exceed the 5,000 (7,500 agricultural use) mileage limitation.

    • Correspondence containing a signature and jurat is attached showing that the taxpayer is responding to an IRS letter.

    • Correspondence Imaging System (CIS) returns that have Form 13596 attached.

    • Re-entry returns originally filed electronically (E-File). These returns may be identified by the presence of Mod E-File printouts or "TRPRT Print Do Not Process" in lieu of an actual return.

      Note:

      If the TRPRT print states "TRPRT Print Do Not Process" in the top margin, circle the words "Do Not Process" .

    • Nontaxable Final Form 720 not signed should be routed to the Excise Operation using Form 4227. See IRM 3.11.23.12.2, CCC "F" - Final Return.

  2. A "constructive signature" (a signature on an attached check, letter, etc.), is not acceptable unless there is a perjury statement "JURAT" on the document which contains the signature. The jurat on the attachment must contain the same language as the jurat on the tax return. In the absence of a perjury statement, the signature must be on the return.

  3. Since tax examiners are not expected to be handwriting experts, Internal Revenue Regulation (IR) 301.6064-1 allows us to presume that the signature on a return, statement or other document is the true signature of the person who actually signed the document. Do not question any signature on the return.

    Note:

    A check mark or "X" used to designate where the taxpayer should sign the return is not considered a valid signature.

  4. The return must be signed on the line designated for the signature. If a signature and/or jurat is not present or the taxpayer has signed in the Paid Preparer area, process as follows:

    If... Then...
    • The return is not signed on the line designated for the signature, or

    • The jurat is not present on the line designated for the signature (non-standard return),

    • Only the Entity information is present and there are no attachments containing tax data,

      Exception:

      See IRM 3.11.23.12.2, CCC "F" - Final Return, and IRM 3.11.23.9(1), Signature, above.

    1. Edit Action Code "225" , (or for international returns Action Code 226) or CCC "U" .

    2. Leave in batch and continue processing.

    Note:

    CCC "U" is only valid for Form 11-C and Form 730.

    Note:

    Paper returns sent in by the filer that states their return was rejected through the E-file system require a signature. Form 8879-EX, etc. is not an acceptable signature substitute for a paper return.

  5. Only one correspondence attempt is required for a signature. If you do not receive a reply after the prescribed suspense period, input the return:

    If... Then...
    the return has an overpaid condition Edit CCC "3" and CCC "X" and continue processing.
    the return is a balance due or zero condition Edit CCC "3" and continue processing.

3.11.23.9.1  (01-01-2015)
Third Party Designee Checkbox - Form 720 and Form 2290

  1. The Third Party Designee Checkbox is located above the taxpayer signature area. It indicates whether the taxpayer has elected to allow the Third Party Designee to inquire about the return as it is processed.

  2. No action is required.

3.11.23.9.1.1  (01-01-2015)
Third Party Designee Identification Number (PIN)

  1. The PIN is self selected by the taxpayer or designee. It is not assigned by IRS.

  2. This field can be up to 5 characters long.

  3. The entry may be a combination of alpha (A-Z) and numeric (0-9).

  4. Circle out the entry if it is illegible.

3.11.23.9.1.2  (01-01-2015)
Paid Preparer Tax Identification Number (PTIN)

  1. The Paid Preparer Tax Identification Number (PTIN) is located in the lower right corner below the signature line.

  2. No action is required on amended returns.

  3. A PTIN begins with the alpha "P" followed by an eight digit number (e.g., PXXXXXXXX). Circle the PTIN if all zeroes or all nines.

3.11.23.9.1.3  (01-01-2015)
Paid Preparer Employer Identification Number (EIN)

  1. The Firm's EIN is also located in the lower right corner below the signature line.

  2. No action is required on amended returns.

  3. The Firm's EIN must be a nine digit number. The EIN cannot be all zeroes or all nines.

  4. Circle out the Firm's EIN if it is invalid.

3.11.23.9.1.4  (01-01-2015)
Paid Preparer Phone Number

  1. The Paid Preparer's Phone Number is located below the Firm's EIN toward the right hand side.

    IF: THEN:
    The return is amended, No action required.
    The Preparer's Phone Number is more than 10 digits, No action is required.
    The Preparer's Phone Number is illegible or less than 10 digits, Circle the Phone Number.

