3.17.41  Accounting and Operating Reports  (09-18-2009)
Scope and Purpose of this IRM

  1. This IRM is written for use by Campus Reports Analysts in Cincinnati's Centralized Excise Operations function. It has instructions for the Accounting area for the analysis and balancing of the Treasury 90 (Gas and Oil) reports. Most accounting reports are covered in IRM 3.17.63.  (09-18-2009)
Campus Responsibility

  1. Excise tax returns processing is centralized at the Cincinnati Campus.

  2. The campus is responsible for monitoring Excise Tax Abstracts on the Web Quarterly Excise Tax Listing (AQETL). If an abstract is determined to be in error, then it will be moved to the correct abstract.

  3. The campus is responsible for monitoring the Treasury 90 (T-90) report for Credit Reference Numbers (CRN); credits or claims from Forms 8849, Claim for Refund of Excise Taxes; 4136, Credit for Federal Tax Paid on Fuels; or 720, Quarterly Federal Excise Tax Return, Schedule C or adjustments. A quarterly report is sent to Headquarters to be used for the preparation of quarterly Refunds and Credits Certifications.  (09-18-2009)
Address for Headquarters and Campus (C) Generated Reports

  1. Internal Revenue Service, OS:CFO:R:R:F, Revenue Systems and Analysis, 1111 Constitution Ave NW, Washington, DC 20224.

  2. Most reports are now available to review via the Control-D web interface.

  3. Any questions or suggestions may be directed to OS:CFO:R:R:F.  (09-18-2009)
Net Tax Refund Report (NTRR)

  1. The NTRR is compiled in the Campus with the source data being both manually derived and computer generated. This is a report of all refund checks sorted by class of tax. Some of the tax classes have sub-divisions for more detailed reporting.

  2. A daily NTRR is generated through the Integrated Data Retrieval System (IDRS) indicating manual refunds processed through that system. In certain cases, more than one line number may apply to one Master File Tax Account Code (MFT).

    1. Line number definitions for the NTRR may be used as a guide for entering line numbers through IDRS.

    2. Line number definitions are in the "NTRR Format Guideline" in IRM 3.17.63.  (09-18-2009)
Net Tax Refunds for the Highway Trust Fund & Airport and Airway Trust Fund

  1. Manually prepared refunds applicable to excise taxes paid for fuels originally reported on Form 720 for excise taxes dedicated to the Highway Trust Fund (HTF) and the Airport & Airway Trust Fund (AATF) are reported as separate line items. See lines 71 through 79 & 99 on the NTRR.

  2. The claim for refund is made by the ultimate purchaser. The claim is filed using Form 8849, Schedule 1, Nontaxable Use of Fuels. The claim must be at least $750.00. The $750.00 amount may be met by making a claim for fuel used during any quarter of the claimant's income tax year or aggregating amounts from any quarters of the claimant's income tax year for which no other claim has been made. If the dollar amount and/or the time for filing requirements are not met, an annual claim using Form 4136, Credit for Federal Tax Paid on Fuels, must be filed.

  3. The law normally forbids the payment of interest on quarterly fuel tax refunds claimed. See IRS Publication 378, Fuel Tax Credits.

  4. Most HTF and AATF refunds should not appear on the NTRR because all of the Form 8849 Claims should be processed by excise adjustments for posting on the Master Files before refunding. Therefore:

    1. The amount of the original claim will be reported on the T–90 Report, Forms 8849.

    2. The net amount of the refund, after any offset, will be reported on the NTRR generated from the Enterprise Computing Centers (ECC) for both the Business Master File (BMF) and Individual Master File (IMF) as an income tax refund because it is included with the other credits combined with the income tax return refund.

  5. Contact the Headquarters analyst if there are any questions or for additional information.

  6. The IRS certifies the refunds for the trust funds quarterly to Treasury.  (09-18-2009)
T–90 Gasoline, Diesel & Special Fuels and Other Credits (T-90)

  1. The T-90's include CRNs for all campuses.  (09-18-2009)
T–90 Gasoline, Diesel & Special Fuels and Other Credits

  1. The T–90 includes Form 4136 filed with income tax returns (IMF 1040, and BMF 1120 Series, 720 Schedule C, 1041, 990–C & T) and with F–8849 Claims for refunds. This data is compiled in each campus containing gas and other credits claimed with returns and F–8849 claims plus audit & DP tax adjustments reflecting adjustments to T–90 data. The Reports also include credits claimed on Form 720 Schedule C and adjustments to Schedule C.

  2. The T–90 Report is compiled from both the BMF and IMF data processed through the Tape Edit Process (TEP).

  3. The T–90 GAS–01–04 reports are prepared by each campus and sent to the Headquarters on a quarterly basis. On a weekly basis, the service centers should monitor the reports data to ensure the Year To Date (YTD) data is correct. Weekly reviews will allow for any report problem to be researched promptly before the source data tapes are scratched.

  4. Treasury Reports Master File GAS–01–04 is automatically scheduled and generated as follows:

    1. Weekly, to accumulate the data from the daily tapes during the week into report titled "Weekly and Quarter To Date," which accumulates the data from the prior weekly reports.

    2. Quarterly, to create a new Treasury Reports Master File. The quarters normally end at the close of the cycle which contain the following dates. Each quarter contains data from good tape transactions processed during the reporting period. Ensure that this report is for "Quarter To Date" and "Year To Date" .

    Quarter Year
    1st quarter 3–31–YYYY
    2nd quarter 6–30–YYYY
    3rd quarter 9–30–YYYY
    4th quarter 12–31–YYYY
    YYYY equals current year  

  5. Treasury Reports Master File Control Printouts

    1. Verify that YTD records in dollar amounts are correctly totaled to date. Small variances may exist because report data is rounded to the nearest dollar.

    2. Verify that the YTD line item counts are correct or reasonably accurate. Original returns and quarterly F-8849 claims are counted, but amended returns are not.

    3. Review listing of adjustment correction record formats, if any.

    4. File the control printouts.

    5. Refile the adjustment correction record formats, if any.

  6. The report is due in the Headquarters by close of business on the fifth workday after the close of the quarter being reported (see IRM 3.30.123, Processing Timeliness).  (09-18-2009)
T–90 Credits Reports Quarterly Monitoring Guidelines

  1. The T-90 should be reviewed for reasonableness before it is sent to Headquarters. Any unusual increase or decrease in the counts and amounts reported for each quarter should be confirmed. The findings should be reported or noted on the quarterly report.

