3.11.23 Excise Tax Returns

Manual Transmittal

November 07, 2017

Purpose

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

Material Changes

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

(2) IRM 3.11.23.1 - Added Internal Control information as outlined in The Heightened Awareness, Sensitivity, and Understanding of Internal Controls Memo dated September 14, 2016. Combined general information subsections with IRM 3.11.23.2 and renumbered subsections accordingly.

(3) IRM 3.11.23.2.2 - Business Master File subsection updated to reflect proper acronyms for Wage & Investment and Code & Edit.

(4) IRM 3.11.23.2.3 - Removed incorrect title information from cross reference IRM.

(5) IRM 3.11.23.2.5 - Taxpayer Advocate Service procedures revised to match other IRMs for consistency.

(6) IRM 3.11.23.2.5.1 - Taxpayer Advocate Service Level Agreements updated to match other IRMs for consistency.

(7) IRM 3.11.23.2.9(1) - Added the physical address for Memphis when routing power of attorney information.

(8) IRM 3.11.23.3 - Edit marks have been updated to match other IRMs for consistency.

(9) IRM 3.11.23.8.3 - Correspondence and Correspondence Imaging System information was updated to match other IRMs for consistency.

(10) IRM 3.11.23.8.3.4(3) - Updated IRM reference for leaving information on answering machines and voice mail.

(11) IRM 3.11.23.10.6.1(1) - Added the word abbreviation to ensure correct editing of Canadian returns.

(12) IRM 3.11.23.10.7.1(2) - Added instructions to completely edit early filed returns.

(13) IRM 3.11.23.10.7.3(1) - Clarified description of tax period location on Form 720.

(14) IRM 3.11.23.11(10) - Updated received date instructions to not use the Enterprise Electronic Fax (EEFax) date as the received date.

(15) IRM 3.11.23.12.7(2) - Clarified instructions for penalty and interest code on Form 720.

(16) IRM 3.11.23.16.8.6(1) - Updated title of Figure 3.11.23-23 and clarified the description.

(17) IRM 3.11.23.16.9(2) - Updated note to delete Form 720, Schedule A when the only taxes being reported are in Part II.

(18) IRM 3.11.23.11.1(1) - The heavy highway vehicle use tax has been extended therefore the note regarding the pending expiration of the tax has been removed. Information regarding the temporary extended due date for 2011 has also been removed.

(19) IRM 3.11.23.7(2) - Updated routing guide to include physical addresses for private delivery services when routing Form 2848 and Form 8821.

Effect on Other Documents

IRM 3.11.23, dated 11-18-2016 (effective 01-01-2017) is superseded. This incorporates IPU 17U0142 issued 01-20-2017.

Audience

Wage & Investment Submission Processing Document Perfection Code & Edit employees, managers and management officials

Effective Date

(01-01-2018)

Linda J. Brown
Director, Submission Processing
Wage & Investment Division

Program Scope and Objectives

  1. This section contains instructions for coding and editing excise tax returns processed on the business master file and the non-master file systems.

  2. Purpose: The purpose of Document Perfection is to Code & Perfect (edit) documents.

  3. Audience: These procedures apply mainly to Wage & Investment (W&I) Submission Processing Code & Edit (C&E) employees but may also be used by others.

  4. Policy Owner: Director, Submission Processing

  5. Program Owner: Paper Processing Branch, Business Master File (BMF) Section

  6. Primary Stakeholders: Other areas that may be affected by these procedures include (but not limited to):

    • Accounts Management (AM)

    • Small Business/Self-Employed (SB/SE)

    • Taxpayer Advocate Service (TAS)

    • Chief Counsel

    • Information Technology (IT) Programmers

    • Electronic Products and Services Support (EPSS)

    • Submission Processing (SP)

Background

  1. The purpose of Document Perfection is to code and edit (perfect) returns and other documents for input through the Integrated Submission and Remittance Processing System (ISRP). In addition, Document Perfection forwards any other documents or attachments not related to the processing of the returns to the function responsible for handling them. It is not the purpose of Code & Edit to mathematically verify or to check the validity of the returns and other documents being processed unless otherwise specified in the applicable section.

Authority

  1. Authority for these procedures is found in the following sections of the Internal Revenue Code (IRC) and their corresponding Treasury Regulations:

    • IRC 6201(a)

    • IRC 6213(b)

Responsibilities

  1. The Director is responsible for monitoring operational performance for the Submission Processing Campus.

  2. The Operations Manager is responsible for monitoring operational performance for their operation.

  3. The Team Manager/Lead is responsible for performance monitoring and ensuring employees have the tools necessary to perform their duties.

  4. The Team Employees are responsible to follow the instructions contained in the IRM and maintain updated IRM procedures.

Program Management and Review

  1. Program Goals

    • Code & Edit: Ensure documents are code and edit ready for transcription.

    • Error Resolution: Enter corrections on the paper Error Registers for any errors falling out through Service Center Replacement System (SCRS) in Error Resolution.

  2. Program Reports: The Batch Block Tracking System (BBTS) captures and stores a vast amount of data, which can be used in performance monitoring and production projections. System control reports are on the Control-D WebAccess (CTDWA) and a general listing of the reports are located in IRM 3.12.38, Error Resolution, BMF General Instructions.

  3. Program Effectiveness: The program goals are measured by using the following tools:

    • Embedded Quality Submission Processing (EQSP)

    • Balanced Measures

    • Managerial Reviews

  4. Annual Review: The processes outlined in this IRM should be reviewed annually to ensure accuracy and promote consistent tax administration.

Program Controls

  1. Quality Review conducts a statistical valid sample size review of completed work to ensure IRM guidelines are followed.

Acronyms, Terms and Definitions

  1. An acronym is a word formed from the initial letter or letters of each of the successive parts or major parts of a compound term such as IDRS for Integrated Data Retrieval System.

  2. Acronyms used in this IRM will be identified and explained in each subsection. After the acronym is identified and explained then only the acronym will be used throughout the rest of the subsection. Some acronyms are used universally throughout the IRS and identifying and explaining these in multiple subsections would be unnecessary. Some examples of these universal acronyms are IRM, IRC, and IDRS.

  3. The following is a list of acronyms commonly used throughout this IRM:

    • Accounts Management (AM)

    • Business Master File (BMF)

    • Code & Edit (C&E)

    • Criminal Investigation (CI)

    • Correspondence Imaging System (CIS)

    • Cincinnati Submission Processing Campus and/or Cincinnati Submission Processing Center (CSPC)

    • Document Locator Number (DLN)

    • Error Resolution System (ERS)

    • Identification or Identity (ID)

    • Integrated Data Retrieval System (IDRS)

    • Integrated Submission and Remittance Processing (ISRP)

    • Internal Revenue Code (IRC)

    • Modernized e-File (MeF)

    • Master File Tax (MFT)

    • Month Month Day Day Year Year Year Year (MM-DD-YYYY)

    • Receipt and Control (R&C)

    • Small Business/Self-Employed (SB/SE or SBSE)

    • Submission Processing (SP)

    • Taxpayer Advocate Service (TAS)

    • Transaction Code (TC)

    • Wage & Investment (W&I)

    • Zone Improvement Plan (ZIP)

    Note:

    The above list is just a sampling of acronyms and terms commonly used throughout this IRM and is not intended to be all inclusive.

Related Resources

  1. The following is a list of some of the resources available to assist in performing the work as outlined in this IRM:

    • Integrated Data Retrieval System (IDRS)

    • Servicewide Electronic Research Program (SERP)

    • Submission Processing Design Center (SPDC)

    • Integrated Automation Technologies (IAT)

    • Excise Tax e-File and Compliance (ETEC)

General Information

  1. This section contains procedures for the coding and editing of certain Excise Tax Returns.

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

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

    • Form 720, Quarterly Federal Excise Tax Return

    • Form 730, Monthly Tax Return for Wagers

    • Form 2290, Heavy Highway Vehicle Use Tax Return, and Form 2290(SP), Declaración del Impuesto sobre el Uso de Vehículos Pesados en las Carreteras, (Heavy Highway Vehicle Use Tax Return (Spanish Version))

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

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

    • Form 8725, Excise Tax on Greenmail

    • Form 8876, Excise Tax on Structured Settlement Factoring Transactions

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

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

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

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

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

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

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

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

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

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

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

    Figure 3.11.23-1

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  8. Form 13596, Reprocessing Returns - Used to resubmit incorrectly processed returns.

General Instructions

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

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

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

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

♦ Business Master File Consistency ♦

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

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

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

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

♦ IRM Deviation Procedures ♦

  1. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevated through appropriate channels for executive approval.

♦ General Guidelines ♦

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

♦ Taxpayer Advocate Service ♦

  1. Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely.

  2. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels. For additional information on the Taxpayer Bill of Rights, visit http://taxpayeradvocate.irs.gov/About-TAS/Taxpayer-Rights.

  3. Refer taxpayers to TAS when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria), or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached and steps cannot be taken to resolve the taxpayer's issue the same day.

  4. "Same day" includes cases that can be resolved in 24 hours, as well as cases where steps can be taken within 24 hours to begin resolving the issue. (See also IRM 13.1.7.4, Same Day Resolution by Operations.)

  5. When making a TAS referral, use Form 911, and forward to TAS in accordance with your local procedures.

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

  2. The SLAs are located at http://tas.web.irs.gov/policy/sla/default.aspx.

♦ BMF Identification Theft ♦

  1. BMF Identification Theft is increasing. If a tax examiner in Submission Processing (SP) Code & Edit (C&E) finds a case with attachments or correspondence indicating the taxpayer is a victim of ID Theft, provide the whole case to your senior/lead. Your senior/lead will expedite the case to the Planning & Analysis (P&A) staff for referral to one of the SP BMF ID Theft liaisons. The taxpayer must indicate that they are a victim of "ID Theft" ; do not send cases that are subject to "Criminal Investigation (CI)" , "Examination (Exam)" , or "Fraud" review.

♦ Foreign Currency ♦

  1. For returns completed in other than U.S. currency, process as filed. However, if corresponding for missing/incomplete item(s), include in the letter to resubmit in U.S. currency.

♦ Frivolous Arguments ♦

  1. A frivolous argument is used for the purpose of expressing dissatisfaction with the substance, form or administration of the tax laws by attempting to illegally avoid or reduce tax liabilities. Recognized frivolous arguments made by businesses include, but are not limited to, the examples in IRM 25.25.10, Frivolous Return Program (FRP), shown in Exhibit 3.11.23-10, Frivolous Return Criteria.

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

    If Then
    The return meets any of the conditions shown in Exhibit 3.11.23-10, Frivolous Return Criteria.

    Exception:

    If the return shows Action Code 331 and has a Form 4227 attached with the remarks, "Refer to Exam FRP for audit after processing" , continue to next procedure.

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

    Note:

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

♦ Centralized Authorization File and Power of Attorney ♦

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

    If Then
    Form 2848 or Form 8821 is attached,
    1. Detach Form 2848 or Form 8821 from the return.

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

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

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

      For Private Delivery Carriers:
      Internal Revenue Service
      5333 Getwell Road Stop 8423
      Memphis, TN 38118

    5. Edit action trail on tax return.

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

♦ Statute Returns ♦

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

  2. Statute returns must be routed to the Statute Control Unit daily or more often if needed.

  3. Do not route to Statute Control Unit for clearance, edit CCC "W" , and continue processing if any of the following conditions are present:

    • Compliance IRC 6020(b) returns

    • Secured by Examination/Collections, Secured by TE/GE, Secured by TE/GE EP Exam

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

    • Returns that are substitute returns prepared by Examination (SFR) in top margin of the return

    • Returns with a stamp indicating a previous clearance by Statute Control within the last 90 days

  4. If a Form 12412, Operations Assistance Request (OAR) is received from TAS and the return is a potential statute control return but is not stamped "Cleared by Statute" , give the return to your lead. The lead will contact the TAS employee listed on the OAR for rejection of the return and send it back to TAS for clearance by the Statute Unit.

    Note:

    If the return is within 90 days of the statute expiration date, advise the TAS employee of such and route the return directly to statute for clearance.

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

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

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

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

    The return is unnumbered
    1. Do not continue processing.

    2. Pull the return from the batch.

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

    Note:

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

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

  7. Statute may stamp a return as "No Statute Issue" . Follow the chart below to determine if a CCC "W" is needed:

    If And Then
    The return received date is 2 years and 9 months or more after the Return Due Date The return is stamped, "No Statute issue" , "Statute N/A" , or a similar statement indicating there is no statute issue, Edit a CCC W
    The return received date is less than 2 years and 9 months from the Return Due Date The return is stamped, "No Statute issue" , "Statute N/A" , or a similar statement indicating there is no statute issue, Do not edit a CCC W

♦ Amended Returns ♦

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

    Note:

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

    Reminder:

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

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

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

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

    • Name Control

    • Employer Identification Number (EIN)

    • Tax Period

    • CCC "G"

    • Received Date

    • Signature

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

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

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

      Note:

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

Document Locator Number

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

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

    Figure 3.11.23-2

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    The parts of the DLN are as follows: Description:
    Part 1 File Locator - The location where the tax return was filed.

    Example:

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

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

    Example:

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

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

    Example:

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

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

    Example:

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

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

    Example:

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

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

    Example:

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

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

    Example:

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

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

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

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

      Note:

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

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

Blocking Returns and Documents

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

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

Document Count

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

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

    2. Form 1332 - circle one number higher than the last DLN in the block

    Note:

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

Edit Marks

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

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

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

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

    Edit Mark: Description:
    "X" The "X" is used to delete tax data or to indicate that an item is not to be transcribed. For example, If deleting an original taxpayer entry, edit an X to the left of the entry to be deleted. Edit the correct entry to the left or above the X.
    "/" A / can be used when deleting a form or schedule not being transcribed.
    "//$" The "//$" is used in the entity area to identify the beginning and ending of a foreign country code. For example, "/EI/$" is edited for "Ireland" and "/GM/$" is edited for "Germany" .
    "c/o" or "%" Indicates an "in-care-of" name for transcription.
    Circle Indicates that an entry is not to be transcribed. Also used to delete Entity data or a Received Date.

    Note:

    If the taxpayer circles an entry, edit the entry.

    Underline Indicates that an entry is to be transcribed (e.g., Name Control, Tax Period, etc.).
    Arrow Indicates the correct placement of a misplaced entry. An arrow may be used if the misplaced item is close to the correct line and there is no question where the entry belongs.

    Note:

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

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

    Exception:

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

    Edit Marks Made by Other IRS Functions Edit marks entered by other areas, such as Collections, Entity, or Accounts Management, are not to be re-edited except to place the marks in the correct area or to perfect for legibility. Do not edit (or write) over another area's edit marks.

    Note:

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

    Exception:

    Photocopied Returns.

    Photocopied Returns Re-edit or underline any valid, black edit marks. See IRM 3.11.23.8.3.3, Correspondence Imaging System (CIS) Returns, and IRM 3.11.23.23, Re-Entry Document Procedures.
    Rocker Indicates the amount paid when drawn under a remittance amount.

Transcription Lines

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

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

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

♦ Action Codes ♦

  1. Action Codes are used to indicate whether correspondence, research, or some other action is needed. The Action Code will set the suspense period to be assigned to the return and place the return in the workable or unworkable suspense inventory. See Exhibit 3.11.23-9.

  2. When necessary, a three digit Action Code will be assigned by the tax examiner.

  3. Edit the Action Code in the bottom left margin of the return. See Figure 3.11.23-3.

    Figure 3.11.23-3

    This is an Image: 33515003.gif
     

    Please click here for the text description of the image.

    Note:

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

  4. Assign Action Codes in the following priority order:

    1. Action Code 310 (Statute Control)

    2. Action Code 320 (Entity Control)

    3. Action Code 4XX

    4. Action Code 6XX

    5. Action Code 3XX

    6. Action Code 2XX (Correspondence)

    Exception:

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

  5. Use the following table if more than one Action Code is needed:

    If Then
    Action Codes include 211, 215, 225 or 226 and Action Code 341,
    1. Edit the Action Code 211, 215, 225 or 226.

    2. Edit Action Code 341 on the Form 4227, Intra-SC Reject or Routing Slip.

    Action Codes have the same priority,
    1. Edit the Action Code with the shorter suspense period.

    2. Edit the second Action Code on the Form 4227, Intra-SC Reject or Routing Slip.

    3. See Exhibit 3.11.23-9, Action Codes, for suspense periods.

    Action Codes have different priorities,
    1. Edit the Action Code with the higher priority.

      Exception:

      Use Action Code 211, 215, 225 or 226 before Action Code 341 to ensure the return is complete before a manual refund is issued.

    2. Edit the second Action Code on the Form 4227, Intra-SC Reject or Routing Slip.

  6. Edit the following Action Codes when a return cannot be perfected from the information present:

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

    • Unsigned returns

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

    225 Correspondence (Signature Only)
    • Unsigned return (only issue for correspondence)

    226 International Correspondence (Signature Only)
    • Unsigned return (only issue for correspondence)

    480 (Early Filed Suspense) The return is an early filed current year return
    610 (Renumbered Non-Remittance) or 611 (Renumbered with Remittance)
    • A return is mis-blocked (e.g., Form 720 found in a Form 2290 batch of work)

    640 (Void) To delete the assigned DLN on the return (e.g., Re-Entry Returns)
    650 (International)
    • Excise International returns are worked at the Cincinnati Submission Processing Center (CSPC)

    Note:

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

  7. Continue perfecting the return after editing the Action Codes.

♦ Refund Returns (45 Day Jeopardy and $100 Million or More Refunds) ♦

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

    Note:

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

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

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

      Note:

      Follow the instructions below when the processing date is more than 20 days after the received date or the return due date OR the refund is $100,000,000 or more.

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

      1. Pull the return from the batch.

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

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

        Note:

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

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

    • Numbered Returns:

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

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

        Note:

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

    The refund is $100,000,000 or more,
     

    Note:

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

    • Unnumbered Returns:

      1. Pull the return from the batch.

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

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

        Note:

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

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

    • Numbered Returns:

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

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

        Note:

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

    Note:

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

Routing Guide For Attachments

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

    1. Attachments should only be detached when specifically instructed.

      Note:

      Consider a return or document an "original" if it has an original signature or has been stamped "Process as Original" .

    2. Edit Action Trail(s) (e.g., "2848 detached" ) in the lower left corner going vertically up the side of the return.

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

    Note:

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

    Document: Detach: Action:
    CP 259/CP 959 (Spanish Version) No Correspondence is attached or taxpayer’s response indicates any of the following:
    • Taxpayer disagrees that they are required to file the return

    • Only page one of the return is attached

    • EIN on notice does not match EIN on return

    • Return requested on notice not the same as return submitted

    • Taxpayer asking question(s) or requesting IRS take action(s) on their account

    • Case involves any other IRS action(s) C&E not trained to complete

    Then, Route to Compliance Services Collection Operations (CSCO). Use return address on Computer Paragraph (CP) notice;
    • Brookhaven - Stop 662

    • Memphis - Stop 81

    • Philadelphia - 4-N31.142


    If none of the above apply, correspondence or written response to the notice is not attached and/or, "TC 599" is notated:
    1. Move the notice to the back of the return.

    2. Continue processing the return.

    Note:

    If the return is unsigned, but the taxpayer has signed the CP notice under the jurat, it is not necessary to correspond for the signature.

    CP 259 A through H No Route to Ogden Submission Processing Center (OSPC) at:
    OSPC BMF Entity
    Mail Stop 6273.
    CP 504/504B No
    1. Pull CP 504/504B to the front.

    2. Route notice and return to Accounts Management.

    CP 518 No Correspondence is attached or taxpayer’s response indicates any of the following:
    • Taxpayer disagrees that they are required to file the return

    • Only page one of the return is attached

    • EIN on notice does not match EIN on return

    • Return requested on notice not the same as return submitted

    • Taxpayer asking question(s) or requesting IRS take action(s) on their account

    • Case involves any other IRS action(s) C&E not trained to complete

    Then, Route to Compliance Services Collection Operations (CSCO). Use return address on CP notice:
    • Brookhaven - Stop 662

    • Memphis - Stop 81

    • Philadelphia - 4-N31.142


    If none of the above apply, correspondence or written response to the notice is not attached and/or, "TC 599" is notated:
    1. Move the notice to the back of the return.

    2. Continue processing the return.

    Note:

    If the return is unsigned, but the taxpayer has signed the CP notice under the jurat, it is not necessary to correspond for the signature.

    Letters 112C, 282C, 2255C or 2284C No
    1. Identify which organization initiated the letter to the taxpayer (e.g., what organization signed the letter?).

    2. Route letters initiated by Accounts Management (AM) to Accounts Maintenance Research (AMRH):

      • Ogden - Mail Stop 6712

      • Cincinnati - Mail Stop 534G

      • Kansas City - Mail Stop N2 6800

    3. Route letters initiated by Collections as follows:

      1. If correspondence is attached or taxpayer’s response indicates any of the following:

        • Taxpayer disagrees that they are required to file the return.

        • Only page one of the return is attached.

        • EIN on letter does not match EIN on return.

        • Return requested on letter not the same as return submitted.

        • Taxpayer asking question(s) or requesting IRS take action(s) on their account.

        • Case involves any other IRS action(s) C&E not trained to complete.

        Then, Route to Compliance Services Collection Operations (CSCO). Use return address on letter;

        • Brookhaven - Stop #662

        • Memphis - Stop #81

        • Philadelphia - 4-N31.142

      2. If none of the above apply, correspondence or written response to the letter is not attached and/or, no "599" is notated:
        Then, Move the letter to the back of the return and continue processing.

    Includes tax liability for Multiple Tax Periods or Types of tax

    Note:

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

    No
    • Numbered returns route to Rejects

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

    Other Tax Returns (original signature) Yes
    1. Edit received date to the detached return.

    2. Route to appropriate function unless specifically directed otherwise.

    Petitions in opposition of tax law provisions Yes Route to:
    IRS
    ≡ ≡ ≡ ≡
    1111 Constitution Avenue, NW
    Washington, DC 20224
    State Tax Returns, original or copy with original signature Yes Route to Receipt and Control
    Statement establishing Reasonable Cause for delinquent filing No
    1. Issue Letter 1382C.

    2. Continue editing the return.

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

    2. Attach the copy to the return.

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

    Request for Adjustment to another document Yes
    1. Route to the appropriate function. Attachment must contain Name, Address, EIN, and Received Date.

    2. Enter if missing.

    Request for money transfer Yes If the taxpayer notates transfer of money to the return you are processing:
    1. Prepare Form 3465.

    2. Indicate in the Routing box "Rejects" .

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

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



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

    2. Prepare Form 3465.

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

    4. Notate the requested action in the Remarks box.

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

    6. Continue editing the return.

    Request for Form 8109, Deposit Slips, or Coupon Books (Form 720) No No action required.
    Request for current year forms or schedules No
    1. Prepare Form 4190, Order Blank for Tax Forms and Publications.

