TD 8442 Procedural Rules

Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

KeyCite Yellow Flag - Negative Treatment
Corrected by Procedural Rules for Excise Taxes Currently Reportable on Form 720, IRS TD, January 29, 1993

57 FR 48174-01, 1992-2 C.B. 292, 1992-46 I.R.B. 12, 1992 WL 12000526(F.R.)
RULES and REGULATIONS
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 40, 43, 44, 46, 48, 49, 51, 52, 145, 148, 150, and 602
(T.D. 8442)
RIN 1545-AO97; 1545-AQ04
Procedural Rules for Excise Taxes Currently Reportable on Form 720
Thursday, October 22, 1992
*48174 AGENCY: Internal Revenue Service, Treasury.

ACTION: Final regulations and removal of obsolete regulations.
SUMMARY: This document contains final regulations relating to requirements for returns, payments, and deposits of
tax for excise taxes currently reportable on Form 720, including special rules for use of Government depositaries under
chapter 33 of the Internal Revenue Code. Existing procedural regulations under 26 CFR parts 43, 46, 48, 49, and 52
are amended and consolidated in a new part 40. These regulations also reflect changes to the law made by the Omnibus
Budget Reconciliation Acts of 1989 and 1990. The regulations affect persons required to report liability for excise taxes
currently reportable on Form 720. This document also removes various obsolete excise tax regulations.
EFFECTIVE DATES: These regulations are effective April 1, 1991, except that §§ 40.6302(c)-1(c)(2)(iii),
40.6302(c)-1(c)(2)(iv), 40.6302(c)-1(c)(3), 40.6302(c)-1(e)(3), 40.6302(c)-2(b)(3), and 40.6302(c)-3 are effective
January 1, 1993.
FOR FURTHER INFORMATION CONTACT:Ruth Hoffman, (202) 622-3130 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information contained in these final regulations have been reviewed and approved by the Office of
Management and Budget in accordance with the requirements of the *48175 Paperwork Reduction Act of 1980 (44
U.S.C. 3504(h)) under control number 1545-1296. The estimated average annual burden per recordkeeper is 60 hours.
The estimated average annual burden per respondent is 0.5 hour.
These estimates are an approximation of the average time expected to be necessary for a collection of information. They
are based on such information as is available to the Internal Revenue Service. Individual respondents and recordkeepers
may require more or less time, depending on their particular circumstances.
Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be sent to
the Internal Revenue Service, Attn: IRS Reports Clearance Officer, T:FP, Washington, DC 20224, and to the Office of
Management and Budget, Attn: Desk Officer for the Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC 20503.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

Background
On September 6, 1990, temporary regulations (T.D. 8311) relating to returns, payments, and deposits of tax under
sections 4681 and 4682 (relating to the tax imposed on ozone-depleting chemicals) were published in the Federal Register
(55 FR 36612). A notice of proposed rulemaking (PS-73-89) cross-referencing the temporary regulations was published
in the Federal Register for the same day (55 FR 36659). A public hearing was not requested and none was held.
On October 12, 1990, temporary regulations (T.D. 8314) relating to returns, payments, and deposits of tax under section
4471 (relating to the tax imposed on transportation by water) were published in the Federal Register (55 FR 41519).
A notice of proposed rulemaking (PS-3-90) cross-referencing the temporary regulations was published in the Federal
Register for the same day (55 FR 41546). A public hearing was held on April 8, 1991.
On January 3, 1991, temporary regulations (T.D. 8328) relating to returns, payments, and deposits of taxes under subtitle
D (relating to miscellaneous excise taxes) were published in the Federal Register (56 FR 179). A notice of proposed
rulemaking (PS-65-90) cross-referencing the temporary regulations was published in the Federal Register for the same
day (56 FR 233). A public hearing was not requested and none was held.
On January 31, 1992, a notice of proposed rulemaking (PS-27-91) relating to special rules for deposits of taxes imposed
under chapter 33 (relating to communications services and air transportation) was published in the Federal Register (57
FR 3734). A public hearing was scheduled, but the sole request to speak was withdrawn and the public hearing was
not held.
Written comments responding to the notices were received. After consideration of all the comments, the regulations
proposed by PS-65-90 and PS-27-91, and the procedural regulations proposed as part of PS-73-89 and PS-3-90 are
adopted as revised by this Treasury decision and the corresponding temporary regulations are withdrawn. The revisions
are discussed below.