  2. Confirm and explain any negative amount figures shown on the reports. In most cases, these will be corrections to prior quarters data that were previously reported.

  3. Ensure that the current Weekly and Quarter To Date counts and amounts are correctly totaled for the Quarter and Year To Date (Cumulative, or Cum) — Total on the report. Ensure that for the first calendar quarter, which is for the quarter ended March 31, that the Weekly and Quarter To Date amount equals the Quarter and Year To Date—Cum Total.

  4. Ensure that the Year To Date—Cum Total equals the sum of the calendar quarters reported to date. For example, the sum of the amounts for the March and June quarters will equal the Year To Date—Cum at June 30th.

  5. The specific credits allowed for T–90 Credits are presented in a table format. This table corresponds to the line items on the T–90 report. The table shows the credits allowed and the tax years for the allowable credits. See Exhibit 7, Credit Reference Numbers.

  6. The T-90 report is divided into seven parts. Pages one and two represent credits claimed with income tax returns on F-4136. Pages three and four represent credits claimed with F-8849. Amended returns data is also included in pages three and four data. Page five is for credits claimed on Schedule C of F-720, and page six is for adjustments to these credits. Page seven is a summary page.

  7. The fuel tax credits are certified by IRS to Treasury's Financial Management Service (FMS) on a quarterly basis. These credits are charged to the AATF, HTF, and other trust funds. Therefore, it is important that these credits are reported correctly on the T–90.

  8. When there is a program change to add new CRN's, the program change has to be run after the quarterly and YTD reports. When this happens, there is a reformatting of the report which requires the YTD data to restart from the date of the program change. This means that the following can happen:

    1. There can be multiple program changes that require the YTD figure to restart.

    2. The total YTD amount requires adding each of the YTD figures.

    3. The regular balancing must be done to confirm the weekly reports are all included in the QTD runs.  (09-18-2009)
T–90 Report Data Concepts Related IRMs for Inputting Credits

  1. This section lists the areas that provide information related to credits and refunds reported on the T–90 reports for the IMF and the BMF. The general functional areas are:

    1. IMF and BMF.

    2. IDRS.

    3. Audit Information Management System (AIMS).

    4. Computer services (IMF and BMF).

  2. Credits claimed that are passed on to the T–90 originate from:

    1. original income tax returns with F- 4136 for credits.

    2. amended income tax returns.

    3. F-8849 claims with supporting forms.

  3. The T–90 related credits may be claimed on the following forms as follows:

    1. Form 4136 Computation of Credit for Federal Tax on Gas & Special Fuels. F-4136 is updated for each calendar tax year.

    2. Form 6478 Special Alcohol Fuels Tax Credit.

    3. Form 720 Schedule C.

  4. List of Returns and Master Files involved are:

    1. IMF Form 1040 series.

    2. BMF Forms 1120 series, 1041, 990–T, and 1120–FSC.

    3. BMF Forms 1120 F and L.

    4. BMF Form 1065.  (09-18-2009)
T–90 GAS–01–40 Reports Format

  1. Consists of seven pages for credit amounts plus statistics:

    Page Numbering Description
    Page 1 Returns Forms BMF
    Page 2 Returns Forms IMF
    Page 3 BMF 8849 Claims and Adjustments
    Page 4 IMF 8849 Claims and Adjustments
    Page 5 Form 720 Schedule C Claims
    Page 6 Adjustments to Form 720-C
    Page 7 Claims Dollar Stratification Report—Line Items (From T–90). Summary Info

  2. Line Items Counts are from the line items listed on the T–90, which equate to the line items on the form 4136. Be aware that some F-4136's may have two or more line items present.

  3. Dollar Claim Ranges are listed on the left hand side under Line Numbers 1 through 23.

  4. Total Counts—Line Items are on line number 24 for the totals for each data column.

  5. Counts are stratified into two sections, with four columns each. The two sections are:

    1. Numbered (1) through (4) under title for "This Week" or "This Quarter" reports.

    2. Numbered (5) through (8) under title for "Current Quarter" or "Year To Date" reports.

  6. Each section's four columns represent the counts for six reports of credit data:

    1. BMF returns.

    2. BMF F–8849 claims.

    3. IMF returns.

    4. IMF F–8849 claims.

    5. IMF F–8849 claims.

    6. Adjustments for 720 C claims.

  7. Line Items to be researched will be found on the F–4136 Stratification Report in the:

    1. Equal or same dollar range.

    2. Higher dollar range.

  8. Page 6 is a Claims Dollar Stratification Report—F-4136 (total's from F–4136).

    1. F- 4136 count totals are summarized on the T–90 as a memo count.

    2. F-4136 dollar amount represents the F–4136 gross amount of credit, (the combined amounts of all line items present).

    3. This report should be used to determine number of claims to be confirmed based on minimum dollar limits.

  9. Page 7 is a Recap of Counts and Average Items and F-8849/4136 Claims.

  10. Line numbers 25 through 30 identify the:

    1. T–90 data counts and dollars being recapped.

    2. Source.

    3. Purpose or objective of recap.

  11. Line 27 Average Line Item Amount:

    1. If lower than minimum limits set for review, then no large items are required to confirm.

    2. If higher than limits set for review, then one or more items to confirm.

  12. Line 29 Average F–4136 Amount:

    1. Use the same review concepts as for line 27.

    2. Line 29 average should always equal or exceed line 27 average.

    3. Line 29 average indicates average dollar range of F–4136's.

  13. Line 30 is the difference between lines 27 and 29.

    1. Line 29 F–4136 average should equal or exceed line 27 average.

    2. An equal or low average means most F–4136's have only one line item present.

    3. A high average means most F–4136's have multiple line items present.

    4. Line 29 average indicates how closely the individual line items on T–90 match the F–4136 gross/combined total. The lower the average, the easier it is to match individual T–90 line items being reviewed to the F–4136 amounts for research on the Daily DLN Listing.