    2. Forward to the Forms Distribution Center for processing.

    Note:

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

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

    2. Forward to Forms Distribution Center for Processing.

    Note:

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

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

    Note:

    Copies of First Taxpayer's Report should not be detached, if there is evidence that the original has been sent to Excise. Examples of evidence would be things, such as, remarks edited to the margin of return, taxpayer note that original had been sent to Excise, etc.

    Form 2848, Power of Attorney and Declaration of Representative Yes
    • Ogden - route to Stop 6737

    • Cincinnati - route to:
      Internal Revenue Service
      PO Box 268, Stop 8423
      Memphis, TN 38101-0268

    • For Private Delivery Carriers:
      Internal Revenue Service
      5333 Getwell Road Stop 8423
      Memphis, TN 38118

    Form 3244 (Form 720) No Leave attached
    Form 3753 No See IRM 3.11.23.12.6, CCC "O" - Module Freeze
    Form 5792 No See IRM 3.11.23.12.6, CCC "O" - Module Freeze
    Form 6197 (Form 720) No
    • Verify information

    • Leave attached

    Form 6627 (Form 720) No
    • Verify information

    • Leave attached

    Form 8712 Yes
    • Send the Form 8712 to Receipt and Control to be rebatched

    • Leave an action trail

    Form 8713 Yes
    • Send the Form 8712 to Receipt and Control to be rebatched

    • Leave an action trail

    Form 8725 Yes
    • Send the Form 8712 to Receipt and Control to be rebatched

    • Leave an action trail

    Form 8821, Tax Information Authorization Yes Ogden - route to Stop 6737
    Cincinnati - route to:
    Internal Revenue Service
    PO Box 268, Stop 8423
    Memphis, TN 38101-0268

    For Private Deliver Carriers:
    Internal Revenue Service
    5333 Getwell Road Stop 8423
    Memphis, TN 38118
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party-Business, (attached to Form and address is the same) No No Action
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party -Business, (attached to Form and address is different) Yes Forward to Entity Control using local procedures for expedite processing
    Form 8833 (Form 720) No Edit CCC "L" if form is attached or "Section 6114 Election" is notated on the return. See IRM 3.11.23.16.4, Foreign Insurance Taxes - IRS Number 30, and IRM 3.11.23.12.5, CCC "L" - IRC 6114 Election.
    Form 8849 Yes If it is not used to support a line entry on Form 720 or Form 2290 detach and forward to Excise Operations Stop 5701G with a copy of the return. If the Form 8849 is the same tax period as the Form 720 or Form 2290, treat the Form 720 or Form 2290 as an attachment to the Form 8849, pull out of the batch and send to the Excise Operations Stop 5701G. The tax period can be found on the second page of the Form 8849.
    Form 12587 No See IRM 3.11.23.12.6, CCC "O" - Module Freeze.
    SS-4, Application for Employer Identification Number, (Entity Control assigned an EIN to the SS-4 Yes Route to Entity Control.
    SS-4, Application for Employer Identification Number, (Entity Control has not assigned an EIN to the Form SS-4) No Route return and Form SS-4 to Entity Control for EIN assignment.
    Form 1099   Refer to Campus Mail Routing Guide for Procedures.
    Form 14039-B, Identity Theft Affidavit - Business No If The envelope is addressed to a specific function or a specific function is indicated by a CP notice or letter, place the Form 14039-B on top and route Form 14039-B and the return to the specific function.
    If either center, Cincinnati or Ogden, receives a Form SS-4 and Form 14039-B route to BMF Entity:
    201 W. Rivercenter Blvd.
    Mail Stop 343
    Covington, KY 41011.
    For the following returns:
    • Loose Forms 14039-B

    • No correspondence attached (i.e., no notice or letter)

    • The envelope is not addressed to a specific function


    Place the Form 14039-B on top of the return and route to the local Image Control Team (ICT):
    Cincinnati - Mail Stop 318G
    Ogden - Mail Stop 6552
    Form 14157, Complaint: Tax Return Preparer Yes Route to:
    Attn: Return Preparer Office
    401 W. Peachtree Street NW
    Mail Stop 421-D
    Atlanta, Georgia 30308

Unprocessable Returns

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

    • TIN

    • Legible name (for name control)

    • Valid tax period

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

    • Signature

  2. Conditions that make a return unprocessable are:

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

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

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

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

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

    6. The return is unsigned.

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

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

Perfecting of Unprocessable Returns

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

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

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

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

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

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

    Note:

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

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

Rejection Of Returns

  1. Rejection action of excise tax returns.

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

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

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

    Figure 3.11.23-4

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    Please click here for the text description of the image.

♦ Correspondence ♦

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

    1. Correspondence received from taxpayers

    2. Correspondence issued to taxpayers

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

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

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

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

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

    1. Is taxpayer waiting for a response from us?

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

    3. Is taxpayer asking a question?

    Note:

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

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

    Exception:

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

  2. If the return is incomplete and appears to be a duplicate, give the return to the lead. The lead will initiate research for a Transaction Code (TC) 150 and/or any other research necessary to determine if the return should continue to be processed or other actions taken. A duplicate return could include any of the following:

    • A one page return, with or without a signature.

    • Incomplete returns indicating "Payment Only" .

    • Incomplete returns indicating they have previously e-filed.

    Note:

    This list is not all inclusive. Tax examiners may see other unusual documents that are not addressed in this subsection or in other areas of the IRM.

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

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

      Note:

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

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

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

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

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

      Note:

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

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

    3. Forward the copy to the Correspondence Area.

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

    5. Finish editing the return and leave in batch.

    Note:

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

    Note:

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

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

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

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

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

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

    Note:

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

    The return is incomplete (i.e., missing signature, schedules, or forms)
    1. Do not correspond.

    2. Remove the return from the batch and route to AM.

    3. If the return comes back from AM with the information still incomplete, send the return to AM again to secure all the missing information. Indicate "Additional information needed to process incomplete CIS return," or similar language on Form 4227 (or other appropriate routing slip).

    The "CIS" return does not have a Form 13596 attached, The return is incomplete(e.g., missing signature, schedules, or forms) Follow normal correspondence procedures.
♦ Use of Fax for Taxpayer Submissions ♦
  1. Tax return information can be received via fax as part of return perfection even if a taxpayer signature is required. In circumstances where contact with the taxpayer has been made and documented, fax signatures are acceptable. For more information about accepting signed taxpayer documents by fax, see the most recent revision of the IRS Policy for Use of Fax, available at http://irweb.irs.gov/AboutIRS/co/dese/memo/48254.aspx.

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

  3. Code & Edit examiners will indicate the fax paragraph on the approved Correspondence Action Sheet to advise taxpayers of the options to fax their response.

  4. Use the following resources to make sure you are speaking with the taxpayer or authorized representative before disclosing any tax information:

    • IRM 21.1.3.2.3, Required Taxpayer Authentication

    • IRM 21.1.3.2.4Additional Taxpayer Authentication

  5. Before leaving any messages on a taxpayer's answering machine, review:

    • IRM 11.3.2.7.1, Leaving Information on Answering Machines/Voice Mail

    • IRM 11.3.1.11, Facsimile Transmission of Tax Information

♦ Internal Revenue Code 3705(a) - IRS Employee Contacts ♦
  1. The Restructuring and Reform Act of 1998 RRA 98 IRC 3705(a), provides identification requirements for all IRS employees working tax-related matters. IRS employees are required to give their name and unique identification number during taxpayer telephone, face to face, and written contact. In addition, a telephone number is required on all taxpayer correspondence. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax related matters.

  2. All IRS employees who communicate by telephone, correspondence or face to face, with taxpayers or their personal representatives on tax-related matters are required to provide (at a minimum) the following information:

    1. Telephone Contact - Their title (e.g., Mr., Mrs., Ms., Miss), last name and badge identification (ID Card) number.

    2. Face to Face Contact - Their title (e.g., Mr., Mrs., Ms., Miss), provide as appropriate during the conversation, their last name and badge identification (ID Card) number.

    3. Correspondence - All correspondence must include a telephone number where the taxpayer's question can be answered. In addition, manually generated and handwritten correspondence must have their title (e.g., Mr., Mrs., Ms., Miss), last name, and IDRS (Integrated Data Retrieval System) number, letter system number, or their badge identification (ID Card) number.

    4. The IDRS number and numbers for some other letter systems are automatically generated. If it is not generated, or a handwritten note is prepared, the badge identification (ID Card) number must be used. Toll-free employees may also provide their location for identification purposes. Faxes to taxpayers on tax-related matters are considered manually-generated correspondence and must include the required information.

    5. Correspondence, whether sent directly to the taxpayer or to the taxpayer's personal representative, must contain the required information.

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

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

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

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

    10. It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee's work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either telephone or in-person) his or her badge identification (ID Card) number on the first contact.

    Note:

    The Taxpayer Bill of Rights adopted by IRS in June 2014 provide that taxpayers have the right to receive prompt, courteous and professional assistance in their dealings with the IRS. They are to be spoken to in a way that is easily understood and any correspondence from the IRS must be clear and understandable. They have the right to speak to a supervisor whenever quality service is not received.

Processing No Reply Cases

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

    1. Complete the return without jeopardizing IRS compliance.

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

      Note:

      Do not change the received date.

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

    Figure 3.11.23-5

    This is an Image: 33515008.gif
     

    Please click here for the text description of the image.

  2. Conditions requiring correspondence and the suggested correspondence action are shown in the following tables:

    All Excise Tax Forms

    Conditions Requiring Correspondence: Correspond for: Action for No Reply or Undeliverable:
    Signature is missing Signature
    1. Edit CCC 3

    2. If the return is overpaid, also edit CCC X

    3. Continue processing

    Multiple quarter or period return, unnumbered, and no return breakdown present Separate returns for each Quarter or tax period
    1. Edit CCC 3

    2. If return is also overpaid, edit CCC X

    3. Continue processing

     

    Form 720, Quarterly Federal Excise Tax Return

    Conditions Requiring Correspondence: Correspond for: Action for No Reply or Undeliverable:
    Entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ present on IRS Number(s) 18, 19, 20, 21 or 98 on Form 720 without Form 6627 Form 6627, Environmental Taxes Continue processing
    Entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on IRS 40 without Form 6197 Form 6197, Gas Guzzler Tax Continue processing
    FTDs or remittance of ≡ ≡ ≡ ≡ ≡ ≡ ≡ is the only tax data entry Missing information
    1. Enter Action Code 355

    2. Edit CCC 3

    3. Attach Form 4227 with notation "Excess Remittance"

    4. Continue processing

    Schedule A is missing or blank and Part I, Line 1, Form 720 shows a total of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ which consists of an IRS Number entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Exception:

    One-time filers.

    Schedule A
    1. Enter CCC 3

    2. Continue processing

    ZIP Codes of Frivolous Filers missing (see Exhibit 3.11.23-11) ZIP codes needed on current and future returns
    1. Enter CCC 3

    2. Continue processing

    IRS 40 - Form 6197, Gas Guzzler Tax - Number of cars sold, or identity of all models missing. Only correspond if the IRS 40 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Information needed on number of cars sold
    1. Enter CCC 3

    2. Continue processing

    Form(s) 6197 or 6627 - Discrepancy of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ between amounts on Form(s) 6197 or 6627 and Form 720 Correct tax Continue Processing

     

    Form 2290, Heavy Highway Vehicle Use Tax Return, and Form 2290(SP), Heavy Vehicle Use Tax Return (Spanish Version)

    Conditions Requiring Correspondence: Correspond for: Action for No Reply or Undeliverable:
    A discrepancy between the tax rate and the amount of tax being reported, and no number is entered in Column 3, page 2 Number of vehicles
    1. Enter CCC 3

    2. Do not return Schedule 1

    3. Continue processing

    Unable to determine the number of vehicles Number of vehicles
    1. Enter CCC 3

    2. Do not return Schedule 1

    3. Continue processing

    Schedule 1 - Lines a and b do not agree with the entries reported in Column 3 on page 2 of Form 2290 Correct information
    1. Enter CCC 3

    2. Do not return Schedule 1

    3. Continue processing

    Vehicle Identification Number(s) (VIN) missing on Schedule 1 VIN(s)
    1. Enter CCC 3

    2. Do not return the Schedule 1 to the taxpayer

    3. Continue processing

    Form 2290 received without Schedule 1 Schedule 1
    1. Enter CCC 3

    2. Prepare a dummy Schedule 1 if possible

    3. Continue processing

     

    Form 730, Monthly Tax Return for Wagers

    Conditions Requiring Correspondence: Correspond for: Action for No Reply or Undeliverable:
    Entry on Line 5 but no explanation is attached The required explanation
    1. Cross (X) out the Line 5 entry

    2. Add the taxpayer entry on Line 5 to entry on Line 6

    3. Enter the new dollar total to Line 6

    4. Continue processing

    An entry on Line 6 but no entries on Lines 1 through 5 Correspond for the information
    1. Enter CCC 3

    2. Continue processing

     

Signature

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

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

      Note:

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

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

    • Dummy returns prepared by IRS.

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

      Note:

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

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

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

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

      Note:

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

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

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

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

    Note:

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

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

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

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

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

      Exception:

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

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

    2. Leave in batch and continue processing.

    Note:

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

    Note:

    Paper returns sent in by the filer that states their return was rejected through the E-file system require a signature. Form 8879-EX, IRS e-file Signature Authorization for Forms 720, 2290, and 8849, etc., is not an acceptable signature substitute for a paper return.

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

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

Third Party Designee Checkbox - Form 720, Quarterly Federal Tax Return, Form 2290, Heavy Highway Vehicle Use Tax Return, and Form 2290(SP), Heavy Vehicle Use Tax Return (Spanish Version)

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

  2. No action is required.

Third Party Designee Identification Number
  1. The PIN is self-selected by the taxpayer or designee. It is not assigned by IRS.

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

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

  4. Circle out the entry if it is illegible.

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

  2. No action is required on amended returns.

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

Paid Preparer Employer Identification Number
  1. The Firm's EIN is also located in the lower right corner below the signature line.

  2. No action is required on amended returns.

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

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

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

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

Paid Preparer Section - Form 11-C, Occupational Tax and Registration Return for Wagering, and Form 730, Monthly Tax Return for Wagers

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

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

  2. No action is required on amended returns.

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

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

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

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

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

  2. No action is required on amended returns.

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

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

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

    Note:

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

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

♦ Entity Perfection - General ♦

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

    1. EIN

    2. Name

    3. "In-care-of" name

    4. Address

♦ Bankruptcy ♦

  1. If the return indicates bankruptcy (e.g., shows RECEIVER, TRUSTEE, or DEBTOR IN POSSESSION) in the entity area or on an attachment, route to Entity Control using local procedures.

♦ Entity Perfection - Employer Identification Number ♦

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

  2. Determine the EIN as follows:

    If Then
    You can determine the correct EIN from the attachments and/or schedules, Edit the EIN to the appropriate location.
    The EIN is either a PTIN or ITIN,
    • Unnumbered:

      1. Research IDRS.

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

      3. If not found, route to Entity.

    • Numbered:

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

      2. Attach Form 4227, and leave in batch.

    Multiple EINs are present,
    • Unnumbered:

      1. Research IDRS.

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

      3. If not found, route to Entity.

    • Numbered:

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

      2. Attach Form 4227, and leave in batch.

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

    • Missing;

    • Other than nine digits;

    • All zeroes; or,

    • All nines

    • Unnumbered:

      1. Research IDRS.

      2. If not found, route to Entity.

    • Numbered:

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

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

      3. Attach Form 4227 and leave in the batch.

    "Pending" , "applied for" , etc., is indicated in the EIN area,
    • Unnumbered

      1. Research IDRS.

      2. If not found, route to Entity.

    • Numbered

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

      2. Attach Form 4227 and leave in batch.

    Note:

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

♦ Entity Perfection - Name Control ♦

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

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

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

      Note:

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

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

  3. Edit the Name Control as follows:

    1. If And Then
      Able to determine the name control, Numbered or Unnumbered Underline the Name Control
      A second name line is present and begins with "FKA" (formerly known as), Numbered or Unnumbered Continue processing
      A second name line is present and begins with "AKA" (also known as) or "DBA" (doing business as), Numbered or Unnumbered Circle out the abbreviations

      Exception:

      Form 2290 no action necessary.

      Unable to determine the Name Control, Unnumbered Research IDRS
      Unable to determine the Name Control, Numbered
      1. Edit Action 352 (Name Research) or CCC "U"

      2. Attach Form 4227 and leave in the batch

♦ Entity Perfection - "In-Care-of" Name ♦

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

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

    If Then
    The "in-care-of" name is located on the street address line preceding the street address, No editing is required.
    The "in care of" name is located above the first name line or below the street address, Arrow the "in-care-of" name so it appears below the first name line and above the street address.
    The "in care of" name is shown on an attachment, Edit the "in care of" name above the street address beginning with the "%" or "c/o" in the first position.
    The street address for the "in-care-of" name is different from the street address of the entity,
    1. Arrow the "in-care-of" street address below the "in-care-of" name or edit the "in-care-of" street address below the "in-care-of" if located on an attachment.

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

    3. Continue editing the return.

    Note:

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

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

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

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

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

    If Then
    An "in-care-of" name is changed but there is no indication of an address change,
    1. Edit the "in-care-of" name as shown above.

    2. Continue editing the return.

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

    2. Correct the address.

    3. Continue editing the return.

♦ Entity Perfection - Domestic Addresses ♦

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

    Exception:

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

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

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

    If And Then
    The address contains information other than a street address or P.O. Box,   No perfection is necessary. ISRP will enter the complete address.
    There is an indication on an attachment that the address has been changed, or the "Address change" check box has been marked,   Edit the new address in the Entity section of the return. If it is necessary to edit the street. Document 7475, State and Address Abbreviations, Major City Codes (MCC), ZIP Codes and Countries shows the current abbreviations.

    Note:

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

    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party- Business, is attached, Mailing address information is the same and no location address is listed on Line 7 Take no action.
    Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party- Business, is attached, Mailing address information is different and/or a location address is listed on Line 7 Detach Form 8822 /Form 8822-B and route to Entity Control following local procedures.
    Both a P.O. Box and a street address are shown,  
    1. Input "TC 014."

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

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

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

    3. Input "TC 014" .

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

    2. Input TC 014.

    The city and state are not shown on the return, but are shown on an attachment,   Edit the city and state on the form in the Entity section.
    The Zip Code is missing or illegible, Is not available from the return or attachments,
    1. Determine using Exhibit 3.11.23-11, or

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

      Note:

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

    Only the first three digits of the Zip Code can be determined,   Edit "01" for the fourth and fifth digits.
    The Address Change box is checked, An "in-care-of" name is present, Edit the c/o or% (percent sign) to the left of the in-care-of name (in the first position) followed by the appropriate name.
    It is necessary to edit the street address,   See Document 7475, State and Address Abbreviations, Major City Codes (MCC), ZIP Codes and Countries, for current Address/Street Abbreviations.

    Note:

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

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

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

♦ Entity Perfection of Foreign Addresses ♦

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

  2. Returns with APO, DPO, or FPO addresses are considered domestic addresses. See IRM 3.11.23.10.5, Entity Perfection - Domestic Address.

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

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

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

      U.S. Possession/Territory: Abbreviation:
      American Samoa AS
      Federated States of Micronesia FM
      Guam GU
      Marshall Islands MH
      Northern Mariana Islands MP
      Palau PW
      Puerto Rico PR
      Virgin Island (U.S.) VI
    2. A ZIP Code must be present for U.S. Possessions/Territories. Edit the appropriate ZIP Code if one is not provided. See Exhibit 3.11.23-11.

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

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

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

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

    If Then
    A province, state or territory is present,
    1. Circle out province, state or territory name.

    2. Enter appropriate abbreviation. See Exhibit 3.11.23-12

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

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

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

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

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

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

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

    Canadian Province/Territory Province/Territory Abbreviation Postal Code Beginning Country Code
    Alberta AB T XA
    British Columbia BC V XB
    Manitoba MB R XM
    New Brunswick NB E XN
    Newfoundland and Labrador NL A XL
    Northwest Territories NT X XT
    Nova Scotia NS B XS
    Nunavut NU X XV
    Ontario ON K, L, M, N, or P XO
    Prince Edward Island PE C XP
    Quebec QC G, H, or I XQ
    Saskatchewan SK S XW
    Yukon YT Y XY
  2. The rest of the foreign address is edited using procedures in IRM 3.11.23.10.6, Entity Perfection of Foreign Address.

Entity Perfection of Tax Period

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

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

    Exception:

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

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

Early Filed Excise Tax Return Form 720 and Form 2290
  1. Never send an excise tax return back to the taxpayer.

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

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

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

    3. Leave return in batch.

    Form 720, The tax period is later than the process date by more than 3 months (i.e., the process date is in April but the tax period is in September),
    1. Edit Action Code 211 and attach Form 3696 to request confirmation of the tax period.

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

    3. Leave the return in batch.

    Exception:

    Form 720 reporting Floor Stock Taxes for IRS Number 20 see IRM 3.11.23.16.5, Floor Stock Taxes, and also see Exhibit 3.11.23-10. Form 720 reporting Patient Centered Outcomes Research (PCOR) Taxes for IRS Number 133 see IRM 3.11.23.16.1.3, IRS Number 133, Patient Centered Outcomes Research (PCOR) Fee Perfection.

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

    The process date is prior to the TPB by 3 months or less (i.e., the process date is in May but the TPB is July or later),
    Process as usual.
    Form 2290 The process date is prior to the TPB by more than 3 months (i.e., the process date is March but the TPB is July or later),
    1. Edit Action Code 211 for correspondence.

    2. Follow local service center correspondence procedures.

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

    4. Leave the return in the batch.

    5. Do not return Sch. 1.

    Figure 3.11.23-6

    This is an Image: 33515020.gif
     

    Please click here for the text description of the image.

Early Filed Excise Tax Return Form 11-C and Form 730
  1. Never send an excise tax return back to the taxpayer.

Early Filed Excise Tax Return Form 11-C
  1. If the month of the tax period is the same or after the month of the received date, determine how early the return has been filed.

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

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

    3. Leave the return in the batch.

Early Filed Excise Tax Return Form 730
  1. Form 730 can never be filed early. Follow procedures in IRM 3.11.23.10.7.6, Entity Perfection of Tax Period (Form 730), for determining the correct tax period on Form 730. See Figure 3.11.23-7. Use the signature date to assist in determining the correct tax period.

    Figure 3.11.23-7

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Entity Perfection of Tax Period (Form 720)
  1. The tax period is edited to left of the Office of Management and Budget (OMB) number.

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

    Quarter Ending: Edit as Follows:
    201712 1712
    201803 1803
    201806 1806
    201809 1809
    201812 1812
  3. If the taxpayer fails to enter the quarter ending date on the return, search the return and any attachments for an indication of the tax period. If found, edit the tax period in "YYMM" format in the Quarter ending space in the entity portion of the return. See Figure 3.11.23-8.