Explanation of Revisions
Final Return Based on Change in Law
The proposed regulations provide for the filing of a final return when a person liable for tax has permanently ceased
all operations with respect to which liability for tax was incurred. The final regulations clarify that a person that is still
conducting the same operations but is no longer liable for tax because of a change in the law also files a final return. For
example, a final return is filed by a person that is no longer liable for a tax because the point of imposition of the tax has
moved (assuming that the person has no other tax liability reportable on Form 720).

Books Kept on a Monthly Basis
The proposed regulations do not require books to be kept on a semimonthly basis, but do not explain how semimonthly
liability is to be calculated if a person keeps books on a monthly basis. To reflect the common business practice of keeping
books on a monthly basis, the final regulations clarify that the liability for a semimonthly period is equal to one-half of
monthly liability if this method of determining semimonthly liability is used consistently for the entire quarter.

De Minimis Exception to the Deposit Requirement
The proposed regulations require deposits of tax to be made on a semimonthly basis, no matter how small the tax liability,
unless the special rule for one-time filers applies or no deposit of that tax is required. Commenters suggested that persons
with small tax liabilities be exempted from the deposit requirement.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

The final regulations provide that the deposit requirement does not apply if the net tax liability for the quarter does
not exceed $2,000. The de minimis exception is effective for deposits that relate to calendar quarters beginning after
December 31, 1992.

Safe Harbor Rules
Under the proposed regulations, deposits of tax for a semimonthly period generally must equal the amount of tax liability
incurred (or in the case of collected taxes, the amount of tax collected) during that semimonthly period. However, the
proposed regulations provide one general safe harbor rule, and one special safe harbor rule for new filers based on
current liability. The general safe harbor rule applies to persons that have filed a Form 720 reporting tax for the lookback quarter (the second calendar quarter preceding the current calendar quarter). Under this safe harbor rule, a person
is considered to have met the semimonthly deposit requirement if the person's deposit for each semimonthly period in
the current quarter is not less than 1 /6 of the total net tax liability reported on Form 720 for the look-back quarter.
The special safe harbor rule applies to persons (generally new return filers) that did not file a Form 720 reporting tax
for the look-back quarter. Under this safe harbor rule, a person is considered to have met the semimonthly deposit
requirement if the person's deposit for each semimonthly period in the current quarter is not less than 90 percent of the
net tax liability incurred during the semimonthly period.

Modification of Safe Harbor Based on Current Liability
Commenters requested that the special safe harbor rule based on current liability be extended to all filers.
The final regulations extend to all filers a safe harbor rule based on current net tax liability. However, the safe harbor
rule provided by the final regulations is based on 95 percent of the liability for a semimonthly period. Thus, under the
final regulations, a person is considered to have met the semimonthly deposit requirement for the current quarter if the
deposit for each semimonthly period in the current quarter is not less than 95 percent of the net tax liability incurred
during the semimonthly period. The new current liability safe harbor is effective for deposits that relate to calendar
quarters beginning after December 31, 1992.