3.11.23.9.2  (01-01-2015)
Paid Preparer Section - Form 11-C and Form 730

  1. The Paid Preparer Section is located below the signature area.

3.11.23.9.2.1  (01-01-2015)
Paid Preparer Tax Identification Number (PTIN)

  1. The PTIN is located to the right of the Preparer's Signature in the lower right corner below the signature line.

  2. No action is required on amended returns.

  3. A PTIN begins with the alpha "P" followed by an eight digit number (e.g., PXXXXXXXX). Circle the PTIN if all zeroes or all nines.

3.11.23.9.2.2  (01-01-2015)
Paid Preparer EIN

  1. The Preparer's EIN is located below the PTIN in the lower right corner.

  2. The Preparer's EIN must be a nine digit numeric number. The EIN cannot be all zeroes or all nines.

  3. Circle out the Preparer's EIN if it is invalid.

3.11.23.9.2.3  (01-01-2015)
Paid Preparer Phone Number

  1. The Paid Preparer's Phone Number is located below the Paid Preparer's EIN in the lower right corner.

  2. No action is required on amended returns.

  3. If a complete Paid Preparer Phone Number is located on the Paid Preparer's Phone Number line, no editing of this line is necessary.

  4. If the return is for a tax period prior to 2001, circle out the phone number.

  5. If the Paid Preparer's Phone Number is incomplete, illegible, or less than 10 digits, quickly review the return and all attachments.

    Note:

    If more than 10 digits are present, continue processing the return. Only the first 10 digits will be transcribed (captured).

    If... Then...
    A complete Paid Preparer's Phone Number is located elsewhere on the return or attachments, Edit to the "Phone No." line.
    A complete Paid Preparer's Phone Number is not located or the number is illegible, Circle the incomplete or illegible phone number.

3.11.23.10  (01-01-2015)
♦ Entity Perfection - General ♦

  1. The entity area of excise tax returns identifies the taxpayer on the Business Master File. The entity section of the return contains the following:

    1. EIN

    2. Name

    3. "In-care-of" name

    4. Address

3.11.23.10.1  (01-01-2015)
♦ Entity Perfection - Employer Identification Number (EIN) ♦

  1. The EIN is a nine digit number (XX-XXXXXXX) assigned to identify the taxpayer.

  2. Determine the EIN as follows:

    IF: AND: THEN:
    You can determine the correct EIN from the attachments and/or schedules.   Edit the EIN to the appropriate location.
    The EIN is either a PTIN or ITIN  
    Unnumbered:
    1. Research IDRS.

    2. If an EIN is found, edit to the appropriate location.

    3. If not found, route to Entity.



    Numbered:
    1. Edit Action Code 320 (or CCC "U" ).

    2. Attach Form 4227, and leave in batch.

    Multiple EINs are present   Unnumbered:
    1. Research IDRS.

    2. If an EIN is found, edit to the appropriate location.

    3. If not found, route to Entity.



    Numbered:
    1. Edit Action Code 320 (or CCC "U" ).

    2. Attach Form 4227, and leave in batch.

    The EIN contains any of the following conditions and cannot be determined from attachments and/or schedules:
    • Illegible;

    • Missing;

    • Other than 9 digits;

    • All zeroes; or,

    • All nines

      Unnumbered:
    1. Research IDRS.

    2. If not found, route to Entity.



    Numbered:
    1. Circle out all illegible EINs, zeros or nines.

    2. Edit Action Code 320 (or CCC "U" ).

    3. Attach Form 4227 and leave in the batch.

     
    "Pending" , "applied for" , etc., is indicated in the EIN area Unnumbered
    1. Research IDRS.

    2. If not found, route to Entity.

    Numbered
    1. Edit Action 320 (or CCC "U" ).

    2. Attach Form 4227 and leave in batch.

    Note:

    CCC "U" is only valid for Form 11-C and Form 730.

3.11.23.10.2  (01-01-2015)
♦ Entity Perfection - Name Control ♦

  1. The Name control consists of four characters or less.

    1. Valid characters are alpha, numeric, ampersand (&), hyphen (-), and blank. However, blanks are only valid in the last three positions.