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

    Note:

    When the tax period has not been clearly indicated on a Form 720 reporting IRS Number 133 use the IRS received date to help determine the tax period. If the return was received December 31st or prior, process to the preceding 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on December 31, 2017 process as 201706). If the return was received after December 31st, process to the subsequent 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on January 3, 2018 process as 201806).

  5. If the return is an "early filed" return see IRM 3.11.23.10.7.1, Early Filed Excise Tax Return Form 720 and Form 2290.

    Figure 3.11.23-8

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Entity Perfection of Tax Period (Form 2290 / Form 2290(SP))
  1. Form 2290 and Form 2290(SP) with a remittance go to Lockboxes. The amount of remittance will be notated in red in the upper left hand portion of the Form 2290 by the Lockbox function. The tax period will be notated under the remittance amount, if the lockbox processed the remittance to a month OTHER THAN 07. Follow procedures in IRM 3.11.23.10.8, Payment Processed to Incorrect Period, if the payment has been processed to the incorrect tax period.

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

    Figure 3.11.23-9

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    Note:

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

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

    If Then
    "Month" box (line 1) has an entry other than "July" , Edit the month from the taxpayer entry in the "Month" box after verifying that the tax on Line 2 agrees with the month shown.
    The beginning month in the "Month" box does not agree with the amount of tax on Line 2, Use the rate of tax, amount of tax, and number of vehicles to determine the tax period.
    The return is an Early Filed return, Follow procedures outlined in IRM 3.11.23.10.7.1, Early Filed Excise Tax Return Form 720 and Form 2290.
    A handwritten entry is present and the "Month" box is blank, Edit the month based on the taxpayer's computation.
    The taxpayer has filed multiple Form 2290 tax returns for the same tax period, Combine all returns into one single return when possible. Make sure to address all Sch. 1s as appropriate.
    The taxpayer indicates return is for more than one tax period, Action Code 211 and correspond for the taxpayer to complete the separate Form 2290 and Schedule 1 for each tax period.
    Unable to determine tax period and no other correspondence required, Process as current year.
    Unable to determine the beginning month and other correspondence is required, Request clarification of the tax period.
    • If the taxpayer's reply indicates that the full year’s tax is correct and the beginning month is wrong, process as an annual return. (i.e., beginning month 07).

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

    No reply to correspondence, Edit "July" for the beginning month. See IRM 3.11.23.8.4, Processing No Reply Cases.

    Tax Rate Table for Vehicles Except Logging Vehicles

    Category July
    (12)
    Aug.
    (11)
    Sep.
    (10)
    Oct.
    (9)
    Nov.
    (8)
    Dec.
    (7)
    Jan.
    (6)
    Feb.
    (6)
    Mar.
    (4)
    Apr.
    (3)
    May
    (2)
    Jun.
    (1)
    A 100.00 91.67 83.33 75.00 66.67 58.33 50.00 41.67 33.33 25.00 16.67 8.33
    B 122.00 111.83 101.67 91.50 81.33 71.17 61.00 50.83 40.67 30.50 20.33 10.17
    C 144.00 132.00 120.00 108.00 96.00 84.00 72.00 60.00 48.00 36.00 24.00 12.00
    D 166.00 152.17 138.33 124.50 110.67 96.83 83.00 69.17 55.33 41.50 27.67 13.83
    E 188.00 172.33 156.67 141.00 125.33 109.67 94.00 78.33 62.67 47.00 31.33 15.67
    F 210.00 192.50 175.00 157.50 140.00 122.50 105.00 87.50 70.00 52.50 35.00 17.50
    G 232.00 212.67 193.33 174.00 154.67 135.33 116.00 96.67 77.33 58.00 38.67 19.33
    H 254.00 232.83 211.67 190.50 169.33 148.17 127.00 105.83 84.67 63.50 42.33 21.17
    I 276.00 253.00 230.00 207.00 184.00 161.00 138.00 115.00 92.00 69.00 46.00 23.00
    J 298.00 273.17 248.33 223.50 198.67 173.83 149.00 124.17 99.33 74.50 49.67 24.83
    K 320.00 293.33 266.67 240.00 213.33 186.67 160.00 133.33 106.67 80.00 53.33 26.67
    L 342.00 313.50 285.00 256.50 228.00 199.50 171.00 142.50 114.00 85.50 57.00 28.50
    M 364.00 333.67 303.33 273.00 242.67 212.33 182.00 151.67 121.33 91.00 60.67 30.33
    N 386.00 353.83 321.67 289.50 257.33 225.17 193.00 160.83 128.68 96.50 64.33 32.17
    O 408.00 374.00 340.00 306.00 272.00 238.00 204.00 170.00 136.00 102.00 68.00 34.00
    P 430.00 394.17 358.33 322.50 286.67 250.83 215.00 179.17 143.33 107.50 71.67 35.83
    Q 452.00 414.33 376.67 339.00 301.33 263.67 226.00 188.33 150.67 113.00 75.33 37.67
    R 474.00 434.50 395.00 355.50 316.00 276.50 237.00 197.50 158.00 118.50 79.00 39.50
    S 496.00 454.67 413.33 372.00 330.67 289.33 248.00 206.67 165.33 124.00 82.67 41.33
    T 518.00 474.83 431.67 388.50 345.33 302.17 259.00 215.83 172.67 129.50 86.33 43.17
    U 540.00 495.00 450.00 405.00 360.00 315.00 270.00 225.00 180.00 135.00 90.00 45.00
    V 550.00 504.17 458.33 412.50 366.67 320.83 275.00 229.17 183.33 137.50 91.67 45.83

     

    Tax Rates for Logging Vehicles

    CATEGORY July
    (12)
    Aug.
    (11)
    Sep.
    (10)
    Oct.
    (9)
    Nov.
    (8)
    Dec.
    (7)
    Jan.
    (6)
    Feb.
    (5)
    Mar.
    (4)
    Apr.
    (3)
    May
    (2)
    Jun.
    (1)
    A 75.00 68.75 62.49 56.25 50.00 43.74 37.50 31.25 24.99 18.75 12.50 6.24
    B 91.50 83.87 76.25 68.62 60.99 53.37 45.75 38.12 30.50 22.87 15.24 7.67
    C 108.00 99.00 90.00 81.00 72.00 63.00 54.00 45.00 36.00 27.00 18.00 9.00
    D 124.50 114.12 103.74 93.37 83.00 72.62 62.25 51.87 41.49 31.12 20.75 10.37
    E 141.00 129.24 117.50 105.75 93.99 82.25 70.50 58.74 47.00 35.25 23.49 11.75
    F 157.50 144.37 131.25 118.12 105.00 91.87 78.75 65.62 52.50 39.37 26.25 13.12
    G 174.00 159.50 144.99 130.50 116.00 101.49 87.00 72.50 57.99 43.50 29.00 14.49
    H 190.50 174.62 158.75 142.87 126.99 111.12 95.25 79.37 63.50 47.62 31.74 15.87
    I 207.00 189.75 172.50 155.25 138.00 120.75 103.50 86.25 69.00 51.75 34.50 17.25
    J 223.50 204.87 186.24 167.62 149.00 130.37 111.75 93.12 74.49 55.87 37.25 18.62
    K 240.00 219.99 200.00 180.00 159.99 140.00 120.00 99.99 80.00 60.00 39.99 20.00
    L 256.50 235.12 213.75 192.37 171.00 149.62 128.25 106.87 85.50 64.12 42.75 21.37
    M 273.00 250.25 227.49 204.75 182.00 159.24 136.50 113.75 90.99 68.25 45.50 22.74
    N 289.50 265.37 241.25 217.12 192.99 168.87 144.75 120.62 96.50 72.37 48.24 24.12
    O 306.00 280.50 255.00 229.50 204.00 178.50 153.00 127.50 102.00 76.50 51.00 25.50
    P 322.50 295.62 268.74 241.87 215.00 188.12 161.25 134.37 107.49 80.62 53.75 26.87
    Q 339.00 310.74 282.50 254.25 225.99 197.75 169.50 141.24 113.00 84.75 56.49 28.25
    R 355.50 325.87 296.25 266.62 237.00 207.37 177.75 148.12 118.50 88.87 59.25 29.62
    S 372.00 341.00 309.99 279.00 248.00 216.99 186.00 155.00 123.99 93.00 62.00 30.99
    T 388.50 356.12 323.75 291.37 258.99 226.62 194.25 161.87 129.50 97.12 64.74 32.37
    U 405.00 371.25 337.50 303.75 270.00 236.25 202.50 168.75 135.00 101.25 67.50 33.75
    V 412.50 378.12 343.74 309.37 275.00 240.62 206.25 171.87 137.49 103.12 68.75 34.37

     

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

Entity Perfection of Tax Period (Form 11-C)
  1. Compare the amount of tax entered on Form 11-C, Part 1, Line 2 to the tax rate charts below. If the tax period is not entered on the Form 11-C, or is not entered correctly, edit the month corresponding to the amount of tax reported as the tax period for the return.

    Note:

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

    Figure 3.11.23-10a

    Rates for Wagers Authorized By State Law in Which Accepted

    July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June
    50.00 45.83 41.66 37.50 33.33 29.16 25.00 20.83 16.66 12.50 8.33 4.16

    Figure 3.11.23-10b

    Rates for Wagers Not Authorized By State Law in Which Accepted

    July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June
    500.00 458.33 416.66 375.00 333.33 291.66 250.00 208.33 166.66 125.00 83.33 41.66
Entity Perfection of Tax Period (Form 730)
  1. The tax period block for Form 730 requests the month and year for which taxable wagers are received. Edit the tax period on every Form 730 in YYMM format to the left of the OMB Number area of the return. If the tax period is not entered on the Form 730 by the taxpayer, edit the month and year preceding the month in the signature date as the tax period. See Figure 3.11.23-11.

    Figure 3.11.23-11

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    Note:

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

    Figure 3.11.23-12

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Payment Processed to Incorrect Tax Period

  1. The payment received with Form 720, Form 11C, Form 730, Form 2290 or Form 2290(SP) processed by RPS, a Lockbox, or within a field office may be applied to an incorrect tax period.

    Reminder:

    PCOR payments for Form 720 PCOR tax should only be applied to second quarter tax periods. If the payment has been applied to a quarter other than the second quarter have the PCOR payment applied to the same second quarter that the Form 720 PCOR return was intended.

    If Then
    The payment was processed to an incorrect tax period,
    1. Edit Action Code 450 or CCC "U" as appropriate.

    2. Attach Form 4227 noting that the remittance was processed to an incorrect tax period.

    There are Electronic Federal Tax Payment System (EFTPS) receipts or other payment documents attached to the return indicating that the payment has been applied incorrectly,
    1. Edit Action Code 450 or CCC "U" as appropriate.

    2. Attach Form 4227 noting that the remittance was processed to an incorrect account.

Received Date Editing

  1. The date a document is received in the Campus or IRS Office is the date stamped as the "IRS Received Date" .

  2. A received date is required on all Form 720, Form 11-C, Form 730, and those within the Form 2290 series.

    Note:

    On early filed Form 11-C only: if the received date on Form 11-C is prior to the beginning of tax period, use the return due date as the received date.

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Figure 3.11.23-13

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  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. When a Form 720 or Form 2290 is delinquent and the taxpayer explains the return is late due to the rejection of a timely filed electronic return, check the return for a MeF rejection notification.

    Note:

    Taxpayers are instructed to notate in red in the top margin of the return REJECTED ELECTRONIC RETURN to indicate the timely filed return cannot be filed electronically. The notation could be anywhere on the return and is not required, but they should attach a copy of the MeF rejection notification.

  6. If a MeF rejection notification is not attached, perfection of the Received Date is not necessary. If a notification is attached, edit the IRS stamped Received Date as follows:

    Note:

    The taxpayer has 10 days to resubmit an electronically filed return after being rejected and 10 days to submit a paper return after the last rejection.

    If And Then
    The postmark date is within 10 days of the date of the rejection,   Edit the IRS Received Date to be the date of the rejection.
    For example, postmark date is 05-07-2018 and first rejection is 04-30-2018. Change Received Date to 04-30-2018.
    The postmark date is more than 10 days after the date of the rejection,   Leave the IRS Received Date as is.
    For example, postmark date is 05-14-2018 and first rejection is 04-30-2018. Leave the Received Date as is.

    Exception:

    Change the Received Date to the postmark date if the postmark date makes the return timely.

    There are two rejections, Within 10 days of one another and one is within 10 days of the postmark date, Edit the IRS Received Date to be the date of the first rejection.
    For example, postmark date is 05-11-2018, the second rejection is 05-04-2018. The first rejection is 04-30-2018 Change the Received Date to 04-30-2018.
    There are two rejections with the time between the first rejection and the second rejection greater than 10 days, The second rejection is within 10 days of the postmark date, Edit the IRS Received Date to be the date of the second rejection.
    For example, postmark date is 05-08-2018, the second rejection is 04-30-2018. The first rejection is 04-16-2018 Change the Received Date to 04-30-2018.
    There are two rejections, Not within 10 days of one another and not within 10 days of the postmark date, Leave the IRS Received Date as is.
    For example, postmark date is 05-16-2018, the second rejection is 05-04-2018. The first rejection is 04-13-2018. Leave the Received Date as is.

    Exception:

    Change the Received Date to the postmark date if the postmark date makes the return timely.

  7. The received date will be stamped on the face of the return.

  8. A valid IRS Received Date Stamp may consists of the following:

    • The word "Received"

    • Month (alpha or numeric)

    • Day (for example "1" or "01" )

    • Year - four digits

    • "Area Office" , "Campus" , "Field Office" , "Taxpayer Assistance Center" (TAC), plus the city, location, or functional area within one of these sites (e.g., CSCO, Exam, ICT. CIS, AM, etc.)

    Exception:

    Not all IRS offices are designated places for filing, and not all IRS employees are authorized to accept a tax return for processing. If a return contains a received date stamp from an office that is not a proper place for filing, that date stamp is not the "IRS Received Date" and you must circle out the invalid received date and edit the correct received date according to instructions below. For example, returns received by the Taxpayer Advocate Service (TAS) or the IRS Office of Chief Counsel are not properly filed and a received date by that office is not the "IRS Received Date" .

  9. If the date stamp is not present or the date is illegible or invalid, edit the received date in MMDDYY format in the middle of page one of the return. Edit the Received Date according to the following priority:

    1. The earliest legible Postmark Date (U.S. Postal Service, Foreign Postmark, or Private Delivery Service) on the envelope. Rules for using the U.S. Postal Service Postmark (USPS), Foreign Postmark, or Private Delivery Service (PDS) dates are as follows:

      If Then
      An envelope has both a USPS, foreign, or PDS and private metered postmark, Always use the USPS, foreign, or PDS postmark.
      An envelope has two private meter postmarks, Always use the latest private postmark.
      An envelope has only one private meter postmark, Use the private metered postmark.
    2. Service Center Automated Mail Processing System (SCAMPS) digital date

    3. Revenue Officer's or other IRS official's signature date

    4. Signature date (only if within current year)

    5. DLN Julian control date minus 10 days

    6. Current date minus 10 days

  10. If a return has been faxed to another area of the service and then sent to Submission Processing for processing, do not edit the Enterprise Electronic Fax (EEFax) Date as the IRS Received Date. Edit a Received Date according to normal procedures.

    Note:

    The EEFax Date cannot legally be used as an IRS Received Date.

  11. Edit the Received Date as follows:

    If And Then
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ,   The return is considered timely.
    The due date falls on a weekend or legal holiday,   The return is timely if postmarked by the first business day following the weekend or legal holiday.
    The IRS received date stamp is after ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the legal or extended due date, The postmark or shipment date is on or before the legal or extended due date, Edit the received date to agree with the postmark date.
    Two or more dates are stamped on the return,  
    1. Use the earliest IRS stamped Received Date.

    2. Circle out the incorrect received dates.

    Note:

    Received dates that have been circled out by another function should be treated as if they are not present.

    A Federal return is addressed to the IRS, Delivered to a State Agency, Use the postmark date as the received date.
    Federal return is addressed to a State Agency,   Use the IRS date stamp as the received date.
    Envelope is attached to the return, The return is timely, Check envelopes for remittance, if found hand carry to the manager. Discard the envelope.
    The only Received Date on the return is a TAS Received Date,   Edit the Received Date according to instructions.
  12. See the charts below for the due dates of Form 720, Form 2290, Form 11-C, and Form 730.

    Form 720 All IRS Numbers Except IRS Number 20 and IRS Number 98 Due Dates

    Tax Period Tax Period Ending Due Date Delinquent on or After
    201712 12/31/17 01/31/18 ≡ ≡ ≡ ≡ ≡
    201803 03/31/18 04/30/18 ≡ ≡ ≡ ≡
    201806 06/30/18 07/31/18 ≡ ≡ ≡ ≡ ≡ ≡
    201809 09/30/18 10/31/18 ≡ ≡ ≡ ≡
    201812 12/31/18 01/31/19 ≡ ≡ ≡ ≡

     

    Form 720 IRS Number 20 Due Date

    Tax Period Tax Period Ending Due Date Delinquent on or After
    201806 06/30/18 07/31/18 ≡ ≡ ≡ ≡ ≡

     

    Note:

    IRS No. 20 is valid for the 1st or 2nd quarter ONLY.

    Form 720 IRS Number 133 Due Date

    Tax Period Tax Period Ending Due Date Delinquent on or After
    201806 06/30/18 07/31/18 ≡ ≡ ≡ ≡ ≡ ≡ ≡

     

    Note:

    IRS No. 133 is an annual tax and is valid for the 2nd quarter ONLY.

    Form 11-C Annual Due Date

    Filing Frequency Tax Period Due Date Delinquent on or After
    Annual 201807 07/02/18 ≡ ≡ ≡ ≡ ≡ ≡

     

    Form 2290 and Form 2290(SP) Annual Due Date

    Filing Frequency Tax Period Due Date Delinquent on or After
    Annual 201807 08/31/18 ≡ ≡ ≡ ≡ ≡ ≡

     

    Form 730 Monthly Due Dates

    TAX PERIOD Due Date ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    201709 10/31/17 ≡ ≡ ≡ ≡ ≡ ≡ ≡
    201710 11/30/17 ≡ ≡ ≡ ≡
    201711 01/02/18 ≡ ≡ ≡ ≡ ≡ ≡
    201712 01/31/18 ≡ ≡ ≡ ≡
    201801 02/28/18 ≡ ≡ ≡ ≡ ≡ ≡
    201802 04/02/18 ≡ ≡ ≡ ≡ ≡ ≡
    201803 04/30/18 ≡ ≡ ≡ ≡ ≡
    201804 05/31/18 ≡ ≡ ≡ ≡ ≡
    201805 07/02/18 ≡ ≡ ≡ ≡ ≡ ≡
    201806 07/31/18 ≡ ≡ ≡ ≡ ≡ ≡
    201807 08/31/18 ≡ ≡ ≡ ≡
    201808 10/01/18 ≡ ≡ ≡ ≡ ≡
    201809 10/31/18 ≡ ≡ ≡ ≡ ≡ ≡
    201810 11/30/18 ≡ ≡ ≡ ≡ ≡
    201811 12/31/18 ≡ ≡ ≡ ≡ ≡ ≡ ≡
    201812 01/31/19 ≡ ≡ ≡ ≡

     

Received Date Editing - Form 2290 and Form 2290(SP)

  1. For vehicles in use on public highways at the beginning of the tax period (July 1) or later in July, Form 2290 or Form 2290(SP) must be filed by August 31.

  2. For vehicles whose first use is in a later month, Form 2290 must be filed by the last day of the month following the month of the vehicle's first use.

  3. An amended Form 2290 return is due, if the tax was suspended under the 5,000/7,500 mile exemption, when the vehicle later exceeds that mileage. The amended Form 2290 must be filed by the last day of the month following the month in which the vehicle's use exceeded the limit.

  4. Form 2290 is often received with multiple received dates indicated on Page 2 and Schedule 1. Circle out the erroneous received dates on Page 2 in such a manner that the tax data is still legible for the ISRP function.

♦ Computer Condition Codes ♦

  1. Computer Condition Codes (CCC) are used to identify a special condition or computation to post to the Master File.

  2. Computer Condition Codes are edited to the right of the entity area.

CCC "D" Reasonable Cause for Failing to Pay Timely

  1. "D" - Reasonable Cause for Failing to Pay Timely (All Excise Forms). CCC D will no longer be edited by Code & Edit examiners. If the taxpayer requests an abatement for Failing to Pay Timely when the return is submitted, send Letter 1382C, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed. In the cases of a disaster, Code & Edit examiners will be provided with the coding procedures to follow.

    Exception:

    Per IRM 3.11.23.22.1, IRC 6020(b) Prepared by Collections, CCC "D" may be required to be edited on IRC 6020(b) returns when notated to not assess failure to pay penalty.

CCC "F" - Final Return

  1. "F" - Final Return (All Excise Forms) - Edit CCC F when the taxpayer checks the Final box and gives a positive indication that they are not liable for filing future returns. Notations such as (but not limited to):

    • Final

    • Deceased

    • Out of Business

    • Liquidation

    • Exempt under IRC 501(c)(3)

    • Dissolved

    • One-time filer

  2. Form 720:

    • When the taxpayer indicates final, no entries on return and no signature attach a Form 4227 with a note and send to the Excise Operations area. If a form is received with this criteria but has a signature, CCC "F" and process as usual.

  3. Form 2290:

    1. Form 2290 received in Code & Edit with no tax and either signed or not signed stating that they are "under 55,000 pounds" , "out of business" , "no longer in business for several years" , checked the "Final Return" box, stated "NOT LIABLE" , "deceased" , etc., code with CCC F and process as usual.

    2. If the Form 2290 is received with this criteria, has a signature and a tax amount on Line 2, edit CCC "F" , return the Schedule 1 as appropriate (i.e., tax paid, current year, etc.) and process as usual.

    Note:

    Taxpayers stating that they no longer own or have a particular vehicle would not constitute a final return.

CCC "G" Amended Returns

  1. Refer to IRM 3.11.23.2.11, Amended Returns.

CCC "J" Reasonable Cause for Failing to Make Timely Deposits

  1. Edit CCC "J" when the return is late and Form 3198, Special Handling Notice for Examination Case Processing, or similar attachment indicating the return has been secured under IRC 4741-4784.2 is attached.

  2. Otherwise, do not edit CCC J if the taxpayer requests an abatement for Failing to make timely deposits when the return is submitted. Instead, send Letter 1382C, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed. In the cases of a disaster, Code & Edit examiners will be provided with the coding procedures to follow.

CCC "L" - IRC 6114 Election

  1. Edit CCC L if:

    • If the taxpayer writes "IRC 6114 Election" on the top of the return.

    • Has Form 8833.

    • Attaches a letter referring to IRC 6114 to the return.

    • If the taxpayer has notated at the top of the Form 720 in red print the following statement: "Election to participate in FET Voluntary Compliance Initiative pursuant to Announcement 2008-18."