Modification of Safe Harbor Based on Look-back Quarter Liability To Adjust for Tax Rate Increases
Under the proposed regulations, an increase in the rate of a tax generally is not reflected in deposits made by persons
using the look-back quarter safe *48176 harbor rule until the second quarter after the quarter for which the increased
rate is effective (although the increased rate is reflected in catch-up payments for each quarter). There is an exception in
the case of ozone-depleting chemicals taxes; for purposes of the safe harbor, the look-back quarter liability is modified
to take into account increases in tax liability due to increases in the base tax amount or due to the phase-in of tax on
Halons and ozone-depleting chemicals used in the manufacture of rigid foam insulation.
The final regulations extend the tax rate increase rule to other taxes. Under the final regulations, the safe harbor deposit
amounts for the first and second quarters beginning on or after the effective date of a tax rate increase must be calculated
as if the new tax rate had been in effect during the look-back quarter. Thus, persons using the safe harbor in these
quarters must deposit 1 /6 of the amount for which they would have been liable in the look-back quarter had the higher
rate applied at that time. This rule ensures that the statutory effective date of tax rate changes will be appropriately
reflected in deposits.
Look-back quarter liability is adjusted for safe harbor purposes only where tax rates are increased, not where there is
some other change that would have resulted in higher taxes in the look-back quarter. The change is effective for deposits
that relate to calendar quarters beginning after December 31, 1992.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

Withdrawal of Right To Use Safe Harbor Rules
The Internal Revenue Service may withdraw the right to make deposits of tax using safe harbor rules from any person
that does not comply with the conditions of those rules.

Special Rules for Use of Government Depositaries Under Chapter 33
Currently, special rules for deposits of taxes imposed on communications services and air transportation by chapter 33
(the “considered collected” method) are provided under § 49.6302(c)-1(a)(1). The considered collected method, including
the semimonthly deposit exceptions, continues to apply until January 1, 1993, the effective date of § 40.6302(c)-3 of the
final regulations.
PS-65-90 did not propose any changes to the special rules for chapter 33 filers. Proposed changes to the considered
collected method are contained in PS-27-91. The proposed regulations provide that the amount of the deposit of tax
under chapter 33 for each semimonthly period may be computed based on amounts billed or tickets sold (the “alternative
method”).
As proposed, the alternative method does not provide any safe harbor rules. Commenters on PS-27-91 requested that
the safe harbor rules proposed by PS-65-90 for other excise taxes be extended to chapter 33 filers. The final regulations
provide the same safe harbor rules for chapter 33 filers using the alternative method as are provided for other filers.
The regulations set forth in PS-27-91 were proposed to be effective July 1, 1992. Contrary to the proposed effective date,
the special rules provided under § 40.6302(c)-3 of the final regulations are effective January 1, 1993, for deposits of taxes
that are considered as collected after December 31, 1992, (i.e., tax with respect to amounts billed or tickets sold after
November 30, 1992), and for returns of tax for quarters beginning after September 30, 1992.

Penalty Calculations
Failure-to-deposit penalties under section 6656 may apply if required deposits are not timely made in the correct amount
with an authorized Government depositary.
Commenters suggested that, as illustrated in the examples provided in the proposed regulations, the calculation of
penalties might have overly harsh results, particularly when a deposit is only late by a day or is only short by a few dollars.
The final regulations do not provide any examples of the application of section 6656 to excise tax deposits. Instead,
the new Penalty Handbook published by the Internal Revenue Service provides uniform guidance on the application
of section 6656.

Gasoline Tax Deposits for the Period September 16th-22nd
Section 6302(f) provides that a deposit of gasoline tax must be made for the period September 16th-22nd and that this
additional deposit generally is due by September 27. The proposed regulations do not provide guidance with respect
to the calculation of the amount of gasoline tax to deposit for the period September 16th-22nd. The final regulations
provide that guidance.
Under the final regulations, a person liable for the gasoline tax must make one gasoline tax deposit for the period
September 16th-22nd and a second gasoline tax deposit for the period September 23rd-30th. In general, the deposit for
each of those periods must be not less than the amount of net gasoline tax liability for that period.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

The final regulations also modify the safe harbor rules for these September gasoline deposits. In general, persons using
the look-back quarter liability safe harbor must make two separate deposits of 1 /12 of the look-back quarter liability for
the class of tax that includes the gasoline tax, and persons using the current liability safe harbor must make two separate
deposits of 47.5 percent of their gasoline tax liability for the second semimonthly period in September. The safe harbors
are effective after December 31, 1992.