    2. Disregard the word "The" in the Name Control only when more than one word follows.

      Note:

      If an individual and a trade name are present and it can be determined that the trade name is for a corporation or partnership, follow the Name Control procedures for corporations or partnerships. If other than a corporation or partnership, follow the Name Control procedures for individuals, regardless of which line the individuals owner's name is listed.

  2. See Job Aid Document 7071-A, Name Control Job Aid - For Use Outside the Entity Area, to properly determine the Name Control.

  3. Edit the Name Control as follows:

    1. IF: AND: THEN:
      Able to determine the name control,  
      1. Underline the Name Control.

      A second name line is present and begins with "FKA" (formerly known as), Numbered or Unnumbered Continue processing.
       
      A second name line is present and begins with "AKA" (also known as) or "DBA" (doing business as), Numbered or Unnumbered Circle out the abbreviations.

      Exception:

      Form 2290 no action necessary.

       
      Unable to determine the Name Control, Unnumbered
      • Research IDRS.

       
        Numbered
      1. Edit Action 352 (Name Research) or CCC "U" .

      2. Attach Form 4227 and leave in the batch.

       
      A return indicates the taxpayer has filed bankruptcy (e.g., shows "RECEIVER" , "TRUSTEE" , or "DEBTOR IN POSSESSION" ) in the entity area or on an attachment,   Route to Entity Control following local procedures.  

3.11.23.10.3  (01-01-2015)
♦ Entity Perfection - "In-Care-of" Name ♦

  1. An "in-care-of" name can be identified by the words "in care of" or the symbols "c/o" or "%" (percent).

  2. Ensure that the "in-care-of" name is located in the proper location.

    IF: THEN:
    The "in care of" name is located above the first name line or below the street address, Arrow the "in-care-of" name so it appears below the first name line and above the street address.
    The "in care of" name is shown on an attachment, Edit the "in care of" name above the street address beginning with the "%" or "c/o" in the first position.
    The street address for the "in-care-of" name is different from the street address of the entity,
    1. Arrow the "in-care-of" street address below the "in-care-of" name or edit the "in-care-of" street address below the "in-care-of" if located on an attachment.

    2. Circle the street address shown on the return and input "TC 014" .

    3. Continue editing the return.

    Note:

    Always circle the "in-care-of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) and the percent sign (%) when editing address information.

  3. A change in the "in-care-of" name can be determined by any of the following:

    • A check mark in the "Name change" box, or

    • A check mark in the "Address change" box, or

    • An indication that the "in-care-of" name is changed (i.e., the taxpayer crossed out the original "in-care-of" name and added the new name or has entered the new "in-care-of" name in brackets).

    IF: THEN:
    An "in-care-of" name is changed but there is no indication of an address change
    1. Edit the "in-care-of" name as shown above.

    2. Continue editing the return.

    An "in-care-of" name is present and the "Address change" box is checked (or there is an indication of an address change)
    1. Edit the "in-care-of" name as shown above.

    2. Correct the address.

    3. Continue editing the return.

3.11.23.10.4  (01-01-2015)
♦ Entity Perfection - Domestic Addresses ♦

  1. Perfection of the address is necessary when the mailing address (Street or P.O. Box) is not easily identified.

    Exception:

    Do not perfect the address on amended returns (CCC "G" ).

  2. A business may have two addresses. One is the mailing address and the other is the location address or physical location of the business.

  3. The procedures for perfection of addresses are as follows:

    IF: AND: THEN:
    The address contains information other than a street address or P.O. Box,   No perfection is necessary. ISRP will enter the complete address.
    There is an indication on an attachment that the address has been changed, or the "Address change" check box has been marked,  
    1. Edit the new address in the Entity section of the return. If it is necessary to edit the street. Exhibit 3.11.23-8 shows the current abbreviations.

    Note:

    If the corrected address is listed under the "Address change" box or it is not clearly in the address area of the entity section arrow it to the address area of the entity section.

    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party- Business, is attached, Mailing address information is the same and no location address is listed on Line 7
    • Take no action.