CCC "O" - Module Freeze

  1. CCC "O" is entered when a pre-settlement manual refund will be made and a Form 3753, Form 5792 or Form 12857 is attached. Verify that the Name Control, EIN and Tax Period on the return is the same as the data on the Form. See Figure 3.11.23-14.

    Figure 3.11.23-14

    This is an Image: 33515054.gif
     

    Please click here for the text description of the image.

    Note:

    When issuing a CCC "O" research to determine if TC 840 (Manual Refund Transaction) has posted.

    If Then
    TC 840 has posted,
    1. Enter CCC O

    2. Continue processing

    TC 840 has not posted,
    1. Enter Action Code 344 to issue Manual Refund

    2. prepare Form 4227 and notate Manual Refund

    3. Continue processing

CCC "R" - Reasonable Cause for Failing to Timely File Return

  1. If the taxpayer requests an abatement for Reasonable Cause for Failing to Timely File Return when the return is submitted, send Letter 1382C, which will inform the taxpayer of the proper procedure to follow to request abatement, if, and when a penalty is assessed. In the cases of a disaster, Code & Edit examiners will be provided with the coding procedures to follow.

  2. Edit CCC "R" with a Penalty and Interest (P/I) Code "1" only when the taxpayer has paid an amount for precomputed penalty or interest and the return was received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . The P/I Code is shown to the right of the Penalty and Interest box. See IRM 3.11.23.13, Taxpayer Reports Precomputed Penalty Interest.

CCC "U" - Unprocessable Document

  1. Edit CCC "U" on any return that has an unprocessable condition.

    Note:

    CCC "U" is not valid for Form 720 and the Form 2290 series.

CCC "W" - "Cleared by Statute" Stamped on Return

  1. Refer to IRM 3.11.23.2.10, Statute Returns.

CCC "X" - Refund/Settlement Freeze

  1. Edit CCC "X" when the taxpayer requests any balance left over after paying tax and/or penalties to be applied to another tax module:

    1. Prepare Form 3465, Adjustment Request, and route to Excise Operations area with the request and a photocopy of page 1 of the return.

    2. Annotate on the return "3465 prepared" .

    3. On no reply cases for a signature, CCC X will be edited on overpaid returns.

      Note:

      Subtract the tax, penalties and interest amounts from the remittance amount if available.

CCC "Z" - Missing Abstract Number (Form 720)

  1. When an Abstract Number is missing and the amount is over $100.00 CCC "Z" sends a transcript to the Excise Operations for the Reports Analyst to determine the correct Abstract Number. The Abstract Number determines the Government Agency that will receive the money from the trust fund, for example the Department of Transportation receives money for the Highway and Airport and Airway Trust Funds.

  2. Edit CCC Z when an amount of $100.00 or more is on Part I, Line 1, Part II Line 2 and/or Part III Line 3, but no Abstract (IRS) Number is indicated.

    Exception:

    Returns that are prepared or secured by Examination and notated IRC 6020(b).

    Reminder:

    Prior to editing CCC Z or IRS number 80, check the entity plus any attachments that might identify what Abstract Number should be used.

CCC "1" - Wager's Authorized Under the Laws of the State in Which Accepted (Form 11-C)

  1. Edit CCC 1 when the Renewal box is checked and the $50.00 category is paid rather than the $500.00 category. The lower amount is used for those wagers authorized by their respective states.

CCC "3" - No Reply to Correspondence

  1. Edit CCC "3" when the taxpayer either fails to respond to a correspondence or the correspondence is returned undeliverable.

CCC "4" - 6020(b) Return

  1. Edit CCC "4" when the IRS's Compliance Branch has prepared a return and the Revenue Officer has entered IRC 6020(b).

    Note:

    CCC "4" cannot be used with CCC "R" and/or "Z" .

Taxpayer Reports Precomputed Penalty Interest

  1. The Penalty/Interest (P/I) Code is used when the taxpayer has paid an amount for penalty or interest even though the return was received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ . The P/I Code will allow the computer to compute penalty and/or interest when it normally would not.

  2. Enter Code "1" to the right of the Penalty and Interest box when precomputed delinquency penalty and/or interest is shown. If only precomputed interest is shown, edit CCC "R" as well as "1" (CCC R will override the P/I Code 1 where delinquency penalty is concerned.) See Figure 3.11.23-15.

    Figure 3.11.23-15

    This is an Image: 33515063.gif
     

    Please click here for the text description of the image.

  3. If there is a taxpayer precomputed penalty and/or interest on the return, a received date must be present. See IRM 3.11.23.11, Received Date Editing.

  4. If the date in (3) above is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , edit the P/I Code.

Precomputed Penalties (Form 720)

  1. The Internal Revenue Code provides for other penalties to be assessed against taxpayers, such as for "Fraud" . Provisions have not been made for assessing these other penalties on the original input of the return. Therefore, they should not be included in the penalty and interest box, if shown on the return.

  2. These other penalties can be identified as follows:

    • IRC 6663 - Fraud

    • IRC 6674 - Fraudulent statement

    • IRC 6721(a)(2)(B) - Failure to supply identifying number

  3. Precomputed penalties other than delinquency, Federal Tax Deposit (FTD) or Failure to Pay (FTP) should be handled as follows:

    1. Prepare Form 3465, Adjustment Request, to request an assessment of the penalty. If a remittance amount includes all or part of the penalty, indicate on Form 3465 that this portion of the remittance is available for application to the assessment.

    2. Annotate in the left margin of the return that "3465 Prep" . Route Form 3465 to the Excise Operations Branch.

    3. Edit CCC "R" on any return which shows an assessment of "fraud" penalty.

    4. Edit CCC "X" to freeze the refund until the assessment for penalty posts to the BMF.

Penalty and Interest Box - Form 720

  1. If the FD line in the Penalty and Interest Box is blank, edit the Failure to Deposit (FTD) Penalty shown on Form 4364, Delinquency Computations, or attachments, if present.

    1. If the FTD Penalty is present, make sure it is added to the balance due or subtracted from the overpayment.

    2. Subtract any penalties or interest (other than FTD Penalty) included in the balance due.

    3. For penalties other than the FTD Penalty, Delinquency or Failure to Pay, prepare Form 3465, Adjustment Request, and route to the Excise Operations Branch.

Processing Form 720

  1. Form 720 is the return for reporting many of the federal excise taxes.

    Note:

    The Form 720 has and will be undergoing changes. The abstracts will not be in the same place the taxpayer is used to looking. Be on the lookout for possible misplaced entries and move to correct abstract number. For example, a large trucking company selects abstract 29 (Ship Passenger Tax). Move this tax to abstract 33. If there is any question, see your lead.

  2. The valid Computer Condition Codes on Form 720 are D, F, G, J, L, O, R, W, X, Z, 3, and 4.

  3. Follow normal procedures for:

    • Edit Marks - IRM 3.11.23.3, Edit Marks

    • Unprocessable Returns - IRM 3.11.23.8, Unprocessable Returns

    • Signature - IRM 3.11.23.9, Signature

    • Third Party Designee - IRM 3.11.23.9.1, Third Party Designee

    • Entity Perfection - IRM 3.11.23.10, Entity Perfection

    • Entity Perfection of Domestic Addresses - IRM 3.11.23.10.5, Entity Perfection of Domestic Address

    • Entity Perfection of Foreign Addresses - IRM 3.11.23.10.6, Entity Perfection of Foreign Address

    • Entity Perfection of Tax Period - IRM 3.11.23.10.7.3, Entity Perfection of Tax Period

    • Received Date Editing - IRM 3.11.23.11, Received Date Editing

    • Computer Condition Codes - IRM 3.11.23.12, Computer Condition Codes

    • Amended Returns - IRM 3.11.23.2.11, Amended Returns

  4. Form 720 is required to be edited for dollars and cents.

  5. Form 720 has several pages and attachments that are required to be attached. Document Perfection is responsible for arranging Form 720 in the following order when transcription line entries are present:

    • Page 1 (Part I taxes)

    • Page 2 (Continuation of Part I taxes and Part II taxes)

    • Page 3 (Part III computations)

    • Page 4 (Schedule A)

    • Pages 5, 6, and 7 (Schedule C)

    • All other forms and schedules may be in any order

  6. See Exhibit 3.11.23-1 for Form 720 transcription lines (T-lines).

  7. Form 720 return processing volume and time is reported under the following Program Codes:

    Program Code Program
    11800 General Form 720 processing
    11801 Form 720 with Line 3 tax of $1 million or more
    11802 Form 720 refund returns
    11804 Form 720 reporting IRS Number 133, Patient Centered Outcomes Research Fee
    11809 Form 720 reporting IRS Number 136, Taxable Medical Devices
  8. After coding any Form 720 return showing one million dollars or more in tax, Code & Edit must photocopy the complete Form 720. Code & Edit should route the copies of the Form 720 on a Form 3210 transmittal to:

    Excise Operations
    Team 201, Stop 5701G


    The Form 720 return includes Schedule C.

    Reminder:

    If there is an amount on Line 4, follow the Line 4 procedures before photocopying the return for Excise.

    Note:

    When processing cannot determine the correct IRS Number and assigns IRS Number 80 with CCC Z, a report goes to the Reports Analysts to research for the correct IRS Number.

Form 720 Part I and II

  1. If the taxpayer enters the number of gallons (Fuel and Floor Stock Taxes), number of persons (Ship Passenger Tax), number of tons (Manufacturers Taxes), number of doses (Vaccine Taxes), premiums paid (Other Excise Taxes), amount of obligations (Obligations not in Registered Form) and the "Tax" column is blank or zero, compute and edit the tax for the appropriate IRS number. Also, adjust Line 3 accordingly.

  2. If the taxpayer has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for IRS Number(s) 18, 19, 20 (in Part II), 21 or 98 on Form 720, Form 6627, Environmental Taxes, must be attached.

    1. If attached, Form 6627 must be math verified. See IRM 3.11.23.16.2, Form 6627.

    2. Do not math verify if the entries that require math verification are on an attachment to Form 6627 rather than on Form 6627.

    3. If not attached, correspond to secure a completed Form 6627.

    4. If no reply, edit CCC 3.

    5. Continue processing.

  3. There has been a tax law change to the medical device excise tax. The Protecting Americans from Tax Hikes Act of 2015 (PATH Act), P.L. 114-113 which was signed into law on December 18, 2015 includes a two year moratorium on the medical device excise tax imposed by IRC 4191. Thus, the medical device excise tax does not apply to the sale of a taxable medical device by the manufacturer, producer, or importer of the device during the period beginning on January 1, 2016 and ending on December 31, 2017. Continue to perfect any amounts reported for medical device tax during the moratorium if it has been reported by the taxpayer. Error Code processing has been put in place to handle any medical device taxes that are not applicable during the moratorium.

IRS Numbers 108, 109, and 113 Perfection
  1. Perfect entries for IRS Numbers 108, 109, and/or 113 on Form 720 per the table below:

    If And Then
    There is a tax amount reported on Line(s) 108, 109, and/or 113, The number of tires is reported on the corresponding lines toward the middle of the form, Underline the IRS Number and underline the number of tires.
    There is a tax amount reported on Line(s) 108, 109, and/or 113, The number of tires is not reported on the corresponding lines toward the middle of the form,
    1. Correspond for the missing information.

    2. Enter the taxpayer’s response on the appropriate line(s) for the number of tires.

    3. Underline the IRS Number and the number of tires.

    There is a number of tires reported on Line(s) 108, 109, and/or 113 toward the middle of the form, The corresponding tax amount cannot be easily ascertained,

    Note:

    If the only tax being reported is tire tax under one IRS Number then the tax can easily be ascertained.

    1. Correspond for the missing information.

    2. Enter the amount of tax based on the taxpayer’s response on the appropriate line(s).

    3. Underline the IRS Number and the number of tires.

    A version of Form 720 prior to the January 2009 version has been used to file for quarter(s) ending March 31, 2009 or subsequent, The taxpayer is reporting tire tax on Line(s) 108, 109, and/or 113 and the number of tires cannot be ascertained from the form or attachments,
    1. Correspond for the current revision of Form 720.

    2. When the response has been received underline the IRS Number and the number of tires.

    The taxpayer has provided the tire and tire tax information, It is not reported on a January 2009 or subsequent revision,
    1. Prepare a complete new revision of page 2 of the Form 720 for the tax information.

    2. "X" out the tax information on the old version of page 2 of the Form 720.

      Note:

      If the taxpayer is also reporting tax for IRS numbers 29 and/or 31, then a complete overlay of the tax information on page 1 and 2 of a new revision of Form 720 should be prepared.

    Note:

    If no reply enter CCC "3" and continue processing. If the number of tires is still missing enter "1" as the number of tires.

IRS Number 136, Medical Devices Tax Perfection
  1. Perfection of the Medical Devices Tax requires both Sales Price and Tax be present. Both amounts are to be perfected for dollars and cents.

    Caution:

    There has been a tax law change to the medical device excise tax. The Protecting Americans from Tax Hikes Act of 2015 (PATH Act), P.L. 114-113 which was signed into law on December 18, 2015 includes a two year moratorium on the medical device excise tax imposed by IRC 4191. Thus, the medical device excise tax does not apply to the sale of a taxable medical device by the manufacturer, producer, or importer of the device during the period beginning on January 1, 2016 and ending on December 31, 2017. Continue to perfect any amounts reported for medical device tax during the moratorium if it has been reported by the taxpayer. Error Code processing has been put in place to handle any medical device taxes that are not applicable during the moratorium.

    If And Then
    The Sales Price is present, The tax amount is not present,
    1. Multiply the Sales Price by 2.3 percent (.023).

    2. Enter the result in the tax column for IRS Number 136.

    A tax amount is present for IRS Number 136, The Sales Prices is not present,
    1. Divide the tax amount by 2.3 percent (.023).

    2. Enter the result in the column for Sales Price.

IRS Number 133, Patient Centered Outcomes Research Fee Perfection
  1. IRS Number 133 is used to report tax on specified health insurance policies and applicable self-insured health plans annually.

  2. IRS Number 133 must be reported on the second quarter Form 720 only with a return due date of July 31st each year.

  3. If IRS Number 133 is reported in any other tax period other than the second quarter, change the tax period to the second quarter if it is the only tax reported on Form 720.

  4. If IRS Number 133 is reported with other IRS Numbers present and the tax period is other than the second quarter then:

    If Then
    Numbered return,
    1. Edit AC 610 (renumber) or 611 (remittance-renumber).

    2. Prepare and attach Form 4227 notated "Multiple IRS numbers present with IRS Number 133. Prepare a dummy return for the IRS Number 133" .

    Unnumbered return,
    1. Prepare dummy return for IRS Number 133 for the second quarter.

    2. Ensure the Received Date is edited to the dummy return.

    3. Notate “Dummy Return Prep” in the action trail of both returns.

    4. Delete all amounts present for IRS Number 133 from the original return.

    5. Adjust Line 3 and subsequent lines accordingly.

    Exception:

    In this instance, if the taxpayer has filed a Form 720 for quarters 1, 3, and/or 4 and the PCOR tax being reported is zero, N/A, none, - (dash), etc., do not prepare a dummy return for the second quarter just to post the zero amount for PCOR tax. "X" out the PCOR indication on quarters 1, 3, and 4 when only zero, N/A, none, - (dash) etc., has been entered so transcription does not pick it up.

    Note:

    When the tax period has not been clearly indicated on a Form 720 reporting IRS Number 133 use the IRS received date to help determine the tax period. If the return was received December 31st or prior, process to the preceding 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on December 31, 2017 process as 201706). If the return was received after December 31st, process to the subsequent 2nd quarter (i.e., Form 720 reporting IRS Number 133 received on January 3, 2018 process as 201806).

  5. Perfection of the PCOR tax requires the Average Number of Lives Covered, Column (c) Fee, and the tax amount for both types of policies, Specified Health Insurance Policies and Applicable Self-Insured Health Plans, be present. Beginning with the second quarter 2016 Form 720 the PCOR area will be expanded to more accurately accommodate the rates of the fees prior to October 1st each year and the inflation adjusted rates on or after October 1st each year. Column (a) amounts and Column (c) amounts must be perfected as applicable when IRS Number 133 contains a fee (tax) amount.

  6. The tax amount for IRS Number 133 will be the total tax reported for both column (c) for specified health insurance policies added to column (c) for applicable self-insured health plans. Beginning with the second quarter 2016 Form 720, the applicable rates will be pre-printed on the form in the expanded PCOR area. If any amounts cannot be perfected from the return or attachments, correspond for the correct breakdown of the PCOR reporting area. The table below should be used for Form 720 revisions prior to Rev. 4-2016.

    If And Then
    The amount in column (c) is less than the number of lives in column (a), the amount in column (c) appears to be the rate for column (b), (the rates will vary from year to year based on inflation rate adjustments) Calculate the fee by multiplying column (a) by the implied rate for column (b) and edit in column (c).

    Note:

    If the column (c) amount and IRS Number 133 tax should be the same, you may circle out the column (c) entry and use a double arrow to indicate such.

    There is a tax amount present for IRS No. 133, There are no entries in the average number of lives covered and/or the column (c) lines, Use the tax amount to try and back into the average number of lives covered and/or column (c) lines.
    There is a tax amount present for IRS No. 133, There is no manner in which to determine the average number of lives covered and/or the column (c) lines, Correspond for the correct breakdown of the number of lives and the column (c) lines.

    Note:

    Ensure Average Number of Lives for both Specified Health Insurance Policies and Applicable Self-Insurance Health Plans are numeric whole number entries. If the taxpayer has entered a partial life then apply traditional rounding. If .5 or greater round up and if less than .5 round down (e.g., if 100.5 lives are reported input 101 lives and conversely if 100.4 lives are reported input 100 for the number of lives).

Form 6627, Environmental Taxes

  1. Perfection of Form 6627, Environmental Taxes. See Exhibit 3.11.23-2.

    1. If the IRS Number(s) reported on Form 6627 and Form 720 do not agree, change Form 720 to agree with the IRS Number reported on Form 6627.

    2. Verify that the taxpayer is using the correct rates. See Exhibit 3.11.23-2.

    3. If the taxpayer has used the wrong rate and the discrepancy ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , edit the correct amount on Form 720. Issue a non-suspense letter advising the taxpayer of the discrepancy.

    4. Verify that the correct name and EIN are present on Form 6627 and agree with the information on the Form 720. If the information is missing or incorrect, then enter the correct information.

Part I, Form 6627
  1. The oil spill liability tax (IRS Numbers 18 and 21) was reinstated, effective beginning April 1, 2006. Taxpayers who claim an amount on Form 720, Part 1 for IRS Number(s) 18 and 21 should complete Form 6627.

  2. Verify Part I:

    1. Multiply column a (number of barrels) times column b (rate) and compare the amount to that shown in column c (tax).

    2. Add column c, Lines 3 and 4, and compare the total to the Line 5 amount.

    3. Verify that the amount on Line 5 equals the amount for IRS Number 18 on Form 720, Part I.

    4. If an amount appears on Line 6, repeat (2a) above to compute the amount that should show in column c.

    5. Verify that the amount on Line 6 equals the amount for IRS Number 21 on Form 720, Part I.

    6. Correspond for any discrepancy ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    7. If no reply, edit the larger amount.

Part II, Form 6627
  1. Verify Part II:

    1. Multiply column b (number of pounds) times column c (tax per pound) and compare the amount to that shown in column d (tax).

    2. Add column d, Lines 1 through 3 and compare the total to the Line 4 amount.

    3. Correspond for any discrepancy ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    4. If no reply, edit the larger amount.

Part III, Form 6627
  1. Verify Part III - There are two methods of computing the tax which follow:

  2. Method One:

    • Verify that column b times column c times column d equals column f.

  3. Method Two (if the entry value method is used):

    • Verify that column d times column e equals column f.

  4. Add the amounts in column f, Lines 1 through 3 and compare the total to Line 4.

  5. Correspond for any discrepancy ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

    • If no reply, edit the larger amount.

  6. Verify the amount on Line 4 equals the amount for IRS Number 19 on Form 720.

Part IV, Form 6627
  1. Verify Part IV:

    1. Multiply column b (number of pounds) times column c (tax per pound).

    2. Compare the amount to that shown in column d (tax).

    3. Add column d, Lines 1 through 3.

    4. Compare the total to Line 4.

    5. Correspond for any discrepancy ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ per chemical.

    6. If no reply, edit the larger amount.

  2. Verify that the amount on Line 4 equals the amount for IRS Number 20 on Form 720.

    Note:

    IRS Number 20 is valid only for the first and second (e.g., 201703, 201706, 201803 and 201806) quarters, if no other IRS Numbers are on the return.

    Note:

    The amount(s) present on Form 720 should agree with the amount(s) present on Form 6627 for applicable IRS Number(s). If there is a discrepancy ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , correspond with the taxpayer.

Gas Guzzler Tax

  1. If an entry of less than $1,000.00 is present on IRS Number 40, it is in the wrong place. Review attached forms or explanations for correct IRS number.

    1. If unable to determine, correspond with the taxpayer for either a completed Form 6197 or the correct IRS Number.

    2. If no reply, enter CCC 3 and edit to IRS Number 80, and continue processing.

  2. If Form 6197 is not attached, correspond with the taxpayer for a completed form. If no reply, edit CCC 3 and continue processing.

  3. If Form 6197 is attached, it should be examined as follows:

    1. Verify that the correct name, TIN and tax period are present, and that they agree with the Form 720.

    2. Verify that the amount reported is in whole dollars.

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , an error has been made in calculating the amount. Correct the error by following (e) and (f) below.

    4. Math verify the form.

    5. Verify that column (d) multiplied by column (c) equals column (e).

    6. Verify that the total amounts in column (e), Lines 2 through 12, add up to the Total Tax Due amount on Line 13.

    7. Verify that the amount entered on Line 13 has been correctly entered next to IRS Number 40 on Form 720.

    8. If there is a discrepancy ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , edit the larger amount on Form 720.

    9. If there is a discrepancy ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , correspond.

    10. If no reply, edit the larger amount to Form 720.

    11. Verify that taxpayer has correctly identified all models.

    12. As errors are located, make all necessary corrections.

  4. Take the following actions on the conditions listed for Form 6197:

    If Then
    The name, TIN, or tax period cannot be located via Form 720 or research, or Correspond with the taxpayer for all missing information.
    The number of cars sold in column (d) cannot be determined, or Correspond with the taxpayer for all missing information.
    The taxpayer does not correctly identify all models (e.g., model's name is missing), Correspond with the taxpayer for all missing information.
  5. If no reply, edit CCC 3 and continue processing.

    Note:

    A taxpayer can list a single model on the form which would result in a single entry on Form 6197, column (d).

Foreign Insurance Taxes - IRS Number 30

  1. IRS Number 30, Foreign Insurance Taxes - If the taxpayer files Form 720 with the notation "Section 6114 Election" on the top of the return, or has a Form 8833, Treaty-Based Return Position Disclosure, or a letter referring to IRC 6114 attached to the return:

    1. and the taxpayer does not attach a statement or Form 8833, correspond for missing information.