Special Analyses
It has been determined that these rules are not major rules as defined in Executive Order 12291. Therefore, a Regulatory
Impact Analysis is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5
U.S.C. chapter 5) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply to these regulations, and therefore,
a final Regulatory Flexibility Analysis is not required. Pursuant to section 7805(f) of the Internal Revenue Code, the
notice of proposed rulemaking was submitted to the Chief Counsel for Advocacy of the Small Business Administration
for comment on their impact on small business.

Drafting Information
The principal author of these regulations is Ruth Hoffman, Office of Assistant Chief Counsel (Passthroughs and Special
Industries), Internal Revenue Service. However, personnel from other offices of the IRS and Treasury Department
participated in their development.

List of Subjects
26 CFR part 40
Administrative practice and procedure, Excise taxes.

26 CFR part 43
Excise taxes, Gambling, Transportation by Water, Vessels.

26 CFR part 44
Excise taxes, Gambling.

26 CFR part 46
Banks and banking, Excise taxes, Insurance.

26 CFR part 48
Agriculture, Aircraft, Boats, Coal, Excise taxes, Furs, Jewelry, Motor fuels, Motor vehicles, Sporting goods, Tires.

26 CFR part 49
Excise taxes, Telegraph, Telephone, Transportation.

*48177 26 CFR part 51
Crude Oil Windfall Profit Tax Act of 1980, Excise taxes, Petroleum.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

26 CFR part 52
Chemicals, Excise taxes, Petroleum.

26 CFR part 145
Excise taxes, Excise Tax Reduction Act of 1965.

26 CFR part 148
Excise taxes, Excise Tax Technical Changes Act of 1958.

26 CFR part 150
Crude Oil Windfall Profit Tax Act of 1980, Excise taxes, Petroleum.

26 CFR part 602
Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations
Accordingly, 26 CFR parts 40, 43, 44, 46, 48, 49, 51, 52, 145, 148, 150, and 602 are amended as follows:
Paragraph 1. Part 40 is revised to read as follows:

