3.11.23. Excise Tax Returns

(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 and Edit to mathematically verify or to check the validity of the returns and other documents being processed unless otherwise specified in the applicable section.

(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)

(1) The Director monitors operational performance for the Submission Processing Campus.

(2) The Operations Manager monitors operational performance for their operation.

(3) The Team Manager/Lead monitors performance monitoring and ensures employees have the tools necessary to perform their duties.

(4) The Team Employees follows the instructions contained in the IRM and maintain updated IRM procedures.

(1) Program Goals

• Code and 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 must be reviewed annually to ensure accuracy and promote consistent tax administration.

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

(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 used throughout this IRM:

• Accounts Management (AM)

• Business Master File (BMF)

• Code and Edit (C&E)

• Computer Condition Code (CCC)

• Criminal Investigation (CI)

• Correspondence Imaging Inventory (CII)

• Ogden Submission Processing Campus and/or Ogden Submission Processing Center (OSPC)

• 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)

• Tax Return Print (TRPRT)

• Transaction Code (TC)

• Wage & Investment (W&I)

• Zone Improvement Plan (ZIP)

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

• Excise Tax e-File and Compliance (ETEC)

• Integrated Automation Technologies (IAT)

• Integrated Data Retrieval System (IDRS)

• Servicewide Electronic Research Program (SERP)

• Submission Processing Design Center (SPDC)

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

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

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

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

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

(2) Ogden, Kansas City, and Paper Processing Branch, BMF Code and Edit and Error Resolution System (ERS) identified and developed topics for BMF Consistency.

(3) A ♦ (diamond) before and after the subsection title shows BMF Consistency subsections.

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

(1) Submit IRM deviations in writing following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

(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.

(1) The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.

(2) TAS uses Form 12412, Operations Assistance Request (OAR), to initiate the OAR process of referring a case to the Wage and Investment (W&I) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19, TAS, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).

(3) Refer taxpayers to TAS when the contact meets TAS 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) The definition of same day resolution is within 24 hours. The following two situations meet the definition of "same day resolution":

• The issue can be resolved within 24 hours.

• IRS takes steps within 24 hours to resolve the taxpayer’s issue.

(5) When making a TAS referral, use Form 911, and forward to TAS following your local procedures.

(6) See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

(1) BMF Identity (ID) Theft is increasing. If a case is found with attachments or correspondence showing the taxpayer is a victim of "ID Theft", give the entire case to the manager/lead.

(2) The manager/lead will expedite the case to the Planning and Analysis (P&A) staff for referral to one of the Submission Processing (SP) BMF ID Theft liaisons. The taxpayer must show that they are a victim of "ID Theft"; do not send cases that are subject to Criminal Investigation (CI), Examination (Exam), or Fraud review.

(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.

(1) A frivolous argument is used to illegally avoid or reduce tax liabilities by expressing dissatisfaction with the substance, form or administration of the tax laws. 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.

(3) Do not consider the following returns as frivolous, unless there is other evidence of a frivolous argument:

• Returns that have only zeros, blanks, or no entries.

• Returns showing "None", "Not Liable", etc.

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

(1) Any return with a received date that is two years and nine months or more after the Return Due Date is a potential statute control return.

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

(3) If any of the conditions listed below are present, don’t route to Statute Control for clearance. Instead, edit CCC "W" and continue processing.

• Dummy returns prepared by Centralized Excise Operation (CEO)

• 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 for returns (SFR) 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

• Return is a 2019 and prior year original. Due to the COVID-19 pandemic and subsequent Submission Processing (SP) and Accounts Management (AM) site closures, SP and AM developed procedures to bypass AM statute clearance and be processed. In addition, any 2019 and prior year returns previously cleared by AM statute will not be returned by SP to AM to be cleared again if the 90-calendar day statute stamp has expired.

(4) If a return has any of the following computer paragraphs (CPs) or letters attached, do not route to Statute Control for clearance. Edit CCC "W" if the return needs processing

• CP 259, Master File Generated 1st TDI Notice

• CP 518, Final Notice - Return Delinquency

• Letter 112C, Payment/Overpayment/Credit Applied; No Record of Return Filed

• Letter 282C, Return Not Received: Copy Requested/Received

• Letter 2255C, Delinquent Return (Forms 720, 1041, 1065, 1120)

• Letter 2284C, Delinquent Return (Form 940, 941, 942, 943)

(5) If a return has a Form 12412, Operations Assistance Request (OAR), from TAS and is a potential statute control return but is not stamped "Cleared by Statute", give it to the lead. The lead contacts the TAS employee listed on the OAR for rejection of the return and sends it back to TAS for clearance by the Statute Control.

(6) Statute returns are unprocessable until they are cleared by Statute Control.