    2. and Form 8833 or a statement is attached, enter CCC L on the Form. Then, continue to process the return.

  2. If the taxpayer has notated at the top of the Form 720 in red print the following statement: "Election to participate in FET Voluntary Compliance Initiative pursuant to Announcement 2008-18" , enter CCC "L" on the Form 720 and continue processing the return.

Floor Stock Taxes

  1. IRS Number 20 is used for reporting Floor Stock tax on Ozone Depleting Chemicals (ODC) annually.

    Note:

    If the taxpayer has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for IRS Number 20 on Form 720, Form 6627, Environmental Taxes, must be attached. See IRM 3.11.23.16.2, Form 6627.

    1. The floor stock on ODC (IRS Number 20) will continue annually with the return due by July 31.

    2. If IRS Number 20 is reported in any other tax period other than the first or second quarter, change the tax period to the second quarter if it is the ONLY tax reported on Form 720.

    3. If IRS Number 20 is reported with other IRS Numbers present and the tax period is other than the second quarter then:

      If Then
      Numbered return,
      1. Edit AC 610 (renumber) or 611 (remittance-renumber).

      2. Prepare and attach Form 4227 notated "Multiple IRS numbers present with IRS Number 20. Prepare a dummy return for IRS Number 20" .

      Unnumbered return,
      1. Prepare dummy return for IRS Number 20 for the 2nd quarter.

      2. Ensure the Received Date is edited to the dummy return.

      3. Notate “Dummy Return Prep” in the action trail of both returns.

      4. Delete the amount present for IRS Number 20 on the original return.

      5. Adjust Line 3 and subsequent lines accordingly.

    4. When the tax period has not been clearly indicated on a Form 720 reporting IRS Number 20, use the IRS received date to help determine the tax period. If the return was received December 31st or prior, process to the preceding 2nd quarter (i.e., Form 720 reporting IRS Number 20 received on December 31, 2017 process as 201706). If the return was received after December 31st, process to the subsequent 2nd quarter (i.e., Form 720 reporting IRS Number 20 received on January 3, 2018 process as 201806).

Repealed Excise Taxes

  1. If there is a clear indication that the taxpayer is trying to file a final return for a repealed excise tax (i.e., taxpayer writes, "Repealed Tax" and the return is for zero amount), edit CCC F and IRS Number 80.

Perfection of the Abstract Area

  1. Underline every IRS Number with an amount present in Part I of Form 720 up to a maximum of 25 entries. Integrated Submission and Remittance Processing (ISRP) has the capability to enter a maximum of 25 dollar amounts and 25 IRS Numbers for Part I taxes. If there is an amount reported for IRS Number 136, Taxable Medical Devices, ensure this is included in the 25 edited IRS Numbers.

  2. Underline every IRS Number with an amount present in Part II of Form 720. ISRP has the capability to enter a maximum of 12 dollar amounts and 12 IRS Numbers for Part II taxes. If there is an amount reported for IRS Number 133 on a second quarter Form 720 for PCOR taxes, ensure it is included in the edited IRS Numbers.

    Note:

    If Form 720 is filed for the 1st, 3rd, and/or 4th quarter with zero, N/A, none, - (dash), etc., entered as the PCOR amount, delete the entry from the Form 720.

  3. For every IRS Number reported with zero or a significant amount underline the IRS Number following the limitations noted in (1) and (2) above. Be sure to edit IRS Numbers with taxable amounts first, then edit IRS Numbers where there are no tax amounts reported. This also includes "N/A" , "none" , or "not applicable." See Figure 3.11.23-16.

    Exception:

    Do not underline abstract 31 or 20 unless there is an amount present. If there is a negative (-) amount in any IRS tax amount or abstract area see IRM 3.11.23.16.8.1, Part III, Line 4 Claims.

    Note:

    Each IRS Number reported on Form 720 stands alone in regards to statute processing. Therefore, it is necessary to perfect all IRS Numbers reporting "zero" , "N/A" , "none" , "-" (dash), etc., as well as those reporting significant tax amounts.

    Figure 3.11.23-16

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Part III Form 720, Line 3 - Total Tax

  1. Process Line 3 as follows:

    If And Then
    Line 3 is zero, none, not applicable, or N/A is present on Line 3 and the taxpayer does not indicate an IRS Number, The correct IRS Number can be determined from attachments,
    1. Edit zero to the correct IRS Number.

    2. Also underline that number.

    Line 3 is zero, none, not applicable, or N/A is present on Line 3 and the taxpayer does not indicate an IRS Number, You are unable to determine the correct IRS Number, Edit and underline IRS Number 80 to the right of Line 3. See Figure 3.11.23-17.
    Line 3 contains an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the taxpayer does not indicate an IRS Number in the abstract area, The correct IRS Number can be determined from attachments,
    1. Edit the amount to the correct IRS Number.

    2. Underline the IRS Number.

    Line 3 contains an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the taxpayer does not indicate an IRS Number in the abstract area, You are unable to determine the correct IRS Number,
    1. Edit IRS Number 80 to the right of Line 3.

    2. Underline the IRS Number 80.

    Line 3 contains an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the taxpayer does not indicate an IRS Number in the abstract area, The correct IRS Number can be determined from attachments,
    1. Edit the amount to the correct IRS Number.

    2. Underline the IRS Number.

    Line 3 contains an amount ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and the taxpayer does not indicate an IRS Number in the abstract area, You are unable to determine the correct IRS Number,
    1. Edit IRS Number 80 to the right of Line 3.

    2. Underline IRS Number 80.

    3. Edit CCC "Z" . See Figure 3.11.23-18.

      Exception:

      Do not edit CCC "Z" on secured returns or IRC 6020(b).

    Line 3 is a "million dollars" or more,   The return must be batched under Program 11801 for expedited processing.
    Line 3 is blank, Positive amounts are listed in the abstract area, Compute and edit the total of the Part I and Part II positive amounts on Line 3.
    Line 3 is blank, Line 4 is also blank, Compute and edit the total of the amounts from Schedule C on Line 4.

    Note:

    If Line 4 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ a completed Schedule C or supporting documentation must be attached. See IRM 3.11.23.16.8.1, Part III, Line 4 Claims.

    Line 3 is blank, The abstract area and Line 4 are also blank but an entry is present on Line 10, Edit the Line 10 amount plus the Line 9 amount, if present, on Line 3.
    Line 3 is blank, The entry on Line 4 has been misplaced, Delete the amount on Line 4 and edit the amount to Line 3. See Figure 3.11.23-19,
    The taxpayer inserts a cross (X) out or a check mark by only one IRS Number,  
    1. Edit the amount from Line 3 to the left of that IRS Number.

    2. Underline the IRS Number. See Figure 3.11.23-20.

    Figure 3.11.23-17

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    Figure 3.11.23-18

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    Figure 3.11.23-19

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    Figure 3.11.23-20

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Part III, Line 4 Claims
  1. If Line 4 is ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ a completed Schedule C or supporting documentation must be attached. Correspond for Schedule C or supporting documentation when required to be attached.

  2. Secure any missing information such as signatures, schedules, etc., prior to the Excise Group classifier reviewing the return.

  3. Line 4 will be classified by the Excise Group classifier during processing.

    If Then
    The return is numbered, Code the return and turn sideways in the batch.
    The return is unnumbered,
    1. Code the return

    2. Pull the return out of the batch

    3. Hold for Excise Operations classifier

    The classifier will either accept, not consider, or partially disallow and will indicate with a cross (X) out to the left of the amount on Line 4 and the correct amount. The classifier will also staple the appropriate explanation "TPNC 90" (Tax Payer Notice Code) for the ERS tax examiner to use on the notice.

  4. The Code & Edit manager or lead will contact the Centralized Excise Operation (CEO) every morning via e-mail stating how many returns are being held for review. This gives CEO an idea of how many agents are needed. The returns are held on a cart by received date order. The cart is identified with "720s for Excise Review" on top along with a sign in sheet for the CEO agents.

  5. When the taxpayer has erroneously entered a negative amount or credit amount in Part I, cross (X) out the amount in Part I and move the amount to Line 4 and the appropriate Credit Reference Number (CRN) on Schedule C and have the classifier look at the return. For a complete list of CRNs. See Exhibit 3.11.23-8

  6. If Form 720, Line 4 is blank and there are amounts present on Schedule C, then compute and edit the total of the Schedule C amounts to Form 720, Line 4.

CRNs 396, 304, and 305
  1. Perfect CRNs 396, 304, and/or 305 on Form 720 Schedule C, tire tax credit(s), according to the table below:

    If And Then
    There is a credit amount reported on Schedule C Line 14 for CRNs 396, 304, and/or 305, The number of tires is reported for the corresponding CRNs, Underline the CRN and the number of tires being reported.
    There is a credit amount reported on Schedule C Line 14 for CRNs 396, 304, and/or 305, The number of tires is not reported for the corresponding CRNs,
    1. Correspond for the missing information.

    2. Enter the taxpayer’s response for the number of tires to the left of the appropriate CRN.

    3. Underline the CRN and the number of tires.

    There is a number of tires reported on Schedule C Line 14 for CRNs 396, 304, and/or 305, The amount of credit cannot be easily ascertained,

    Note:

    If the only credit being reported is tire tax credit under one IRS Number then the credit can easily be ascertained.

    1. Correspond for the missing information.

    2. Enter the amount of credit based on the taxpayer’s response to the right of the appropriate CRN.

    3. Underline the CRN and the number of tires.

    A revision of Form 720 prior to the January 2009 version has been used to file for quarter(s) ending March 31, 2009 or subsequent, The taxpayer is reporting tire credit on Schedule C Line 14 for CRNs 396, 304, and/or 305 and the number of tires cannot be ascertained from the form or attachments,
    1. Correspond for the current revision of Form 720.

    2. When the response has been received underline the CRN and the number of tires.

    The taxpayer has provided the tire and tire credit information, It is not reported on a January 2009 or subsequent revision,
    1. Write in the correct information on Line 14.

    2. Write the number of tires to the left of the "amount of claim" .

    3. Underline the CRN and the number of tires.

      Note:

      In some instances it may be necessary to write the number of tires, amount of claim, and the CRN all on Line 14 in order to perfect the return.

    Note:

    If no reply enter CCC "3" and continue processing. If the number of tires for the credit is still missing enter a "1" as the number of tires.

Part III, Line 5 and 6
  1. Accept taxpayer’s entry.

Part III, Line 7 - Amount from 720X
  1. When an amount is present on Line 7:

    If Then
    Form 720X is attached to Form 720,
    1. Detach and edit the received date of Form 720 to the Form 720X. Notate the Form 720 to leave an action trail.

    2. Edit the Form 720 tax period to the left of the OMB number on the Form 720X.

    3. Using Schedule 1 date stamps, stamp the current date on the back of the Form 720X, route to:
      Excise,
      Attention: Team 102
      Stop 5701G

    4. Edit an action trail in the left margin of the Form 720 that the Form 720X has been detached and routed to Excise Operations using Form 3210. These are to be sent daily in a canvas pouch.

      Caution:

      If return is a million dollars or more also edit "Detached from Mil. $ Return" in the left margin of Form 720X.

      Note:

      If the Form 720 is for the same tax period that the Form 720X is amending and is unaltered, do not process the Form 720. Move and attach the Form 720 behind the Form 720X and route to Excise Operations.

    Form 720X is not attached to Form 720, Continue processing the Form 720.
Part III, Line 8 - Total of Lines 5 and 6
  1. If Line 8 is blank, compute and edit the total of Line 5 plus Line 6.

    Caution:

    Ensure Line 5 is not a misplaced entry before computing a blank Line 8.

  2. If the taxpayer has entered the total of Lines 5 and 6 on Line 7. Arrow Line 7 to Line 8. See Figure 3.11.23-21 for an example correcting other common reporting errors in Part III.

    Figure 3.11.23-21

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Part III, Line 10 - Balance Due
  1. Line 10 - Balance Due -

    If And Then
    Line 10 is blank,   Subtract Line 9 from Line 3 and edit the result on Line 10.
    Line 10 is blank or zero ("0" ), Line 5, 6 and 7 are blank or zero, Line 8 has a dollar entry (other than zero),
    1. Cross (X) out the entry on Line 8.

    2. Edit the dollar amount from Line 8 to Line 10.

    The same amount is on Line 3 and Line 9, Lines 4 through 8 are blank, Arrow Line 9 to Line 10.
    The balance due appears on any line other than Line 10, Line 10 is blank, Edit the amount on Line 10.
    The taxpayer included penalty (other than a FTD penalty) or interest, or both, on Line 10,   Subtract the amount of penalty and/or interest from Line 10. See Figure 3.11.23-22.
    Federal Tax Deposit (FTD) penalty is shown on the return, The taxpayer has included it on Line 10 or 11 of the return, Make no changes.
    The FTD penalty is not included on Line 10 or 11 of the return,  
    1. Add the amount to Line 10, or subtract it from Line 11.

    2. Also, edit the FTD penalty in the "FD" box in the upper right corner of the return.
      See Figure 3.11.23-23.

    An attachment, Schedule A or editing on the return shows FTD payments or a remittance being received ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , There are no other tax data entries on the return,
    1. Correspond for all missing information.

    2. If no reply, edit the Schedule A total or remittance amount on Line 3 with IRS Number 80.

    Attachment or editing on the return shows FTD deposits or a remittance being received of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ , There are no tax entries on the return,
    1. Edit the total of the remittance and FTD deposits on Line 3.

    2. Edit and underline abstract 80 next to Line 3 or the abstract if it can be determined.

    3. Edit the amount of FTD deposits on Line 8.

    4. Edit the remittance, if any, on Line 10.
      See Figure 3.11.23-24.

    Figure 3.11.23-22

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    Figure 3.11.23-23

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    Figure 3.11.23-24

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Balance Due Amount Contains Penalty and/or Interest
  1. Balance due amount contains penalty and/or interest.

    If Then
    The Balance Due amount contains penalty and/or interest,
    1. X-out the money amount.

    2. Delete the penalty and interest from the total.

    3. Edit the Balance Due to the left of the original entry.

    4. Edit a Received date if one is not present.

Line 11 - Overpayment
  1. Line 11 Overpayment -

    If And Then
    Line 10 and 11 are blank, Line 9 is larger than Line 3,
    1. Subtract Line 9 from Line 3 and enter the result on Line 11.

    2. Do not bracket Line 11.

    3. Edit out "X" the Refunded Box if checked and there is no refund.

    Note:

    Refunds of $1 million or more and 45 Day Jeopardy returns require Expedite special handling and require a manual refund. See IRM 3.11.23.6, Refund Returns (45 Day Jeopardy and $100 Million Refunds), for instructions.

Schedule A, Excise Tax Liability

  1. When Part I, Line 1, of Form 720 has an entry of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ (or total entries of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ) Schedule A must be attached unless the taxpayer has indicated he is a one-time filer.

    1. If missing or blank, correspond.

    2. If no reply, continue processing.

  2. If Schedule A has entries but there are no entries in Part 1 of Form 720, correspond see IRM 3.11.23.16.8.6, Part III, Line 10 - Balance Due.

    Note:

    If the only taxes being reported are in Part II of Form 720, delete Schedule A if significant entries are present.

  3. Perfecting Schedule A - Due to deposit laws, the Schedule A has Section 1 (14 day rule taxes A-F) and Section 2 (alternative method taxes M-R). The taxpayer may have entries on any or all of Lines A through F and M through R.

    1. Verify that the taxpayer has entered only numeric amounts. If other than numeric amounts are entered, cross (X) out the entry.

    2. If multiple entries are on one line, combine and edit the correct amount. For example, if Line A contains entries of $10, $12, and $12 for the first period, (1st - 15th), then $34 should be edited for Line A.

    3. If the entry is illegible or you are unable to perfect the entry, cross (X) out the entry.

Consolidation of Form 720 - Monthly Filers

  1. Form 720 may be required monthly or semimonthly from persons who have been taken off quarterly filing of the regular Form 720 because of delinquency in making Federal Tax Deposits or other reasons.

    Note:

    If you find one in a batch of work, send to Excise Operations.

  2. The returns are secured and processed by the Excise Operations and held until three monthly returns are received. They are consolidated on one Form 720 and input to the BMF through the Document Perfection function. Any remittance received in payment of the liability has been deposited by Clearing and Deposit for Master File input by the preparation of Form 3244, Payment Posting Voucher. A copy of Form 3244 will be attached to the unnumbered Form 720 for monthly filers. If the Form 720 for monthly filers is received in Code & Edit, forward it to CEO.

  3. The entity on the consolidated return must be perfected to ensure that it has all the required data.

  4. The Excise Operations will precompute penalty and interest on late filed returns filed directly with them. If penalty is not shown or there is a "O" in the penalty box, return to the Excise Operations for a determination if reasonable cause has not been established.

  5. Contact the Excise Operations for any data found missing.

  6. These quarterly returns will be considered for Master File processing as non-remittance taxable returns.

    1. Remember, all transcription lines must be completed.

    2. Enter CCC F if the last monthly return is marked "Final" .

    3. Enter CCC J.

Processing Form 2290, Heavy Highway Vehicle Use Tax Return and Form 2290(SP), Declaración del Impuesto sobre el Uso de Vehículos Pesados en las Carreteras (Heavy Highway Vehicle Use Tax Return (Spanish Version))

  1. All Form 2290 and Form 2290(SP) returns are centrally filed at the Cincinnati Submission Processing Campus (CSPC).

  2. Electronic filing for taxpayers reporting 25 or more taxable vehicles is a mandatory requirement per the American Jobs Creation Act, HR 4520 beginning July 1, 2005.

  3. The MFT code is 60 and the document code is 95. See Exhibit 3.11.23-5.

  4. The valid Computer Condition Codes on Form 2290 are D, F, G, O, R, W, X, 3, and 4.

  5. Form 2290 and Form 2290(SP) return processing volume and time is reported under Program Code 12300.

  6. Follow normal procedures for:

    • Edit Marks - IRM 3.11.23.3, Edit Marks

    • Unprocessable Returns - IRM 3.11.23.8, Unprocessable Returns

    • Signature - IRM 3.11.23.9, Signature

    • Third Party Designee - IRM 3.11.23.9.1.4, Third Party Designee.

    • Entity Perfection - IRM 3.11.23.10, Entity Perfection

    • Entity Perfection of Domestic Addresses - IRM 3.11.23.10.5, Entity Perfection of Domestic Addresses

    • Entity Perfection of Foreign Addresses - IRM 3.11.23.10.6, Entity Perfection of Foreign Addresses

    • Entity Perfection of Tax Period - IRM 3.11.23.10.7.4, Entity Perfection of Tax Period

    • Received Date Editing - IRM 3.11.23.11, Received Date Editing

    • Computer Condition Codes - IRM 3.11.23.12, Computer Condition Codes

    • Amended Returns - IRM 3.11.23.2.11, Amended Returns

  7. For specific Amended return procedures, refer to IRM 3.11.23.2.11, Amended Returns.

    Note:

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

  8. All Form 2290 are required to be edited in dollars and cents.

  9. The Form 2290 may have several pages and attachments that are required to be filed. The Form 2290 and attachments must be in the following order:

    • Page 1

    • Page 2

    • all other attachments, schedules, forms, etc., may be in any order

  10. Form 2290 with a remittance may be processed through the Lockboxes.

    1. The amount of remittance should be notated in the upper left hand portion of the different Form 2290 by the Lockbox function. See Figure 3.11.23-25. The Lockbox function will put a red "NP" in the top left corner of the Form 2290 to indicate non-payment. Research to see if payment was made to a Field Office or the Campus.

    2. The tax period will be notated under the remittance amount if the lockbox processed the remittance to a month other than 07.

      Note:

      Follow procedures in IRM 3.11.23.10.8, Payment Processed to Incorrect Tax Period, if the payment has been processed to an incorrect tax period.

    Figure 3.11.23-25

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Filing Status

  1. Taxpayers who are reporting tax on logging must list the number of vehicles they are reporting at the reduced rate in column 3b.

    If And Then
    The taxpayer uses the reduced rate, You determine that they are not loggers,
    1. "X" the number in column 3b and put in column 3a.

    2. Send non-suspense Z-Letter to notify taxpayer of change.

    3. Do not return Schedule 1.

    The taxpayer uses the reduced rate, No determination can be made that they are not loggers, Do not move the number in column 3b. See Figure 3.11.23-26.

    Figure 3.11.23-26

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Categories of Vehicles

  1. The categories of vehicles are printed on the left side of page 2 of the form and are designated by the letters A through W.

  2. The computer will math verify the tax computations for all categories.

  3. Category W - This is a non-taxable category. If a taxpayer suspends the tax on a vehicle because it will not be driven a total of 5,000 miles on U.S. highways (7,500 for agricultural vehicles) and later transfers the vehicle to another operator/owner.

    • A statement must be made on page 1, Line 9 of Form 2290.

    Note:

    Always check page 1 for entries of non-taxable vehicles.

Line 2 - Total Tax

  1. If Line 2 is blank, compute if necessary to perfect Line 4 and/or Line 6. Check attachments or misplaced entries to perfect. Editing of Line 2 is not required.

Line 3 Additional Tax

  1. Accept taxpayer’s entry.

Line 4 - Total Tax

  1. Edit Line 4 as follows:

    If Then
    Line 4 is blank,
    1. Add Lines 2 and 3.

    2. Edit the result on Line 4.

    Lines 2, 3 and 4 are blank, Edit the total amount of tax from page 2 to Line 4.
    Unable to compute Line 4, Edit the remittance amount notated by the Lockbox function to Line 4.

Line 5 - Credits

  1. Documentation is required for Line 5 credits.

    If Then
    There is documentation attached, Continue processing.
    The taxpayer is taking a credit for their payment, Delete the amount on Line 5.
    The taxpayer is reporting suspended vehicle(s) and that applicable amount is reported on Line 5,
    • Delete the amount on Line 5

    • Also adjust Line 4 to exclude the applicable amount reported on Line 5

    The taxpayer is taking a credit to show their pro-rated tax due amount on a partial tax period (Line 6 amount matches the partial tax period for the return),
    • Delete the amount on Line 5

    • Also adjust Line 4 to exclude the applicable amount reported on Line 5

    If there is no documentation attached and Line 5 is not a misplaced entry, Correspond for documentation.

    Note:

    Make sure you check that the Line 5 amount the taxpayer has entered is not a misplaced entry before following the directions above.

    Caution:

    Ensure that the taxpayer is not taking a credit for his payment or a suspended vehicle.

  2. Treat this amount as any other credit, unless otherwise noted.

    If Then
    The amount on Line 5 exceeds the tax on Line 4.
    1. Allow enough of the adjustment to reduce the tax to zero.