    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party- Business, is attached, Mailing address information is different and/or a location address is listed on Line 7
    • Detach Form 8822/Form 8822-B and route to Entity Control following local procedures.

     
    Both a P.O. Box and a street address are shown,  
    1. Input "TC 014."

    2. Notate "TC 014" in the upper left margin.

     
    Two street addresses are shown,  
    1. Underline the second street address.

    2. Notate the "TC 014" in the upper left margin.

    3. Input "TC 014" .

     
    One street address is shown, The taxpayer changes the address to a P.O. box,
    1. Notate the "TC 014" in the upper left margin.

    2. Input TC 014.

     
    The city and state are not shown on the return, but are shown on an attachment,  
    1. Edit the city and state on the form in the Entity section.

     
    The Zip Code is missing or illegible, Is not available from the return or attachments,
    1. Determine using Exhibit 3.11.23-12, or

    2. See Document 7475, State and Address Abbreviations, Major City Codes (MCC), ZIP Codes and Countries, to determine the ZIP Code.

      Note:

      Edit the 3 digits followed by "01" of the first Zip Code listed for the applicable state (e.g., "99501" for Alaska).

     
    Only the first three digits of the Zip Code can be determined,  
    • Edit "01" for the fourth and fifth digits.

     
    The Address Change box is checked, An "in-care-of" name is present,
    • Edit the "c/o" or"%" (percent sign) to the left of the "in-care-of" name (in the first position) followed by the appropriate name.

     
    The National Change of Address (NCOA) label is present,  
    • Underline the Name Control.

     
    It is necessary to edit the street address,   See Document 7475, State and Address Abbreviations, Major City Codes (MCC), ZIP Codes and Countries, for current Address/Street Abbreviations.  

    Note:

    Always circle the "in-care-of" symbol ("c/o" or "%" ) if it is present with an address. Do not use the ampersand (&) and the percent symbol (%) when editing address information.

  4. The USPS established new address requirements for APO/DPO/FPO addresses. If the old address appears convert to the new State Code abbreviation based on the ZIP Code (e.g., APO New York, NY 091XX would be converted to APO AE 091XX). APO/DPO/FPO addresses are considered domestic addresses. Refer to APO/DPO/FPO conversion chart below:

    ZIP Code State Code
    340 AA
    090-098 AE
    962-966 AP

3.11.23.10.5  (01-01-2015)
♦ Entity Perfection of Foreign Addresses ♦

  1. A foreign (international) address is any address that is not in the 50 states or the District of Columbia.

  2. Returns with APO, DPO, or FPO addresses are considered domestic addresses. See IRM 3.11.23.10.4, Entity Perfection - Domestic Address.

  3. Excise Tax Returns with foreign addresses are worked at the Cincinnati Submission Processing Center (CSPC).

  4. Returns with addresses in the following U.S. Possessions are considered to be a foreign address for processing purposes but are edited in the same way as domestic addresses.

    1. a. A two character alpha code must be edited for the Possession/Territory name.

      U.S. Possession/Territory Abbreviation
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      Northern Mariana Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Island (U.S.) VI
    2. A ZIP Code must be present for U.S. Possessions/Territories. Edit the appropriate ZIP Code if one is not provided. See Exhibit 3.11.23-12.

  5. All other foreign addresses are edited the same as a domestic address with the following exceptions:

    1. The foreign country must be the last entry in the address.

    2. Circle the foreign country and edit the country code preceded by a "/" and followed by "/$" (e.g., "/GM/$" is edited for Germany). See Document 7475, State Addresses Abbreviations, Major City Codes (MCC), ZIP Codes and Countries, for official foreign Country Codes. Also see Exhibit 3.11.23-13 for official foreign country codes.

    3. If the foreign address is from Australia, Brazil, Cuba, Italy, Mexico or The Netherlands, check if the address contains a province, state or territory. In this instance it is likely to have both a province/state/territory code as well as a foreign country code.

    IF THEN
    A province, state or territory is present
    1. Circle out province, state or territory name.

    2. Enter appropriate abbreviation. See Exhibit 3.11.23-14.

    A province, state or territory is not present Continue editing the return.
    Province, state or territory is shown in abbreviated format, Continue editing the return.
  6. A ZIP code is not required on a foreign address. Foreign addresses use a postal code that is entered before the city or foreign country and is part of the address.

