4.24.8  Examination Guidance for Excise Claims for Refund or Abatement

Manual Transmittal

February 24, 2012

Purpose

(1) Revised IRM. This transmits revised IRM 4.24.8, Excise Tax, Examination Guidance for Excise Claims for Refund or Abatement.

Material Changes

(1) The title of this section has been changed to Examination Guidance for Excise Claims for Refund or Abatement to better reflect content. Subsection titles have also been renamed, reorganized and expanded. Updates have been made throughout this section to reflect changes in legislation and changes to the excise claim control, report writing, and case closing procedures. Added new information regarding claims statute of limitations at 4.24.8.4 and Exhibit 4.24.8-2. Removed Exhibits relating to Internal Revenue Code citations since they are now found on the claims web page and hyperlinked. Content relating to claims selection, control and processing found in IRM 4.24.3.5.1, 4.24.3.5.11, 4.24.3.9.1, 4.24.11.4, and 4.24.11.7 moved into this section so the excise examiner has all information relating to claims in this IRM section.

(2) Listed below is a table of changes made to the 8-13-2008 IRM section numbers.

Old IRM Section Number Description of Change
4.24.8.1 Overview Added hyperlink to claims web page
4.24.8.2 Types of Claims and Characteristics Title changed to Types of Claim Reporting Forms. Deleted references to IRC Exhibits (Now are in Claims Handbook), updated reference to Form 6478 and 8864, and added information on Alternative Fuels Credits. Added new content in 4.24.8.2.1 Processing Form 8849 Excise Tax Claims. Content moved from 4.24.8.2.1 through 4.24.8.2.6 to 4.24.8.3 and updated to add clarity. Added hyperlink to claims web page.
4.24.8.3 Refund Categories Content moved to 4.24.8.6 and updated to include guidance on 720X returns and third party claim processing and control procedures. Title changed to Types of Claims and content from 4.24.8.2 moved here.
4.24.8.4 Claims - Regular Agreed Cases Content moved to 4.24.8.8.( agreed unpaid claims) and 4.24.8.10 (agreed paid claims) and updated report writing and case closing procedures for IRC 6416(a)(4), 6421, 6426, and 6427 claims. Title changed to Statute of Limitations and new content added including specific examples to aid in determining the statute of limitations period.
4.24.8.5 Claims - Unagreed and Excepted Agreed Cases Content moved to 4.24.8.9 (unagreed unpaid claims) and 4.24.8.10(7) (unagreed paid claims) and updated report writing and case closing procedures. Title changed to Excise Claim Classification and Control Procedures and some relevant content moved from 4.24.3.5, 4.24.3.9, 4.24.11.4, 4.24.11.7, and 4.24.8.8. Some content from 4.24.8.12.1. added but removed reference to Motor Fuel Claim Examination Tool and clarified that 30 day rule applies for unpaid claims only.
4.24.8.6 Claims – Agreed Master File 40 Third Party Paid Claims Content removed as field MFT 40 procedures obsolete. Title changed to Refund Categories and content from 4.24.8.3 and 4.24.11.3 moved here and updated to include guidance on 720X returns and third party claim processing and control procedures.
4.24.8.7 Claims – Unagreed Master File 40 Third Party Paid Claims Content removed as field MFT 40 procedures obsolete. Title changed to Source Code 30 Unpaid Claims Allowed on Survey and content from 4.24.8.11 moved here and updated survey procedures.
4.24.8.8 Centralized Classification of Claims Content moved to 4.24.8.5 and 4.24.8.11. Title changed to Source Code 30 Unpaid Claims-Regular Agreed and content from 4.24.8.4 moved here updated and reorganized to add clarity.
4.24.8.9 Abatement Claims Related to Examination Assessments Content moved to 4.24.8.12. Title changed to Source Code 30 Unpaid Claims-Unagreed and Excepted Agreed Cases and content from 4.24.8.5 moved here updated and reorganized to add clarity.
4.24.8.10 No Consideration Given To Certain Refund Claims Content moved to 4.24.8.13. Title changed to Source Code 31 Claims-Third Party Paid Claims and content from 4.24.8.4 moved here updated and reorganized to add clarity. Added new content relating to statute of limitations considerations for paid claims
4.24.8.11 Excise Tax Claims Allowed on Survey Moved to 4.24.8.7. Title changed to Centralized Classification of IRC 4081(e) Claims and content from 4.24.8.8.1 moved here and updated.
4.24.8.12 Examination and Disposition of Claims on Their Merits Content moved to 4.24.8.5, 4.24.8.14, 4.24.8.15, and 4.24.8.16. Removed reference to Motor Fuel Claim Examination Tool. Clarified that 30 day rule applied for unpaid claims only. Title changed to Abatement Claims Related to Examination Assessments and content from 4.24.8.9 moved here.
4.24.8.13 Request for Reconsideration of Disallowed Claims Moved to 4.24.8.17. Title changed to No Consideration Given to Certain Refund Claims and content from 4.24.8.10 moved here. Added reference to Exhibit 4.24.8-3.
4.24.8.14 Restricted Interest Moved to 4.24.8.18. Title changed to Claims in Cases Previously Considered by Appeals and content from 4.24.8.12.2 moved here.
NEW 4.24.8.15 Suits for Recovery of Erroneous Refunds Content from 4.24.8.12.3 moved here.
NEW 4.24.8.16 Use of Form 907 Agreement to Extend the Time to Bring Suit Content from 4.24.8.12.4 moved here.
NEW 4.24.8.17 Request for Reconsideration of Disallowed Claims Content from 4.24.8.13 moved here.
NEW 4.24.8.18 Restricted Interest Content from 4.24.8.14 moved here.
NEW 4.24.8.19 Claims for Refund of an Overpayment of Excise Tax on Insurance Policies issued by a Foreign Insurer or Reinsurer Content from 4.24.11.10 moved here.
Exhibit 4.24.8-1. IRC Citations For Refunds/Credits of Excise Taxes Moved to claims web page. Moved Exhibit 4.24.8-5 here.
Exhibit 4.24.8-2. IRC Section Reference for Claims on Form 8849 Moved to claims web page. Moved Exhibit 4.24.8-6 here.
Exhibit 4.24.8-3. IRC Section Reference for Claims on Form 720 Schedule C Moved to claims web page. New Exhibit titled Searching for Excise Claims on IDRS/CFOL moved here from 4.24.11.6 and updated for clarity.
Exhibit 4.24.8-4. IRC Section Reference for Claims on Form 4136 Moved to claims web page. New Exhibit titled Credit Reference Numbers and Corresponding Abstract Numbers
Exhibit 4.24.8-5. Filing Due Dates Moved to Exhibit 4.24.8-1.
Exhibit 4.24.8-6. Statute Dates and Recovery of Erroneously Paid Claims Moved to Exhibit 4.24.8-2.

Effect on Other Documents

This material supersedes IRM 4.24.8, dated 8-13-2010.

Audience

This section is for SBSE Excise Managers, Examiners and Specialists.

Effective Date

(02-24-2012)



John M Imhoff
Director, Specialty Programs
Small Business/Self Employed

4.24.8.1  (02-24-2012)
Overview

  1. This section provides general guidelines and procedures for excise tax claims.

  2. Excise examiners should refer to the Claims web page for information regarding IRC citations, filing due dates, type of use tables, and statute dates for claims. The Claims web page is located in the Examining Excise Tax Issues and Procedures section at http://mysbse.web.irs.gov/Specialty/excise/issues/claims/default.aspx.

4.24.8.2  (02-24-2012)
Types of Claim Reporting Forms

  1. The Form 720X, Amended Quarterly Federal Excise Tax Return, is used to make refund claims for credits or refunds resulting from an overpayment of excise tax liability that the claimant reported on Form 720, Quarterly Federal Excise Tax Return. See IRM 21.7.8.4.1.19 for additional information on Form 720X.

  2. The Form 8849, Claim for Refund of Excise Taxes, is used to make claims for refunds of excise taxes other than those resulting from adjustments to liabilities reported by the claimant. See IRM 21.7.8.4.5 for additional information on Form 8849.

  3. Generally, instead of claiming a refund on Form 8849, taxpayers claims can be made on Schedule C of Form 720 as a credit against excise tax liability.

  4. Form 4136, Credit for Federal Tax Paid on Fuels, may be used to claim a credit against income tax for certain nontaxable uses of fuel, sales of fuel, certain fuel mixtures or alternative fuels for income tax year instead of claiming a refund on Form 8849.

  5. Form 6478, Alcohol and Cellulosic Biofuels Credit, along with Form 3800, General Business Credit, may be used to claim a credit against income tax for certain sales, production of biofuels, and uses of alcohol as fuel not claimed or cannot be claimed on Schedule C of Form 720, 4136, or 8849. The credit for cellulosic biofuels is allowed for fuels produced, and sold or used after December 31, 2008.

  6. Form 8864, Biodiesel and Renewable Diesel Fuel Credit, along with Form 3800 may be used to claim a credit against income tax as a general business credit for certain sales and uses of biodiesel and renewable diesel fuels not claimed or cannot be claimed on Schedule C of Form 720,Form 4136, or 8849.

  7. The Alternative Fuel, Biodiesel, Renewable Diesel Fuel Credit, and Mixture Credits, except for the Liquefied Hydrogen Alternative Fuel Credit expired December 31, 2011. The Liquefied Hydrogen Alternative Fuel Credit is set to expire September 30, 2014. The Alcohol Credit expired December 31, 2011.

  8. Refer to the Claims page located in the Examining Excise Tax Issues and Procedures section, which contains legislative developments with regard to claims, at http://mysbse.web.irs.gov/Specialty/excise/issues/claims/default.aspx.

4.24.8.2.1  (02-24-2012)
Processing of Form 8849 Excise Tax Claims

  1. Excise tax claims filed on Form 8849 are forwarded directly to Centralized Specialty Tax Operations (CSTO). Excise penalty claims filed on Form 843, Claim For Refund and Request for Abatement, are also forwarded to CSTO.

    Note:

    Excise tax claims should not be made on Form 843.

  2. See IRM 21.7.8, Business Tax Returns and Non-Master File Accounts-Excise Taxes for more information on the processing of excise tax returns and claims.

  3. Form 8849 claims are sorted by schedule and dollar amount. Based upon dollar amount of claim, they are given to either CSTO Revenue Agents or Tax Examiners for review. See IRM 21.5.3, Exhibit 2, for exam criteria. The claim may be accepted, not considered, disallowed, or selected for examination. See IRM 4.24.8.13 for further explanation when a no consideration letter is issued to a claimant.

  4. See IRM 4.10.8.9 for additional report writing guidance relating to claims.

4.24.8.3  (02-24-2012)
Types of Claims

  1. The Internal revenue Code allows for specific claims for refund for:

    • IRM 6402, Authority to Make Credits or Refunds, which states the general rule that allows refunds or credits of overpayments to the person who made the overpayment

    • IRC 6415, Credit or Refund for Collected Taxes

    • IRC 6416, Credit or Refund for Taxes on Sales and Services

    • IRC 6420, Credit or Refund for Gasoline Used on Farms

    • IRC 6416(a)(4), 6421, 6426 and 6427 Claims

    • IRC 6412, Floor Stock Refund Claims

    • IRC 6419, Wagering Tax Refund Claims

4.24.8.3.1  (02-24-2012)
IRC 6415 Credit or Refund for Collected Taxes

  1. IRC 6415 claims are for overpayment of tax that are filed by the person who collected and paid over the communications or air transportation taxes. The collector must either repay the amount of the tax to their customer or receive their customer's consent.

  2. These claims fall under normal statute provisions for Form 720.

  3. Refunds are made from the corresponding Master File Tax (MFT) 03 account using normal Master File (MF) procedures.

  4. Interest is usually allowable.

  5. The payer of services provided may also file a claim under IRC 6402.

4.24.8.3.2  (02-24-2012)
IRC 6416 Credit or Refund for Taxes on Sales and Services

  1. IRC 6416 claims are filed for manufacturers and retail taxes.

  2. Not included under this section are claims for some fuel taxes, collected taxes, and floor stock taxes.

  3. IRC 6416 discusses certain subsequent sales and uses are overpayments, and someone other than the taxpayer may file a claim.

  4. After December 31, 2004, the American Jobs Creation Act (AJCA) amended IRC 6416(a)(4) to allow for Registered Aviation Gasoline and Gasoline Ultimate Vendor Claims.

  5. Registered Aviation Gasoline and Gasoline Ultimate Vendor Claims filed under IRC 6416(a)(4) use the ultimate vendor procedures under IRC 6427(i)(4).

  6. The Safe, Accountable, Flexible, Efficient Transportation Equity Act: Legacy for Users (SAFTEA:LU) extended the rules for excessive claims and penalties under IRC 6206 and IRC 6675 to Registered Aviation Gasoline and Gasoline Ultimate Vendor claims after December 31, 2005.

  7. The SAFETEA:LU provided for Registered Aviation Gasoline and Gasoline Credit Card Issuer Claims filed under IRC 6416(a)(4) to use the ultimate vendor procedures under IRC 6427(i)(4).

  8. The rules for excessive claims and penalties under IRC 6206 and IRC 6675 apply to Registered Aviation Gasoline and Gasoline Credit Card Issuer Claims.