    2. Cross (X) out Line 6, and prepare Form 3465 for the remaining credit.

    3. Photocopy Form 2290 (Page 1 and 2) and route the copy and Form 3465 to the Excise Operations.

    The taxpayer is reporting only one suspended vehicle (i.e., entry only on Line "W" ), and completes "Statement in Support of Suspension of Tax" and indicates the same amount on Line 5.
    1. Delete the Line 2 and Line 5 amounts.

    2. Do not send return to the Excise Operations.

    3. Continue to process the return and send Sch. 1 with the edited suspended VIN back to the taxpayer.

Line 6 - Balance Due

  1. Line 6 - Balance Due.

    If Then
    Blank Subtract Line 5 from Line 4 and edit the results on Line 6.
    Lines 3 through 5 are blank Edit the Line 2 amount to Lines 4 and 6.

Form 2290 Consent to Disclosure of Tax Information

  1. A statement of consent to disclose tax information is included with the Form 2290.

  2. The document must be signed by the taxpayer and/or third party before information can be shared with participating states and other federal agencies. The information shared includes:

    • Vehicle Identification Numbers (VIN) reported on Schedule 1.

    • Verification that the tax has been paid.

  3. If the document is signed, IRS may disclose the information to the Federal Department of Transportation (DOT), U.S. Customs and Border Protection (CBP), and to state Departments of Motor Vehicles (DMV).

  4. The consent to disclose document needs to remain attached to the Form 2290 regardless if the statement has been signed or not. If only one copy of the Schedule 1 is completed with VINs and the consent to disclose statement is on back, then the VINs need to be transferred to a copy of the Schedule 1 and the copy returned to the taxpayer.

  5. If the Form 2290 is received without a consent to disclose document attached it will not be necessary to correspond.

Form 2290 Consent to Disclosure of Tax Information Indicator
  1. Beginning January 2017 new Field 01CDS (Consent to Disclose Statement) will be coded at the bottom-center of all Form 2290 returns. See Exhibit 3.11.23-5 Form 2290 Page 1 for location.

  2. Valid entries for the Consent to Disclosure of Tax Information Indicator is as follows:

    • 0 - The consent to disclose statement is not signed or not attached

    • 1 - The consent to disclose statement is attached and signed

Tax Data

  1. Column 3 (Page 2, "Tax Computation" ), Number of Vehicles - Examine each category reported for entries in column 3, and verify the entries by comparing:

    • Number of Vehicles

    • Amount of Tax

  2. Each category entered by the taxpayer must have an entry in column 3. When column 3 is blank, compare the entry in column 4 with the entry in column 2 for:

    • Rate of tax

    • Entry on "Month" box line, (Line 1)

  3. Using this information and the charts for tax rates for Form 2290 in IRM 3.11.23.10.7.4, Entity Perfection of Tax Period (Form 2290/Form 2290(SP)), determine the correct number of vehicles and edit in column 3. See Figure 3.11.23-27

    Figure 3.11.23-27

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  4. If page 2 or Category W is blank and page 1 has entries for suspension of tax, then edit the number of vehicles from Schedule 1, Line b to page 2, column 3a, Category W. See Figure 3.11.23-29.

    Note:

    If there is a clear indication that the vehicles are used for logging then edit the number of vehicles to column 3b.

    Figure 3.11.23-28

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Green Rockered - Form 2290 and Form 2290(SP)
  1. Indicates excess money was submitted with the tax return and the remittance needs to be split and applied to multiple periods or forms. The Green Rockered amount may be the balance due including penalty and/or interest.

    If Then
    The Balance Due amount contains penalty and/or interest,
    1. X out the rockered amount.

    2. Delete the penalty and interest from the total.

    3. Edit the Balance Due to the left of the original entry.

Prior Year Returns

  1. All returns using revisions 200307 and prior must be converted to the current year revision. Renumber the lines according to instructions.

    Revision July 1997 Revisions July 1998 to July 2004 Revisions July 2004 or Subsequent Name of item being reported
      Line 1 Line 1 Tax Period
    Line 1 Line 2 Line 2 Tax
    Line 2 Line 3 Line 3 Additional Tax
    Line 1 + Line 2 Line 2 + Line 3 Line 4 Total Tax
    Line 3 Line 4 Line 5 Credits
    Line 4 Line 5 Line 6 Balance Due
  2. On returns with a tax period prior to July 1, 2005, the Canadian/Mexican taxpayers are entitled to the reduced rate.

  3. Form 2290 Schedule 1 for tax periods beginning July 1, 2011 and subsequent that are filed on a July 2010 or early revision must be converted to the current corresponding year revision. Follow the chart below for conversion:

    Prior Year revision: July 2011 revision and subsequent:
    Entity Complete Entity as it appears on prior year revision.
    Part I - Vehicles on Which You Are Reporting Tax Edit the VIN and Category to Part I on the current corresponding Schedule 1.
    Part II - Vehicles for Which Tax Is Suspended - 5,000 Miles or Less (7,500 for agricultural vehicles) Edit the VIN and Category to Part I on the current corresponding Schedule 1.
    Part III - Summary of Reported Vehicles Line a Edit amount to Part II, Line c on the current corresponding Schedule 1.
    Part III - Summary of Reported Vehicles Line b Edit amount to Part II, Line b on the current corresponding Schedule 1.

    Note:

    All date stamp receipted Form 2290 Schedule 1 being returned to the taxpayer must be on the correct corresponding revision of the Schedule 1 to match the taxable period being reported. For instance if the Schedule 1 being returned is for any taxable period from July 1, 2017 through June 30, 2018 it must be issued on the July 2017 revision. If the Schedule 1 being returned is for any taxable period from July 1, 2018 through June 30, 2019 then the stamped Schedule 1 must be on the July 2018 revision. This applies to past years as well. If the Schedule 1 is for a 2016 taxable period the stamped Schedule 1 must be the July 2016 revision, if it is for a 2018 taxable period the stamped Schedule 1 must be the July 2018 revision, etc.

Suspension Of Tax

  1. Taxpayers may request that the tax be suspended on any vehicle which they believe will not be used a total of 5,000 miles during the tax period on U.S. highways.

    1. The limit is 7,500 miles for agricultural vehicles.

    2. To suspend the tax, the taxpayer must complete the statement on page 1. This requirement includes returns filed by a new owner or operator after the vehicle has been transferred.

    If Then
    A return is received showing no entries on page 2, Look at page 1 to see if the statement is completed, and/or Schedule 1 for suspended VINS.
    The page 1 statement is completed, or there are VIN numbers on Schedule 1, Part l,
    1. Get the number of vehicles on which the taxpayer is suspending the tax and mark that number in Category "W" on page 2 under Number of Vehicles. See Figure 3.11.23-29.

    2. Taxpayers may report all vehicles in use and under suspension on the same return.

    A vehicle is reported as suspended, and the owner disposes of that vehicle by sale, trade, etc., before the 5,000/7,500 mile limit is reached, the new owner must either:
    • File a partial period return for the remainder of the tax period showing the vehicle as suspended, or

    • File an amended return and pay the tax for the entire year if the vehicle is used more than the 5,000/7,500 mile limitation.

      Note:

      In such cases, the number of highway miles accumulated by the seller must be taken into consideration by the new owner in computing the 5,000/7,500 mile limitation.

    Figure 3.11.23-29

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Proof of Payment (Schedule 1)

  1. State Motor Vehicle Departments must verify that the heavy vehicle use tax has been paid before they can issue state registration tags. The Schedule 1 attached to the Form 2290 or Form 2290(SP) is used for this purpose by the taxpayer.

  2. Proof of payment will be verified and sent to the taxpayer when:

    1. Return is a full paid return whether it is an original or amended return.

      Exception:

      If the taxpayer is filing an amended Form 2290 just to correct the Vehicle Identification Number (VIN) do not return Sch. 1 and edit CCC "G" . See IRM 3.11.23.2.11, Amended Returns.

      Note:

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

    2. Taxpayer has checked the Electronic Federal Tax Payment System (EFTPS) box.

    3. There is an EFTPS receipt, confirmation number and/or other proof of payment attached indicating the tax has been paid.

    4. The return was taken from a folder with a batch sheet notated with a "$" or "610" .

    5. The return is part of a batch of work with the notation "LB" (for Lock Box) on the Transmittal Sheet. Also see table below.

    6. On Form 2290 there is a dollar amount in green along the top, or there is green dye on the upper left corner.

    7. There is any indication that the Form 2290 was received at an IRS Taxpayer Assistance Center (TAC), IRS Field Office, etc., and the tax has been paid in full.

      Exception:

      If there is an indication, such as "Copy of Sch. 1 to TP" notated on the remaining Schedule(s) 1 or elsewhere on the Form 2290, it is not necessary for Code & Edit to return a copy of the Schedule 1. In this instance a copy has already been provided to the taxpayer.

    8. Taxpayer has suspended the tax on vehicles (Category W) and no tax is due on them. If a taxpayer shows a category other than W and number of vehicles on Page 2, but does not show a tax and shows the same number of vehicles on Schedule 1, Part II b, as being tax suspended vehicles, cross (X) out the categories and move the number of vehicles to Category W.

    Note:

    If a taxpayer indicates he wants his Schedule 1 faxed, give to your lead to fax.

  3. When Form 2290 is received in Code & Edit:

    If Then
    Correspondence is being issued requiring a response, Do not date stamp and return Schedule 1 until the taxpayer responds with the requested information provided the tax has been paid in full. If there is no response to the correspondence then follow procedures in IRM 3.11.23.8.4, Processing No Reply Cases.
    Any of the conditions listed in (2) above apply, Date stamp and circle the number of VINs on Lines b and c, Part II, on both copies of the Schedule 1. Detach a copy and return it to the taxpayer.
    The second copy is not there, or not complete, and the Form 2290 or Schedule(s) 1 remaining does not contain a notation that a copy of the Schedule 1 has been provided to the taxpayer,
    1. Prepare a photocopy of the Schedule 1.

    2. Before returning Schedule 1 to the taxpayer, ensure that the name, complete address including ZIP Code, and EIN are all entered in the entity portion of the schedule.

    3. If all of the information in (2) above is not shown on the Schedule 1, then transfer the information from the return.

    Note:

    Do not return the Schedule 1 if there is an indication on the Form 2290 or on the remaining Schedule(s) 1 that a copy has already been provided to the taxpayer. This would be indicated with a note such as "Copy of Sch. 1 to TP" .

    The first Schedule 1 is missing,
    1. Enter the number of vehicles on the remaining Schedule 1 and circle.

    2. Compare the total number of taxable vehicles reported on Line c, Part II of the Schedule 1s with the number of taxable vehicles reported on the Totals Line in column 3, page 2 of Form 2290. Check to see if the categories agree. Do not correspond for a missing category if that is the only problem.

    3. Compare the total number of vehicles on which the tax is suspended on Line b, Part II of the Schedule 1s with the number of vehicles reported on Line W, column 3, page 2 of Form 2290. If the numbers do not agree, correct Line W, page 2 of Form 2290 to agree with the number of tax suspended vehicles reported on Schedule 1.

    The total number of vehicles reported on Form 2290, page 2, column 3 agrees with the Schedule 1, Part II, Lines b and c,
    1. Verify the number of VINs on both copies of Sch. 1, Lines b and c by circling them.

    2. Verify that the taxpayer has listed all VINs. Correspond for missing VINs if necessary.

      Note:

      Do not return Schedule 1 if correspondence requiring a response is needed.

    3. On the Schedule 1 being returned to the taxpayer, line out the lines where no VINs are present by drawing a slanted line from the first empty line through the last line. The number of vehicles on Line b and c may be shown using either alpha or numeric character(s). See Figure 3.11.23-30 and Figure 3.11.23-31.

    4. Date stamp both copies of Schedule 1.

    Note:

    Some taxpayers have to make a copy of Schedule 1; a clear, dark IRS received date stamp should be used.

    The total number of vehicles reported on Form 2290, page 2, column 3 does not agree with the Schedule 1, Part II, Lines b and c,
    1. Perfect both copies of Schedule 1, Part II, Lines b and c, if the taxpayer has not done so.

    2. Verify that the taxpayer has listed all VINs. Correspond for missing VINs if necessary.

      Note:

      Do not return Schedule 1 if correspondence requiring a response is needed.

    3. On the Schedule 1 being returned to the taxpayer, line out the lines where no VINs are present by drawing a slanted line from the first empty line through the last line. The number of vehicles on Lines b and c may be shown using either alpha or numeric character(s). See Figure 3.11.23-30 and Figure 3.11.23-31.

    4. Date stamp both copies of Schedule 1.

      Note:

      Some taxpayers have to make a copy of Schedule 1; a clear, dark IRS received date stamp should be used.

    The taxpayer reported taxable or suspended vehicles with the VINs on an attachment(s),
    1. Date stamp the Schedule 1 and attachment(s). Also, circle the number of vehicles on the first Schedule 1.

    2. If the number of vehicles is missing from the first Schedule 1, then enter the number and circle the entry.

    3. Return both the Schedule 1 and attachment to the taxpayer.

    4. Retain a copy of both the Schedule 1 and the attachment with the Form 2290.

    Note:

    On prior year returns compare the number of taxable vehicles on Line a and b of part III, Schedule 1 with the Totals Line of column 3 page 2 and/or Line W of column 3, page 2 respectively.

    Reminder:

    A copy of the Sch. 1 with the VINs or a copy of an attachment with the VINs should be retained with the filed Form 2290. However, if the Form 2290 was received through a field office, local office, etc., and a copy of the Sch. 1 has been provided to the taxpayer but the VINs aren't reflected on the Form 2290 being processed, it is not necessary to correspond for the VINs.

    1. Figure 3.11.23-30

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      Figure 3.11.23-31

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  4. Form 2290 processed and signed by IRS personnel under IRC 6020(b) will be treated as original taxpayer filed returns. Do not send Schedule 1 to the taxpayer.

  5. When verifying Schedule 1, be sure the taxpayer has used the correct revision of the Schedule. The tax period is shown directly below the title of the Schedule, and must say, "For the tax period July 1, 20xx (current year) through June 30, 20xx (next year)" .

    If Then
    The wrong version is received,
    1. Convert to the correct year revision. See IRM 3.11.23.17.10, Prior Year Returns.

    2. Date stamp both copies and return a complete, corrected version to the taxpayer, if payment was received.

    2010 revision and prior.
    The taxpayer has entered the same VINs in Part I and Part II of Schedule 1 and also on page 2 as suspended vehicles and there is no tax liability on the return,
    Cross out the VIN(s) in Part I and treat as suspended tax vehicles.
    2010 revision and prior.
    The taxpayer has entered the same VINs in Part I and Part II of Schedule 1 and there is a tax liability on the return,
    Prepare the Sch. 1 so that it matches the tax liability as reported and return Sch. 1 to the taxpayer if there is an indication the tax liability was paid.

    Note:

    In the instance when it cannot be determined what the taxpayer’s intent was, correspondence may be necessary.

    Form 2290 or Form 2290(SP) is received without Schedule 1 attached,
    1. Review page 1 or an attachment for suspended or taxable VINs.

    2. Prepare a dummy Schedule 1 if the VIN information is available on page 1.

    3. If the VINs information is not available on page 1, correspond with the taxpayer to complete Schedule 1. Advise the taxpayer that they must provide Schedule 1 as proof of payment before the State Motor Vehicle Department issues state registration tags.

    4. If no reply, continue processing.

    The proof of payment form, Schedule 1, is received without a Form 2290, Route to the Excise Operations with a Form 4227 notating "Loose Schedule 1 Rec'd" .
  6. Code & Edit will identify and research through IDRS all taxable, non-remit Form 2290s that have no indication of payment annotated on the return. If research indicates payment, Code & Edit will return the Schedule 1 to the taxpayer if the full amount of tax has been paid. Tax examiners must completely code the return before placing in the basket.

    Note:

    If the Taxpayer sends in full payment for Form 2290 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ of the amount due consider it full paid and send back the Schedule 1.

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

  1. The processing of Form 11-C is centralized at the Cincinnati Submission Processing Center (CSPC). All misdirected returns will be forwarded to CSPC for processing.

  2. Report processing time and volume under Organization Function Program (OFP) 12701 for Form 11-C.

  3. Anyone engaged in the business of receiving taxable wagers is required to file Form 11-C.

    1. This includes organizations that are otherwise exempt from tax under IRC 501 or IRC 521.

    2. Taxable wagers include bets placed on a sports event or contest, bets placed in a wagering pool with respect to a sports event or contest conducted for profit, and bets placed in a lottery conducted for profit (other than state conducted lottery).

  4. The dual purpose Form 11-C allows the taxpayer to:

    1. Report and pay the occupational tax, or

    2. Register certain information with the IRS before accepting taxable wagers.

  5. The return is filed and the tax is paid by both principal operators and by agents prior to conducting business. Each taxpayer indicates his or her status by checking the appropriate box in Part I, Line 3.

    1. A principal operator is a person who is in the business of accepting taxable wagers in his or her own behalf. This person is at risk for the profit or loss depending on the outcome of the event or contest for which the wager was accepted.

    2. An agent is any person who accepts wagers for the Principal Operator.

  6. The return must be filed before taxable wagers are accepted. The first return will cover the tax period from the start of the business until June 30 of the current year. For subsequent years, the form is due by July 1 as long as taxable wagers are accepted. See IRM 3.11.23.18.2, Due Dates, for further due date information.

    1. If the activity of accepting taxable wagers starts after July, the tax is prorated for the first year. The correct tax is computed by the computer.

    2. Under certain circumstances, a taxpayer must file a supplemental registration return and no tax is due. These include when there has been a change of address or a change of corporate name. See IRM 3.11.23.18.5, "Supplemental Registration Return" Filing Status, for additional circumstances.

    3. Under other circumstances, such as when a change in ownership has occurred, a taxpayer must file a first return and pay the appropriate tax for the new entity.

  7. There are two amounts of tax which apply to both principal operators and agents:

    1. $50 per year if taxable wagers are authorized under the laws of the state in which accepted.

    2. $500 per year for all other taxable wagers.

  8. Edit CCC 1 when the Renewal box is checked and the $50.00 category is paid rather than the $500.00 category. The lower amount is used for those wagers authorized by their respective states.

  9. Edit all fields on Form 11-C in dollars and cents.

  10. The valid Computer Condition Codes are D, F, G, O, R, U, W, X, 1, 3, and 4.

  11. Follow normal procedures for:

    • Edit Marks - IRM 3.11.23.3, Edit Marks

    • Unprocessable Returns - IRM 3.11.23.8, Unprocessable Returns

    • Signature - IRM 3.11.23.9, Signature

    • Third Party Designee - IRM 3.11.23.9.1.4, Third Party Designee

    • Entity Perfection - IRM 3.11.23.10, Entity Perfection

    • Entity Perfection of Domestic Addresses - IRM 3.11.23.10.5, Entity Perfection of Domestic Addresses

    • Entity Perfection of Foreign Addresses - IRM 3.11.23.10.6, Entity Perfection of Foreign Addresses

    • Entity Perfection of Tax Period - IRM 3.11.23.10.7.4, Entity Perfection of Tax Period

    • Received Date Editing - IRM 3.11.23.11, Received Date Editing

    • Computer Condition Codes - IRM 3.11.23.12, Computer Condition Codes

    • Amended Returns - IRM 3.11.23.2.11, Amended Returns

Taxable and Non-Taxable Wagers

  1. Only certain activities constitute wagers subject to tax. These include:

    1. Any wager with respect to a sports event or contest placed with a person who is in the business of accepting such wagers.

    2. Any wager placed in a wagering pool with respect to a sports event or contest, if the pool is conducted for profit. A wagering pool conducted for profit includes any scheme or method for the distribution of prizes to one or more winning bettors based upon the outcome of a sports event or contest, or a combination or series of events or contests, provided that the pool is managed or conducted for profit.

    3. Any wager placed in a lottery conducted for profit. The term lottery includes the numbers game, policy, punch boards, pull tabs, and similar types of wagers.

  2. Other activities are not wagers subject to tax if certain conditions are met:

    1. A drawing conducted by an organization exempt from tax under IRC 501 or IRC 521 is not taxable as long as no part of the net proceeds from the drawing inures to the benefit of any individual or shareholder.

    2. A game is not taxable if it is the type in which usually the wagers are placed, the winners are determined, and the prizes are distributed in the presence of all persons placing wagers in the game. These games generally include card games, roulette, dice games, bingo, keno, gambling wheels, and slot machines.

Due Dates

  1. A taxpayer who is liable for the occupational tax on wagering is required to file Form 11-C (First Return) before any taxable wagers are accepted. A first return is also required when there has been a change in ownership or control of a taxpayer that previously filed a Form 11-C. This return must be filed within 30 days of the change. See Figure 3.11.23-32

    Figure 3.11.23-32

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  2. For each following year in which taxable wagers are accepted, a taxpayer must file a renewal return by July 1. See Figure 3.11.23-33

    Figure 3.11.23-33

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  3. A taxpayer is required to file a "Supplemental Registration Return" under certain circumstances but no additional tax is due.

    1. When there has been a change of address, a Supplemental Registration Return must be filed before the earlier of the time a taxable wager is accepted at the new location or 30 days.

    2. When there has been the continuation of the business by the surviving spouse or child, executor, administrator or legal representative of a deceased person who paid the occupational tax, a Supplemental Registration Return must be filed within 30 days of the date of death. See Figure 3.11.23-34.

    3. When there is a continuation of the business by an assignee for the benefit of creditors or by the trustee or receiver in bankruptcy, a Supplemental Registration return must be filed within 30 days of the change.

    4. When there has been a change of corporate name or the withdrawal or death of a member of a firm or partnership, a Supplemental Registration Return must be filed within 30 days of the change.

    5. When a new agent is engaged, a Supplemental Registration Return must be filed within 10 days of the engagement.

    Figure 3.11.23-34

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Form 11-C - Tax Settlement and Editing Parts I, II, and III

  1. Use the following table to determine how to process a Form 11-C that indicates a liability of zero, not liable, exempt, or has no tax liability:

    If And Then
    Return is received with $0 (zero), no wagers, not liable, or none with no explanation of liability.

    Note:

    If return is received with "exempt," see below.

    • A signature on return or attachment,

    • The return includes the name of an association or organization (i.e., Veterans, Elks, Firemen), or a city, state or federal government, or

    • The wagering activity is represented as non-taxable. See IRM 3.11.23.20.1, Non-Taxable Returns Reflecting No Line Entries.

    1. Process return.

    2. Edit "Principal Operator/Agent" code "1" in margin to the right of Line 5.

    An unsigned return is received with $0 (zero), no wagers, not liable, or none and no explanation of liability.

    Note:

    If return is received with "exempt," see below.

     
    1. Prepare Form 3696 for Letter 228C to request the missing signature and an explanation for filing a no liability return.

    2. Edit the "Principal Operator/Agent" code to the right of Part II, Line 5 as follows:

      • If "Principal Operator" box is checked, or only Part II is completed, edit a "0" .

      • If the "Agent" box is checked, or neither box is checked, or only Part III is completed, edit a "1" .

    3. If no reply, edit CCC 3 and process return.

    Note:

    Do not edit CCC F on return.