  14. P–R–F GAS–01–40 This Week and QTD.

  15. P–R–F GAS–01–42 This Quarter and YTD.

  16. P–R–F GAS–01–44 Gas Adjustment List—shows valid adjustments list for this pass.

  17. P–R–F GAS–01–46 Gas Adjustment Error List—shows invalid adjustments for this pass.  (09-18-2009)
Daily Extract Report Format

  1. Consists of seven sections with one or more pages per section.

    Page Contents
    GMF 15-48 BMF forms with F-4136
    GMF 15–49 IMF forms with F-4136
    GMF 15–50 BMF F-8849 claims and adjustments
    GMF 15–51 IMF F-8849 claims and adjustments
    GMF 15-52 F-720 C claims
    GMF 15-53 F-720 C adjustments
    GMF 15-54 Summary with combined control totals  (09-18-2009)
Daily Extract Reports Detail

  1. The Daily Extract Reports GMF–15–48 to 15–53 have eight columns of data in each section.

    Item Description
    BLK… "Alpha Block Control"
    TIN… (IMF = SSN, BMF = EIN)
    TXPD… Return CY/P Y or Claim
    DLN… "Document Locator Number"
    Form 4136 CR… Money amount
    Overpayment WPT… (Form 6249) money amount
    Alcohol Fuel CR… (Form 6478) money amount
    "Today's Totals" … Column total of money amounts.  (09-18-2009)
GMF–15–48 to GMF–15–54 Control Totals

  1. These runs provide control totals to be used for balancing to the totals of the T–90 reports.

  2. The "Today's Totals" line from the daily extract reports should be recorded and accumulated on a manually prepared control work sheet.

  3. The control work sheet will serve as a log of the inputs and totals to be accumulated for control purposes. Two sets of worksheets will be required as follows:

    1. Weekly and Current Quarter Cum.

    2. Calendar Year Cum. This proves that the four quarterly totals equal the YTD totals. Be sure to include all YTD totals.  (09-18-2009)
T–90 Control Work Sheet Current Quarter Cum

  1. The proposed control work sheet column format, for example, would be:

    1. Cycle "YYYYCC" or Date of Run "MMDDYYYY " in the first column.

    2. The money amount columns across the page should be in the same sequence as on the reports. For example IMF F-4136.

    3. Combined Total. Obtained by adding up the amounts of columns 1 through 3 in "(b)" above.

    4. Quarter To Date Cum Total. Obtained by adding the sums of the latest week to the balance forward for the quarter.

  2. There are six sections to match up to Pages 1 through 6 of GAS–01–04:

    1. BMF Returns.

    2. IMF Returns.

    3. BMF 8849 Claims.

    4. IMF 8849 Claims.

    5. F-720 C Claims.

    6. F-720 C Adjustments.

  3. Control Work Sheets required weekly and quarterly.

    1. Weekly to accumulate the daily run totals for dollar amounts and counts.

    2. Quarterly to accumulate the weekly totals for dollar amounts and counts.

    3. The weekly and quarterly work sheets may be combined into one sheet by recording the quarter balance forward amounts at the beginning of each weekly cycle.

    4. Each control work sheet should have the identifying dates recorded on the upper right hand side for week, quarter, and calendar year ending MMDDYYYY.

    5. The quarterly control work sheet totals must equal the totals on the T–90 reports for the weekly and quarter to date reports.

    6. The current quarter to date column totals will equal the quarterly amount in the quarter column on the quarter and year to date reports.

  4. Control work sheet for the calendar year.

    1. Create a calendar year control work sheet to accumulate the quarterly totals. Use the same format as for the weekly and quarterly control work sheets.

    2. Record quarterly dollar amount totals.

    3. Record quarterly count totals.

    4. Compute cum totals for amounts and counts.

    5. The calendar year cum totals must equal the totals on the T–90 Reports for the quarter and YTD reports.  (09-18-2009)
Daily Extract Report Totals Accumulation

  1. The accumulated sum of the daily extract report totals for the week, usually five processing days, will equal the respective sums printed under the week column on the "Week and Quarter To Date" T–90 Report. The "Quarter To Date" column respective totals will equal the sum of the week's totals accumulated into the current calendar quarter totals.

  2. The T–90 reports are calendar year cum reports. There are two sets. First, the "Weekly and QTD" kept by the SC, and second, the "QTD and YTD" which is sent to Headquarters at the end of each quarter. The totals of all of these reports must be reconciled to the Control Work Sheet totals. At the end of each calendar quarter, the accumulated sum(s) of the "QTD" columns must equal the "YTD " columns totals.  (09-18-2009)
Control Work Sheet Proof Totals

  1. The proof totals should equal the GAS–01–04 report's totals except for rounding adjustments.  (09-18-2009)
GMF 15–48 to 15–54 Monitoring and Regular Sampling of Credits

  1. Documents, reporting credits, should be sampled on a regular basis to ensure valid processing and extraction of the credits. Each of the sections must be scanned to look for unusually large credits or reversals that should be confirmed. Please use the following as minimum guides:

    Form Dollar
    F–4136 $25,000
    F–8849 $25,000

  2. Select at least the following number of documents each month to ensure the minimum amount of review is being done (Consult with the T–90 analyst for any assistance needed to arrive at a reasonable level of review for your SC):

    Forms Number
    BMF Returns 2
    IMF Returns 1
    BMF 8849 Claims 2
    IMF 8849 Claims 1

  3. The credit amount is confirmed by requisitioning the return or Form 8849 claim to determine if an appropriate supporting form is attached, or if the claimant input correctly. If not, then a correction must be made to back the credit out of the report or correct it on the report.

  4. Confirming credits on a selective or random sampling basis is necessary in order to ensure the integrity of the credits allowed and to confirm that there are no processing or systemic problems.

  5. If there are several large dollar amount credits present, select only one or two documents for each MFT and document code.

    1. If the credits inspected are valid, assume the remainder of the group for that cycle are valid.

    2. If the credit documents inspected are in error, then confirm additional documents from that same MFT group.

    3. If all the documents inspected are invalid, advise headquarters and continue research to determine the cause. Prepare a ticket if it is a programming or systemic error.

  6. Always requisition documents to confirm credits for:

    1. Initial processing of a new return.

    2. Implementation of a major tax law change.

    3. Implementation of programming corrections.

    4. Programming changes for each new calendar year

    5. New line items changes on the T–90 report.

  7. The F720 Schedule C items are verified in compliance excise for large returns.  (09-18-2009)
Adjustment Control Work Sheet

  1. Maintain a work sheet to accumulate the adjustments required for the quarter. Record the MMDDYYYY for the quarter.

  2. Record each correction adjustment separately. This will:

    1. Provide means to reconcile adjustments requested to control totals.

    2. Provide proof of individual adjustments.

    3. Provide a historical record.

    4. Ensure accuracy of the average dollar amount per report line item and dollar stratification report.

  3. Correction adjustments should only be combined by line items if the number is excessive due to systemic problems.

    1. Do not combine line item counts unless in excess of twenty (20) per line item. In this way, the Dollar Stratification Report will not be distorted due to corrections.