  9. Interest is not allowable on claims filed under IRC 6416(b).

4.24.8.3.3  (02-24-2012)
IRC 6420 Credit or Refund for Gasoline Used on Farms

  1. IRC 6420 claims are required to be filed on an annual basis using Form 4136.

  2. The United States, a state, political subdivision of a state, or the District of Columbia, or organizations exempt from income tax under IRC 501(a) (provided that the organization is not required to file 990-T, Exempt Organization Business Income Tax Return, for that taxable year) may file IRC 6420(g) claims (farm use of gasoline) on Form 8849, Schedule 1, Nontaxable Use of Fuels.

4.24.8.3.4  (02-24-2012)
IRC 6416(a)(4), 6421, 6426 and 6427 Claims

  1. IRC 6421 and 6427 claims address the nontaxable uses of fuel (alternative fuels, diesel, diesel-water fuel emulsion, gasoline, LPG or kerosene).

    Note:

    References to "special fuels" have been removed on Form 8849 and Form 4136. The type of special fuel should be stated on the forms.

  2. IRC 6426 and 6427 address certain fuel mixture credits (alcohol fuel mixture credits, biodiesel or renewable diesel mixture credits, and alternative fuel mixture credit claims) and alternative fuel credits.

    Note:

    At the time this IRM was drafted the provisions under IRC 6426 have expired

  3. The nontaxable use of fuels claims filed under IRC 6421 and 6427 are subject to the quarterly claim rules. Claim amounts can be aggregated from any quarters of the claimant's income tax year for which no other claim has been made.

    Note:

    Fiscal year taxpayers must base their claims on fiscal year quarters.

  4. The claims filed under IRC 6426, 6416(a)(4), and 6427 for Sales by Registered Ultimate Vendors and Registered Credit Card Issuers, and Certain Fuel Mixtures and Alternative Fuels can be filed for a period that is at least one week.

  5. Claims for Certain Fuel Mixtures and Alternative Fuels, Ultimate Vendors of Gasoline and Undyed Diesel Fuel, and Registered Credit Card Issuers must be at least $200.

  6. Claims for Registered Ultimate Vendors of Kerosene must be at least $100.

  7. Electronically filed Certain Fuel Mixture and Alternative Fuel Claims do not need to meet the $200 limitation.

  8. Annual claim provisions are provided for the following:

    • United States,

    • State or local government entity, and

    • an IRC 501(a) organization that is not required to file a Form 990T , or Form 1120C, U.S. Income Tax Return for Cooperative Association.

    Note:

    Ultimate Vendors that are any of the above entities are permitted to file an annual claim for that activity.

  9. A State or local government entity can file claims for diesel fuel, kerosene and gasoline if the purchase was made with a credit card and the neither the registered credit card issuer nor the registered ultimate vendor is eligible to make the claim.

  10. A nonprofit education organization can file claims for gasoline if the purchase was made with a credit card and the neither the registered credit card issuer nor the registered ultimate vendor is eligible to make the claim.

  11. Paid claims filed under the above code sections are subject to the excessive claims provisions under IRC 6206 and 6675.

  12. Claims made under IRC 6426 for Certain Fuel Mixtures and Alternative Fuel Credits used to offset the IRC 4081 tax liability on Form 720 are not subject to the time requirements of IRC 6427(i)(3) to file a claim.

  13. Interest is not allowable on Nontaxable use of Fuel claims under filed IRC 6421 and 6427.

  14. Interest may be payable on Registered Ultimate Vendor, Certain Fuel Mixture and Alternative Fuels, and Registered Credit Card Issuer claims if not paid within certain time frames. See IRM 21.7.8.4.5.3(3), IRM 21.7.8.4.5.4.1(1) and IRM 21.7.8.4.7(5) for these time frames.

  15. Resales of taxable fuel purchased at a tax-excluded price from a registered ultimate vendor or registered credit card issuer from one State or local government to another State or local government is considered to be for the exclusive use of the State or local governments. The subsequent sale of the taxable fuel does not change the character of the fuel.

4.24.8.3.5  (02-24-2012)
IRC 6412 Floor Stock Refund Claims

  1. IRC 6412 claims are filed for refund of tax previously paid on articles when the tax rate is reduced, the statute imposing the tax expires, or Congress repeals the tax.

4.24.8.3.6  (02-24-2012)
IRC 6419 Wagering Tax Refund Claims

  1. IRC 6419 claims are filed for wagering tax and has strict requirements for supporting evidence.

  2. Allowable amounts may be refunded or claimed as an adjustment on a Form 730, Monthly Tax on Wagering. See IRC 4401.

  3. Refunds are made from the corresponding MFT 64 account using normal MF procedures.

4.24.8.4  (02-24-2012)
Statute of Limitations for IRC 6416(a)(4), 6421, 6426 and 6427 Claims

  1. The statute of limitations cannot be extended to make an assessment on excessive claims under IRC 6206 for claims filed under IRC 6416(a)(4), 6420, 6421, and 6427.

  2. The statute of limitations may be extended on claims made under IRC 6426 for Certain Fuel Mixtures and Alternative Fuel Credits used to offset the IRC 4081 tax liability on Form 720 as they are not assessed under IRC 6206.

  3. If a claim filed under IRC 6426 and 6427 for Certain Fuel Mixtures and Alternative Fuel Credits is filed on Form 720, Schedule C Claims, the excise examiner needs to make the assessment for the excessive claim amount under IRC 6206 and any other adjustment prior to the expiration of the earliest statute of limitations date for that period.

    Note:

    The statute of limitations for Form 720 Schedule C Claims will expire on the last day to make the assessment on the excessive claim under IRC 6206.

4.24.8.4.1  (02-24-2012)
Examples of Statute of Limitations Dates for Claims

  1. As prescribed by IRM 25.6.23.5, the excise examiner is responsible for determining and protecting the exam period statute of limitation (SOL). The excise examiner should not rely on someone else’s initial determination.

  2. See Exhibit 4.24.8-1 which sets forth the due dates for various types of claims. The due date will help determine the exam period of limitations.

  3. See Exhibit 4.24.8-2 which contains a paid claim summary table listing various types of paid claims that cannot be extended, or can only be extended to the extent that they offset the excise tax liability reported on Form 720.

  4. To serve as additional guidance in the determination of statute of limitation dates, 9 examples are illustrated below.

    • Examples 1 through 6 concern Form 8849.

    • Examples 7 and 8 concern claims submitted on Form 720, Schedule C.

    • Example 9 concern annual claims filed by State and local governments.

  5. Form 8849 statute examples presented below serve as additional guidance in the determination of statute of limitation dates.

    • Example 1- An Ultimate Vendor "UV" registrant and calendar year filer filed Form 8849 Schedule 2 Sales by Registered Ultimate Vendors, for diesel fuel sold to a state government. The claim was filed on June 15, 2009 for the period January 1, 2009 to March 31, 2009. The claim was paid on July 2, 2009. Under IRC 6427(i)(4) the last day the claim could have been filed was June 30, 2009. It must be filed by the last day of the first quarter following the earliest quarter included in the claim. Paid claims and refunds under IRC 6427 are assessed under IRC 6206. There is no provision under IRC 6206 for an extension of the statute of limitations. Thus, the SOL is June 30, 2012, three years from the last day prescribed for filing the claim.

    • Example 2- Same facts as above but the claim period was January 1, 2009 to May 31, 2009. The extension of the claim period to the next quarter does not change the last day to file requirement of June 30, 2009, nor the SOL date of June 30, 2012.

    • Example 3- A construction company and calendar year filer filed Form 8849 Schedule 1 Nontaxable Use of Fuels, for nontaxable use of diesel fuel. The claim was filed July 1, 2009 for the period January 1, 2009 to June 30, 2009. The claim was paid July 15, 2009. Under IRC 6427(i)(2)(B) the last day the claim could have been filed was September 30, 2009. It must be filed by the last day of the first quarter following the last quarter included in the claim. Paid claims and refunds under IRC 6427 are assessed under IRC 6206. There is no provision under IRC 6206 for an extension of the statute of limitations. Thus, the SOL is September 30, 2012, three years from the last day prescribed for filing the claim.

    • Example 4- Same facts as above, but the claim period is January 1, 2009 to March 31, 2009. The SOL is June 30, 2012, three years from the last day prescribed for filing the claim

    • Example 5- A calendar year taxpayer and Form 637 activity suffix "M" registrant filed an alcohol fuel mixture claim on Form 8849 Schedule 3 Certain Fuel Mixtures and the Alternative Fuel Credit , for the period January 1, 2009 through January 31, 2009. The credit claimed on Form 8849 was in excess of the first quarter tax liability therefore subject to the provisions of IRC 6206.

      Note:

      Any portion of this type of claim not in excess of Form 720 tax liabilities would be governed under IRC 6426 and 6501, only the excess is controlled by IRC 6427 and 6206.

      The claim was filed on February 20, 2009. The claim was paid March 5, 2009. Under IRC 6427(i)(3)(C), the last day the claim could have been filed was June 30, 2009. It must be filed by the last day of the first quarter following the earliest quarter included in the claim. Paid claims and refunds under IRC 6427 are assessed under IRC 6206. There is no provision under IRC 6206 for an extension of the statute of limitations. Thus, the SOL is June 30, 2012, three years from the last day prescribed for filing the claim.

    • Example 6- A calendar year taxpayer and “M” registrant filed a biodiesel claim on Form 8849 Schedule 3 Certain Fuel Mixtures and the Alternative Fuel Credit, for the period December 15, 2009 through January 13, 2010. The credit claimed on Form 8849 was in excess of the fourth quarter 2009 and first quarter 2010 Form 720 tax liabilities therefore subject to the provisions of IRC 6206. The claim was filed on January 27, 2010. The claim was paid on February 11, 2010. The last day the claim could have been filed was March 31, 2010, which was the last day of the first quarter following the earliest quarter of the claim in the taxpayer’s income tax year. The SOL is March 31, 2013. The claim can carry over into the next calendar year.

  6. Form 720 Schedule C statute examples presented below serve as additional guidance in the determination of statute of limitation dates:

    • Example 7- A Form 637 activity suffix "AL" registrant filed a first quarter 2009 Form 720 which comprised of a 1,000 gallon entry to IRS No. 120 Compressed Natural Gas (CNG) and a 1,000 gallon Schedule C alternative fuel credit on line 14c (CRN 428), which resulted in $183 of federal excise tax (FET) liability and a $500 credit, respectively. The return was due no later than April 30, 2009 with a statute of limitation date, three years from the due date of the Form 720, April 30, 2012. The statute may be extended for $183 which represents the amount of the credit used to offset FET liability as provided by IRC 6426 and 6501. The excess credit of $317 is governed by IRC 6427 and 6206 . Under IRC 6427(i)(3)(C) , the last day the claim could have been filed was June 30, 2009. It must be filed by the last day of the first quarter following the earliest quarter included in the claim. Paid claims and refunds under IRC 6427 are assessed under IRC 6206. There is no provision under IRC 6206 for an extension of the statute of limitations. Thus, the SOL is June 30, 2012, three years from the last day prescribed for filing the claim.

    • Example 8- A Form 637 activity suffix "UV" registrant filed a first quarter 2009 Form 720, which reported FET for diesel fuel and a "UV" credit claim for sales from January 1, 2009 through March 31, 2009 on Schedule C, Line 7a - Use by a state or local government. The required filing date of the return is April 30, 2009 with a statute of limitation date of April 30, 2012. The SOL may be extended for the FET but not for the claim as it is controlled by IRC 6427 and 6206. Any reduction to the credit amount claimed must be assessed by June 30, 2012 which represents the date that is 3 years from the last day of the first quarter following the earliest quarter included in the claim.

      Note:

      Form 720X cannot be used to amend most claims on the Form 720 Schedule C. Furthermore, a submitted Form 720X does not necessarily extend the statute of limitation. See IRM 25.6.22 for guidelines concerning statute extensions.

  7. The following example presented below provides additional guidance in the determination of statute of limitation dates for annual claims filed by State and local governments:

    • Example 9- A governmental entity with a fiscal year end of March 31, 2010 filed a Schedule 1 claim for its fiscal year April 1, 2009 to March 31, 2010 for diesel fuel used in off highway equipment. The diesel fuel was purchased using a credit card. It was not purchased from a registered ultimate vendor or registered credit card issuer. Under Treas. Reg. 48.6421-3(b)(ii) and 48.6427-3(b)(ii) the claim must be filed no later than three years following the close of its taxable year. The close of this entities taxable year is March 31, 2010 and three years from that date is March 31, 2013. Thus, the claim is due by March 31, 2013. Paid claims and refunds under IRC 6427 are assessed under IRC 6206. There is no provision under IRC 6206 for an extension of the statute of limitations. Thus, the SOL is March 31, 2016, three years from the last day prescribed for filing the claim.

4.24.8.5  (02-24-2012)
Excise Claim Classification and Control Procedures

  1. Centralized classification of all excise tax claims and amended returns is conducted at the Campus Compliance Operations, Cincinnati (CCOC) by CSTO.

  2. Claims related to a return assigned to an excise tax field office are not classified by the CSTO but are forwarded to the excise group for association with the return.

    Note:

    This only pertains to claims for which an original return was filed and not to quarterly claims or third party claims.

  3. Excise field groups receive claims selected for examination by the CSTO and by Excise Workload Identification and Classification (WIC).

  4. CSTO staff will identify, classify, and select Form 8849 claims for field examination per criteria found in IRM 21.7.8.3.2. This includes:

    1. IRC 4081(e) claims,

    2. Form 720 line 4 adjustments, and

    3. Form 8849 claims.

  5. Excise WIC will coordinate claim selection for field examination with CSTO claims classification team to ensure all unpaid mandatory select claims are considered. See IRM Exhibit 21.5.3-2 for mandatory select criteria. Claimants who have an active Form 637 registration activity letter of

    • S,

    • M,

    • X,

    • AB,

    • AF

    • NB

    are sent to the fuel territories for compliance action.