3.11.23.10.5.1  (01-01-2015)
♦ Country Code - Canada ♦

  1. In an effort to assist Compliance with workload assignment, returns filed with an address in Canada will be edited using a unique Country Code based on the Province/Territory:

    If... Then...
    The foreign address contains a Canadian Province/Territory name or abbreviation shown in the table below,
    1. See table below to ensure the correct Canadian Province/Territory is present or edited to the return.

    2. Edit the appropriate Country Code based on the province/territory preceded by a "/" and followed by a "/$" as the last entry in the address.

    The foreign address does not contain a Canadian Province/Territory name or abbreviation shown in the table below,
    1. Circle the country name.

    2. Edit the Country Code "/CA/$" as the last entry in the address.

    ♦ Canadian Province/Territory Abbreviations, Postal Codes and Foreign Country Codes Table ♦

    Canadian Province/Territory Province/Territory Abbreviation Postal Code Beginning Country Code
    Alberta AB T XA
    British Columbia BC V XB
    Manitoba MB R XM
    New Brunswick NB E XN
    Newfoundland and Labrador NL A XL
    Northwest Territories NT X XT
    Nova Scotia NS B XS
    Nunavut NU X XV
    Ontario ON K, L, M, N, or P XO
    Prince Edward Island PE C XP
    Quebec QC G, H, or I XQ
    Saskatchewan SK S XW
    Yukon YT Y XY
  2. The rest of the foreign address is edited using procedures in IRM 3.11.23.10.5, Entity Perfection of Foreign Address.

3.11.23.10.6  (01-01-2015)
Entity Perfection of Tax Period

  1. If the taxpayer enters the due date of the return instead of the tax period ending, perfect the Tax Period.

  2. Prepare a dummy return for each Tax Year involved when more than one tax year is shown on a return.

    Exception:

    Correspond with the taxpayer for any Form 2290 filed for multiple tax periods or if a dummy return cannot be prepared for Form 720, Form 11-C, and Form 730. See IRM 3.11.23.20, Multiple Period Returns (Form 11-C, Form 720, Form 730, and Form 2290).

  3. On prior year returns (prior quarter), edit or underline the Tax Period.

3.11.23.10.6.1  (01-01-2015)
Early Filed Excise Tax Return Form 720 and Form 2290

  1. Never send an excise tax return back to the taxpayer.

  2. If the month of the tax period is the same or after the month of the process date, determine how early the tax return has been filed:

    If... And... Then...
    Form 720 is early filed for the 3rd or 4th quarter of the current year, no TC150 has posted for the applicable quarter of the previous year, process the return for the appropriate quarter of the previous year.
    Form 720, The tax period is equal to or later than the process date by three months or less (i.e., the process date is in April but the tax period is June),
    1. Edit Action Code 480 (early filed suspense).

    2. Leave return in batch.

    The tax period is later than the process date by more than three months (i.e., the process date is in April but the tax period is in September),
    1. Edit Action Code 211 and attach Form 3696 to request confirmation of the tax period.

    2. Leave the return in batch.

    Exception:

    Form 720 reporting Floor Stock Taxes for IRS Number 20 see IRM 3.11.23.16.5, Floor Stock Taxes, and also see Exhibit 3.11.23-11. Form 720 reporting Patient Centered Outcomes Research (PCOR) Taxes for IRS Number 133 see IRM 3.11.23.16.1.3, IRS Number 133, Patient Centered Outcomes Research (PCOR) Fee Perfection.

    If... And... Then...
    Form 2290 The process date and the Tax Period Beginning (TPB) are the same month (i.e., the process date and the TPB are both July) or,

    The process date is prior to the TPB by 3 months or less (i.e., the process date is in May but the TPB is July or later),
    Process as usual
    The process date is prior to the TPB by more than 3 months (i.e., the process date is March but the TPB is July or later),
    1. Edit Action Code 211 for correspondence.