    2. Advise headquarters.

    3. Note on the report the line items and amounts corrected.

  4. Make sure all correction adjustments are input before the end of each calendar quarter and each year end. This will prevent the need to footnote reports for:

    1. Carryover items corrected for prior quarter.

    2. Uncorrected errors pending.

    3. Questionable and unresolved items pending.

  5. Correction information must include:

    1. Alpha Line IDs (A through O).

    2. Net count change, plus or minus.

    3. Net money amount change, plus or minus.

  6. Compute separately for each of the T–90 pages:

    1. BMF returns.

    2. IMF returns.

    3. BMF 8849 claims.

    4. IMF 8849 claims.

    5. Form 720 C credits.

    6. Form 720 C adjustments.  (09-18-2009)
T–90 Claims Average Dollar Amounts—F- 4136

  1. The amounts are entered by line item and are converted to CRN's on the T–90 reports. After 2008, they will be entered by CRN, like the F 8849 and the 720 C.

  2. The averages are computed for both the current period (Week or Quarter To Date), and cum period (Quarter or Year To Date).

  3. These average amounts and counts should be used as a guide to determine if there are large dollar amount claims that should be confirmed.

  4. Be aware that a single Form 4136 may have more than one line item credit present.  (09-18-2009)
T–90 Claims Dollar Stratification Report—Forms 4136

  1. Each credit/claim will be included for each of the four T–90 Reports. There are two reports:

    1. By Line Items.

    2. By F-4136.

  2. The counts shown on these two reports are shown by dollar ranges and they should be used to ensure that large amount claims are considered for confirmation.

  3. Individual F- 4136 credits/claims may be determined by reviewing the daily Document Locator Number (DLN) listings.

  4. These two reports may be useful to various IRS examination, adjustment, and other functions interested in detecting fraudulent claims. These reports can provide statistics for screening, reviewing, and auditing claims.  (09-18-2009)
T–90 Cumulative Recap of Counts and Average Items

  1. Data from the four T–90 reports are recapped to provide a summary of claims processing.

  2. Total dollar amounts should equal the total amounts from the four T–90 reports.

  3. Advise the headquarters of any material change in counts or average amounts. Otherwise, the analysis will be performed by those functions concerned with claims processing, reviewing, and auditing.

  4. Ensure the three statistical reports, page 5, 6, and 7, are also sent along with the T–90 reports to the headquarters quarterly.  (09-18-2009)
T–90 Invalid or Potentially Fraudulent Claims

  1. Invalid Claims are those that were coded or processed as Form 4136 claims in error:

    1. IRS error, no F-4136 present.

    2. IRS error, input gallons as money amount.

    3. IRS error, input TIN as money amount.

    4. IRS error, amount input with extra digits.

    5. IRS error, amount figure inverted.

    6. IRS error, wrong CRN used.

  2. Invalid claims disposition—correct.

  3. Potentially fraudulent claims are those that may be totally invalid. Here are some clues:

    1. Filer usually uses a Post Office Box as an address.

    2. Filer just recently obtained a TIN.

    3. Filer has no prior business returns on file.

    4. Filer may have filed multiple claims for the same amount, but under different TINs/Names.

    5. Filer may have filed multiple claims using somewhat similar names.

    6. Filer may have filed multiple claims using same local address.

    7. Filer is an individual, but files a corporation claim.

    8. Type of fuel claimed may not match up to business use indicated.

    9. Filer may not have a business schedule "C" present on the master file income tax for the prior or current period.

  4. Perform the following steps if a potentially fraudulent claim is identified:

    1. Retain a copy and turn claim over to the Adjustment or Examination Division.

    2. Advise Headquarters by telephone of count and amount.

    3. Do not reverse these items because at this point the claim is only suspected to be invalid. If there is any resolution by IRS, the reversal will be reflected in future reports. If the amount(s) are material, Headquarters will advise Treasury.

  5. Any credits with CRN 318 should be requisitioned and confirmed.  (09-18-2009)
T–90 Credits Report

  1. Treasury reports adjustment correction records must be prepared to adjust the cumulative data used in the preparation of the T-90.

  2. Adjustment correction records are required to be prepared:

    1. When there are invalid transactions that affect the T–90 report, usually due to erroneous input affecting the T–90 data only.

    2. When there are invalid counts or amounts on the report, usually due to computer program or computer related problems.

  3. Adjustments are not required to be made for unpostables transactions because the T–90 computer report accumulation programs properly account for unpostables that are either perfected, nullified or deleted.

  4. The adjustment correction record information prepared by the campus accounting function is input to correct the T-90 report.  (09-18-2009)
Reports File Adjustments

  1. Whenever it has been determined that an adjustment is necessary to the Reports Cum File because of a programming error, send a memorandum to the Headquarters, OS:CFO:R:S:I, giving the following information:

    1. Name of Report and Program Run File Number (P–R–F).

    2. Service Center, type of tax and amount of adjustment.

    3. Line item identification.

    4. Reason for adjustment.

  2. Correction adjustments for revenue receipts for both the BMF and the IMF reports are made to the Automated Non Master File (ANMF) report generated in Cincinnati.  (09-18-2009)
T–90 Error Correction Policy Procedures

  1. Errors discovered after the review of the T–90 reports, DLN listings, and random confirmations must be corrected on subsequent T–90 reports.

  2. T–90 errors fall into two categories. The category type depends on:

    1. Whether the error impacts only the T–90 Report.

    2. Also impacts the taxpayer's Master File (MF) Account.

  3. The category types of error impact conditions are:

    1. Errors that do not impact the net credit on the TP's MF account. These errors must be corrected using the RPA/SA's demand terminal. This would correct the T–90 report only, and not the TP's account.

    2. Credit amount correct on F–4136, but on the wrong T–90 line.

    3. Errors impacting both the net credit on the taxpayer's MF Account and the T–90 Report. This error must be corrected on the TP's MF account because the claim was either completely erroneous, overstated, or understated. Do not manually correct the T–90, as the adjustment transaction will correct the T–90.