(7) Edit CCC "W" if the Statute Control stamps or shows clearance on the front of the return.

(8) Follow the chart below to determine if CCC "W" is needed.

(1) An amended return may be identified by such words as "Amended", "Supplemental" (except Form 11-C), "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.

(2) Form 720 (Amended) - Route Amended Form 720 to Centralized Excise Operation (CEO) at the following address:
Internal Revenue Service
Stop 5701G
7940 Kentucky Drive
Florence, KY 41042

(3) 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.

(4) 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 Centralized Excise Operation (CEO).

• Detach any unrelated documents and route them to the correct function using Form 4227, Intra SC Reject or Routing Slip. Edit an action trail on the return.

(5) Follow the instructions in the chart below when there is a sign of an amended return (Form 11-C, Form 730, and Form 2290).

(6) The following data must be present or edited on all amended returns (Form 11-C, Form 730, and Form 2290):

• Name Control

• Employer Identification Number (EIN)

• Tax Period

• CCC "G" and/or CCC "W" and/or "3".

• Received Date

• Signature

• Consent to Disclosure of Tax Information Indicator. See IRM 3.11.23.17.8.1, Form 2290 Consent to Disclosure of Tax Information Indicator.

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

(7) 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 Schedule 1.

Note: When the taxpayer has filed an amended Form 2290 and requests that the Schedule 1 be returned on an expedited basis (e.g., "as soon as possible", "ASAP", "need Schedule 1 to get tags", etc.), fax the amended Form 2290 with the Schedule 1 requested to the Centralized Excise Operation (CEO) at (855)386-5124. Notate on the cover sheet "Expedite Sch. 1". If a copy of the return was made for faxing, dispose of the copy as classified waste. Continue processing the originally filed amended return.

Note: Classified waste is documentation containing taxpayer entity or account information that is not part of the case and is not needed for audit trail purposes. Refer to IRM 21.5.1, General Adjustments for guidance on handling classified waste to prevent inadvertent/unlawful destruction of records.

(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, How to Determine DLN.

(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 must 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 must 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.

(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.

(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

(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 correct area on the return.

(2) Returns with unresolved entity problems must 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 - Circle the multiple/partial EIN(s). The return will automatically be placed on the Error Inventory of ERS.

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

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

4. 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.

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

(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 correct 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 and Form 2290 and leave it in the block. See Figure 3.11.23-4, Form 730 and Rejection of Return.

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

1. Correspondence received from taxpayers

2. Correspondence issued to taxpayers

(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.

(2) IRM 3.11.23.22.1, ♦IRC 6020(b) Prepared by Collections♦, and IRM 3.11.23.22.3, ♦Examination Prepared♦.

(3) Conditions requiring correspondence and the suggested correspondence action are shown in the following tables:All Excise Tax Forms

(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.

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

(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. Follow local procedures using Form 13934, Entity Document/C&E Merge Transmittal.

(2) Completely edit the return except the name control prior to routing to Entity Control.

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

(2) Determine the EIN as follows:

(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 individual’s owner 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:

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	Edit Action Code 352 (Name Research) or CCC "U" Attach Form 4227 and leave in the batch

(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.

(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 (e.g., 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)

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

(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:

(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:

(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 Ogden Submission Processing Center (OSPC).

(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 correct ZIP Code if one is not provided. See Exhibit 3.11.23-11, U.S. Possessions ZIP Codes.

(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 has 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.

(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.

(1) If the taxpayer enters the due date of the return instead of the tax period ending, perfect the Tax Period if it is a prior quarter return. Current returns do not require the tax period to be edited.

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

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

3.11.23.10.7.1 (01-01-2024)

Early Filed Excise Tax Return Form 720 and Form 2290

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

(2) An early filed Form 720 quarterly return is defined as a return filed where the Tax Period Beginning Date is after the current (received) date.

(3) An early filed Form 2290 return is defined as a return filed where the Tax Period Beginning Date is after the current (received) date.

(4) 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 correct quarter of the appropriate year.
Form 720,	The tax period is equal to or later than the process date by 3 months or less (e.g., the process date is in April but the tax period is June),	Process as usual.
Form 720,	The tax period is later than the process date by more than 3 months (e.g., the process date is in April but the tax period is in September),	Edit Action Code 211 for correspondence. Complete and attach Form 15211 for Letter 1887C to request confirmation of the tax period. Completely edit the return. Edit the future tax period indicated by the taxpayer. Leave the return in batch. See Figure 3.11.23-6, Early Filed Form 720 and Form 2290 and With the Tax Period Edited.

Exception: Form 720 reporting Floor Stock Taxes for IRS Number 20 see IRM 3.11.23.16.5, Floor Stock Taxes, and see Exhibit 3.11.23-2, Form 6627, Environmental Taxes.