PART 40—EXCISE TAX PROCEDURAL REGULATIONS
Sec.40.0-1 Introduction.40.6011(a)-1 Returns.40.6011(a)-2 Final returns.40.6071(a)-1 Time for filing
returns.40.6071(a)-2 Time for filing quarterly returns under chapter 33 and sections 4681 and 4682(h).40.6091-1 Place
for filing returns.40.6101-1 Period covered by returns.40.6109(a)-1 Identifying numbers.40.6151(a)-1 Time and place for
paying tax shown on return.40.6302(c)-0 Table of contents.40.6302(c)-1 Use of Government depositaries.40.6302(c)-2
Special rules for use of Government depositories under section 4681.40.6302(c)-3 Special rules for use of Government
depositaries under chapter 33.40.6302(c)-4 Special rule for use of Government depositaries under section 4081.40.9999-1
Examples.
Authority: 26 U.S.C. 7805.
Sections 40.6011(a)-1 and 40.6011(a)-2 also issued under 26 U.S.C. 6011(a).
Sections 40.6071(a)-1 and 40.6071(a)-2 also issued under 26 U.S.C. 6071(a).
Section 40.6091-1 also issued under 26 U.S.C. 6091.
Section 40.6101-1 also issued under 26 U.S.C. 6101.
Section 40.6109(a)-1 also issued under 26 U.S.C. 6109(a).
Sections 40.6302(c)-1, 40.6302(c)-2, 40.6302(c)-3, and 40.6302(c)-4 also issued under 26 U.S.C. 6302(a).
 26 CFR § 40.0-1
§ 40.0-1 Introduction.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(a) In general. The regulations in this part 40 are designated “Excise Tax Procedural Regulations.” The regulations set
forth administrative provisions relating to the excise taxes imposed by chapters 31, 32, 33, 34, 36, 38, and 39 (except for
the chapter 32 tax imposed by section 4181 (firearms tax) and the chapter 36 taxes imposed by sections 4461 (harbor
maintenance tax), 4481 (heavy vehicle use tax), and 4495 (deep seabed mineral removal tax)). Chapter 31 relates to retail
excise taxes; chapter 32 to manufacturers' excise taxes; chapter 33 to taxes imposed on communications services and
air transportation; chapter 34 to taxes imposed on policies issued by foreign insurers; chapter 36 to taxes imposed on
transportation by water; chapter 38 to environmental taxes; and chapter 39 to taxes imposed on registration-required
obligations. See parts 43, 46, 48, 49, and 52 of this chapter for regulations relating to the imposition of tax.
(b) References to forms. Any reference for form in this part is also a reference to any other form designated for the same
use by the Commissioner after October 22, 1992.
(c) Definition of semimonthly period. The term “semimonthly period” means the first 15 days of a calendar month
(the “first semimonthly period”) or the portion of a calendar month following the 15th day of the month (the “second
semimonthly period”).
(d) Examples. See § 40.9999-1 for examples illustrating the rules of this part 40.
(e) Cross references. For provisions relating to penalties for failure to file a return to pay tax, see section 6651. For
provisions relating to penalties for failure to make deposit of taxes, see section 6656. For provisions relating to timely
mailing treated as timely filing and paying, see section 7502. For provisions relating to time for performance of acts
where the last day for performance falls on Saturday, Sunday, or a legal holiday, see section 7503.
(f) Effective date. Except as otherwise provided, this part is effective April 1, 1991, for returns that relate to calendar
quarters beginning after December 31, 1990, and are filed after March 31, 1991, and for deposits that relate to calendar
quarters beginning after March 31, 1991. In the case of taxes for which rules are provided in this part, the administrative
provisions that apply to such taxes before the effective date of this part are contained in 26 CFR parts 43, 46, 48, 49
and 52 (each revised as of April 1, 1992).
 26 CFR § 40.6011(a)-1
§ 40.6011(a)-1 Returns.
(a) In general—(1) Return required. The return of any tax to which this part 40 applies must be made on Form 720,
Quarterly Federal Excise Tax Return, according to the instructions applicable to the form. The requirement for filing a
return under this part 40 applies separately to each tax listed by IRS Number on Form 720. Except as provided in this
paragraph (a)(1), an entry must be made on the line for the IRS Number in order to file a return of the tax corresponding
to that number. The entry on an IRS Number line of the word “none,” “zero,” or comparable entry clearly indicating
a denial of liability constitutes a return of that tax. The entry of the word “none” across the return or in the summary
portion, provided it clearly indicates a denial of liability for all taxes, constitutes a return of all taxes listed on Form 720.
(2) Period covered by return—(i) In general. Except as provided in paragraph (b) of this section, the return must be made
for a period of one calendar quarter. A return must be filed for the first calendar quarter in which liability for tax is
incurred (or in which tax must be collected and paid over) and for each subsequent calendar quarter, whether or not
liability is incurred (or tax must be collected and paid over) during that subsequent quarter, until a final return under
§ 40.6011(a)-2 is filed. In the case of one-time filings (as defined in § 40.6011(a)-2(b)) and returns of floor stocks taxes
under § 40.6011(a)-2(c), a first return is also a final return.
(ii) First return. A person's return is a first return if the person was not required under this part 40 to file a return (other
than a final return) for the preceding period.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(3) Person required to file the return. Except in the case of a tax required to be collected and paid over, the person