  6. CSTO revenue agents may also select discretionary claims for the excise field groups. Interest bearing fuel claims reported on Form 8849 Schedules 2,3, and 8 that are selected for field review will be paid before shipment to the excise field groups.

  7. CSTO revenue agents will use:

    • Tracking Code 7734 for mandatory claim selects and

    • Tracking Code 7735 for non mandatory claim selects

  8. The general procedures for examining returns, issuing preliminary letters, and referring cases to Appeals apply in the case of excise tax claims for refund. See IRM 4.24.6, Excise Tax Examiner Responsibilities, and IRM 4.24.10, Excise Tax Examination Reports, Case Closing and Appeals Procedures, for more information.

  9. Excise examiners must verify that the tax was imposed on the claimant. With respect to the sales price of fuel in certain Ultimate Purchaser Claims, see Treas. Reg. Section 48.6427-8(b)(2) Example 2.

  10. The Excise examiner must begin working unpaid claim cases within 30 days of case assignment.

  11. When a claim is examined, the excise examiner needs to consider all claims and Form 720 abstracts filed, as well as prior and subsequent filings. Large, unusual and questionable (LUQ) items need to be considered as well. At a minimum, a comment is needed on the B200-1 Multi-Period and Related Returns Checksheet.

4.24.8.5.1  (02-24-2012)
Master File Control Procedures for Claims

  1. Once an unpaid claim is selected for field examination, CSTO will establish the claim on AIMS as follows:

    1. Determine if a Transaction Code (TC) 150 has posted to Master File. This indicates that the tax return has posted to Master File. If so the claim will be established using MFT 40 and Source Code 30 (unpaid claim). No push code is required.

    2. If there is no TC 150 posted to Master File (the tax return has not posted to Master File), the claim will be established using MFT 40, Push code 036 and Source Code 30.

    3. The activity code will be the applicable abstract code.

    4. The statute date of AA will be used for all unpaid claims filed on Form 8849.

    5. Claims filed on Form 720X will have the statute date of the original filed Form 720. Excise examiners will need to update the statute as appropriate.

    6. The normal statute date will be used on paid claims.

    7. Claim cases will be established on ERCS in status code 08.

    8. Claim cases will be updated to status code 10 and shipped via Form 3210 to field groups.

    9. Source code and status code are determined by CSTO.

  2. Paid claims selected for field examination are controlled as follows:

    1. Excise WIC will identify the MFT 03 period that corresponds to the claim period to be used for AIMS control.

    2. Source Code 31 (paid claims) is to be used.

    3. Where no MFT 03 module on AIMS is present, Substitute for Return procedures found in IRM 4.24.6.17 will be initiated. Source Code 31 will be used to identify that this return is being established to address the corresponding paid claim.

    4. After AIMS controls have become fully established, CSTO AIMS/ERCS unit will update the statute from EE to the correct statute as shown on the WIC classification check sheet.

  3. CSTO will forward claims to excise groups after AIMS controls are fully established on IDRS.

  4. All original returns selected by CSTO will be established on the module to which the return is posted.

  5. All amended excise tax returns or claims on Form 8849 that relate to a filed excise tax return will be established on the module to which the amendment or claim relates. The original return will accompany the claim.

  6. Fuel claims can be processed on the income tax module for the claimant. If the claimant has no income tax requirements, a "substitute" income tax module may be established by using a special blocking series when inputting the Integrated Data Retrieval System (IDRS) adjustment.

    Note:

    No filing requirements are established for the substitute module.

  7. Normally, claims selected for examination by CSTO will be unpaid claims Source Code 30. Paid claims will use Source Code 31.

  8. Excise groups should review IDRS to determine whether selected claims have been paid by researching the modules. See Exhibit 4.24.8-3 for more information.

  9. Excise examiners should research AMDISA for any additional claims in transit from CSTO prior to closing their examination.

  10. For non-fuel claims filed by a claimant who is not the Form 720 filer for the excise tax claimed, see IRM 21.7.8.4.5.7.9.

  11. Every attempt should be made to control field inventory on Master File AIMS. If AIMS control is established on Non-Master File AIMS, any resulting adjustments and closing for third party fuel claims should be done on AIMS Master File IDRS.

4.24.8.5.1.1  (02-24-2012)
Updating Statute of Limitations for Paid Claims

  1. Examination assessments for paid claims made under IRC 6206 cannot be made on the MFT 40 module. Any necessary assessments must be made on the MFT 03 module.

  2. When a paid claim is initially established on AIMS using substitute for return procedures, the statute of limitations control code is "Alpha EE (No Return Filed)" .

  3. Paid claims have "live " statutes of limitations

  4. The CSTO AIMS/ERCS unit updates the paid claim statute from EE to the correct statute date before the case is sent to the field. The excise group manager is responsible to verify and update the paid claim statute date as warranted within 5 days of receipt of the case.

4.24.8.6  (02-24-2012)
Refund Categories

  1. There are four categories of refunds, each with unique processing procedures:

    • Amendments to Form 720

    • Refundable Credit

    • Credit against Tax

    • Third Party Claims

    .

4.24.8.6.1  (02-24-2012)
Amendments to Form 720

  1. The Form 720X is used to make adjustments to an excise tax liability reported on Form 720 filed for previous quarters.

  2. Form 720X is not used to make changes to claims made on Form 720 Schedule C, except for the IRC 4051(d) tire credit and IRC 6426 credits.

4.24.8.6.1.1  (02-24-2012)
Processing of Excise Tax Amended Returns

  1. Most changes to Form 720 must be made on Form 720X, Amended Quarterly Federal Excise Tax Return. When an amended Form 720 is received by CCOC, it is processed as a duplicate return and forwarded to CSTO. CSTO revenue agents review amended Form 720 returns reporting a tax decrease or credit of over $5,000 to determine if a Form 720X is required. Any amended Form 720 requesting an increase or reporting a decrease of less than $5,000 will be processed as an amended Form 720 and a Form 720X will not be required.

  2. Claims for overpayments relating to Forms 11-C, 730, and 2290, are made on Form 8849 Schedule 6. A claim for credit for tax paid on vehicles that were destroyed or stolen or used 5,000 miles or less (7,500 miles or less for agricultural vehicles) can also be made on line 5 of Form 2290. Taxpayers frequently file a corrected version of an excise tax return by writing "Amended Return" on Forms 11-C, 730, and 2290. These returns are filed in the CCOC and are treated as duplicate returns. The amended returns are then forwarded to CSTO for disposition.

  3. Amended returns may be accepted, not considered, disallowed, or selected for examination.

4.24.8.6.1.2  (02-24-2012)
Disposition of Examined Amended Form 720

  1. For a Full Disallowance of an amended return, in the "Other Information" section of Form 5384, Excise Tax Examination Changes and Consent to Assessment and Collection, or Form 5385, Excise Tax Examination Changes, include the following statement regarding the disposition of the amended return:

    1. On (date) you filed an Amended Form 720X, for refund of ($ amount) for (tax period). As a result of our examination, we have disallowed the entire ($ amount) of the amended return.

  2. For a Partial Disallowance of an amended return, in the "Other Information" section of Form 5384 or 5385 include the following statement regarding the disposition of the amended return:

    1. On (date) you filed an Amended Form 720X, for refund of ($ amount) for (tax period). As a result of our examination, we have disallowed ($ amount) of the amended return.

  3. For a Full Allowance of an amended return, in the "Other Information" section of Form 5384 or 5385 include the following statement regarding the disposition of the amended return:

    1. On (date) you filed an Amended Form 720X, for refund of ($ amount) for (tax period). As a result of our examination, we have allowed the entire ($ amount) of the amended return.

4.24.8.6.2  (02-24-2012)
Refundable Credit

  1. A claim for a refundable credit applies only to fuel tax credits under IRC 34. These include IRC 6420, 6421, and 6427 claims. Refer to IRC 34 for exceptions.

  2. The refund is made from the corresponding tax module, which would include:

    1. Form 1040, U.S. Individual Income Tax Return,

    2. Form 1120, U.S. Corporation Income Tax Return,

    3. Form 1120S, U.S. Income Tax Return for an S Corporation,

    4. Form 1065B, U.S. Return of Income for Electing Large Partnership,

    5. Form 1041, U.S. Income Tax Return for Estates and Trusts,

    6. Form 990T, Exempt Organization Business Income Tax return, and

    7. Form 1120C , U.S. Income Tax Return for Cooperative Association.

4.24.8.6.3  (02-24-2012)
Credit Against Tax

  1. A claim for a credit against tax applies to

    • biodiesel and renewable diesel fuel credits, and

    • biodiesel mixture and renewable diesel fuel mixture credits under IRC 40A that are allowable under IRC 38.

    They are claimed on Form 8864 along with Form 3800.

  2. A claim for a credit against tax applies to:

    • alcohol used as fuel,

    • alcohol fuel mixture credits,

    • small ethanol producer and

    • cellulosic biofuels producer under IRC 40 that are allowable under IRC 38.

    They are claimed on Form 6478 along with Form 3800.

  3. The refund is made from the corresponding tax module, which would include:

    1. Form 1040, U.S. Individual Income Tax Return,

    2. Form 1120, U.S. Corporation Income Tax Return,

    3. Form 1120S, U.S. Income Tax Return for an S Corporation,

    4. Form 1065B, U.S. Return of Income for Electing Large Partnership,

    5. Form 1041, U.S. Income Tax Return for Estates and Trusts,

    6. Form 990T, Exempt Organization Business Income Tax return, and

    7. Form 1120C U.S. Income Tax Return for Cooperative Association.

4.24.8.6.4  (02-24-2012)
Third Party Claims

  1. "Third party claims" are filed by persons other than the person who actually filed the excise tax return that reported the tax.

  2. Generally claims for non-fuel taxes are claims for refund and claims for fuel taxes are claims for payment.

  3. These include claims for fuel tax credit not reported on an income tax return.

4.24.8.6.4.1  (02-24-2012)
Categories of Third Party Claims

  1. Pre-assessment claims for fuel tax credits are adjustments for claims made on a tax module prior to any tax return assessment.

  2. Post assessment claims are made on a module after a tax return has been filed and the Transaction Code (TC) 150 is posted.

  3. Third party refund claims (other than for fuel taxes) for collected taxes and certain retail or manufacturer taxes are controlled on Account Inventory Management System (AIMS) using Master File procedures. Some examples of this type of claim include:

    • tire and retail tax for exported items,

    • communication tax, and

    • air transportation tax claims filed by the consumer.

  4. "Substitute" modules are established on MFT 03 to provide a Master File AIMS control and to process the claim for refund.

4.24.8.6.4.1.1  (02-24-2012)
Pre Assessment Claim Processing

  1. Nontaxable Uses of Fuel refunds will post to MFT 40. Registered Ultimate Vendors, Certain Fuel Mixtures, Alternative Fuels, and Registered Credit Card Issuers claims will post to the Master File module of the income tax return.

  2. Where the taxpayer is exempt from filing any income tax return, the refund may be posted to a "substitute" income tax module.

  3. Where quarterly fuel credit claims are processed prior to the filing of an income tax return, a "substitute" module may be utilized temporarily until the income tax return posts.

4.24.8.6.4.1.2  (02-24-2012)
Post Assessment Claim Processing

  1. For fuel taxes after 2004, the credit attaches to either the income tax module for the Master File and tax period within the claim period falls, or to MFT 40.

4.24.8.7  (02-24-2012)
Source Code 30 Unpaid Claims - Allowed on Survey

  1. Unpaid claims cannot be surveyed before assignment.

  2. Survey time should be charged to time code 615.

  3. Unpaid claims for refund may be "Surveyed After Assignment" , if a review of the case file reveals that the claim is clearly allowable in full.

  4. Consideration should be given to the size or nature of the claim in determining whether it should be surveyed.

  5. The only claims which may not be surveyed are those requiring Appeals consideration. See IRM 4.24.8.14 for more information.

  6. The excise examiner will prepare a Form 2503, Survey After Assignment-Excise or Employment Tax, briefly stating the reasons for the survey. A Form 5384 is not required.

  7. The claim must be stamped with "Survey After Assignment" signed and dated by the excise examiner, approved and signed by the group manager.

  8. On Form 3198, Special Handling Notice for Examination Case Processing, Special Features Section, check the "Other Instructions" box and indicate the Credit Reference Number(s) and amount(s) of the claim to be allowed.

  9. On Special/Restricted Interest Features Section of Form 3198 check the "Other Code Section" box and add the appropriate IRC sections if the claim does not require interest to be paid. These sections include IRC 4081(e), 6416(b), 6419), 6421, or 6427.

  10. Complete Form 5344 and include in case file when closed to Centralized Case Processing (CCP). Do not apply time to the survey case. Complete the taxpayer information section and item 21 Claim Amount. Disposal Code 34 will be used for unpaid claim survey cases. Do not complete items 22, 23, 24, or 404 on Form 5344.

    Note:

    There is an option in IMS to survey claims after assignment. Refer to IMS help menu for more information.

4.24.8.8  (02-24-2012)
Source Code 30 Unpaid Claims - Regular Agreed

  1. Generally, regular agreed cases involving claims are similar to other regular agreed cases. See IRM 4.10.8.9, Claims, for more information. Guidance below covers the following unpaid claim dispositions:

    • Claims disallowed in full,

    • claims disallowed in part,

    • claims allowed in full, and

    • increase in amount of unpaid claim.