Exception: 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 (e.g., the process date and the TPB are both July) or, The process date is prior to the TPB by 3 months or less (e.g., 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 (e.g., the process date is March but the TPB is July or later),	Edit Action Code 211 for correspondence. Complete and attach Form 15208 for Letter 140C. Follow local service center correspondence procedures. Completely edit the return. Edit the future tax period indicated by the taxpayer. Leave the return in the batch. Do not return Schedule 1. See Figure 3.11.23-6, Early Filed Form 720 and Form 2290 and With the Tax Period Edited.

3.11.23.10.7.2 (01-01-2016)

Early Filed Excise Tax Return Form 11-C and Form 730

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

3.11.23.10.7.2.1 (01-01-2024)

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.

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

Note: See IRM 3.11.23.11(2), Received Date, for more information.

If	Then
The tax period is less than 3 months of the process date,	Process as usual. See Figure 3.11.23-7, Early Filed Form 11-C and Form 730 with the Tax Period Edited.
The tax period is greater than 3 months of the process date,	Edit CCC "U" and attach Form 15210, to request confirmation of the tax period. Completely edit the return including the future tax period by the tax payer. Leave the return in the batch.

3.11.23.10.7.2.2 (01-01-2023)

Early Filed Excise Tax Return Form 730

(1) Form 730 can never be filed early. (Taxpayer must file Form 730 for each month for which taxpayer has taxable wagers, by the end of the following month.) 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, Early Filed Form 11-C and Form 730 with the Tax Period Edited. Use the signature date to help in determining the correct tax period.

3.11.23.10.7.3 (01-01-2024)

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:
202412	2412
202409	2409
202406	2406
202403	2403
202312	2312
202309	2309
202306	2306
202303	2303

(3) If the taxpayer does not 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 to the left of the OMB number. See Figure 3.11.23-8, Editing Tax Period in "YYMM" Format on Form 720.

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

Reminder: 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 31 or prior, process to the preceding 2nd quarter (e.g., Form 720 reporting IRS Number 133 received on December 31, 2023, process as 202306). If the return was received after December 31, process to the subsequent 2nd quarter (e.g., Form 720 reporting IRS Number 133 received on January 3, 2024, process as 202406).

(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.

3.11.23.10.7.4 (01-01-2024)

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 Tax 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 pre-programmed on the ISRP screen.

Note: If Form 2290 is received from April-June reporting July tax liability amounts with no indication of amendment, research TC 150 for July of the current year. If a TC 150 is posted process as July of the subsequent year. Otherwise process as current year

See Figure 3.11.23-9, Editing Tax Period on Form 2290.

(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 Schedule 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 and Form 2290 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. (e.g., 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.

Note: If there are multiple tax periods indicated circle out all except for the one determined to be the correct tax period.

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) Lockbox Issues - If the Lockbox function edits a tax period in the T-line area for tax periods correctly per the procedures, no action is needed. If incorrect, circle out the incorrect tax period and edit the correct tax period.

3.11.23.10.7.6 (01-01-2023)

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, Editing a Tax Period on Form 730 with a Signature Date.

Note: If no signature date, edit the month and year preceding the received date as the tax period. See Figure 3.11.23-12, Editing a Tax Period on Form 730 Without a Signature Date.

(2) When editing an early filed Form 730 return, edit the tax period to be the month and year preceding the month of the signature date. If the signature date is not present, edit the month and year preceding the month of the received date.

(1) The payment received with Form 720, Form 11-C, 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.

(1) For heavy highway motor vehicles used on public highways in July, Form 2290 and 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) For vehicles for which tax is suspended during the taxable period under the 5,000/7,500-mile exemption, an amended Form 2290 return is due, if the vehicle later exceeds the applicable mileage limit. 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.

(1) The IRS has developed a Memorandum of Understanding (MOU) with various state agencies that allow the agency to accept the Form 2290 and payment for the IRS on behalf of the taxpayer. This MOU is referred to as the Alternative Proof of Payment (APP) program. When a Form 2290 is received from a state Department of Motor Vehicles (DMV) treat the filing as if it is part of the APP program.

(2) When the IRS has received a Form 2290 from a state agency participating in the APP program that accepts a Form 2290 from a taxpayer and mails the Form 2290 to IRS, the Form 2290 is not considered received until it has been received by the IRS. Use the date the IRS received the Form 2290 as the Received Date. See IRM 3.11.23.17.12.1, Form 2290 Alternative Proof of Payment Program, for more information.

(1) "D" - Reasonable Cause for Failing to Pay Timely (All Excise Forms). CCC D will no longer be edited by Code and Edit tax examiners. If the taxpayer requests an abatement for Failing to Pay Timely when the return is submitted, send Letter 1382C, Penalty Removal Request Incomplete, 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 and Edit tax examiners will be provided with the coding procedures to follow.