    Return indicates an exempt status and/or contains an explanation of why the organization is exempt. the taxpayer indicates that it is an organization exempt from tax under IRC 501 or IRC 521, or
    the name of an association or organization (i.e., Veterans, Elks, Firemen) or a city, state or federal government is indicated, or
    Wagering activity is represented as non-taxable, (See IRM 3.11.23.20.1, Non-Taxable Returns Reflecting No Line Entries),
    1. If signature is present on return or attachments edit the "Principal Operator/Agent" code to the right of Part II, Line 5 as follows and process the return:

      • If "Principal Operator" box is checked, or only Part II is completed, edit a "0" .

      • If the "Agent" box is checked, or neither box is checked, or only Part III is completed, edit a "1" .

    2. If signature is not present on return or attachment prepare Form 3696 for 228C Letter to request the signature.

      • If reply, edit the return as in c1 above and process return.

      • If no reply, edit the return as in c1 above, and edit CCC 3, process the return

    Note:

    Do not edit CCC F.

  2. If the return shows a tax liability, and the first return or supplemental registration return filing status box is marked on the return, or if Part II, III, or IV have been completed on the return, use the procedures contained in IRM 3.11.23.18.4, "First Return" Filing Status, through IRM 3.11.23.18.5.1, Change in Control.

"First Return" Filing Status

  1. A First Return is required if:

    1. A new business is formed

    2. A corporate business is continued by a stockholder after the business is dissolved

    3. A corporation is formed to continue the business of a partnership

    4. A person, with no previous history as an agent becomes one

  2. When the Form 11-C indicates any of the conditions above, process the return as follows:

    If Then
    Unnumbered or numbered.
    1. Assume the EIN belongs to a new taxpayer. DO NOT ROUTE TO ENTITY CONTROL.

    2. Review the return for a Start Date (SD). Check in Part IV, Line 7, or on an attachment. If start date cannot be determined, correspond.

    3. Edit the day the taxpayer entered into business under the new ownership in a two digit format (01-31) on the return under the words, "Return For Period From..." .

    4. Edit the Nature of Change Indicator (NCI) of "2" to the left of the words "Check One" . The NCI is required whenever the SD has been edited.

    5. Also edit to the right of Part II, Line 5, as follows:
      * If "Principal Operator" box is checked, or only Part II is completed, edit a "0" .
      * If the" Agent" box is checked, or neither box is checked, or only Part III is completed, edit a "1" .

"Supplemental Registration Return" Filing Status

  1. A taxpayer can file a supplemental return by:

    1. Checking the "Supplemental Registration Return" box on the return, or

    2. Writing an explanation on part IV, Line 7, or

    3. Attaching a written explanation or letter. See Figure 3.11.23-35.

    Figure 3.11.23-35

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  2. A supplemental registration return should be filed if:

    1. There is a change in the business or home address by the principal operator or agent. This includes when the principal operator engages a new agent to receive taxable wagers. A supplemental return is filed by the principal operator to report the new name, address, and EIN of the new agent. Additionally, the agent must also file a supplemental (or first) return to report the name, address, and EIN of the new principal operator.

    2. The business is continued by the surviving spouse, executor, administrator or legal representative of a deceased person who paid the occupational tax.

    3. The business is continued by a receiver or trustee in bankruptcy,

    4. The business is continued by an assignee on behalf of a creditor,

    5. One or more members withdraws from a firm or partnership, including by the death of a member.

    6. The corporation name is changed.

  3. When a Form 11-C indicates a filing status of Supplemental Registration Return:

    If And Then
    Return is numbered or unnumbered, There is no indication of a reason for filing, (i.e., Part II or III is completed, or Part II, III, and IV are blank.)
    1. Edit "0" to the right of Part II, Line 5.

    2. Review the return for a signature.
      If signed, continue to process.
      If not, prepare Form 3696 for 228C letter to request signature.

    3. If reply, process return.
      If no reply, edit CCC 3 and process.

    Return is unnumbered, It is being filed to add or drop agents, (i.e., check for an explanation in Part IV, Line 7, or on a written attachment) Route return to the Excise Operations using local procedures. DO NOT EDIT RETURN.
    Return is unnumbered, It is being filed to change ownership (i.e., check for an explanation in Part IV, Line 7, or on a written attachment). Process the return using procedures in IRM 3.11.23.18.4, First Return Filing Status.
    Return is unnumbered, It is being filed due to a change in the control of a registered taxpayer Process the return using procedures in IRM 3.11.23.18.5.1, Change of Control.
    Return is numbered, It is being filed to add or drop agents, (i.e., check for an explanation in Part IV, Line 7, or on a written attachment) Edit a CCC "G" on the return and continue to process. See IRM 3.11.23.2.11, Amended Returns.
    Return is numbered, It is being filed to change ownership (i.e., check for an explanation in Part IV, Line 7, or on a written attachment). Process the return using procedures in IRM 3.11.23.18.4, First Return Filing Status.
    Return is numbered, It is being filed due to a change in the control of a registered taxpayer Process the return using procedures in IRM 3.11.23.18.5.1, Change in Control.
Change in Control
  1. The taxpayer must notify us of a Change in Control within 30 days by filing a Supplemental Registration Return.

  2. When the taxpayer indicates a change in control, take the following actions:

    1. Route the return to Entity Control.

      Note:

      On numbered returns edit CCC "U" and use Form 4227.

    2. After the return is received from Entity Control, edit CCC "G" and continue to process. See IRM 3.11.23.2.11, Amended Returns.

    Note:

    If taxpayer indicates a change in the location of the business in Part IV, Line 7, also refer this return to Entity Control.

Form 730, Monthly Tax Return for Wagers

  1. The processing of Form 730 is centralized at the Cincinnati Submission Processing Center (CSPC). All misdirected returns will be forwarded to CSPC for processing.

  2. Document Perfection should report processing time and volume under Program Code 12702 for Form 730.

  3. Any person engaged in the business of accepting taxable wagers is liable for the tax and must file this monthly form. This person is called a Principal Operator. See IRM 3.11.23.18, Form 11-C, Occupational Tax and Registration Return for Wagering.

  4. Similarly, any person required to register on Form 11-C who receives taxable wagers without having properly registered is liable for the wagering tax and must file Form 730.

  5. Prior to conducting any type of wagering activity, a Form 11-C must be filed and then renewed each year a person accepts taxable wagers. See IRM 3.11.23.18, Form 11-C, Occupational Tax and Registration Return for Wagering for Form 11-C details.

  6. The monthly Form 730 is due on or before the last day of the month following the month in which the taxable wagers are received. However, if it is determined that the collection of the tax is in jeopardy, the immediate filing of the return and payment of the tax may be required.

    Note:

    Principal operators will file Form 730 whether or not they have taxable wagers to report. Some returns will have "None" or zero on them when no taxable wagers are received that month.

  7. Laid off wagers are wagers given to another person in the business of accepting taxable wagers when the number of wagers made or the dollar amount wagered exceeds the risk the principal operator is willing to handle.

    1. If a laid off wager is accepted from another taxpayer and the amount must be reported by both the principal operator and the person who receives the laid off wager.

    2. A credit may be claimed for the tax paid or due on a wager laid off with another taxpayer who is liable for the tax on that wager. A statement fully explaining the claim for credit must be attached to the return along with the information listed below.

    3. A credit may also be claimed for an overpayment on a previously filed return and must be substantiated by a full explanation and information required by the regulations.

  8. No credit is allowed for a laid off wager unless the following information is attached to the return:

    1. The certificate described in IRC 44.6419–2(d) of the regulations. See Figure 3.11.23-36.

    2. A statement giving the reason for the credit, the month in which the tax was paid, the date of the payment, whether any previous claim covering the amount involved, or any part, has been filed.

    Figure 3.11.23-36

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  9. The tax rate is .0025 for taxable wagers authorized under the laws of the state in which accepted, (Line 4a). For all other taxable wagers, the tax rate is .02 (Line 4b).

  10. The valid CCCs on Form 730 are D, F, G, O, R, U, W, X, 3, and 4.

  11. Follow normal procedures for:

    • Edit Marks - IRM 3.11.23.3, Edit Marks

    • Unprocessable Returns - IRM 3.11.23.8, Unprocessable Returns

    • Signature - IRM 3.11.23.9, Signature

    • Third Party Designee - IRM 3.11.23.9.1.4, Third Party Designee

    • Entity Perfection - IRM 3.11.23.10, Entity Perfection

    • Entity Perfection of Domestic Addresses - IRM 3.11.23.10.5, Entity Perfection of Domestic Addresses

    • Entity Perfection of Foreign Addresses - IRM 3.11.23.10.6, Entity Perfection of Foreign Addresses

    • Entity Perfection of Tax Period - IRM 3.11.23.10.7.4, Entity Perfection of Tax Period

    • Received Date Editing - IRM 3.11.23.11, Received Date Editing

    • Computer Condition Codes - IRM 3.11.23.12, Computer Condition Codes

    • Amended Returns - IRM 3.11.23.2.11, Amended Returns

Editing Tax Data

  1. Examine Lines 1 through 6 for taxpayer entries:

    Note:

    The amount of wagers (Lines 4a and 4b) are now T-lines and will be used in the computation of tax. One or both must have entries if the return has tax entries.

    Reminder:

    It may be necessary to "perfect" Line 4c in order to determine subsequent lines on the Form 730.

    If Then
    If the dotted portion (Rev. 1-2003) or boxes (earlier revisions) of Lines 4a and 4b (in the middle of the page) are blank and there is an amount on Line 3, Edit (or double arrow) the Line 3 amount to Line 4a and/or 4b, whichever is appropriate.
    If the dotted portion or boxes of Lines 4a and 4b (in the middle of the page) are blank and there is an amount on Lines 4a and/or 4b (on the right side of the page)
    1. If it is the tax amount divide any tax amount reported on Line 4a by .0025 and enter the result on the dotted portion of Line 4a (in the middle of the page). Likewise divide any tax amount reported on Line 4b by .02 and enter the result on the dotted portion of Line 4b.

    2. If it is the amount of wagers arrow to the dotted portion of 4a and/or 4b.

    If there is an amount reported on the dotted portion of Line 4a and/or 4b and no amount reported on Line 1
    1. If there is only an amount reported on the dotted portion of Line 4a or 4b, double arrow that amount up to Line 1.

    2. If there are amounts reported on Lines 4a and 4b add the amounts together and enter the result on Line 1.

    There are no entries on the return and return is without remittance Edit Line 6 with "0" and continue to process.
    There is an entry on Line 3, but no entry on Line 1 or 2, Edit or arrow the Line 3 amount to Line 1.
    Tax is entered on Line 4a or 4b, but Lines 5 and 6 are blank, Edit the total of Line 4a and 4b to Line 6.
    Either Line 4a or 4b, and 5 are entered, but Line 6 is blank Subtract Line 5 from Line 4a (tax) and/or 4b (tax) and enter the result on Line 6.
    Either Line 4a or 5 are entered, but Line 6 is blank, Subtract Line 5 from 4c, and edit the result on Line 6.
    Line 4c is entered, but Lines 4a, 4b, 5 and 6 are all blank, If you are unable to determine the correct entries for Lines 1, 4a and/or 4b, and 6, correspond for the missing information.
    Lines 4a and 4b are entered, and Line 5 may be blank, Total Lines 4a and 4b.
    If an entry appears on Line 5, subtract Line 5 from total of Lines 4a and 4b and edit the result on Line 6.
    Otherwise, edit Line 6 with total of Lines 4a and 4b.
    There is an entry on Lines 1 and 6, but Lines 2 through 5 are blank, Correspond for the missing entries unless Line 1 times .0025 or .02 equals Line 6. If it does, put Line 1 in the appropriate line (Line 4a or 4b).

    Line 5 Credits - All adjustments or credits entered by the taxpayer on Line 5 of the return must be supported by data on the return or by an attachment to the return.

    If Then
    The taxpayer has an entry on Line 5, but does not include an explanation,
    1. Correspond with the taxpayer for the required statements using the 228C Letter.

    2. If no reply, disallow (X) the Line 5 entry. Add Line 5 entry amount to Line 6 and enter results on Line 6.

    3. Continue to process.

    The amount on Line 5 exceeds the amount on Line 4c and there is no Form 8849 attached,
    1. Reduce Line 5 to the amount on Line 4c.

    2. Continue processing the Form 730.

    The amount on Line 5 exceeds the amount on Line 4c and there is a Form 8849 attached,
    1. Reduce Line 5 to the amount on Line 4c.

    2. Photocopy the Form 8849 and Form 730.

    3. Attach the photocopy of the Form 8849 to the original Form 730.

    4. Write "Copy" on the photocopy of the Form 730. attach the original Form 8849 and forward them to the Centralized Excise Operation Stop 5701G.

    5. Continue processing the original Form 730.

    There is an entry on Line 6, but no entries on Lines 1 through 5, Correspond for the missing entries.

Multiple Period Returns (Form 11-C, Form 720, Form 730, and Form 2290)

  1. Each return should contain the tax liability for only one tax period. If a taxpayer has reported more than one tax period on a single return, and the information necessary to prepare the additional period returns is present, process as follows:

    Exception:

    For all Form 2290 filers, correspond and request the taxpayer complete the additional Form 2290 and Schedule 1.

    If Then
    The original return is numbered,
    1. For Form 11-C and Form 730 - Edit CCC "U" and route to Rejects using Form 4227. See Figure 3.11.23-37.

    2. For Form 720 - Edit with Action Code 611 if no remittance, or Action Code 610 if with remittance and route to Rejects using Form 4227.

    The return is unnumbered,
    1. For Form 720, Form 11-C and Form 730 - Reduce the total tax liability on the multiple period return to the amount the taxpayer allotted for the most recent period.

    2. Edit the return with that tax period.

    3. Notate “Dummy Return Prep” in the action trail of all returns.

    4. Prepare a separate dummy return for each of the other tax periods. See Figure 3.11.23-38 and Figure 3.11.23-39.

    Figure 3.11.23-37

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    Figure 3.11.23-38

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    Figure 3.11.23-39

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    Please click here for the text description of the image.

  2. When information is not present for all tax periods:

    If Then
    Numbered Form 720 and Form 2290 (see exception below for Form 2290), Edit AC 211 and correspond.
    Numbered Form 11-C and Form 730, Edit CCC "U" and correspond.
    Unnumbered Form 720, Form 11-C, Form 730, or Form 2290, (see exception below for Form 2290), Prepare correspondence.
    If taxpayer replies, follow the processing procedures for determining the tax period found in IRM 3.11.23.10.7, Entity Perfection of Tax Period, for the particular form.
    If taxpayer does not reply, edit CCC 3. If the return is also overpaid, edit the return with CCC X.

    Note: Do not correspond if a Form 720 return is marked, "Annual" or "One-Time Filer" . These are not Multiple Period returns.

    Exception:

    When the taxpayer enters on Form 2290 two tax periods in the "Month Box" (Line 1) and computes tax for only one of the periods edit the tax period on the return that corresponds to the amount of tax computed and continue processing the return.

Non-Taxable Returns Reflecting No Line Entries

  1. Process a non-taxable return showing no line entries based on the procedures below.

    If the signed return is And Then
    Form 730 or Form 11-C
    • Shows, "No Liability" ,

    • Taxpayer writes "None" ,

    • Shows "0" , or "Zero" ,

    Process as a non-taxable return. Do not enter CCC F unless the taxpayer writes "FINAL" or indicates it in writing.
    Form 2290 or Form 2290(SP)
    • Shows, "No Liability" ,

    • Taxpayer writes "None" ,

    • Taxpayer checks "Final" box.

    Edit the return with CCC F. Otherwise, process as non-taxable.
    Form 720
    • Shows, "Not Liable" ,

    • Taxpayer writes "No Longer in Business" ,

    • Taxpayer checks either "Final" or "One-Time Filing" box.

    Edit the return with Computer Condition Code F. Otherwise, process as non-taxable.
  2. If a return is unsigned and contains no other entries or attachments, correspond for a completed return.

International Returns

  1. If the return (e.g., Form 11-C, Form 720, Form 730, Form 2290, or Form 2290(SP)) lists an address outside of the 50 states and the District of Columbia (including APO, DPO, or FPO addresses and addresses in Canada and Mexico), follow normal processing procedures. Entity perfection procedures for International returns are shown in IRM 3.11.23.10.6, Entity Perfection of Foreign Address. These returns are processed with domestic returns at Cincinnati Submission Processing Center.

♦ Compliance Secured Returns/Prepared Returns ♦

  1. Compliance functions (Collections and Examination) secure returns from the taxpayer and also prepare returns if the taxpayer does not provide them.

    1. Prepared tax returns are notated with "6020(b)" or "SFR" (Substitute for Return).

    2. Secured tax returns are notated with "TC 59X" or "ICS" (Integrated Collection System) or notated "Process as Original" with an attached Form 13133, Expedite Processing Cycle. The "Delinquent Return" box on Form 13133 should be checked.

    Note:

    If "RD" (Return Delinquency) is notated on the front of the return and not circled, remove from the batch and route to Collections.

♦ IRC 6020(b) Prepared by Collections ♦

  1. When the taxpayer fails to file a required return IRC 6020(b) of the Internal Revenue Code is the authority for the IRS to prepare the return.

    Note:

    For Form 2290 do not send the Schedule 1 to the taxpayer.

  2. These are identified by the notation: "PREPARED AND SIGNED UNDER AUTHORITY OF IRC 6020(B) of the Internal Revenue Code" which is located in the center bottom of Page 1.

    Caution:

    The IRC 6020(b) notation may appear elsewhere on the return.

    1. Returns must have a Received Date. If no Received Date is present per the Compliance Function, follow the normal procedures for editing the Received Date.

    2. Returns must be signed by Compliance Function. If not signed, route to the Planning and Analysis analyst (responsible for Code & Edit) for routing to the National Office, Field Compliance analyst. Edit CCC "W" if the return has been cleared by Statute Control Unit. Statute will stamp or indicate clearance on the front of the return.

    3. Edit CCC "4" .

      Note:

      CCC "R" should not be used with CCC "4" .

    4. Edit CCC "D" if the Revenue Officer notates: "DO NOT ASSESS FAILURE TO PAY PENALTY."

    5. Do not send the return back or correspond with the taxpayer for unprocessable conditions. If the return contains unprocessable conditions, edit CCC "3" and continue processing.

    6. Edit CCC "W" if the received date is more than 2 years 9 months after the return due date. Do not send the return to Statute Control.

♦ Collection Secured ♦

  1. These returns are identified by the notations: "TC 59X" or "ICS" .

    1. Do not edit CCC "G" on these returns.

    2. Correspond for conditions that cannot be processed (e.g., missing signatures, missing schedules, etc.).

    3. Edit CCC "W" if the received date is more than 2 years 9 months after the Return Due Date. Do not send to Statute Control function.

    Reminder:

    If there is indication a penalty or penalties should be suppressed, edit the appropriate Computer Condition Code(s). Please refer to IRM 3.11.23.12, Computer Condition Codes, for additional information.

♦ Examination Prepared ♦

  1. These returns are identified by the notation "SECURED RETURN" or "SUBSTITUTE RETURN" on Page 1 or by the X in the Substitute for Return box on Form 13133 and the notation Exam-SFR or Exam-Substitute for Return across the top margin of the return.

    1. Return must have a Received Date. If no Received Date is present, follow the normal procedures for editing the Received Date.

    2. Do not send back or correspond with the taxpayer for unprocessable conditions. If the return is completely unprocessable, use "No Reply" procedures.

    3. If Form 13133 is attached, edit the computer condition codes that are checked on the form.

    4. Edit CCC "W" if the received date is more than 2 years 9 months after the Return Due Date. Do not send to Statute Control Function.

♦ Examination Secured ♦

  1. These returns are identified by the notation "Process as original" or "Delinquent return Secured by Examination-Process as Original" on page 1 of the return and a Form 13133 attached with the "Delinquent Return" box checked.

    1. Do not edit CCC "G" on these returns.

    2. Correspond for conditions that cannot be processed (e.g., missing signatures, missing schedules, etc.).

    3. On the attached Form 13133, review the "Hold Credits on Module - Generate TC 570" box to determine if the return should be edited with CCC "X" . Also on Form 13133, review the Penalties box to determine if the taxpayer has been granted Reasonable Cause for Failure to File (FTF) and/or Failure to Pay (FTP) penalty. When the taxpayer has been granted a waiver, the Penalties box will indicate "R/C-FTF" and/or "R/C"

    4. Edit CCC "W" if the received date is more than 2 years 9 months after the Return Due Date. Do not send to Statute Control function.

      Reminder:

      If Form 13133 (or something similar) indicates a penalty or penalties should be suppressed, edit the appropriate Computer Condition Code(s). Please refer to IRM 3.11.23.12, Computer Condition Codes, for additional information.

♦ Re-Entry Document Procedures ♦

  1. A return posted to the wrong account or module (or attempting to post) must be reprocessed to post to the proper account or module.

  2. Some re-entry returns may have originally been filed electronically (E-file). These returns may be identified by the presence of Mod E-file printouts in lieu of an actual return. Do not correspond for missing signatures on these documents.

  3. Each re-entry return must have Form 3893, Re-entry Document Control or Form 13596, Reprocessing Returns attached.

    • Form 3893 is used to re-input documents

    • Form 13596 is used to reprocess documents

  4. Always leave Form 3893 or Form 13596 on the front of the return. It must remain as a permanent part of the document.

  5. Examine Form 3893 and/or Form 13596 to determine the action needed to make the return processable.

    Exception:

    If the return is more than 2 years and 9 months from the return due date, do not use Form 3893 or Form 13596 reprocessing procedures. Route the return to the Statute Control Unit following statute procedures.

    If Then
    Form 3893 or Form 13596 is missing,
    1. Edit AC 640 or CCC U (Form 11-C and Form 730).

    2. Route to Receipt and Control using Form 4227.

    3. Leave the return in the batch.

    Form 3893 or Form 13596 is attached,
    1. Determine if the return was edited according to current processing instructions.

♦ Form 3893, Re-entry Document Control

  1. Form 3893, Re-entry Document Control, is used to re-input a return that has not posted to an account or module.

  2. If more than one return is in the batch and only the top Form 3893 has an entry in Box 1 (Alpha/Numeric block control no.), edit all returns using current processing instructions and keep all returns clipped together.

  3. Circle CCC "G" if present.

  4. Do not edit CCC "G" on amended returns.

  5. Do not send Letter 1382C if a request for reasonable cause is attached.

  6. If the return was not edited according to current processing instruction, circle out any action codes, Computer Condition Codes and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.

  7. If the return was edited according to current processing instruction, ensure that the information from Form 3893 is edited on the return.

    Form 3893 Action Taken
    Box 14 (Remarks) Ensure that the information is edited to the return.
    Box 15 (Process as)
    1. Circle out the green rocker and any other marks that may indicate a receipt of remittance.