  2. When a claim is disallowed in full in a regular agreed case, the excise examiner will:

    1. Complete the top portion of Form 5384.

    2. Complete columns 1 through 8 for the items in the claim using the Credit Reference Numbers (CRNs) related to the items shown in the claim.

    3. Input any other proposed adjustments, or issues not related to the claim that taxpayer agrees with, using the appropriate Abstract Numbers.

    4. In the "Other Information" Section, include a statement regarding the disposition of the claim. "On (date) you filed Claim Form _______, or an informal claim for refund of ($ amount) for (tax period). As a result of our examination, we have disallowed the entire ($ amount ) of the amount claimed" .

    5. Secure agreement on Form 5384.Letter 4121-X, Letter to Transmit Expected Agreed Examination Report, is used to secure taxpayer’s signature.

    6. Solicit agreement on Form 3363, Acceptance of Proposed Disallowance of Claim for Refund or Credit.

    7. Solicit Form 2297, Waiver of Statutory Notification of Claim Disallowance.

    8. Complete Form 5344, Examination Closing Record.

    9. Enter the claim information in Form 5344 items 20, 21, 22, 23 and 24.

      Note:

      item 24 should be coded claim type "Z" .

    10. If this is a Form 720X claim and/or adjustments are made to other items on the Form 720, then complete Form 5344 items 404a, 404c, 404d and 404e. For item 404a convert the CRN to the abstract. For item 404d enter the amount as 00. Do not enter a negative number. Putting in a negative amount in item 404d would reduce the abstract amount, thus abating tax. The time on item 404e should reflect claim time on item 23. The time on item 404c should reflect non-claim time and equal time on item 28 for the other issues examined. If no other issues are examined, leave item 28 blank with claim time in item 23.

      Note:

      The IMS generated Form 5344 will automatically convert the CRN to the abstract and should be utilized. Refer to Exhibit 4.24.8-4 for the CRN to Abstract Conversion Chart.

    11. When there is no Abstract Number that closely relates to the Credit Reference Number, such as for Alcohol or Biodiesel Mixture Credits, use the Abstract Numbers for Gasoline or Diesel Fuel.

      Note:

      Item 404 is not completed for unpaidForm 8849's.

    12. On Form 3198 Special Features section, "Other Instructions" box, include the phrase "unpaid claim disallowed in full" .

    13. On Form 3198 in the letter instruction section, check the section "No letter required to be sent by CCP" .

      Note:

      This will only apply if there are no Form 720 adjustments. If non-claim adjustments are made to Form 720, issue the appropriate letter.

  3. When a claim is disallowed in part in a regular agreed case the excise examiner will:

    1. Complete the top portion of Form 5384.

    2. Complete columns 1 through 8 for the items in the claim using the Credit Reference Numbers (CRNs) related to the items shown in the claim.

    3. Input any other proposed adjustments on issues not related to claim to which taxpayer agrees using their Abstract Numbers.

    4. In the "Other Information" Section, include a statement regarding the disposition of the claim. "On (date) you filed Claim Form _______, or an informal claim for refund of ($ amount) for (tax period). As a result of our examination, we have allowed ($ amount ) of the amount claimed" .

    5. Secure agreement on Form 5384.Letter 4121-X, Letter to Transmit Expected Agreed Examination Report, is used to secure taxpayer’s signature.

    6. Solicit agreement on Form 3363, Acceptance of Proposed Disallowance of Claim for Refund or Credit.

    7. Solicit Form 2297, Waiver of statutory Notification of claim Disallowance.

    8. Complete Form 5344.

    9. Enter the claim information in Form 5344 items 21, 22, 23 and 24.

      Note:

      Item 24 should be coded claim type "Z" .

    10. If this is a Form 720X claim and/or adjustments are made to other items on the Form 720, then complete Form 5344 items 404a, 404c, 404d and 404e. For item 404a convert the CRN to the abstract. For item 404d show the amount allowed and circle the negative sign. The time on item 404e should reflect claim time on item 23. The time on item 404c should reflect non-claim time and equal time on item 28 for the other issues examined. If no other issues are examined, leave item 28 blank, with claim time in item 23.

      Note:

      The IMS generated Form 5344 will automatically convert the CRN to the abstract and should be utilized. Refer to Exhibit 4.24.8-4 for the CRN to Abstract Conversion Chart.

    11. When there is no Abstract Number that closely relates to the Credit Reference Number, such as for Alcohol or Biodiesel Mixture Credits, use the Abstract Numbers for Gasoline or Diesel Fuel.

      Note:

      Item 404 is not completed for unpaid 8849’s

      .

    12. On Form 3198 Special Features section "Other Instructions" box, include the phrase "Unpaid claim partial disallowance allow ($ amount) with CRN #" .

    13. On Form 3198, Special/Restricted Interest Features Section, check the "Other Code Section" box and add the appropriate IRC Sections if the claim does not require interest to be paid. These sections include IRC 4081(e), 6416(b), 6419(b), 6421(a), or 6427(a).

    14. On Form 3198 in the letter instruction section check the section "No letter required to be sent by CCP" .

      Note:

      This will only apply if there are no Form 720 adjustments. If non-claim adjustments are made to Form 720, issue the appropriate letter.

  4. When a claim is allowed in full in a regular agreed case the excise examiner will:

    1. Complete the top portion of Form 5384.

    2. Complete columns 1 through 8 for the items in the claim using the Credit Reference Numbers (CRNs) related to the items shown in the claim.

    3. Input any other proposed adjustments on issues not related to claim to which taxpayer agrees.

    4. In the "Other Information" Section, include a statement regarding the disposition of the claim. "On (date) you filed Claim Form _______, or an informal claim for refund of ($ amount) for (tax period). As a result of our examination, we have allowed your claim in full" .

    5. If there are regular agreed issues, secure agreement on Form 5384.

    6. Complete Form 5344.

    7. Enter the claim information in Form 5344 items 21, 22, 23 and 24.

      Note:

      Line 24 should be coded claim type "Z" .

    8. If this is a Form 720X claim and/or adjustments are made to other items on the Form 720, then complete Form 5344 items 404a, 404c, 404d and 404e. For item 404a convert the CRN to the abstract. For item 404d show the amount allowed and circle the negative sign. The time on item 404e should reflect claim time on item 23. The time on item 404c should reflect non-claim time and equal time on item 28 for the other issues examined. If no other issues are examined, leave item 28 blank, with claim time in item 23.

      Note:

      The IMS generated Form 5344 will automatically convert the CRN to the abstract and should be utilized. Refer to Exhibit 4.24.8-4 for the CRN to Abstract Conversion Chart.

    9. When there is no Abstract Number that closely relates to the Credit Reference Number, such as for Alcohol or Biodiesel Mixture Credits, use the Abstract Numbers for Gasoline or Diesel Fuel.

      Note:

      Item 404 is not completed for unpaidForm 8849's.

    10. On Form 3198, Special/Restricted Interest Features Section, check the "Other Code Section" box and add the appropriate IRC Sections if the claim does not require interest to be paid. These sections include IRC 4081(e), 6416(b), 6419(b), 6421(a), or 6427(a).

    11. Letter 570-X, Examination Report (Claim Allowed in Full), is prepared for the file.

    12. On Form 3198 Special Features "Other Instructions" box include the phrase "Unpaid claim allowed in full pay CRN # and $ amount " .

    13. On Form 3198 in the letter instruction section check the section "Claims Letters Fully Allowed L-570-X " .

      Note:

      This will only apply if there are no Form 720 adjustments. If non-claim adjustments are made to Form 720, issue the appropriate letter.

  5. When an exam of an unpaid claim results in an increase of the original amount claimed the excise examiner will:

    1. Complete Form 5348, ERCS/AIMS Update, to increase claim amount to reflect the increased amount of the claim.

    2. Complete the top portion of Form 5384.

    3. Complete columns 1 through 8 for the items in the claim using the CRNs related to the items shown in the claim.

    4. Input any other proposed adjustments on issues not related to claim to which taxpayer agrees.

    5. In the "Other Information" Section, include the following statement regarding the disposition of the claim. "On (date) you filed Claim Form _______, or an informal claim for refund of ($ amount) for (tax period). On (date) you provided additional information to increase the amount claimed by ($ additional amount). As a result of our examination, we have allowed your claim in full" .

    6. Secure Agreement on Form 5384.

    7. Complete Form 5344.

    8. Enter the claim information in Form 5344 items 21, 22, 23 and 24.

      Note:

      Item 24 should be coded claim type "Z" .

    9. If this is a Form 720X claim and/or adjustments are made to other items on the Form 720, then complete Form 5344 items 404a, 404c, 404d and 404e. For item 404a convert the CRN to the abstract. For item 404d show the amount allowed and circle the negative sign. The time on item 404e should reflect claim time on item 23. The time on item 404c should reflect non-claim time and equal time on item 28 for the other issues examined. If no other issues are examined, leave item 28 blank, with claim time in item 23.

      Note:

      The IMS generated Form 5344 will automatically convert the CRN to the abstract and should be utilized. Refer to Exhibit 4.24.8-4 for the CRN to Abstract Conversion Chart.

    10. When there is no Abstract Number that closely relates to the Credit Reference Number, such as for Alcohol or Biodiesel Mixture Credits, use the Abstract Numbers for Gasoline or Diesel Fuel.

      Note:

      Item 404 is not completed for unpaidForm 8849's.

    11. On Form 3198, Special/Restricted Interest Features Section, check the "Other Code Section" box and add the appropriate IRC Sections if the claim does not require interest to be paid. These sections include IRC 4081(e), 6416(b), 6419(b), 6421(a), or 6427(a).

    12. Letter 570-X is prepared for the file.

    13. On Form 3198 Special Features "Other Instructions" box include the phrase "Unpaid claim allowed in full pay CRN # and $ amount" .

    14. On Form 3198 in the letter instruction section check the section "Claims Letters Fully Allowed L-570-X" .

      Note:

      This will only apply if there are no Form 720 adjustments. If non-claim adjustments are made to Form 720, issue the appropriate letter.

  6. See IRM 4.24.8.10(8) for guidance regarding additional amount allowed on a paid claim.

  7. In determining whether a case is regular agreed, a case involving a claim is considered agreed if the claim is allowed in full, or if agreement is secured on Form 5384 and Form 3363, even though the taxpayer will not execute Form 2297.

4.24.8.9  (02-24-2012)
Source Code 30 Unpaid Claims - Unagreed and Excepted Agreed Cases

  1. Generally, unagreed and excepted agreed cases involving claims are similar to unagreed and excepted cases not involving claims. See IRM 4.10.8.9 Claims.

  2. See IRM 4.24.10.7 for routing procedures for unagreed cases going to Appeals.

  3. Excise examiners need to complete Form 886-A, Explanation of Adjustments,and Form 4665, Report Transmittal, for each type of unagreed case.

  4. When a claim is disallowed in full in an unagreed or excepted agreed case the excise examiner will:

    1. Complete the top portion of Form 5385.

    2. Complete columns 1 through 8 for the items in the claim using the Credit Reference Numbers (CRNs) related to the items shown in the claim.

    3. Input any other proposed adjustments on issues not related to claim to which taxpayer disagrees.

    4. In the "Other Information" Section, include a statement regarding the disposition of the claim. "On (date) you filed Claim Form _______, or an informal claim for refund of ($ amount) for (tax period). As a result of our examination, we have disallowed the entire ($ amount) of the amount claimed" .

    5. In an excepted agreed case, secure agreement on Form 2504-E, Agreement to Assessment and Collection of Additional Tax and Acceptance of Overassessment, on issues to which taxpayer does agree.

    6. Letter 569-X, Claim Disallowance Letter, is used as a Thirty Day letter.

    7. Solicit Form 2297.

    8. Complete Form 5344.

    9. Enter the claim information in items 21, 22, 23 and 24.

      Note:

      Item 24 should be coded claim type "Z" .

    10. If this is a Form 720X and/or adjustments are made to other items on the Form 720, then complete Form 5344 items 404a, 404c, 404d and 404e. For item 404a convert the CRN to the abstract. For item 404d enter "00" if there are no other adjustments or a positive amount if you are assessing tax. The time on item 404e should reflect claim time on item 23. The time on item 404c should reflect non-claim time and equal time on item 28 for the other issues examined. If no other issues are examined, leave item 28 blank, with claim time in item 23.

      Note:

      The IMS generated Form 5344 will automatically convert the CRN to the abstract and should be utilized. Refer to Exhibit 4.24.8-4 for the CRN to Abstract Conversion Chart.

    11. When there is no Abstract Number that closely relates to the Credit Reference Number, such as for Alcohol or Biodiesel Mixture Credits, use the Abstract Numbers for Gasoline or Diesel Fuel.

      Note:

      Item 404 is not completed for unpaid Form 8849's.

    12. On Form 3198, Special/Restricted Interest Features Section, check the Other Code Section box and add the appropriate IRC Sections if the claim does not require interest to be paid. These sections include IRC 4081(e), 6416(b), 6419(b), 6421(a), or 6427(a).

  5. When a claim is disallowed in part in an unagreed or excepted agreed case:

    1. Complete the top portion of Form 5385.

    2. Complete columns 1 through 8 for the items in the claim using the Credit Reference Numbers (CRNs) related to the items shown in the claim.

    3. Input any other proposed adjustments on issues not related to claim to which taxpayer disagrees.

    4. In the "Other Information" section, include a statement regarding the disposition of the claim. "On (date) you filed Claim Form _______, or an informal claim for refund of ($ amount) for (tax period). As a result of our examination, we have allowed ($ amount allowed) of the amount claimed" .