  4. If errors impact the taxpayer's MF account, then the following steps should occur:

    1. When originated in ISRP, ask adjustments branch to correct.

    2. When originated in an area other than original input (ISRP), please return to the originator with an explanation requesting correction.

  5. If the error is over $100,000, please advise headquarters of the correction that is pending.  (09-18-2009)
T–90 Correction Work Sheet Instructions

  1. T–90 errors or questionable items are normally either:

    1. Noticed on the daily DLN listing.

    2. Indicated on the T–90 weekly and quarter to date.

  2. Determine the source type of error (The types are on pages 1 to 6):

    1. BMF returns.

    2. IMF returns.

    3. BMF Claims F-8849.

    4. IMF Claims F-8849.

    5. Form 720 C claims.

    6. Form 720 C adjustments.

  3. Determine on which CRN the item to be corrected was first reported.

    1. Look at daily/weekly reports to determine where that amount first appeared.

    2. If amount is very large, it is easy to find. If amount is small, it may be difficult to isolate and find. You may have to use your best judgement to determine which line is to be corrected.

  4. List the corrective actions on the T–90 correction work sheet:

    1. Reverse out 100% of the original error.

    2. Re-enter the correct amount, if the original amount is required to correct the report.

    3. Reverse out and re-input each error and correction separately. Compute the corrections separately for both each type and each line item.

    4. Corrections must be input separately in order to accurately compute the average claim by line item and dollar stratification for each F–4136 amount.

  5. Proposed format of T–90 correction work sheet:

    1. Header across top, left to right "Return, 8849 Claim. BMF, IMF, line item, count + or −, money Amount, Count if F–4136. "

    2. Enter a check mark under either the return or F–8849 Claim.

    3. Enter a check mark under either BMF or IMF.

    4. Enter the line alpha letter under line item.

    5. Enter under count + or −, either +1 or −1.

    6. Enter the money amount (without a decimal).

    7. Enter count of +1 or −1, if a F–4136 error.

  6. Present this T–90 correction work sheet to the technician to enter on the demand terminal.

    1. The technician will input the date on a special MITS terminal.

    2. Each time the T–90 is run, a "Gas Adjustment List" , generates both the P-R-F GAS-01–43 invalid adjustments, and P-R-F GAS-01–44 valid adjustments.

    3. If corrections were input, re-submit any invalid corrections until they are valid.

  7. Record corrections +/− on the T–90 controls. The new T–90 YTD should match the revised control totals (YTD plus/minus corrections).

  8. Maintain a historical record of all corrections.

    1. Make a photocopy of the document indicating the credit or error.

    2. Place in the T–90 correction file for the calendar year.  (09-18-2009)
Accounting Reports

  1. Master File Report of U.S. Internal Revenue Receipts, is generated monthly at ECC at Martinsburg and is available using Control-D. This report contains the data for each campus.

  2. ANMF Report of U.S. Internal Revenue Receipts is generated monthly by each campus and printed or is available using Control-D. The report is associated with the Revenue Receipt Classification Summary Report.

  3. Revenue Receipt Classification Summary Report is generated each month by IRACS.

  4. Summary of Rejects and Unidentified Revenue Receipts is compiled each month and is associated with the MF Report of U.S. Internal Revenue Receipts.

  5. The NTRR is prepared monthly. It is generated by IRACS.

  6. Gasoline, Diesel, and Special Fuels and Other Credits Claimed on Income Tax Returns or with F–8849 Claims for refund for both IMF and BMF (Report Symbol T–90) is printed weekly and quarterly.

    1. The T–90 GMF GAS–01–04 should be generated and printed weekly.

    2. The T–90 quarterly report is not automatically generated at each quarter end. Therefore, the campus accounting branch must ensure it is requested quarterly.

  7. The Report of Corporate Collections Table S–2 and Report of Individual Collections Table (S–2); (Report Symbol T–91) are generated monthly at ECC. A report containing the service center summary is furnished each service center.  (09-18-2009)
Operating Reports

  1. The computer-generated operating reports are available through Control-D for printing and review.  (09-18-2009)
CFO Reports for OS:CFO:R:S:I

  1. The Excise and Internal Controls Section (OS:CFO:R:S:I) receives reports from each Campus and from the Enterprise Computing Center(s) (ECC).

  2. The processing timeliness cycles, criteria and critical dates are in IRM Section 3.30.123, Processing Timeliness: Cycles, Criteria, and Critical Dates.  (09-18-2009)
Purpose, Authority and Requirements for Monitoring Trust Fund Excise Taxes

  1. Headquarters, with the assistance of the service center reports analysts, monitors and properly reports certain trust fund excise taxes.

  2. The Secretary of the Treasury is the trustee for the administration of certain trust funds. The IRS is responsible for monitoring and reporting the excise taxes that make up each trust fund. Most of these taxes are reported on a quarterly F-720.

  3. The IRS certifies quarterly to FMS the amount of certain net excise tax collections. This data is also furnished to Treasury's Office of Tax Analysis, to other government agencies, and it is published in the quarterly Statistics of Income Bulletin and the Commissioner's Data Book.

  4. The trust funds certified are:

    1. The Highway Trust Fund (HTF), established by the Federal Aid to Highway Act of 1956 for the purpose of providing funds for highway development.

    2. The Airport and Airway Trust Fund (AATF), established by the Airport and Airway Revenue Act of 1970 for the purpose of expanding Federal aid for airport planning and development.

    3. The Black Lung Disability Trust Fund (BLDTF), established by the Black Lung Benefits Act of 1977 and the Black Lung Benefits Reform Act of 1977. The purpose is to finance certain benefits for certain disabled victims of black lung disease.

    4. The Inland Waterways Trust Fund (IWTF), established by the Inland Waterways Revenue Act of 1978 for the purpose of providing funds for navigation construction and rehabilitation projects on inland and intracoastal waterways.

    5. The Hazardous Substance Response Trust Fund (HSRF), established by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. This Act also established in 1983, the Postclosure Liability Trust Fund. The purpose of the Act was to provide funds for emergency response, removal, containment, and other actions as provided under the Solid Waste Disposal Act. This Act is also known as CERCLA, PL 96–510. The three taxes imposed expired at 9–30–85. The Hazardous Waste tax was repealed in full. The petroleum and chemical taxes were reinstated at 1–1–87 as part of the Hazardous Substance Superfund, PL 99–499.