    2. Follow local service center correspondence procedures.

    3. Completely edit the return. Edit the future tax period indicated by the taxpayer.

    4. Leave the return in the batch.

    5. Do not return Sch. 1.

    Figure 3.11.23-6
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.23.10.6.2  (01-01-2015)
Early Filed Excise Tax Return Form 11-C and Form 730

  1. Never send an excise tax return back to the taxpayer.

3.11.23.10.6.2.1  (01-01-2015)
Early Filed Excise Tax Return Form 11-C

  1. If the month of the tax period is the same or after the month of the received date, determine how early the return has been filed.

    If... Then...
    The tax period is less than 3 months of the process date, Process as usual. See Figure 3.11.23-7.
    The tax period is greater than 3 months of the process date,
    1. Edit CCC "U" and attach Form 3696 to request confirmation of the tax period.

    2. Completely edit the return including the future tax period by the tax payer.

    3. Leave the return in the batch.

3.11.23.10.6.2.2  (01-01-2015)
Early Filed Excise Tax Return Form 730

  1. Form 730 can never be filed early. Follow procedures in IRM 3.11.23.10.6.6, Entity Perfection of Tax Period (Form 730), for determining the correct tax period on Form 730. Use the signature date to assist in determining the correct tax period. See Figure 3.11.23-7

    Figure 3.11.23-7
    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.23.10.6.3  (01-01-2015)
Entity Perfection of Tax Period (Form 720)

  1. The quarter ending dates for Form 720 is March 31, June 30, September 30, and December 31.

    Quarter Ending Edit as Follows
    201412 1412
    201503 1503
    201506 1506
    201509 1509
    201512 1512
  2. If the taxpayer fails to enter the quarter ending date on the return, search the return and any attachments for an indication of the tax period. If found, edit the tax period in "YYMM" format in the Quarter ending space in the entity portion of the return. See Figure 3.11.23-8.

  3. If the quarter ending cannot be determined, process as a current period's return.

  4. If the return is an "early filed" return see IRM 3.11.23.10.6.1, Early Filed Excise Tax Return Form 720 and Form 2290.

    Figure 3.11.23-8

    This image is too large to be displayed in the current screen. Please click the link to view the image.

3.11.23.10.6.4  (01-01-2015)
Entity Perfection of Tax Period (Form 2290 / Form 2290SP)

  1. Form 2290 and Form 2290SP with a remittance go to Lockboxes. The amount of remittance will be notated in red in the upper left hand portion of the Form 2290 by the Lockbox function. The tax period will be notated under the remittance amount, if the lockbox processed the remittance to a month OTHER THAN 07. Follow procedures in IRM 3.11.23.10.7, Payment Processed to Incorrect Period, if the payment has been processed to the incorrect tax period.

  2. The tax period is edited to left of the Office of Management and Budget (OMB) number. It is not necessary to edit the two digit century (e.g., 19 or 20) on the return. This has been preprogrammed on the ISRP screen. See Figure 3.11.23-9.

    Figure 3.11.23-9

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Note:

    The tax period must be edited on all Form 2290 series worked from May 1st to June 30th of each year.

  3. To determine the correct tax period, use the following procedures:

    If... Then...
    if "Month" box (line 1) has an entry other than "July" , Edit the month from the taxpayer entry in the "Month" box after verifying that the tax on line 2 agrees with the month shown.
    If the beginning month in the "Month" box does not agree with the amount of tax on line 2, Use the rate of tax, amount of tax, and number of vehicles to determine the tax period.
    The return is an Early Filed return, Follow procedures outlined in IRM 3.11.23.10.6.1, Early Filed Excise Tax Return Form 720 and Form 2290.
    A handwritten entry is present and the "Month" box is blank, Edit the month based on the taxpayer's computation.
    The taxpayer has filed multiple Forms 2290 for the same tax period, Combine all returns into one single return when possible. Make sure to address all Sch. 1s as appropriate.
    The taxpayer indicates return is for more than one tax period, Action Code 211 and correspond for the taxpayer to complete the separate Form 2290 and Schedule 1 for each tax period.
    Unable to determine tax period and no other correspondence required, Process as current year.
    Unable to determine the beginning month and other correspondence is required, Request clarification of the tax period.
    • If the taxpayer's reply indicates that the full year tax is correct and the beginning month is wrong, process as an annual return. (i.e., beginning month 07).