    5. In an accepted agreed case secure Agreement on Form 2504-E on issues to which taxpayer does agree.

    6. Letter 569-X is used as a Thirty Day letter.

    7. Solicit Form 2297.

    8. Complete Form 5344.

    9. Enter the claim information in Items 21, 22, 23 and 24.

      Note:

      Item 24 should be coded claim type "Z" .

    10. If this is a Form 720X claim and/or adjustments are made to other items on the Form 720, then complete Form 5344 items 404a, 404c, 404d and 404e. For item 404a convert the CRN to the abstract. For item 404d show the amount allowed and circle the negative sign. The time on item 404e should reflect claim time on item 23. The time on item 404c should reflect non-claim time and equal time on item 28 for the other issues examined. If no other issues are examined, leave item 28 blank, with claim time in item 23.

      Note:

      The IMS generated Form 5344 will automatically convert the CRN to the abstract and should be utilized. Refer to Exhibit 4.24.8-4 for the CRN to Abstract Conversion Chart.

    11. When there is no Abstract Number that closely relates to the Credit Reference Number, such as for Alcohol or Biodiesel Mixture Credits, use the Abstract Numbers for Gasoline or Diesel Fuel.

      Note:

      Item 404 is not completed for unpaidForm 8849's.

    12. On Form 3198 Special Features Section, check the "Other Instructions" box and indicate the Credit Reference Number(s) and amount(s) of the claim to be allowed.

    13. On Form 3198, Special/Restricted Interest Features Section, check the Other Code Section box and add the appropriate IRC Sections if the claim does not require interest to be paid. These sections include IRC 4081(e), 6416(b), 6419(b), 6421(a), or 6427(a).

4.24.8.10  (02-24-2012)
Source Code 31 Claims- Third Party Paid Claims

  1. Paid third party fuel claims on MFT 40 cannot have examination adjustments posted through these modules. Any examination changes to paid third party claims must be made through a "substitute" MFT 03 account. A "substitute" module may be established using Substitute for Return procedures if CSTO had not already established the "substitute" module. If the taxpayer filed a Form 720, a substitute module need not be established.

  2. Since some third party claims can be filed as frequently as on a weekly basis, the excise examiner should associate the weekly, bi-weekly, semi-monthly, monthly or other period claims with the quarter during which it was filed.

  3. Paid third party claims will be controlled on the MFT 03 tax module by the CSTO AIMS/ERCS Unit. If the examination period is expanded, the excise examiner must establish Form 720 Substitute for Return controls for the quarters included in the paid claim.

  4. Examination of refunds made under IRC 6416(a)(4) and a payment made under IRC 6420, 6421, or 6427 constitutes an excessive amount under IRC 6206.IRC 6206 allows the excessive refunds and payments to be assessed and collected as if they were a tax imposed by IRC 4041 or 4081.

  5. When a paid claim examination results in an assessment under IRC 6206 and the case is agreed, the case is processed just like a regular agreed case with the following additional report writing procedures:

    1. Complete the top portion of Form 5384.

    2. Complete columns 1 through 8 for the items in the claim using the abstract number that corresponds to the Credit Reference Numbers (CRNs) related to the items shown in the claim. Refer to Exhibit 4.24.8-4 for the CRN to abstract conversion chart.

    3. There is no restricted interest for claims being assessed under IRC 6206.

    4. In the "Other Information" Section, include a statement regarding the assessment of tax under IRC 6206, 4041 and 4081." On (date) you filed Claim Form ______, for refund of ($ amount) for (tax period). That claim was paid on ____________. As a result of examination, we have determined that ($ amount) constitutes an excessive amount under IRC 6206. This amount is being assessed under IRC 6206, 4041, and 4081" .

    5. Form 5344 is completed following regular examination procedures. Do not complete Form 5344 item 404(a) with the CRN information. Use the excise abstract number in item 404(a) that corresponds to the CRN and complete items 404(c), 404(d) and 404(e) following normal examination guidelines.

    6. Letter 987-X, Agreed Excise Change Letter, is prepared for the file.

    7. The excessive claim penalty under IRC 6675 must be considered and commented upon. See IRM 4.24.8.10(9).

  6. Paid claims that are found to have no adjustments should be treated as a regular no change case and processed just like a regular agreed case with the following additional report writing procedures:

    1. Complete the top portion of Form 5384.

    2. Complete columns 1 through 8 for the items in the claim using the abstract number that corresponds to the Credit Reference Numbers (CRNs) related to the items shown in the claim. Refer to Exhibit 4.24.8-4 for the CRN to abstract conversion chart.

    3. Input any other proposed adjustments on issues not related to claim to which taxpayer disagrees.

    4. In the "Other Information" Section, include a statement regarding the disposition of the claim. "On (date) you filed Claim Form _______, or an informal claim for refund of ($ amount) for (tax period). The claim was paid on (date). As a result of our examination, we have allowed your previously paid claim in full " .

    5. If the claim is the only issue, an agreement does not need to be secured.

    6. On Form 3198 Special Features Section, check the "Other instructions" box and indicate "No change to previously paid claim" .

    7. Complete Form 5344.

    8. Complete Form 5344 items 404(a), 404(d) and 404(c). Do not use the claim CRN information in item 404(a). Use the excise abstract that corresponds to the CRN and complete items 404(c) and 404(d). There should be no entry in 404(e).

    9. Prepare Letter 3401-E, No Change Report Transmittal Letter, and Letter 570X.

  7. For unagreed paid claims prepare and process the case just like a regular unagreed case with the following additional report writing procedures:

    1. Complete the top portion of Form 5385.

    2. Complete columns 1 through 8 for the items in the claim using the abstract number that corresponds to the Credit Reference Numbers (CRNs) related to the items shown in the claim. Refer to Exhibit 4.24.8-4 for the CRN to abstract conversion chart.

    3. There is no restricted interest for claims being assessed under IRC 6206.

    4. In the "Other Information" Section, include a statement regarding the assessment of tax under IRC 6206, 4041, and 4081." On (date) you filed Claim Form ______, for refund of ($ amount) for (tax period). That claim was paid on ____________. As a result of examination, we have determined that ($ amount) constitutes an excessive amount under IRC 6206. This amount is being assessed under IRC 6206, 4041, and 4081" .

    5. Form 5344 should be completed following regular examination guidelines. Do not complete Form 5344 item 404(a) with the CRN information. Use the excise abstract number in item 404(a) that corresponds to the CRN and complete items 404(c), 404(d) and 404(e) following normal exam guidelines.

      Note:

      Only Source Code 30 cases should have entries in Items 21, 22, 23, 24, and 404e

      .

    6. Letter 950-E, 30 Day Letter-Straight Deficiency or Over-Assessment for Excise Tax Examination Cases, is used as the 30 day letter.

    7. Prepare Form 886-A, Explanation of Items, and Form 4665, Report Transmittal.

    8. The excessive claim penalty under IRC 6675 must be considered and commented upon. See IRM 4.24.8.10(9).

  8. When there is an additional amount allowed to a paid claim, the excise examiner needs to consider the "One Claim Rules" :

    1. Paid fuel claims where the one claim rule applies under IRC 6421(d) or 6427(i) cannot be increased as part of the examination because the time for filing the claim has passed. The increases to a paid fuel claim where the one claim rule applies must be allowed as an IRC 34 credit on the tax return.

    2. An increase to a paid fuel claim where the one claim rule applies under IRC 6421(d) or 6427(i) from a taxpayer that is not required to file a tax return cannot be increased as part of the examination because the time for filing the claim has passed. These taxpayers are organizations exempt from tax under IRC 501(a), a state or local government, or the United States Government and are permitted to file an annual claim. Any such increase is to be considered on the annual claim for the period to which the increase was allowable.

    3. See IRM 4.24.8.8(5) for information regarding additional amount allowed to an unpaid claim.

  9. The Excessive Claims Penalty must be considered and commented upon. See IRM 4.24.9.5 and 20.1.11 for guidance relating to the Penalty for Filing Excessive Claims with Respect to Use of Certain Fuels.

    1. When the Excessive Claims Penalty under IRC 6675 is being assessed in addition to the tax, this penalty must be assessed in a separate case file.

    2. Controls will be established using MFT P9.

    3. When the penalty is assessed on IDRS it will post as MFT 13.

    4. The excise examiner will prepare a separate case file with Form 3198, 5384, 8278, Assessment and Abatement of Miscellaneous Civil Penalties, Penalty Lead Sheet, and workpapers.

    5. On Form 3198, fill in the "Related taxpayer or key case area" on both files to ensure the files remain together during processing.

    6. Show the amount of the penalty in Penalties Column (7) of the Form 5384.

    7. In the Other Section of the Form 5384 include a statement regarding the imposition of the penalty. "On (date) you filed Claim Form____ , for refund of ($ amount) for (tax period). That claim was paid. The Excessive Claims Penalty under IRC 6675 for the period ended (date) is being imposed on the ($ amount) of the claim that was deemed to be excessive" .

4.24.8.10.1  (02-24-2012)
Source Code 31 Agreed Third Party Paid Claims-Statute of Limitation Considerations

  1. If there are 60 days or less on the IRC 6206 statute, a Quick Assessment must be made. Refer to IRM 4.4.25 for quick assessment procedures.

  2. If there are more than 60 but less than 180 days on the IRC 6206 statute, place case in a red folder and in the "other information" section on Form 3198 state THE LAST DAY TO MAKE THE ASSESSMENT UNDER IRC 6206 IS XX-XX-XXXX.

  3. If there are 180 days or more on the IRC 6206 statute, close case as normal but in the "other information" section on Form 3198 state THE LAST DAY TO MAKE THE ASSESSMENT UNDER IRC 6206 IS XX-XX-XXXX.

4.24.8.10.2  (02-24-2012)
Source Code 31 Unagreed Third Party Paid Claims-Statute of Limitation Considerations

  1. If there are 270 days or less on the IRC 6206 statute, prior to sending to Appeals a Quick Assessment must be made. Refer to IRM 4.4.25 for Quick assessment procedures.

  2. Unagreed cases with 270 days or more remaining to make an assessment under IRC 6206 should be closed following normal unagreed case closing procedures. The unagreed case will be forwarded to Appeals following normal unagreed case closing procedures with the following exceptions:

    1. In the "Special Features-Other Instructions" section of Form 3198 indicate that assessment is to be made under the provisions of IRC 6206 in accordance with the provisions of IRM 4.4.25 and clearly state the last date prescribed for making the assessment.

    2. The top portion of Form 4665 must reflect a statement that assessment is to be made under the provisions of IRC 6206 in accordance with the provisions of IRM 4.4.25 and clearly state the last date prescribed for making the assessment.

4.24.8.11  (02-24-2012)
Centralized Classification of IRC 4081(e) Claims

  1. IRC 4081(e) claims relate to taxable fuel as defined under IRC 4083 taxed twice under IRC 4081(a). The provision applies where the tax is imposed twice on the same fuel. This does not apply where the taxpayer has erroneously paid fuel tax where no second tax is imposed.

  2. The claimant must provide, for each claim, a copy of the First Taxpayer’s Report that relates to the fuel. If the fuel was bought from someone other than the first taxpayer, a copy of the Statement of Subsequent Seller that the claimant received with respect to the fuel must also be provided. See Instructions of Form 8849, Schedule 5, Section 4081(e) Claims, and Tres Reg 48.4081-7 for more information.

  3. Claims received which obviously do not provide the attachments required by the regulations will be "no consideration" and returned to the taxpayer for perfection by CSTO which reviews these claims. See IRM 21.7.8.4.5.6.

  4. Claims which are selected for examination will be routed to the appropriate excise field office for examination.

  5. Claims approved by the excise field office are to be annotated "Accepted" and returned to Centralized Case Processing (CCP) in CSTO via Form 3210 with a "Memo to File" for processing.

  6. On the Form 3198 Special/Restricted Interest Features, the excise examiner will check the "Other Code Section" box and include IRC 4081(e).

  7. Paid IRC 4081(e) Claims cannot be assessed under IRC 6206. Erroneous IRC 4081(e) Claims must be recovered by a civil action brought in the name of the United States under IRC 7405. Refer to IRM 4.24.8.15 for more information.

  8. Unpaid IRC 4081(e) Claims are generally controlled on MFT 03. In some situations these claims will be controlled on MFT 40. Follow the Regular Agreed, Unagreed or Accepted Agreed Case procedures as shown in IRM 4.24.8.8 or 4.24.8.9.

  9. If the Form 720 for that period is being examined concurrently, any adjustments as a result of that examination will be reflected on the Form 5384 or 5385 in addition to the IRC 4081(e) Claim examination results.

4.24.8.12  (02-24-2012)
Abatement Claims Related to Examination Assessments

  1. Generally, taxpayers will be required to pay an assessment before a claim may be filed. According to Policy Statement P-4-103 claims for abatement will be considered only where the taxpayer can establish a valid reason warranting consideration of such a claim. If it is determined that a claim for abatement merits consideration, the taxpayer will be afforded the same opportunities for Appeals Office consideration as they would for a claim for refund.

  2. If a jeopardy assessment is involved, a taxpayer's written request for administrative review of the decision will be considered immediately. The Appeals Office will provide administrative review. Action to abate all or a part of the tax assessed will be initiated by the function responsible for the final determination, in accordance with Policy Statement P-4-88.

  3. Claims for abatement which do not merit examination will be issued a Letter 924, No Consideration Letter on Abatement Claim-Excise and Employment Taxes. The letter provides an explanation to the taxpayer as to the reason the abatement request was not considered. There are no Appeal rights to these requests.