    6. The Aquatic Resources Trust Fund (ARTF), was established by the Tax Reform Act of 1984 for the purpose of funding programs for fish restoration and boat safety, beginning 10–1–84. It is now known as Sport Fish Restoration and Boating Trust Fund.

    7. The Earmarked Funds are reported to Treasury and to the Department of Interior's Fish and Wildlife Service. These funds are provided for by various public laws and under the provisions of the Federal Aid to Wildlife and Fish Restoration Acts. The Tax Reform Act of 1984 increased items taxable for the sports and recreational excise taxes that are dedicated to the Earmarked Funds.

    8. The Leaking Underground Storage Tank Trust Fund (LUST–TF) was established by the Tax Reform Act of 1986, PL 99–499 for environmental clean up purposes.

    9. The Oil Spill Liability Trust Fund (OSLTF) was established by the Tax Reform Act of 1986, PL 99–499 for environmental clean up purposes. PL 99–499 also reinstated the HSRF and repealed the PLTF. This Trust Fund was restored again in 2006.

    10. The Hazardous Substance Superfund (HSS–F) was established by the Superfund Amendments and Reauthorization Act of 1986, PL 99–499, effective at 1–1–87, TXPD 8703. The HSS–F will include the amounts from the HSRF that expired at 9–30–85.

    11. Vaccine Injury Compensation Trust Fund (VICTF) was established by Omnibus Budget Reconciliation Act of 1987 (PL 100–203, OBRA of 1987) effective 1–1–88, TXPD 8803. The purpose is to provide compensation for vaccine-related injury or death after 9–30–88.

    12. Ozone Depleting Chemicals Fund (ODCF) was established by PL 101–221, Section 7506, and amended by PL 101–239, Section 7506. The taxes imposed are effective 1–1–90. The purpose is to encourage replacement of Ozone Depleting Chemicals (ODC) that are either manufactured or imported.  (09-18-2009)
Excise Tax Groupings

  1. The excise taxes reported on Form 720 are divided into monitoring groups.

  2. Each excise tax reported is identified by an IRS number (abstract), excise tax description, trust fund (if applicable), and other information.  (09-18-2009)
Monitoring Time Frames and SCRA Work Needs

  1. The Cincinnati Campus Reports Analysts (CRA) should allocate sufficient time and priority to accomplish the monitoring tasks promptly after the AQETL is updated with new data.

  2. The CRA should be able to estimate the amount of initial time needed to monitor the number of accounts requiring review based on the:

    1. AQETL number of accounts extracted.

    2. Million dollar BMF records reports volume.

    3. The notes on the AQETL from the headquarters analysts indicating research is required and errors should be corrected.

  3. The CRA may determine the status of the F–720 account monitoring based on the volume of accounts listed on the "Million Dollar" Reports.

  4. The primary purpose of the communication with Headquarters via AQETL is to:

    1. Ensure that no corrections are overlooked.

    2. Ensure that headquarters has not missed any material adjustments/corrections.

    3. Request return for posting confirmation, line 4 adjustments, or information listed on the return by the taxpayer.

  5. The secondary purpose is to allow CRAs to determine:

    1. The current workload and the amount of additional research and correction activity to be done for any period.

    2. The number of outstanding corrections from prior reports.

  6. The Reports Analysts can ensure responsive and timely monitoring as follows:

    1. Prompt review of the AQETL, in order to determine number of potential errors this period.

    2. Prompt requisition of returns and documents for inspection.

    3. Prompt input on IDRS of corrections for posting errors allowed to be corrected by the Analysts.

    4. Systematic transfer of returns with errors required to be corrected by Excise Adjustments.

  7. Prompt and reasonable time frame monitoring guidelines are to:

    1. Have corrected prior quarter reports errors by the end of the succeeding quarter.

    2. Have corrected routine errors discovered on the Weekly Million Dollar BMF Reports Listing within 4 cycles after receiving the report, but no later than 8 cycles.

  8. Factors increasing monitoring needs:

    1. Reporting and input posting errors due to type of taxpayer.

    2. IRS input errors.

    3. Implementation of new taxes and new taxpayers. There always are more errors in the first few quarters until taxpayers learn to report taxes on the correct abstract lines.

  9. Monitoring timeliness response is normally considered met if:

    1. IDRS input posting corrections, determined without the need to secure the returns to confirm, are made within 3–4 cycles of the receipt of the AQETL.

    2. Requisitioned returns and documents needed are requisitioned within one 1–2 cycles of receipt of the report.

    3. Prompt action taken on new or first time extractions. This occurs because an account may not be extracted until the current month, yet the error may have occurred several cycles earlier.

  10. SCRA Reporting to the Headquarters:

    1. Telephone confirmation of unusually large adjustments input or errors discovered/confirmed in the last couple cycles of the reporting quarter. The reason is that the current AQETL due may not contain those postings until the next monthly report.

    2. Keep the Headquarters informed of Processing delays, Material adjustments, Settlement of large excise tax law cases and Systemic problems that would materially affect processing and reporting via notes on AQETL or telephone confirmations.

  11. Top 100 F-720 Filers Tax Period 200XXX:

    1. This list is to monitor the timely posting of the Top 720 Filers.

    2. The data is extracted using TXPD 200X09 each Fiscal Year.

    3. There are approximately 140 filers on the list.

    4. The list is sent out approximately 1 month after the end of the tax period.

    5. The excel worksheet contains TIN, TXPD, name control, trust fund, amount posted, cycle return posted and comments (return posted, return received, if there is a problem in posting, etc.).  (09-18-2009)
TREAS–92 Report Concepts

  1. TREAS–92, Summary of Excise Tax Liabilities Report, includes data from:

    1. Original F–720 returns, TC 150.

    2. Amended returns processed as TC 290.

    3. DP adjustments, TC 290 and 291.

    4. Audit adjustments, TC 300 and 301.

    5. Account transfer-in, TC 370.

  2. TREAS–92 is fiscal year to date report ending each 9–30–YYYY.

  3. TREAS–92 generates monthly for: transactions 180–40–11, and ECC posted 180–50–11. The automated report is 180–52–11.

  4. Excise tax detail data is listed by abstract number and dollar amounts (no cents). Abstract numbers and amounts are listed in groups for the trust funds and the general account.  (09-18-2009)
TREAS–92 Review By Headquarters

  1. TREAS–92, Summary of Excise Tax Liabilities is reviewed quarterly by headquarters.

    1. The CRA is not required to manually compute the variances and develop adjustments to arrive at the amount properly due each quarter.