(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 Centralized Excise Operation (CEO). 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 and 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. It is not necessary to correspond for a signature on these returns if it is missing.

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 (e.g., tax paid, current year, etc.) and process as usual. If the signature is missing on a taxable return correspond.

(1) Refer to IRM 3.11.23.2.11, Amended Returns.

(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, Penalty Removal Request Incomplete, 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 and Edit tax examiners will be provided with the coding procedures to follow.

(1) Edit CCC "L" if:

• Taxpayer writes "IRC 6114 Election" on the top of the Form 720.

• Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), is attached.

• Taxpayer attaches a letter referring to IRC 6114 to the Form 720.

• Taxpayer writes 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."

(1) CCC "O" is entered when a pre-settlement manual refund will be made and a Form 3753 (Manual Refund Posting Voucher), Form 5792 (Request for IDRS Generated Refund (IGR)). or Form 12857 (Refund Transfer Posting Voucher) 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, CCC "O" - Module Freeze.

(1) If the taxpayer requests an abatement for Reasonable Cause for Failing to Timely File Return when the return is submitted, send Letter 1382C, Penalty Removal Request Incomplete, 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 and Edit tax 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.

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

(1) Refer to IRM 3.11.23.2.10, Statute Returns.

(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 Centralized Excise Operation (CEO) 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.

(1) When an Abstract Number (IRS Number (No.)) is missing, and the amount is over $100.00, CCC "Z" sends a transcript to the Centralized Excise Operation 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 Trust Fund and the Airport and Airway Trust Fund.

(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 Number (IRS Number) is indicated.

(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.

(1) Edit CCC "3" when the taxpayer either does not respond to a correspondence or the correspondence is returned undeliverable.

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

(1) Edit CCC 5 when IRS Number (Abstract Number) 150 has a significant amount (greater than zero) and Form 7208 , Excise Tax on Repurchase of Corporate Stock, is attached.

(1) Edit CCC 6 when IRS Number (Abstract Number) 150 has a significant amount (greater than zero) and Form 7208 , Excise Tax on Repurchase of Corporate Stock, is not attached.

(1) Edit CCC 8 when IRS Number (Abstract Number) 150 amount equals zero and Form 7208 , Excise Tax on Repurchase of Corporate Stock, is attached.

(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 correct IRS number. Also, adjust Line 3 accordingly.

(2) If the taxpayer has an entry ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ for IRS Number(s) 16, 17, 18, 19, 20 (in Part II), 21, 53, 54, 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, Environmental Taxes.

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 or is incomplete, correspond to secure a completed Form 6627.

4. If no reply, edit CCC "3".

5. Continue processing.

(3) The medical device excise tax was repealed by the Further Consolidated Appropriations Act 2020, Public Law (PL) 116-94.

(4) ) The Excise Tax on Repurchase of Corporate Stock (Form 7208, IRS Number 150), created by P.L 117-169, Inflation Reduction Act (IRA) of 2022, Section 10201, is valid for tax periods 202306 and later. IRM 3.11.23.12.15, IRM 3.11.23.12.16 and IRM 3.11.23.12.17.

(5) The Excise Tax on Sales of Designated Drugs During Statutory Periods (IRS Number 142), created by P.L 117-169, IRA 2022, Section 11003, is valid for tax periods 202403 and later. 

(1) Form 6627, Environmental Taxes, is used to figure the environmental tax on petroleum and imported petroleum products, chemicals (other than ozone-depleting chemicals (ODCs)), imported chemical substances, ODCs, imported products that used ODCs as materials in the manufacture or production of the product, and the floor stocks tax on ODCs. The hazardous substance superfund financing rate (IRS Numbers 53 (domestic) and 16 (imported) was reinstated with the Inflation Reduction Act (IRA22). The oil spill liability tax (IRS Numbers 18 and 21) was reinstated effective January 1, 2020, after expiring December 31, 2018.

(2) See IRM 3.11.23.16.2.1 for Form 6627, Part I (Revision January 2023) information. See IRM 3.11.23.16.2.2 for Form 6627, Part I (Revision July 2022) information.

(3) See IRM 3.11.23.16.2.3 through IRM 3.11.23.16.2.7 for Form 6627, Part II through Form 6627, Part VI (Revisions January 2023 and July 2022) information.

(4) See IRM 3.11.23.16.2.8 through IRM 3.11.23.16.2.11 for Form 6627 (Revision January 2021 and prior) information.

(5) For perfection of Form 6627, Environmental Taxes. See Exhibit 3.11.23-2, Form 6627, Environmental Taxes.

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, Form 6627, Environmental Taxes.

3. 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, research and then edit the correct information.

4. Edit a check mark next to applicable line to indicate the math verification completed on the Form 6627 .