    • If the full years tax was in error and the beginning month was correct, edit the beginning month as the correct tax period.

    No reply to correspondence, Edit "July" for the beginning month.

    Tax Rate Table for Vehicles Except Logging

    Category July
    (12)
    Aug.
    (11)
    Sep.
    (10)
    Oct.
    (9)
    Nov.
    (8)
    Dec.
    (7)
    Jan.
    (6)
    Feb.
    (6)
    Mar.
    (4)
    Apr.
    (3)
    May
    (2)
    Jun.
    (1)
    A 100.00 91.67 83.33 75.00 66.67 58.33 50.00 41.67 33.33 25.00 16.67 8.33
    B 122.00 111.83 101.67 91.50 81.33 71.17 61.00 50.83 40.67 30.50 20.33 10.17
    C 144.00 132.00 120.00 108.00 96.00 84.00 72.00 60.00 48.00 36.00 24.00 12.00
    D 166.00 152.17 138.33 124.50 110.67 96.83 83.00 69.17 55.33 41.50 27.67 13.83
    E 188.00 172.33 156.67 141.00 125.33 109.67 94.00 78.33 62.67 47.00 31.33 15.67
    F 210.00 192.50 175.00 157.50 140.00 122.50 105.00 87.50 70.00 52.50 35.00 17.50
    G 232.00 212.67 193.33 174.00 154.67 135.33 116.00 96.67 77.33 58.00 38.67 19.33
    H 254.00 232.83 211.67 190.50 169.33 148.17 127.00 105.83 84.67 63.50 42.33 21.17
    I 276.00 253.00 230.00 207.00 184.00 161.00 138.00 115.00 92.00 69.00 46.00 23.00
    J 298.00 273.17 248.33 223.50 198.67 173.83 149.00 124.17 99.33 74.50 49.67 24.83
    K 320.00 293.33 266.67 240.00 213.33 186.67 160.00 133.33 106.67 80.00 53.33 26.67
    L 342.00 313.50 285.00 256.50 228.00 199.50 171.00 142.50 114.00 85.50 57.00 28.50
    M 364.00 333.67 303.33 273.00 242.67 212.33 182.00 151.67 121.33 91.00 60.67 30.33
    N 386.00 353.83 321.67 289.50 257.33 225.17 193.00 160.83 128.68 96.50 64.33 32.17
    O 408.00 374.00 340.00 306.00 272.00 238.00 204.00 170.00 136.00 102.00 68.00 34.00
    P 430.00 394.17 358.33 322.50 286.67 250.83 215.00 179.17 143.33 107.50 71.67 35.83
    Q 452.00 414.33 376.67 339.00 301.33 263.67 226.00 188.33 150.67 113.00 75.33 37.67
    R 474.00 434.50 395.00 355.50 316.00 276.50 237.00 197.50 158.00 118.50 79.00 39.50
    S 496.00 454.67 413.33 372.00 330.67 289.33 248.00 206.67 165.33 124.00 82.67 41.33
    T 518.00 474.83 431.67 388.50 345.33 302.17 259.00 215.83 172.67 129.50 86.33 43.17
    U 540.00 495.00 450.00 405.00 360.00 315.00 270.00 225.00 180.00 135.00 90.00 45.00
    V 550.00 504.17 458.33 412.50 366.67 320.83 275.00 229.17 183.33 137.50 91.67 45.83
    Tax Rates for Logging
    CATEGORY July
    (12)
    Aug.
    (11)
    Sep.
    (10)
    Oct.
    (9)
    Nov.
    (8)
    Dec.
    (7)
    Jan.
    (6)
    Feb.
    (5)
    Mar.
    (4)
    Apr.
    (3)
    May
    (2)
    Jun.
    (1)
    A 75.00 68.75 62.49 56.25 50.00 43.74 37.50 31.25 24.99 18.75 12.50 6.24
    B 91.50 83.87 76.25 68.62 60.99 53.37 45.75 38.12 30.50 22.87 15.24 7.67
    C 108.00 99.00 90.00 81.00 72.00 63.00 54.00 45.00 36.00 27.00 18.00 9.00
    D 124.50 114.12 103.74 93.37 83.00 72.62 62.25 51.87 41.49 31.12 20.75 10.37
    E 141.00 129.24 117.50 105.75 93.99 82.25 70.50 58.74 47.00 35.25 23.49 11.75
    F 157.50 144.37 131.25 118.12 105.00 91.87 78.75 65.62 52.50 39.37 26.25 13.12
    G 174.00 159.50 144.99 130.50 116.00 101.49 87.00 72.50 57.99 43.50 29.00 14.49
    H 190.50 174.62 158.75 142.87 126.99 111.12 95.25 79.37 63.50 47.62 31.74 15.87
    I 207.00 189.75 172.50 155.25 138.00 120.75 103.50 86.25 69.00 51.75 34.50 17.25
    J 223.50 204.87 186.24 167.62 149.00 130.37 111.75 93.12 74.49 55.87 37.25 18.62
    K 240.00 219.99 200.00 180.00 159.99 140.00 120.00 99.99 80.00 60.00 39.99 20.00
    L 256.50 235.12 213.75 192.37 171.00 149.62 128.25 106.87 85.50 64.12 42.75 21.37
    M 273.00 250.25 227.49 204.75 182.00 159.24 136.50 113.75 90.99 68.25 45.50 22.74
    N 289.50 265.37 241.25 217.12 192.99 168.87 144.75 120.62 96.50 72.37 48.24 24.12
    O 306.00 280.50 255.00 229.50 204.00 178.50 153.00 127.50 102.00 76.50 51.00 25.50
    P 322.50 295.62 268.74 241.87 215.00 188.12 161.25 134.37 107.49 80.62 53.75 26.87
    Q 339.00 310.74 282.50 254.25 225.99 197.75 169.50 141.24 113.00 84.75 56.49 28.25
    R 355.50 325.87 296.25 266.62 237.00 207.37 177.75 148.12 118.50 88.87 59.25 29.62
    S 372.00 341.00 309.99 279.00 248.00 216.99 186.00 155.00 123.99 93.00 62.00 30.99
    T 388.50 356.12 323.75 291.37 258.99 226.62 194.25 161.87 129.50 97.12 64.74 32.37
    U 405.00 371.25 337.50 303.75 270.00 236.25 202.50 168.75 135.00 101.25 67.50 33.75
    V 412.50 378.12 343.74 309.37 275.00 240.62 206.25 171.87 137.49 103.12 68.75 34.37
  4. If the full years tax payment was in error and the return's beginning month was correct, edit the correct tax period. If no reply, edit July for the beginning month. See IRM 3.11.23.8.4, Processing No Reply Cases, for additional editing information.