    2. The CRA, however, may be requested by headquarters to assist in determining cause of unusual dollar variances. The most logical reasons are errors and late postings.

    3. The CRA should inform Headquarters when very unusual situations adversely impact the processing and reporting of the data. Listed below are the methods employed in the review of the report.

    4. Quarterly compare the dollar amount of variance between the current quarter and the prior quarter this year and one year prior.

    5. Annually compare current Fiscal Year (FY) totals with the prior FY totals.

  2. The most effective review methods are:

    1. Analysis of net change by exception.

    2. Normal growth trend.

    3. Expected no change.

    4. Expected decrease.

    5. Seasonal or cyclical patterns.

    6. Unusual negative figures.

  3. Look for large CRN's related to abstracts for:

    1. Prior FY corrections posting in this FY.

    2. Refunds of prior period taxes repealed retroactively.

    3. Partial refund of prior period taxes that are all claimed in the current quarter or FY.

    4. Large audit adjustments applicable to prior period expired or repealed taxes.

    5. IRS input error, such as an abnormally large dollar line 4 CRN.

    6. Prior FY number 80 unidentified, which was corrected in the current FY.

  4. Negative figures are more likely to appear on the TREAS–92 Report in the first months of the new FY before there are enough normal positive postings to absorb any negative postings.

  5. Look for normal increases in the dollar amounts reported for those taxes when the:

    1. Economy for that business is improving.

    2. Tax rate increased.

    3. New items are included in the tax base.

    4. New tax is imposed.

    5. IRS is having compliance drive.

  6. Look for no change or minor change up/down when:

    1. Economy is normal or slowing down.

    2. Industry experiences seasonal fluctuation.

  7. Look for decrease in the dollar amounts reported when the:

    1. Economy is slowing down, industry layoffs, industry is in a recession.

    2. Tax rate has decreased.

    3. Other events occur, such as strikes, acts of nature.

    4. New IRS Rules and Regulations are issued.

    5. Tax Law Case sets new precedent allowing credits.

    6. Tax Law change allows tax exemption or partial credit.

    7. Tax is repealed retroactively.

    8. Prior quarter or FY corrections are input.

    9. Large accounts go Unpostable. This happens also when TP files two returns, the first is for Floor Stock Tax, and the second is for the normal taxes due at a later date.

  8. Look for large increases or decreases when:

    1. Major processing problems or delays exist.

    2. Large account is coded incorrectly.

    3. Large correction is input incorrectly.

    4. Data input as No. 80 Unidentified.

    5. Audit corrects an account that had already been corrected.

    6. Reversals/corrections input are applicable to a prior FY.

    7. Audit adjustments to reclassify a tax for several TXPDs are all in the same month, quarter and FY.

    8. Prior FY No. 80 Unidentified debits or credits are being corrected this FY.

    9. Unusual Adjustments from current TXPD F–720, line 4 credits, which apply to prior TXPDs.

    10. Erroneous inputs and DIS overstatement errors occur.  (09-18-2009)
Cincinnati Reports Analysts Monitoring Priority Schedule

  1. CRA monitoring schedule should evolve around the receipt of the monitoring reports received weekly and monthly.

  2. Weekly, review the AQETL which lists current and prior TXPD postings.

    1. Determine overall number of corrections, and number of returns and documents needed to confirm or correct postings.

    2. Requisition the returns needed to confirm or correct postings.

    3. Confirm proper posting of corrections input or requested through adjustments.

  3. Weekly, review the Weekly Posted Million Dollar BMF Records Report using Control-D.

    1. This prompt review will allow lead time for the CRA to make some corrections before the end of the month, quarter, and FY end.

    2. This prompt review will also allow the CRA to requisition returns before the returns are requested by others or sent to the Federal Records Center.

    3. The Million Dollar Report lists all F–720 tax liability transactions for abstract amounts of $5,000 beginning April 1993.

  4. Promptly perform a visual study of the report to determine:

    1. Valid abstract number for each filer.

    2. Logical abstract number based on key words in the taxpayer's (TP) name or common knowledge indications of what taxes that TP would be reporting.

    3. Reasonableness of the dollar amounts being reported based on the filer or abstract number.

  5. Monthly, review the Million Dollar BMF Records Report to ensure all errors accounted for. The weekly listings are reviewed using Control-D.

  6. Quarterly, review the F–720 IRS Numbers Count Report to determine if the counts are reasonable and there are no material exceptions.  (09-18-2009)
Reports Analysts Monitoring Systems

  1. Monitor the Form 720 IRS No. Counts Report. CRAs should record counts in an Excel spreadsheet.

  2. Monitor the Posted Million Dollar reports received weekly and monthly via Control-D.

  3. Maintain a file of returns reviewed. Copies are made from returns obtained from:

    1. Files section when requisitioned.

    2. Processing areas.

    3. Code and Edit, courtesy copies for returns over one million dollars.

  4. Utilize other systems as follows:

    1. Comments on AQETL.

    2. Notes on the monthly million dollar BMF report.

    3. Case folder with history sheet.

    4. Closed case listing maintained by CRAs.  (09-18-2009)
AQETL Concepts

  1. The AQETL report extracts F-720 postings.

    1. The data is reported in EIN account sequence.

    2. The accounts are reported in tax period (TXPD) sequence.

    3. Tax liability transactions (TC) are listed in posting cycle (YYYYCC) sequence with abstract numbers and dollar amounts for each TC.

  2. The criteria for extraction is based on:

    1. Initial base of the TP account in the four prior CY TXPDs.

    2. IRS abstract numbers.

  3. Dollar amounts by abstract number is key for extraction:

    1. Determined by combining both + and − dollar amounts present for each TXPD.

    2. Amounts are combined for TCs present which are: TCs: 150, 290, 291, 300, 301, and 370.

  4. The extraction criteria is determined by the Headquarters analysts.  (09-18-2009)
AQETL Review

  1. The AQETL is extracted at ECC Martinsburg from the BMF Form 720 and adjustment data.

  2. The AQETL is downloaded weekly.

  3. The AQETL lists all TCs 150, 29X, 30X, and 370 posted by TXPD and cycle.

    1. Review each one listed to determine if return posted or if adjustments requested posted. Confirm if postings are reasonable/correct.