4.24.8.13  (02-24-2012)
No Consideration Given To Certain Refund Claims

  1. Generally," No Consideration" letters are issued by the CSTO. Examples of situations for which a "No Consideration" letter should be issued include when the claim was:

    • Not timely filed.

    • Based solely on alleged unconstitutionality of Revenue Acts.

    • Based on a return stamped "Waiver of Refund" , or there is other evidence in the case file indicating that a refund was waived as a consideration in a settlement by the Department of Justice, the Office of Chief Counsel etc.

    • The subject of a final closing agreement under IRC 7121 for the tax liability or specific issues, or the tax liability was compromised under IRC 7122.

    • That a related return was closed by a final court order, unless an exception is allowed by a specific code section.

    • Filed without the supporting evidence required by the code or regulations.

    • Based on issues raised that were allowed in the previous closing of the case.

    • Filed as a claim for refund but actually is a request for reconsideration of a claim previously disallowed.

    • Filed with a service center other than the one with which the tax return is filed.

    • Filed not using a proper claim period.

  2. If a claim is one of the types listed above, CSTO personnel will generally advise the taxpayer that no consideration can be given to the claim.

  3. If a claimant requests the withdrawal of a claim, a certified notice of a claim disallowance will be issued and no other action need be taken.

  4. Letter 916, No Consideration of Claim, is issued when the claim for refund is not considered.

  5. See Exhibit 4.24.8-3 for information on how to research a claim and a listing of no consideration codes.

4.24.8.14  (02-24-2012)
Claims in Cases Previously Considered by Appeals

  1. All claims on cases previously closed by Appeals will be processed as provided below. If there is a question as to the action to be taken, the Appeals office that previously considered the case should be consulted.

    1. If the prior Appeals closing involved a Form 2504-AD, Excise or Employment Tax-Offer of Agreement to Assessment and Collection of Additional Tax and Offer of Acceptance of Overassessment, agreement, the claim and case file will generally be forwarded to Appeals without action.

    2. If the Appeals closing involved a Form 2504-AD agreement, but the claim is for an unrelated issue, the claim may be processed as though Appeals had not previously acted on the case. If the claim is for an issue previously considered by Appeals, the appropriate Appeals office should be contacted to determine appropriate action.

    3. If the only issue on the claim is a matter resolved in the agreement, the claim may be processed to a conclusion without referral to Appeals.

  2. Claims related to returns on which additional tax may result will not be sent to Appeals if less than 180 days remain to assess the tax.

4.24.8.15  (02-24-2012)
Suits for Recovery of Erroneous Refunds

  1. IRM 21.4.5, Refund Inquiries Handbook, Erroneous Refunds, provides instructions for the recovery of erroneous refunds.

  2. Advice should be requested from Counsel before action is taken to recover an erroneous refund.

4.24.8.16  (02-24-2012)
Use of Form 907 Agreement to Extend the Time to Bring Suit

  1. When a protective excise tax claim is filed and the issue in the claim is the same as the issue pending in litigation, the claim should be closed disallowed with a Form 907, Agreement to Extend the Time to Bring Suit secured.

  2. On Form 907, an expiration date should be set far enough in the future to cover the maximum possible time necessary for full litigation of the issue.

  3. After the agreement is signed and approved by the Excise Tax Territory Manager or delegate, a copy is sent to the taxpayer.

4.24.8.17  (02-24-2012)
Request for Reconsideration of Disallowed Claims

  1. Reconsideration of a claim previously disallowed in whole or in part may be granted upon submission of additional information. The request must be filed within the statute period and the information submitted must warrant consideration.

  2. An agreement to suspend the running of the statutory period of limitation under IRC 6532(a)(2) should be considered for reconsideration requests forwarded to an excise field group.

  3. There is no provision in the IRC or regulations requiring the issuance of a certified notice of denial or disallowance of a claimant's request for reconsideration. Therefore, requests for reconsideration of disallowed claims will not be treated as original claims.

  4. Excise examiner responses on requests for reconsideration of disallowed claims must not contain any language that could lead the claimant to believe that they will be issued a certified notice of disallowance.

  5. The claimant will be notified on Letter 917, Reply to Taxpayers Request for Reconsideration of Claim, with applicable box checked that no action can be taken on their request for claim reconsideration if:

    1. Such request was filed after expiration of the statutory period for instituting suit, or

    2. less than 60 days remain on the statutory period to institute suit.

  6. If the request for reconsideration concerns a claim previously considered and disallowed in whole or in part by Appeals, the claim will be associated with the case file and forwarded promptly to Appeals.

  7. If it is determined that a request for reconsideration should be disallowed, in whole or in part, the claimant will have the same appeal rights as a disallowed claim, but only with respect to the additional information provided.

  8. If a request for reconsideration is based on a claim that was issued a "no-consideration" Letter 917 (with applicable box checked) should be issued to the claimant denying the request and referring to the previous "no-consideration" letter. In this case the claimant will not have the right of appeal.

  9. If disposition of a reconsideration request is contingent upon a pending court decision, IRC 6532(a)(2) provides the taxpayer the opportunity to submit a properly executed Form 907. The taxpayer should submit an original and one copy.

4.24.8.18  (02-24-2012)
Restricted Interest

  1. Interest rules applicable to excise tax claims are in IRM 20.2.10.3 and IRM 21.7.8.4.5. The controlling code, regulations and notices should be reviewed for each type of claim to determine whether interest is allowable.

4.24.8.19  (02-24-2012)
Claims for Refunds of an Overpayment of Excise Tax on Insurance Policies Issued by a Foreign Insurer or Reinsurer

  1. These refund claims are made by the taxpayer on Form 720X.

  2. Under treaties between the United States and certain foreign countries the policies issued by an insurer or reinsurer that is a resident of any such country may be exempt from the tax imposed by IRC 4371. Each treaty must be researched to determine the validity of the claim.

  3. The claim must identify the foreign insurer or reinsurer, the treaty country, the taxable period for which the claim is being made, the amount claimed and the person on whose behalf such amount is being claimed.

    Note:

    If the claim is on behalf of more than one person, the amount claimed with respect to each must be stated separately.

  4. There must be submitted with the claim a certification by the taxing authority of the treaty country that the foreign insurer or reinsurer was a resident of the treaty country for the period for which the claim is being made. Such certification may be in the form of a list compiled by the taxing authority of the treaty country of all insurers or re-insurers that were residents.

  5. In addition, if the treaty permits an exemption only to the extent that the foreign insurer or reinsurer does not reinsure the risks covered by a policy with a person that would not be entitled to an exemption from the tax on such policy (such as the treaty with France), there must be submitted with the claim a certificate signed under penalties of perjury for each policy stating:

    • name and address of the foreign insurer or reinsurer,

    • date the certificate was signed,

    • date the policy was issued,

    • whether the risks covered by the policy have been reinsured, and

    • if so, the name of the reinsurer, the country of residence of such reinsurer and the extent to which risks have been reinsured.

  6. Prior to the allowance of the claim, the person that filed the claim for refund must execute and submit a closing agreement Form 906, Closing Agreement as to Final Determination Covering Specific Matters. The closing agreement must be executed by the foreign insurer or reinsurer. It must also contain the following statements:

    • the foreign insurer or reinsurer consents to the making of the refund to the person filing the claim,

    • the foreign insurer or reinsurer has not and will not file a claim for such amount.

  7. If the insured is not the person that remitted the tax, and if any amount claimed was added to the premium paid by the insured, the closing agreement must also be executed by the insured.

  8. The following signed statements should appear on Form 906:

    • For refunds to a person other than the insured: It is agreed that (Name of foreign insurer or reinsurer) consents to the making of the refund to (Name of person filing claim), and that (Name of foreign insurer or reinsurer) has not and will not file a claim for refund.

    • For claims filed on behalf of the insured: It is agreed that (Name of Insured) consents to the making of the refund to (Name of person filing claim) and that (Name of insured) has not and will not file a claim for refund.

  9. The IRS Service Center will forward the claim for refund and Form 906 to the appropriate territory manager for signature.

  10. The territory manager should sign the Form 906 after ensuring that the required statement(s) have been signed by the appropriate parties.

  11. It is not necessary to review or audit the claim for refund for accuracy or completeness at the time of signing. The claim for refund and the signed Form 906 should be returned to the CCOC for processing.

Exhibit 4.24.8-1 
Filing Due Dates

TYPE OF CLAIM FILING METHOD CLAIM DUE DATE* CITE
Nontaxable Use of Fuels Form 8849 By the last day of the quarter immediately following the latest quarter included on the claim IRC §§ 6421(d)(2) and 6427(i)(2)
Nontaxable Use of Fuels Form 720 Sch C By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6421(d)(2), 6011, 6427(i)(2), 6501, and 6511
Nontaxable Use of Fuels Form 4136 By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6421(d)(1), 6427(i)(2), 6501, and 6511
Nontaxable Use of Fuels Annual Form 8849 By 3 years from the last day of the (income tax exempt) organization's fiscal year IRC §§ 6421(i), 6427(k), TR § 48.6421-3(b)
Nontaxable Use of Fuels - Mobile Machinery Exception Form 4136 For tax years beginning AFTER October 22, 2004, by the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6421(e)(2)(c), 6501, and 6511
Nontaxable Use of Gasoline on a Farm Form 4136 By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6420(b), 6501 and 6511
Nontaxable Use of Diesel Fuel on a Farm Form 8849 AFTER September 30, 2005, by the last day of the quarter immediately following the latest quarter included on the claim IRC § 6427(i)(2)
Nontaxable Use of Diesel Fuel on a Farm Form 720 Sch C AFTER September 30, 2005, by the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(2), 6011, 6501, and 6511
Nontaxable Use of Diesel Fuel on a Farm Form 4136 AFTER September 30, 2005, by the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(2), 6501, and 6511
Export of Dyed Fuel Form 8849 AFTER September 30, 2005, by the last day of the quarter immediately following the latest quarter included on the claim IRC § 6427(i)(2)
Export of Dyed Fuel Form 720 Sch C AFTER September 30, 2005, by the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(2), 6011, 6501, and 6511
Export of Dyed Fuel Form 4136 AFTER September 30, 2005, by the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(2), 6501, and 6511
Nontaxable Use of Kerosene in Aviation Form 8849 AFTER September 30, 2005, by the last day of the quarter immediately following the latest quarter included on the claim IRC § 6427(i)(2)
Nontaxable Use of Kerosene in Aviation Form 720 Sch C AFTER September 30, 2005, by the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(2), 6011, 6501, and 6511
Nontaxable Use of Kerosene in Aviation Form 4136 AFTER September 30, 2005, by the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(2), 6501, and 6511
Nontaxable Use of Diesel-Water Fuel Emulsion Form 8849 AFTER December 31, 2005, by the last day of the quarter immediately following the latest quarter included on the claim IRC § 6427(i)(2)
Nontaxable Use of Diesel-Water Fuel Emulsion Form 720 Sch C AFTER December 31, 2005, by the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(2), 6011, 6501, and 6511
Nontaxable Use of Diesel-Water Fuel Emulsion Form 4136 AFTER December 31, 2005, by the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(2), 6501, and 6511
Nontaxable Use of Alternative Fuel Form 8849 AFTER September 30, 2006, by the last day of the quarter immediately following the latest quarter included on the claim IRC § 6427(i)(2)
Nontaxable Use of Alternative Fuel Form 720 Sch C AFTER September 30, 2006, by the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(2), 6011, 6501, and 6511
Nontaxable Use of Alternative Fuel Form 4136 AFTER September 30, 2006, by the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(2), 6501, and 6511
Registered Ultimate Vendor (Diesel Fuel or Kerosene) or Registered Ultimate Vendor - Blocked Pump (Kerosene) Form 8849 By the last day of the quarter immediately following the earliest quarter included in the claim IRC §§ 6427(i)(4), 6501 and 6511
 
Registered Ultimate Vendor (Diesel Fuel or Kerosene) or Registered Ultimate Vendor - Blocked Pump (Kerosene) Form 720 Sch C By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(4), 6011, 6501 and 6511  
Registered Ultimate Vendor (Diesel Fuel or Kerosene) or Registered Ultimate Vendor - Blocked Pump (Kerosene) Form 4136 By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(1), 6501, and 6511  
Registered Ultimate Vendor (Diesel Fuel or Kerosene) or Registered Ultimate Vendor - Blocked Pump (Kerosene). Form 8849 By the last day of the quarter immediately following the earliest quarter included in the claim. AFTER September 30, 2005 does not include sales of Diesel Fuel to Farmers IRC § 6427(i)(4)  
 