  5. Lock Box Issues - If the Lock Box function edits a tax period in the T-line area for tax periods and it is correct according to the procedures, no action is needed. If incorrect, circle out the incorrect tax period and edit the correct tax period.

3.11.23.10.6.5  (01-01-2015)
Entity Perfection of Tax Period (Form 11-C)

  1. Compare the amount of tax entered on Form 11-C, Part 1, line 2 to the tax rate chart. See Figure 3.11.23-10. If the tax period is not entered on the Form 11-C, or is not entered correctly, edit the month corresponding to the amount of tax reported as the tax period for the return.

    Note:

    Edit the tax period to the left of the OMB number.

    Figure 3.11.23-10

    JULY AUG. SEP. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUN.
    500.00 458.33 416.66 375.00 333.33 291.66 250.00 208.33 166.66 125.00 83.33 41.66
    50.00 45.83 41.66 37.50 33.33 29.16 25.00 20.83 16.66 12.50 8.33 4.16

3.11.23.10.6.6  (01-01-2015)
Entity Perfection of Tax Period (Form 730)

  1. The tax period block for Form 730 requests the month and year for which taxable wagers are received. Edit the tax period on every Form 730 in YYMM format to the left of the OMB Number area of the return. If the tax period is not entered on the Form 730 by the taxpayer, edit the month and year preceding the month in the signature date as the tax period. See Figure 3.11.23-11

    Figure 3.11.23-11

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Note:

    If no signature date, edit the month and year preceding the received date as the tax period. Figure 3.11.23-12.

    Figure 3.11.23-12

    This image is too large to be displayed in the current screen. Please click the link to view the image.

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