    2. Determine if abstract(s), CRNs and amount(s) posted are consistent and in normal ratio with prior quarters.

    3. Determine if each abstract number reported appears logical for that firm based on their name or business.

  4. Follow up on adjustment requests (TC29X) that did not post in the quarter just ended. Adjustments of $5,000 or more for each abstract will appear on the monthly Million Dollar BMF Reports Records Listing. Those under $5,000 can be confirmed on IDRS or the AQETL.

  5. Review the first two or three quarters' filings of new companies on the AQETL to ensure the abstract(s) reported are consistent and logical for that TP. If questionable, obtain return(s) to determine issue. If necessary, contact TP to resolve the problem.

  6. Follow up all postings to abstract No. 80 "unapplied or unidentified amounts" to insure that the amount is transferred to the correct abstract, usually by TC 29X. These must be transferred to the correct abstract so they appear on the proper certification.

  7. Refer to separate review instructions for "TC 370 Account Transfer-in Review" .  (09-18-2009)
F–2290 Revenue Receipts Monitoring

  1. Monthly monitoring of the Highway Use Tax (HUT) reported on F–2290 ensures data is reasonably consistent with prior year periods.

    1. If data variance is material, advise Headquarters Highway Trust Fund analyst by telephone. De-cum the data monthly and compare the data to the same month and quarter of the prior year.

    2. HUT F–2290 data is reported on P–R–F 180–40 AND/OR 50–11, titled "US REPORT INTERNAL REVENUE RECEIPTS" . This data represents net collections after adjustments. It is available on Control-D Web.

    3. HUT is required for each truck put into service. The annual return covers the period July 1 through June 30. Whenever a truck is put in service on the highways after July 1, the tax is due at the beginning of the next month, and is prorated for the remainder of the twelve month annual period.  (09-18-2009)
AATF Abstracts (Airport and Airway Trust Fund)

  1. It is normal for AATF abstracts: 26, 27, and 28, and 14, 69 and 77 to be reported by airline passenger, airline freight and airport service businesses. The original AATF expired 9–30–80 with TXPD 8009, and was reinstated 9–1–82 with TXPD 8209.

  2. It is normal for a full service airline to report any combination of 26, 27 and 28. Domestic airline passenger service firms would be 26, airlines with international departures would be 27, and airline freight would be 28.

  3. It would be normal for firms providing airplane and airport services to report tax on fuels used in noncommercial aviation as follows: Aviation gasoline fuels as 14, and Aviation fuel (other than gasoline) as 69. Normally 14 is smaller than 69 when both are present together for air service filers. If a firm is not an air service filer, then any combination of 14 and 69 with 61 and 62, or 14 and 62, or 61 and 69 is usually an error. To confirm the error, compare to prior TXPDs, confirm the NAIC, obtain and inspect the F-720 for that TXPD, and if necessary check with the taxpayer.

  4. An air freight firm will normally only report 28, not 26/27.

  5. It is normal for airlines reporting 26 to have both a + and a − for 26. The −26 represents ticket refunds for taxes reported in prior quarters. This credit is always reported on the Adjustments (line 4) section of the F-720 claiming the credit.

  6. Most common error is the abstract 26 being reported or posted as 22.

  7. If F-720 filer is an airline, correct without securing the return. If any doubt, secure the return to confirm.

  8. Another common error is for 26 and 27 to be reported as 27 and 28. Secure the return to confirm and correct.  (09-18-2009)
WPT (Windfall Profit Tax, Form 6047)

  1. Expired. See Exhibit 2.  (09-18-2009)
HSRF Abstracts (Environmental Taxes, Form 6627)

  1. See Exhibit 1 for Abstracts 53, 54, 16, 17.  (09-18-2009)
HTF Abstracts (Highway Trust Fund)

  1. HTF Abstracts are: 35, 60, 61, 62, 63, 57, 58, 59, 65, 66, 67, 68, 73, 74, 75, 76, 101,117 and 33. Also 85 and 86 for TXPD 8806. Also 78 and 79 at 1–1–91, TXPD 9103, No. 88 for TXPDs 9312 and 9403, No. 35 and 101 for TXPD 9312 , No. 35 and 103 for TXPD 9809. 104, 112, 117, 120, 121, 122, 123, 124 in 2006. See Exhibit 4.

  2. Abstracts for tires are 66, 108, 109 and 113. Some large auto or truck manufacturers report both 66 and 33.

  3. Usually 60, 61 and 62 are present together for oil companies.

  4. Normally 62 the largest amount, then 60, 61 or 78 when 62, 60 and 61, or 62, 60, 61, 78 and 79 are present together.

  5. Floor Stocks applicable to the HTF and others are listed under floor stocks. See Exhibit 4.

  6. Abstract 35 kerosene effective 1998. The rate of the tax for kerosene is the same as Diesel fuel Abstract 60.

  7. Abstract 103 was effective July 1, 1998 for floor stock on kerosene.

  8. Abstract 61 is Liquefied Petroleum Gas (LPG) propane effective October 1, 1997. The other types of fuels that were reported under Abstract 61 in the past should now be reported under Abstract 79 Other Fuels. There are new Abstracts for LPG, 112, and other special fuels, 121–124.  (09-18-2009)
Gas Guzzler Abstract 40 (Form 6197)

  1. Number 40 only valid for producer or importer of automobiles sold that do not meet certain fuel economy ratings per F-6197.

  2. If valid abstract 40, the tax is all dollars, (there are no cents in the tax rate).

  3. Normally manufacturers (includes producer or importer) of motor vehicles report 40 Fuel Economy (Gas Guzzler). Although this is not part of HTF, many groups are interested in the amounts reported.  (09-18-2009)
Earmarked Funds Abstracts (Recreational Taxes)

  1. Normally earmarked funds abstracts: 44,102 and 106 are reported in some combination by sporting goods companies.

  2. It is most unusual for the Earmarked abstracts to be reported with any others, such as: BLDF, HTF, AATF, and IWTF.

  3. In the Revenue Reconciliation Act of 1997, Bows and Arrow were separated. Bows remain as Abstract 44. Abstract 102, Arrows—Component Parts, was effective September 30, 1997 to March 31, 2005. Abstract 106, Arrow Shafts, was effective April 1, 2005.

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