Registered Ultimate Vendor (Diesel Fuel or Kerosene) or Registered Ultimate Vendor - Blocked Pump (Kerosene). Form 720 Sch C By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter. AFTER September 30, 2005 does not include sales of Diesel Fuel to Farmers IRC §§ 6427(i)(4), 6011, 6501 and 6511  
Registered Ultimate Vendor (Diesel Fuel or Kerosene) or Registered Ultimate Vendor - Blocked Pump (Kerosene). Form 4136 By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year. AFTER September 30, 2005 does not include sales of Diesel Fuel to Farmers IRC §§ 6427(i)(1), 6501, and 6511  
Registered Ultimate Vendor that sells undyed diesel fuel or undyed kerosene for certain intercity and local buses Form 8849 AFTER December 31, 2004. By the last day of the quarter immediately following the earliest quarter included in the claim IRC § 6427(i)(4)  
Registered Ultimate Vendor that sells undyed diesel fuel or undyed kerosene for certain intercity and local buses Form 720 Sch C AFTER December 31, 2004. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(4), 6011, 6501 and 6511  
Registered Ultimate Vendor that sells undyed diesel fuel or undyed kerosene for certain intercity and local buses Form 4136 AFTER December 31, 2004. By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(1), 6501, and 6511  
Registered Ultimate Vendor that sells gasoline (including aviation gasoline) to a state or local government for its exclusive use or to a nonprofit education organization for its exclusive use. Form 8849 AFTER December 31, 2004. By the last day of the quarter immediately following the earliest quarter included in the claim IRC § 6416(a)(4)(C), and 6427(i)(4)  
Registered Ultimate Vendor that sells gasoline (including aviation gasoline) to a state or local government for its exclusive use or to a nonprofit education organization for its exclusive use Form 720 Sch C AFTER December 31, 2004. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6416(a)(4)(C), 6427(i)(4), 6011, 6501 and 6511  
Registered Ultimate Vendor of Kerosene for Use in Aviation Form 8849 AFTER September 30, 2005. By the last day of the quarter immediately following the earliest quarter included in the claim IRC § 6427(i)(4)  
Registered Ultimate Vendor of Kerosene for Use in Aviation Form 720 Sch C AFTER September 30, 2005. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(4), 6011, 6501 and 6511  
Registered Ultimate Vendor of Kerosene for Use in Aviation Form 4136 AFTER September 30, 2005. By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(1), 6501, and 6511  
Gasohol Blender Form 4136 BEFORE January 01, 2005 By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC § 6427(k), ), 6501 and 6511  
Alcohol Fuel and Biodiesel Fuel Mixtures Form 8849 AFTER December 31, 2004. By the last day of the quarter immediately following the earliest quarter included in the claim IRC § 6427(i)(3)  
Alcohol Fuel and Biodiesel Fuel Mixtures Form 720 Sch C AFTER December 31, 2004. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(3), 6011, 6501 and 6511  
Alcohol Fuel and Biodiesel Fuel Mixtures Forms 4136, 6478 and 8864 AFTER December 31, 2004. By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(1), 6501 and 6511  
Renewable Diesel Fuel Mixtures Form 8849 AFTER December 31, 2005. By the last day of the quarter immediately following the earliest quarter included in the claim IRC § 6427(i)(3)  
Renewable Diesel Fuel Mixtures Form 720 Sch C AFTER December 31, 2005. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(3), 6011, 6501 and 6511  
Renewable Diesel Fuel Mixtures Forms 4136 and 8864 AFTER December 31, 2005. By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(3), 6501 and 6511  
Alternative Fuel Mixture Credit Form 8849 AFTER September 30, 2006. By the last day of the quarter immediately following the earliest quarter included in the claim IRC § 6427(i)(3)  
Alternative Fuel Mixture Credit Form 720 Sch C AFTER September 30, 2006. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(3), 6011, 6501 and 6511  
Alternative Fuel Mixture Credit Form 4136 AFTER September 30, 2006. By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(1), 6501 and 6511  
Alternative Fuel Credit Form 8849 AFTER December 29, 2007 retroactive to September 30, 2006. By the last day of the quarter immediately following the earliest quarter included in the claim IRC § 6427(i)(3)  
Alternative Fuel Credit Form 720 Sch C AFTER December 29, 2007 retroactive to September 30, 2006. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(3), 6011, 6501 and 6511  
Alternative Fuel Credit Form 4136 AFTER September 30, 2006. By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(1), 6501 and 6511  
§ 4081(e) Claims Form 8849 The claim must be filed within 3 years from the time the return for the second tax was filed or two years from the time the second tax was paid to the government IRC § 6511  
3rd Party Form 720 Tax (Such as, tires, various other taxes under § 6416 and etc.) Form 8849 By the normal statute date for filing a claim for credit or refund of overpayment on the Form 720 on which the tax was paid to the IRS IRC § 6511 TR § 301.6511(a)-1, and Rev. Rul. 60-58  
3rd Party Form 720 Tax (Such as, tires, various other taxes under § 6416 and etc.) Form 720 Sch C By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6416(d), 6011, 6501 and 6511  
Collected Taxes - Communications, Transportation of Persons and Property Form 8849 By the normal statute date for filing a claim for credit or refund of overpayment on the Form 720 on which the tax was paid to the IRS IRC § 6415(a) and 6415(b)  
Collected Taxes - Communications, Transportation of Persons and Property Form 720 Sch C By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC § 6415(a) and 6415(b)  
Diesel-Water Fuel Emulsion Form 8849 AFTER December 31, 2005. By the last day of the quarter immediately following the earliest quarter included in the claim IRC § 6427(i)(3)  
Diesel-Water Fuel Emulsion Form 720 Sch C AFTER December 31, 2005. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(2), 6011, 6501 and 6511  
Diesel-Water Fuel Emulsion Form 4136 AFTER December 31, 2005. By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(1), 6501 and 6511  
Form 2290 Form 8849 By 3 years of the filing of the return to which the claim relates, or 2 years from when the tax reported on the return was paid whichever is later IRC §§ 6501 and 6511  
Form 730 Form 8849 By 3 years of the filing of the return to which the claim relates, or 2 years from when the tax reported on the return was paid whichever is later IRC §§ 6501 and 6511  
Form 11C Form 8849 By 3 years of the filing of the return to which the claim relates, or 2 years from when the tax reported on the return was paid whichever is later IRC §§ 6501 and 6511  
Registered Credit Card Issuers - Diesel Fuel, Kerosene, and Kerosene used in Aviation Form 8849 AFTER December 31, 2005. By the last day of the quarter immediately following the earliest quarter included in the claim IRC §§ 6427(i)(4)  
Registered Credit Card Issuers - Diesel Fuel, Kerosene, and Kerosene used in Aviation Form 720 Sch C AFTER December 31, 2005. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(4), 6011, 6501, and 6511  
Registered Credit Card Issuers - Diesel Fuel, Kerosene, and Kerosene used in Aviation Form 4136 AFTER December 31, 2005. By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6427(i)(4), 6501, and 6511  
Registered Credit Card Issuers - Aviation Gasoline and Gasoline Form 8849 AFTER December 31, 2005. By the last day of the quarter immediately following the earliest quarter included in the claim IRC §§ 6416(a)(4)(c) and 6427(i)(4)  
Registered Credit Card Issuers - Aviation Gasoline and Gasoline Form 720 Sch C AFTER December 31, 2005. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6416(a)(4)(c) 6427(i)(4), 6011, 6501, and 6511  
Registered Credit Card Issuers - Aviation Gasoline and Gasoline Form 4136 AFTER December 31, 2005. By the normal statute date for filing a claim for credit or refund of overpayment on the income tax return for the tax year IRC §§ 6416(a)(4)(c) 6427(i)(4), 6501, and 6511  
Ultimate Purchaser of diesel fuel, kerosene, kerosene for use in aviation by State and Local Governments with credit card when issuer is not registered Form 8849 AFTER December 31, 2005. By the last day of the quarter immediately following the earliest quarter included in the claim IRC §§ 6427(i)(4)  
Ultimate Purchaser of diesel fuel, kerosene, kerosene for use in aviation by State and Local Governments with credit card when issuer is not registered Form 720 Sch C AFTER December 31, 2005. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6427(i)(4), 6011, 6501, and 6511  
Ultimate Purchaser of aviation gasoline and gasoline by State and Local Governments with credit card when issuer is not registered Form 8849 AFTER December 31, 2005. By the last day of the quarter immediately following the earliest quarter included in the claim IRC §§ 6416(a)(4)(c) and 6427(i)(4)  
Ultimate Purchaser of aviation gasoline and gasoline by State and Local Governments with credit card when issuer is not registered Form 720 Sch C AFTER December 31, 2005. By the last day of the quarter immediately following the latest quarter included on the claim. However the Form 720 is due a month after the end of the quarter IRC §§ 6416(a)(4)(c) 6427(i)(4), 6011, 6501, and 6511  

Note:

* May not be the same as the applicable tax return's due date for a particular period.

Exhibit 4.24.8-2 
Statute Dates and Recovery of Erroneously Paid Claims

These type claims can not be extended as they are assessed under IRC 6206. IRC 6206 does not permit an extension of the statute of limitations.

TYPE OF CLAIM FILING METHOD STATUTE DATE* CITE
Nontaxable Use of Fuels Form 8849 or Form 720 Sch C Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206
Nontaxable Use of Fuels Annual Form 8849 (Exempt Organizations and Governmental) Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206, Tres. Reg. 48.6421-3(b)(ii), 48.6427-3(b)(ii)
Nontaxable Use of Fuels – Diesel Fuel on a Farm Form 8849 or Form 720 Sch C AFTER September 30, 2007. Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206
Ultimate Vendor (Diesel or Kerosene) or Blocked Pump (Kerosene) Form 8849 or Form 720 Sch C Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206
Ultimate Vendor (Diesel or Kerosene) or Blocked Pump (Kerosene) After 09/30/2007 does not include sales of Diesel Fuel to Farmers Form 8849 or Form 720 Sch C Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206
Ultimate Vendor that sells aviation-grade kerosene for a non-taxable use or any use in commercial aviation. Form 8849 or 720 – Sch C AFTER 12/31/2004. Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206
Registered Credit Card Issuers – Diesel Fuel, Gasoline Kerosene, and Kerosene used in Aviation Form 8849 and Form 720 Sch C AFTER 12/31/2007.. Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206
Ultimate Purchaser of diesel fuel, gasoline, kerosene, kerosene for use in aviation by State and Local Governments Form 8849 and Form 720 Sch C AFTER 12/31/2007.. Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206
Ultimate Vendor that sells gasoline (including aviation gasoline) to a state or local government for its exclusive use or to a nonprofit education organization for its exclusive use. Form 8849 or Form 720 Sch C AFTER 12/31/2007. Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date). IRC 6206
Diesel-Water Fuel Emulsion Form 8849 and Form 720 Sch C AFTER 12/31/2007.. Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206

Below are the certain fuel mixture credits that may be extended. Certain fuel mixture credits up to Form 720 tax liabilities are governed by IRC 6501 which permits the extension of the statute of limitations. Thus, they may be extended to the extent they offset the excise tax liability reported on the Form 720. Paid claims in excess of certain fuel mixture credits in excess of Form 720 is governed by IRC 6206 which does not prescribe a statute of limitation extension. Thus, no extension can be obtained on Form 720, Schedule C claims of this type in excess of the liability reported or claims filed on Form 8849.

Note:

Seek group manager guidance for all statute of limitation extension considerations.

TYPE OF CLAIM FILING METHOD STATUTE DATE* CITE
Alcohol Fuel and Biodiesel Fuel Mixtures Form 8849 or Form 720 Sch C AFTER 12/31/2004. Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206
Alcohol Fuel, Biodiesel Fuel, and Alternative Fuels Mixtures Form 8849 and Form 720 Sch C AFTER 12/31/2007. Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206
Alcohol Fuel, Biodiesel, and Alternative Fuels Form 8849 and Form 720 Sch C AFTER 09/30/2006.. Assessment must be made by 3 years from the last day prescribed for filing the claim (i.e. claim due date) IRC 6206

Exhibit 4.24.8-3 
Searching for Excise Claims on IDRS/CFOL

After January 2005, MFT 40 was introduced for certain fuel related claims. Nontaxable use of fuel claims, ultimate vendor, gasoline wholesale distributor and blender claims were processed on MFT 40. When a paid claim is selected for exam a SFR under MFT 03 is established. Look for payments under MFT 40, MFT 03, and the MFT of the income tax return module.

In 2006 Form 990-C, Farmer’s Cooperative Association Income Tax Return, was replaced with Form 1120-C, U.S. Income Tax Return for Cooperative Associations, therefore MFT 34 is no longer applicable.

Non-fuel Form 720 related claims are processed on MFT 03. Highway Use Tax, Wagering Tax and Occupational Tax and Registration for Wagering Return taxes are processed on the MFT associated with its return.

IRC 4081(e) Claims are processed on MFT 03.

Claims filed on Schedule C of Form 720 are processed on the MFT 03. Fuel tax credits on Form 4136 are processed in the MFT associated with the income tax return. A partnership (other than a large electing partnership) cannot file a Form 4136. Instead they must include a statement on Schedule K-1, Partner’s Share of Income, Deductions, etc.

Older Claims

Due to processing cycles it may take several weeks for a claim to post to the BMOLT or MFTRA. To locate a claim that was filed more than a few weeks prior, search BMFOLT and look for Transaction Codes 290, 766, and 846. The Transaction Code 846 is for a computer generated refund. The refund is issued the day of the Transaction Code 846. It will appear on the BMFOLT MFT 40 or income tax module as follows:

TRANS DATE AMOUNT CYCLE DLN
150 04032008 0.00 200812 31354-472-00000-0 REMIT AMT 610 USE DEFINER "R"
290 04032008 0.00 200812 31354-472-00000-0
766 04032008 2,500.00- 200812 31354-472-00000-0 OF TRC#000000 REF NUM 360
766 04032008 5,000.00- 200812 31354-472-00000-0 OF TRC#000000 REF NUM 362
846 04032008 7,500.00 200812 17354-469-00000-0

This shows a refund of $7,500 was issued on April 3, 2008. It was for $2,500 of diesel fuel and $5,000 of gasoline.

If the claim bears interest it will appear on the BMFOLT of the income tax module as shown in the table below.