    2. Do not change any tax due amounts.

  8. Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

    If Then
    Improper perfection, Edit the same correction in red to the appropriate area.
    Taxpayer error, Leave the entries as shown on the document.
  9. A received date must be present on all re-input returns.

    If Then
    Received date is not present, Edit a received date to the middle of the return.
    Multiple received dates are present, Circle out all but the earliest date.
  10. When additional information is still needed to make the return processable, prepare Form 3696 (or other approved Correspondence Action Sheet) or Form 4227 for the appropriate action (e.g., correspondence, research, etc.).

  11. When perfection is not possible, edit Action Code 640 on the return and attach Form 4227 noting, "PERFECTION NOT POSSIBLE" and return to initiator.

♦ Form 13596, Reprocessing Returns

  1. Form 13596, Reprocessing Returns, is used to reprocess a return to the correct account or module that had previously posted to the wrong account or module.

  2. Circle CCC "G" if present.

  3. Do not edit CCC "G" on amended returns.

  4. Do not send Letter 1382C if a request for reasonable cause is attached.

  5. If the return was not edited according to current processing instruction, circle out any action codes, Computer Condition Codes (including CCC "G" ) and any other edit marks that are no longer applicable. Re-edit according to current processing instructions.

  6. If the return was edited according to current processing instruction, ensure that the information from Form 13596 is edited on the return.

    Form 13596 Action Taken
    TIN correction, Edit correct TIN on return.
    Tax period correction, Edit correct tax period on the return.
    Reasonable Cause, Edit appropriate Computer Condition Code.
    1. Edit CCC "R" if the "FTF" box is checked.

    2. Edit CCC "D" if the "FTP" box is checked.

  7. Examine returns that have any color other than red editing in the tax data section to determine if the corrections are the result of improper perfection or taxpayer error.

    If Then
    Improper perfection, Edit the same correction in red to the appropriate area.
    Taxpayer error, Leave the entries as shown on the document.
  8. A received date must be present on all reprocessed returns.

    If Then
    Received date is not present, Edit a received date to the middle of the return.
    Multiple received dates are present, Circle out all but the earliest date.
  9. Circle out the green rocker and any other marks that may indicate a receipt of remittance.

  10. When perfecting a reprocessable return do not suspend processing to verify payment application as the originating function should have already made the necessary corrections.

    If And Then
    The reprocessable return is a Form 2290, Schedule 1 is attached, Issue a date stamped Schedule 1 on a revision corresponding to the tax period for which the return is intended. This action is not necessary if the originating function has indicated Schedule 1 has been issued.
    The reprocessable return is a Form 2290, Schedule 1 is not attached,
    1. Correspond for the missing Schedule 1 except in the following instances:

      • The return is a "dummy" return

      • The return is a secured return as identified in IRM 3.11.23.22, Secured Returns/Prepared Returns.

    2. If the reply includes the Schedule 1 as requested, date stamp a copy on the correct revision and return to the taxpayer.

    3. If no reply is received continue processing following procedures in IRM 3.11.23.8.4, Processing No Reply Cases.

Prior Year (Quarter) Return Revisions

  1. The return format changes often, usually as a result of legislation affecting excise taxes.

  2. If the taxpayer files a prior year (quarter) return as a current year (quarter) return, or a return which varies from the current year (quarter) return (i.e., different line numbers, abstract numbers, etc.), edit the return using one of the following methods:

    Note:

    Local management will determine the method to be used.

    1. Edit all transcription entries onto the current year (quarter) revision.

    2. Edit the current form line numbers onto the taxpayer’s return. This would require DIS/ISRP concurrence.

    Note:

    If using the (2)b. method for Form 720, Lines 3, 4, and 8 are the same. You will need to renumber 10 as 9 and 11 as 10.

Prompt, Quick and Jeopardy Assessments

  1. Returns requiring prompt, quick, jeopardy, or termination assessments will be received in Document Perfection accompanied by one of the following forms:

    1. Form 2644, Recommendation for Jeopardy/Termination Assessment

    2. Form 2859, Request for Quick or Prompt Assessment

    3. Form 895, Notice of Statute Expiration

    4. Form 3198, Special Handling Notice for Examination Case Processing

    5. Form 5403, Appeals Closing Record

  2. Math verify these returns (or route to the proper function for this action). A 100 percent review is required.

    1. If a math error is found, flag the return with a note labeled, "Math Error" . When these returns are returned to the Accounting Branch, an adjustment will be requested. For more details, see the instructions in IRM 3.11.25, Miscellaneous Tax Returns.

  3. If Form 2859 is attached to the return and there is a TC 59X with no received date, edit the received date on the return from the "Date of Request" box on the Form 2859.

Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trust

  1. The excise tax is computed on Form 8612 and is due and payable by March 15th of each year following the year to which the liability applies. The MFT is 89, Tax Class is 6 and the Document Code is 21.

  2. Real Estate Investment Trusts are required by law to distribute a certain percentage of their distributable income to their shareholders. The excise tax rate is 4 percent of the undistributed amount assessed.

  3. The required distribution amount is computed and reported on Line 4 of the forms. If Line 4 is a zero or negative amount, there is no required distribution and no excise tax. Taxpayer is not required to file the form. However, if the taxpayer does file a return, process as a zero liability return.

  4. The actual distribution amount is computed and reported on Line 8 of the forms.

    If Then
    Line 8 is less than Line 4, The difference is shown on Line 9 as a positive figure. This positive figure is multiplied by 4 percent to arrive at the excise tax which is reported on Line 10.
    Line 9 is zero or a negative figure, There is no tax.
    The taxpayer has entered a negative figure on Line 9, Change Lines 9, 10, and 12 to zeros.
    The taxpayer has used Form 7004 to get an extension of time to file, There will be an amount on Line 11.
    The Line 10 amount is positive, The tax due (Line 12) will be reduced. If it is a zero or negative the Line 11 amount should be carried down to Line 13 to be refunded.

Amended Returns - Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trust, Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies

  1. Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

    1. Prepare Form 4227 and route all amended Form 8612 and Form 8613 to the Accounts Management function at Stop 6111G, Team C103.

  2. The instructions contained in IRM 3.11.23.26, Form 8612, Return of Excise Tax on Undistributed Income of Real Estate Investment Trust, and IRM 3.11.23.27, Form 8613, Return of Excise Tax on Undistributed Income of Regulated Investment Companies, apply to Form 8612 and Form 8613.

Tax Period - Form 8612

  1. The taxpayer enters the tax year at the top of the form under the title. Edit this tax period in YYMM format to the left of the OMB Number.

  2. If the tax period is blank, edit the tax period by checking elsewhere on the form. Check the signature date and, if no signature date, use current processing year.

Math Verification and Processing - Form 8612

  1. To math verify the form, use the following:

    1. Line 1b is 85 percent of Line 1a

    2. Line 2b is 95 percent of Line 2a

    3. Line 3c is Line 3a less Line 3b

    4. If Line(s) 1b, 2b, 3c, or 4 is wrong, change Lines 4, 9, 10, and 12 or 13

    5. Line 7c is Line 7a less Line 7b

    6. Line 8 is the total of Lines 5, 6, and 7c

    7. Line 9 is Line 4 less Line 8. For negative amounts enter zero

    8. If Line(s) 7c, 8 or 9 is wrong, change Lines 9, 10, and 12 or 13

    9. Line 10 is 4 percent of Line 9

    10. Line 12 is Line 10 less Line 11

    11. Line 13 is Line 11 less Line 10

    12. If Line 10 is wrong, change Line 12 or 13 as applicable

      Note:

      Due to rounding do not make changes to any line for $1 or less.

  2. If Line 12 or 13 is changed, correspond with the taxpayer using Letter 3024C to advise that the change was made and the reason for the change.

  3. If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance Due, cross (X) the amount on the wrong line and edit the new amount on the appropriate line.

  4. When the above coding and editing has been completed, forward the edited return(s) to the Non-Master File section.

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

  1. Regulated investment companies are required by law to distribute a certain percentage of their distributable income to their shareholders. On any undistributed income, the regulated investment company must pay an excise tax.

  2. The tax is computed on Form 8613 and is due and payable by March 15th of each year following the year to which the liability applies. The excise tax rate is 4 percent of the undistributed income. The MFT is 14, Tax Class is 6 and the Document Code is 22.

Tax Period - Form 8613

  1. The taxpayer enters the tax year at the top of the form under the title. Edit this tax period in "YYMM" format to the left of the OMB Number.

  2. If the tax period is blank, determine and enter the tax period by checking elsewhere on the form.

Math Verification and Processing - Form 8613

  1. To math verify the form, use the following:

    1. Line 1b is 98 percent of Line 1a

    2. Line 2b is 98.2 percent of Line 2a

    3. Line 3c is Line 3a less Line 3b

    4. If Line(s) 1b, 2b, 3c, or 4 is wrong, change Lines 4, 9, 10, and 12 or 13

    5. Line 7c is Line 7a less Line 7b

    6. Line 8 is the total of Lines 5, 6, and 7c

    7. Line 9 is Line 4 less Line 8. For negative amounts enter zero

    8. If Line(s) 7c, 8 or 9 is wrong, change Lines 9, 10, and 12 or 13

    9. Line 10 is 4 percent of Line 9

    10. Line 12 is Line 10 less Line 11

    11. Line 13 is Line 11 less Line 10

    12. If Line 10 is wrong, change Line 12 or 13 as applicable

      Note:

      Due to rounding do not make changes to any line for $1 or less.

  2. If Line 12 or 13 is changed, correspond with the taxpayer using Letter 3024C to advise that the change was made and the reason for the change.

  3. If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance due, cross (X) out the amount on the wrong line and edit the new amount on the appropriate line.

  4. When the above coding and editing has been completed, forward the edited return(s) to the Non-Master File section.

Form 8725, Excise Tax on Greenmail

  1. Form 8725, Excise Tax on Greenmail, is used to report the 50 percent excise tax on greenmail. Greenmail is any payment made by a corporation to directly or indirectly acquire its stock from a shareholder involved in a takeover effort. The MFT is 27, Tax Class is 6 and the Document Code is 21.

Amended Returns - Form 8725

  1. Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

    1. Prepare Form 4227 and route all amended Form 8725 to the Accounts Management function at Stop 6111G, Team C103.

Tax Period - Form 8725

  1. The tax period is determined by the receipt of the first payment from the corporation. This date will appear on the line immediately below the form number. Edit this date in "YYMM" format to the left of the OMB Number and Expiration Date.

Received Date - Form 8725

  1. The return is due and the tax must be paid on or before the 90th day following the initial receipt of greenmail (as shown by the date on the return). See IRM 3.11.23.11, Received Date Editing for instructions.

Math Verification and Processing - Form 8725

  1. Math verify the return as follows:

    1. Line 2g is the total of the amounts in column 2(c)

    2. Line 3 is Line 1 less Line 2g

    3. If Line 2g is wrong, change Lines 3, 5, 6 and 8 or 9 (if applicable)

    4. Line 6 is 50 percent of Line 5

    5. If Line 6 is wrong, change Line 8 or 9 as applicable

    6. Line 8 is Line 6 less Line 7

    7. Line 9 is Line 7 less Line 6 (if Line 7 is larger than Line 6)

      Note:

      Due to rounding do not make changes to any line for $1 or less.

  2. If Line 8 or 9 is changed, correspond with the taxpayer using Letter 3024C to advise that the change was made and the reason for the change.

  3. If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance Due, cross (X) the amount on the wrong line and edit the new amount on the appropriate line.

  4. When the above coding and editing has been completed, forward the edited return(s) to the Non-Master File section.

Form 8876, Excise Tax on Structured Settlement Factoring Transactions

  1. Form 8876, Excise Tax on Structured Settlement Factoring Transactions, is used to report and pay an excise tax equal to 40 percent of the factoring discount imposed under IRC 5891. The excise tax is figured on the excess of the aggregate undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. The MFT is 27, Tax Class is 6 and the Document Code is 21.

Amended Returns - Form 8876

  1. Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

    1. Prepare Form 4227 and route all amended Form 8876 to the Accounts Management function at Stop 6111G, Team C103.

Tax Period - Form 8876

  1. The Tax Period is determined by the receipt of the structured settlement payment rights. The date will appear on the line immediately below the form number. Edit this date in "YYMM" format to the left of the OMB number and Expiration Date.

Received Date - Form 8876

  1. The Form 8876 is due by the 90th day following receipt of structured settlement payment rights. See IRM 3.11.23.11, Received Date Editing, for procedures.

Math Verification and Processing - Form 8876

  1. Math verify the return as follows:

    1. Line 3 is Line 1 minus Line 2

    2. Line 4 is 40 percent of Line 3

    3. If Line 4 is wrong, change Line 6 or 7 as applicable

    4. Line 6 is Line 4 less Line 5

    5. Line 7 is Line 5 less Line 4 (if Line 5 is greater than Line 4.)

      Note:

      Due to rounding do not make changes to any line for $1 or less.

  2. If Line 6 or 7 is changed, correspond with the taxpayer using Letter 3024C to advise that a change was made and the reason for the change.

  3. If any change causes a change from Balance Due to an Overpayment, or from an Overpayment to a Balance Due, cross out "X" the amount on the wrong line and edit the new amount on the appropriate line.

  4. When the above coding and editing has been completed, forward the edited return(s) to the Non-Master File section.

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

  1. The tax relief and Health Care Act of 2006 (PL 109-432), IRC 403, enacted a new Form 8924 for the computation and reporting of the excise tax due on the transfer of certain geothermal or mineral interests by an eligible entity. The return is due by the 90th day following the taxable transfer. The MFT is 41, Tax Class is 6 and the Document Code is 40.

Amended Returns - Form 8924

  1. Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

    1. Prepare Form 4227 and route all amended Form 8924 to the Accounts Management function at Stop 6111G, Team C103.

Tax Period - Form 8924

  1. The taxpayer enters the date of sale or other disposition on Line 1 of Form 8924. Edit the tax period in "YYMM" based on this date to the left of the OMB Number.

Received Date - Form 8924

  1. The due date for filing Form 8924 is the 90th day following the taxable transfer.

Math Verification and Processing Form 8924

  1. If Line 6 is blank and there is an amount on Line 5, multiply Line 5 by 20 percent (.20). Enter the result on Line 6.

  2. If Line 7 is blank and there is an amount on Line 4, multiply Line 4 by 35 percent (.35). Enter the result on Line 7.

  3. If Line 8 is blank, but Line 6 and/or Line 7 have and amount entered, add Lines 6 and 7. Enter the result on Line 8.

  4. Edit IRS Number 012 to the right of Line 8.

  5. When the above coding and editing has been completed, forward the edited return(s) to the Non-Master File section.

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

  1. The Tax Relief and Health Care Act of 2006 (PL 109-432), IRC 403, enacted a new Form 8928 for the computation and reporting of excise taxes due on IRC 4980B, IRC 4980D, IRC 4980E, and IRC 4980G for failures by group health plans or employers. The MFT is 41, Tax Class is 6 and the Document Code is 39.

Multiple Form 8928 for IRC 4980B and IRC 4980D - Same Taxpayer Same Tax Period

  1. If the taxpayer files multiple Form 8928 tax returns for IRC 4980B and IRC 4980D with a "summary" Form 8928 for the same tax period, only the "summary" Form 8928 will need to be coded. Leave all supporting Form 8928 tax returns attached to the "Summary" Form 8928 for processing.

Amended Returns - Form 8928

  1. Amended returns will have the word "Amended" marked or written in at the top of the form. If the return is identified as amended, DO NOT PROCESS.

    1. Prepare Form 4227 and route all amended Form 8928 to the Accounts Management function at Stop 6111G, Team C103.

Tax Period - Form 8928

  1. The taxpayer enters the tax year at the top of the Form 8928 under the title. Edit this tax period in "YYMM" format to the left of the OMB Number.

Received Date - Form 8928

  1. The due date for filing Form 8928 is dependent on the IRC section for which the return is being filed. The following table reflects the due dates:

    IRC Section Due Date
    IRC 4980B or IRC 4980D
    • On or before the due date for the person's federal income tax return (single employer or other responsible person)

    • On or before the last day of the seventh month following the end of the plan year (multiemployer or multiple employer plans)

    IRC 4980E or IRC 4980G
    • On or before the 15th day of the fourth month following the calendar year in which the non-comparable contributions were made

Math Verification and Processing Form 8928

  1. Math verify the return as follows:

    1. If Line 16 is blank but Line 11 and/or Line 15 contain an amount, compute Line 16 by adding Line 11 and Line 15.

    2. If Line 34 is blank but Line 28 and/or Line 33 contain an amount, compute Line 34 by adding Line 28 and Line 33.

    3. If Line 36 is blank but Line 35 has an amount, compute Line 36 by multiplying Line 35 by 35 percent (.35).

    4. If Line 38 is blank but Line 37 has an amount, compute Line 38 by multiplying Line 37 by 35 percent (.35).

  2. The following table shows the IRS Number, the applicable IRC section, and the line reported on Form 8928:

    IRS Number IRC Section Corresponding Line on Form 8928
    126 IRC 4980B 16
    127 IRC 4980D 34
    128 IRC 4980E 36
    137 IRC 4980G 38
  3. If an amount is reported on Lines 16, 34, 36, and/or 38 then edit the appropriate IRS Number 126, 127, 128, and/or 137 to the right of the line reporting the amount.

  4. When the above coding and editing has been completed, forward the edited return(s) to the Non-Master File section.

Extension of Time to File and/or Pay

  1. Form 2290 is the only excise tax form that can request an extension of time to file. Before the due date of the return, a taxpayer can request an extension of time to file Form 2290 by writing to the Internal Revenue Service Center, Cincinnati OH 45999-0031. The request must fully explain the cause of the delay. Except for taxpayers abroad, the extension may be for no more than 6 months. An extension of time to file does not extend the time to pay the tax. A separate request must be made for an extension of time to pay.

  2. If a request for an extension of time to file or pay is received, send the request to the Excise Operation at Stop 5701G, Team 101.

Form 720, Quarterly Federal Excise Tax Return

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Form 6627, Environmental Taxes

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Tax Rates for IRS Number 98 Ozone-Depleting Chemicals by Year

Type of ODC 2012 2013 2014 2015 2016 2017 2018
CFC-11 13.00 13.45 13.90 14.35 14.80 15.25 15.70
CFC-12 13.00 13.45 13.90 14.35 14.80 15.25 15.70
CFC-113 10.40 10.76 11.12 11.48 11.84 12.20 12.56
CFC-114 13.00 13.45 13.90 14.35 14.80 15.25 15.70
CFC-115 7.80 8.07 8.34 8.61 8.88 9.15 9.42
HALON-1211 39.00 40.35 41.70 43.05 44.40 45.75 47.10
HALON-1301 130.00 134.50 139.00 143.50 148.00 152.50 157.00
HALON-2402 78.00 80.70 83.40 86.10 88.80 91.50 94.20
CT 14.30 14.80 15.30 15.79 16.28 16.775 17.27
MC 1.30 1.35 1.40 1.44 1.48 1.525 1.57
CFC-111,112 13.00 13.45 13.90 14.35 14.80 15.25 15.70
CFC-211–217 13.00 13.45 13.90 14.35 14.80 15.25 15.70
CFC-13 13.00 13.45 13.90 14.35 14.80 15.25 15.70
 

Tax Rates for IRS Number 20 Floor Stock Tax on ODCs

Type of Floor Stock 2012 2013 2014 2015 2016 2017 2018
CFC-11 0.45 0.45 0.45 0.45 0.45 0.45 0.45
CFC-12 0.45 0.45 0.45 0.45 0.45 0.45 0.45
CFC-113 0.36 0.36 0.36 0.36 0.36 0.36 0.36
CFC-114 0.45 0.45 0.45 0.45 0.45 0.45 0.45
CFC-115 0.27 0.27 0.27 0.27 0.27 0.27 0.27
HALON-1211 1.35 1.35 1.35 1.35 1.35 1.35 1.35
HALON-1301 4.50 4.50 4.50 4.50 4.50 4.50 4.50
HALON-2402 2.70 2.70 2.70 2.70 2.70 2.70 2.70
CT 0.495 0.495 0.495 0.495 0.495 0.495 0.495
MC 0.045 0.045 0.045 0.045 0.045 0.045 0.045
CFC-111,112 0.45 0.45 0.45 0.45 0.45 0.45 0.45
CFC-211–217 0.45 0.45 0.45 0.45 0.45 0.45 0.45
CFC-13 0.45 0.45 0.45 0.45 0.45 0.45 0.45

Form 6197, Gas Guzzler Tax - Road Map

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Form 8849, Claim for Refund of Excise Taxes - Road Map

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Form 2290, Heavy Vehicle Use Tax Return

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

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Rates for Wagers Authorized By State Law in Which Accepted

July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June
50.00 45.83 41.66 37.50 33.33 29.16 25.00 20.83 16.66 12.50 8.33 4.16
 

Rates for Wagers Not Authorized By State Law in Which Accepted

July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June
500.00 458.33 416.66 375.00 333.33 291.66 250.00 208.33 166.66 125.00 83.33 41.66

Form 730, Monthly Tax Return for Wagers - Road Map

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Credit Reference Numbers

Credit Reference Number Description
304 Taxable bias-ply or super single tires
305 Taxable tires, super single tires designed for steering
306 Exported Diesel-Water Fuel Emulsion
307 Renewable diesel mixtures
308 Fishing rods and fishing poles
309 Diesel-water fuel emulsion
310 Diesel-water emulsion (Blender claims)
322 Local telephone, toll telephone, and teletypewriter exchange service
323 Compressed natural gas (IRS No. 101)
324 Aviation gasoline (IRS No. 14) (Other than CRN 354)
326 Transportation of persons by air
327 Use of international air travel facilities
328 Transportation of property by air
329 Transportation by water
340 Gas guzzler
341 Sport fishing equipment
342 Electric outboard motors and sonar devices
344 Bows
345 Ozone depleting chemicals (floor stocks) (IRS No. 20)
346 Kerosene (IRS No. 35) (other than CRNs 347 and 348)
347 Non-taxable use of undyed kerosene in certain intercity and local buses
348 Non-taxable use of undyed kerosene in trains
349 ODC tax on imported products (IRS No. 19)
350 Non-taxable use of undyed diesel fuel in certain intercity and local buses
351 Alcohol sold as but not used as fuel
352 Non-taxable use of LPG in certain intercity and local busses
353 Non-taxable use of undyed diesel fuel in trains
354 Non-taxable use of aviation gasoline in commercial aviation (other than foreign trade)
355 Non-taxable use of aviation fuel (other than gasoline) in commercial aviation (other than foreign trade)
356 Use of gasoline for 10 percent gasohol blending
357 Use of gasoline for 7.7 percent gasohol blending
358 Gasoline for 10 percent gasohol
359 10 percent gasohol
360 Diesel fuel (other than CRNs 350 and 353)
361 LPG (other than CRN 352)
362 Gasoline
363 Use of gasoline for 5.7 percent gasohol blending
364 Inland waterways fuel use