TRANS DATE AMOUNT CYCLE DLN
290 04172008 0.00 200814 35354-486-000000
766 04172008 21,144.60- 200812 35354-486-000000 REF NUM:000
770 03102008 0.00 200812 17354-469-000000
840 03102008 21,144.60 200812 17354-469-000000

The TC 290 indicates that there is an adjustment. The TC 766 is the amount of the adjustment; however the BMFOLT does not provide the CRN. The TC 770 indicates the amount of interest paid, if any. The TC 840 is for a manual refund due to the 20-day deadline for paying claims. TC 840 allows a manual refund check to be issued instead of waiting for a computer generated refund that could take 2 to 3 weeks. The date of the refund is the day after the TC 840 date.

This shows a refund of $21,144.60 issued on March 11, 2008. Request a BMFOLA to determine the CRNs associated with the refund.

The period of the claim is shown on a BMFOLA Continuation Page of the BMF Adjustments. The Beginning Period Date of the Claim will appear in the AMEND/CLM RECVD DT section. The Ending Period of the Claim will appear in the CORR RECVD DT section.

Recent or Pending Claims on TXMOD

To find a claim that was filed recently, search BMFOLT. Check SUMRY and/or TXMOD to view the activity that took place prior to posting to the BMFOL, if the activity has not yet posted to the BMFOLT. Any open income tax modules could denote activity on a recent claim.

TXMODA is the command code that shows CCOC and CSTO activity. SUMRY gives a list of all TXMODAs available on the date of your search.

To find a specific claim, search TXMODA for the appropriate income tax period and look for the dollar amount at TC 766. The information on TXMODA will be similar to what appears on BMFOLT as stated above. Also refer to TXMODAs "CONTROL BASE AND HISTORY INFORMATION" section to see a list of claim activity. This section of TXMODA will record any activity on all claims posted to that module. You will be able to scan the section to find the period of the claim in question and whether it has been processed by the date of your search.

TXMODAs CONTROL BASE section will separate work done on each claim by using case numbers at the left of the section. Each case number ("C#" ) denotes a different case or claim. Next to the case number will be a STATUS letter. Whenever STATUS letter "C" is input, the tax examiner’s work on that case is closed. TXMODA will record the period of claims in the following format:

Tables to Identify Types of Claims on TAXMOD

Prefix and Period of Claim Prefix Type of Claims
A0701-0930 A=UV Aviation Gasoline
B0701-0930 B=Blocked Pump Kerosene
C0701-0930 C=Combined UV Diesel Fuel, Kerosene Blocked Pump, Diesel & Kerosene Buses, Aviation Kerosene, Gasoline, and Aviation Gasoline Diesel
D0701-0930 D=UV Diesel
E0701-0930 E=End User
F0701-0930 F=Aviation Kerosene Farms and Government Pump Kerosene
G0701-0930 G=UV Gasoline
I0701-0930 I=Intercity and Local Buses
K0701-0930 K=UV Kerosene
M0701-0930 M=Alcohol, Alternative Fuels, and Biodiesel Mixtures
N0701-0930 N=Aviation Kerosene Other Nontaxable
P0701-0930 P=Aviation Kerosene Commercial
R0701-0930 R=Credit Card Issuer
S0701-0930 S=State or Local Government Ultimate Purchaser of Fuel from a Credit Card Issuer
W0701- 0930 W=Diesel Water Fuel Emulsion

Table to Identify Common Issues of Claims

The following is a list of common issues encountered when working fuel claims and the IDRS notations that should be used:

ISSUE IDRS NOTATION
Combined Schedule 2 Claims D/K-diesel and kerosene D/B-diesel and blocked pump D/K/B-diesel, kerosene & blocked pump. There are several different combinations which can be present. Any notation like this is used to identify the types of fuel on the combined claim. Numeric amounts would not be necessary as those would be found in the posted adjustment information.

The chart below lists the issue and how it is entered in the history.

ISSUE IDRS NOTATION
No Consideration - Late 916C/LATE
No Consideration - Signature missing 916C/SIGN
No Consideration - Period of Claim 916C/POD
No Consideration - Type of Use 916C/TOU
No Consideration- Invalid Customer(s) 916C/CUSTM
No Consideration- Missing Customer List 916C/CLIST
No Consideration-Less Than or Equal to Minimum Amount 916C/<$100 or /<$200 or /<$750
No Consideration-Incorrect Rate 916C/RATE
Partial Disallowance - Late 106C/LATE
Partial Disallowance - Invalid Customer 106C/CUSTM, followed with customers name and gallons disallowed
Partial Disallowance - Type of Use 106C/TOU
Full Disallowance - Statute 105CLETTER
DISALLOW
STATUTE
Address Issue 76C/F8822
Math Verification Issue 76C/MATH
Tax Rate Issue 76C/RATE
Offset to Balance Due Account 76C/OFFSET

Explanation of Claims and CFOL Research

As shown on the table above, the TXMODA CONTROL BASE section will identify nontaxable uses of fuels and their periods as an end user claim by the format E0701-0930, for example. Nontaxable use of fuels claims may be posted to the income tax module of the claimant or MFT 40. For claimants with a nontaxable use of fuel (such as State or Local governments), a substitute module will be created for the claimant, usually on MFT 02. Check BMFOLT and TXMODA to search for TC 766 postings depending on how long ago the claim was filed. For Schedules 1, 2, 3 or 8 check both MFT of the income tax return and MFT 40.

Nonfuel Claims

All nonfuel claims will be on the Form 720 MFT 03 module. If the claimant does not file a Form 720, a “dummy module” will be created. These claims will also use TC 290, 766 and 846.

Schedule 1 – Nontaxable Use of Fuels

These are commonly referred to as end user claims. They are processed on MFT 40 using the claimant’s fiscal year. Paid claims selected for exam are established on MFT 03 for control purposes.

Schedule 2 – Sales by Registered Ultimate Vendors

These claims are processed on the MFT of the claimant’s income tax return. If the claimant has no income tax filing requirement, or the claim is from an individual, the claim will be processed on MFT 02. Paid claims selected for exam are established on MFT 03 for control purposes.

Schedule 3 – Certain Fuel Mixtures and the Alternative Fuel Credit

These claims are processed on the MFT of the claimant’s income tax return. If the claimant has no income tax filing requirement, or the claim is from an individual, the claim will be processed on MFT 02. Paid claims selected for exam are established on MFT 03 for control purposes.

Schedule 5 – Section 4081(e) Claims

These claims are processed on MFT 03. A substitute module will be created for a claimant that does not file a Form 720.

Schedule 6 – Other Claims

These claims are generally processed on MFT 03. A substitute module will be created for a claimant that does not file a Form 720.

Schedule 8 – Registered Credit Card Issuers

These claims are processed on the MFT of the claimant’s income tax return. If the claimant has no income tax filing requirement, or the claim is from an individual, the claim will be processed on MFT 02. Paid claims selected for exam are established on MFT 03 for control purposes.

Unpaid Claims

Information for an unpaid claim is on an AMDISA. This will show the amount of the Claim, the Activity Code, and the statute date among other information.

Exhibit 4.24.8-4 
Credit Reference Numbers and Corresponding Abstract Numbers

When adjustments are made to Credit Reference Numbers (CRN) on the Form 720, Item 404, Abstract Number (ABS) on Form 5344 also has to be input. You cannot enter Credit Reference Numbers in Item 404, the abstract number must be entered. The list below is a cross walk table showing the abstract code that corresponds to each credit reference number.

CRN ABS CRN Description
303 105 Dyed Diesel Fuel Other Exempt Removals
304 109 Taxable Tires, Bias Ply or Super Single Tires
305 113 Taxable Tires, Super Single Tires Designed for Steering
306 104 Exported Diesel- Water-Fuel Emulsion
307 60 Renewable Diesel Mixture
308 110 Fishing Rods and Fishing Poles
309 104 Diesel- Water-Fuel Emulsion
310 60 Diesel-Water Fuel Emulsion Blender Claims
322 22 Telephone Service
324 14 Aviation Gasoline other than CRN 354
326 26 Transportation of Persons by Air
327 27 Use of International Air Travel Facilities
328 28 Transportation of Property by Air
329 29 Transportation by Water
340 40 Gas Guzzler Automobiles
341 41 Sport Fishing Equipment
342 42 Electric Outboard Motors and Sonar Devices
344 44 Bows, Quivers, Broadheads, and Points
345 20 Ozone-Depleting Chemicals
346 35 Non-taxable Use of Undyed Kerosene – Not in Aviation
347 35 Non-taxable Use of Kerosene in Certain Inter-City and Local Buses
348 71 Nontaxable Use of Undyed Kerosene in Trains
349 18 Domestic Oil Spill or Imported Petroleum Products Oil Spill Tax
350 60 Nontaxable Use of Undyed-Diesel Fuel in Certain Inter-City and Local Buses
351 51 Alcohol Sold as but not Used as Fuel
353 60 Nontaxable Use of Undyed Diesel Fuel in Trains
354 14 Nontaxable Use of Aviation Gasoline in Commercial Aviation (Other than Foreign Trade)
355 69 Nontaxable Use of Aviation Fuel (Other than Gasoline) in Commercial Aviation (Other than Foreign trade)
360 60 Nontaxable Use of Undyed Diesel Fuel
361 61 LPG (other than CRN 352 or CRN 419)
362 62 Gasoline
364 64 Inland Waterways Fuel Use
365 196 Form 2290
366 33 Highway Type Tires
367 197 Form 11-C
368 198 Form 730
369 69 Aviation Fuel (Other than Gasoline) (Other than CRN's 355 and 377)
370 102 Arrow Components
371 71 Dyed Diesel Fuel used in Trains
377 77 Aviation Fuel (Other than Gasoline) for Use in Commercial Aviation (Other than Foreign Trade) (Other than CRN 355)
379 79 Other Fuels
380 30 Foreign Insurance
381 31 Obligations not in Registered Form
382 36 Coal – Underground Mined per Ton
383 33 Truck, trailer, and Semi-trailer Chassis and Bodies, and Tractors
384 37 Coal – Underground Mined % of Sales Price
385 38 Coal – Surfaced Mined per Ton
386 39 Coal – Surfaced Mined % of Sales Price
387 114 Fishing Tackle Boxes
388 60 Biodiesel Mixtures (Other than Agri-biodiesel)
389 106 Arrow Shafts
390 60 Agri-biodiesel Mixtures
392 92 Passenger Vehicles (luxury tax)
393 62 Alcohol Fuel Mixtures Containing Ethanol
394 62 Alcohol Fuel Mixtures Containing Alcohol (Other than Ethanol)
395 61 Other Non-Taxable Use Liquefied Petroleum Gas (LPG)
396 108 Taxable Tires Other than Bias Ply or Super Single Tires
397 97 Vaccines
398 98 Ozone-Depleting Chemicals
411 62 Exported Gasoline
412 14 Non-Taxable Use of Aviation Gasoline-Exported
413 60 Non-Taxable Use of Undyed Diesel Fuel-Exported
414 35 Non-Taxable Use of Undyed Kerosene-Exported
415 105 Exported Dyed Diesel Fuel
416 107 Exported Dyed Kerosene
417 35 Kerosene Used in Commercial Aviation (Other than Foreign Trade)
418 69 Kerosene Nonexempt Use in Noncommercial Aviation
419 112 Nontaxable Use of Alternative Fuels-Liquefied Petroleum Gas (LPG)
420 118 Nontaxable Use of Alternative Fuels-“P” Series Fuels
421 120 Nontaxable Use of Alternative Fuels-Compressed Natural Gas
422 121 Nontaxable Use of Alternative Fuels-Liquefied Hydrogen
423 122 Nontaxable Use of Alternative Fuels-Any Liquid Fuel Derived from Coal
424 123 Nontaxable Use of Alternative Fuels-Liquid Hydrocarbons Derived from Biomass
425 124 Nontaxable Use of Alternative Fuels-Liquefied Natural Gas (LNG)
426 112 Alternative Fuel Mixture Credit-Liquefied Petroleum Gas (LPG)
427 118 Alternative Fuel Mixture Credit “P” Series fuels
428 120 Alternative Fuel Mixture Credit Compressed Natural Gas
429 121 Alternative Fuel Mixture Credit Liquefied Hydrogen
430 122 Alternative Fuel Mixture Credit Any Fuel Derived from Coal
431 123 Alternative Fuel Mixture Credit Liquid Hydrocarbons Derived from Biomass
432 124 Alternative Fuel Mixture Credit Liquefied Natural Gas
433 111 LUST Tax on Aviation Fuels Used in Foreign Trade
434 125 LUST Tax on Inland Waterways Fuel Use
435 79 Nontaxable Use of Alternative Fuels-Liquefied Gas Derived from Biomass
436 79 Alternative Fuel Mixture Credit Liquefied Gas Derived from Biomass
437 79 Alternative Fuel Mixture Credit Compressed Gas Derived from Biomass

Listed below are expired CRN's that might still be eligible for credit:

CRN ABS Description
323 101 Compressed Natural Gas
352 61 Nontaxable Use of LPG in Certain Inter-City and Local Buses
356 58 Use of Gasoline for 10% Gasohol Blending
357 73 Use of Gasoline for 7.7% Gasohol Blending
358 58 Gasoline for 10% Gasohol
359 59 10% gasohol
363 74 Use of Gasoline for 5.7% Gasohol Blending
373 73 Gasoline for 7.7% Gasohol
374 74 Gasoline for 5.7% Gasohol
375 75 7.7% Gasohol
376 76 5.7% Gasohol
378 78 Dyed Diesel Fuel used in Certain Inter-City and Local Buses

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