incurring liability for tax must file the return. In the case of a tax required to be collected and paid over, the person
required to collect the tax (and not the person incurring liability) must file the return.
(b) Monthly and semimonthly returns. If the district director determines that any person that is required under this
section to file returns has failed to comply in a timely manner with the requirements of this part 40 relating to returns,
payments, and deposits of tax, that person will be required, if so notified in writing by the district director, to make a
return for a monthly or semimonthly period (as defined in § 40.0-1(c)). Each person so notified by the district director
must make a return *48178 for the calendar month or semimonthly period in which the notice is received and for each
calendar month or semimonthly period thereafter until the person has filed a final return or until the person is notified
by the district director to resume making quarterly returns.
(c) Cross reference. For provisions relating to the time to file returns, see §§ 40.6071(a)-1 and 40.6071(a)-2. For provisions
relating to the place for filing returns, see § 40.6091-1. For provisions relating to time and place for paying tax, see §
40.6151(a)-1. For provisions relating to use of Government depositaries, see §§ 40.6302(c)-1, 40.6302(c)-2, 40.6302(c)-3,
and 40.6302(c)-4.
(d) Effective date. This section is effective April 1, 1991, for returns that relate to calendar quarters beginning after
December 31, 1990, and are filed after March 31, 1991.
 26 CFR § 40.6011(a)-2
§ 40.6011(a)-2 Final returns.
(a) In general—(1) Permanent cessation of operations. Any person that is required under § 40.6011(a)-1 to make returns
and that permanently ceases all operations with respect to which liability for tax was incurred (or with respect to which
tax had to be collected and paid over) must make a final return in accordance with the instructions applicable to the
form on which the return is made. A person does not make a final return if only a temporary or partial cessation of such
operations occurs and must continue to file returns as required under § 40.6011(a)-1.
(2) Change in law without cessation of operations. Any person that is required under § 40.6011(a)-1 to make returns must
make a final return in accordance with the instructions applicable to the form on which the return is made if, by reason
of a change in law, that person is no longer liable for any tax (or, in the case of a collected tax, is no longer responsible for
collecting and paying over any tax). For example, if the tax on a product is changed from a retail tax to a manufacturers
tax, a retailer formerly liable for the tax but now buying the product tax-paid from its supplier must make a final return
(assuming that the retailer has no other tax liability reportable on the return).
(b) Special rule for one-time filings—(1) In general. A first return is also a final return if it is a one-time filing. A return
is a one-time filing if the person reporting tax does not engage in any activity with respect to which tax is reportable on
the return in the course of a trade or business.
(2) Deposits not required. See § 40.6302(c)-1(e)(2) for a rule providing that no deposit of taxes reported on a one-time
filing is required.
(c) Special rule for floor stocks taxes. A first return reporting only floor stocks taxes under this part 40 is also a final
return.
(d) Effective date. This section is effective April 1, 1991, for returns that relate to calendar quarters beginning after
December 31, 1990, and are filed after March 31, 1991.
 26 CFR § 40.6071(a)-1
§ 40.6071(a)-1 Time for filing returns.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(a) Quarterly returns—(1) In general. Except as provided in paragraph (a)(2) of this section and in § 40.6071(a)-2
(relating to quarterly returns under chapter 33 and sections 4681 and 4682(h)), each quarterly return required under §
40.6011(a)-1(a)(2) must be filed by the last day of the first calendar month following the quarter for which it is made.
(2) Special rule. A person must file only one return for a quarter. If under § 40.6071(a)-2 a person is required to file a
return for a quarter by a date that is later than the date provided in paragraph (a)(1) of this section, the person must
file a single return for the quarter by the filing date provided under § 40.6071(a)-2. This rule does not extend the time
for making deposits or paying any excise tax.
(b) Monthly and semimonthly returns—(1) Monthly returns. Each monthly return required under § 40.6011(a)-1(b) must
be filed by the fifteenth day of the month following the month for which it is made.
(2) Semimonthly returns. Each semimonthly return required under § 40.6011(a)-1(b) must be filed by the ninth day of
the semimonthly period (as defined in § 40.0-1(c)) following the semimonthly period for which it is made.
(c) Effective date. This section is effective April 1, 1991, for returns that relate to calendar quarters beginning after
December 31, 1990, and are filed after March 31, 1991.
 26 CFR § 40.6071(a)-2
§ 40.6071(a)-2 Time for filing quarterly returns under chapter 33 and sections 4681 and 4682(h).
(a) In general. In the case of return of tax imposed by chapter 33 (relating to communications services and air
transportation) or section 4681 (relating to ozone-depleting chemicals), each quarterly return required under §
40.6011(a)-1(a)(2) must be filed by the last day of the second calendar month following the quarter for which it is made.
(b) Special rule for floor stocks tax imposed by section 4682(h). In the case of floor stocks taxes imposed by section
4682(h) on January 1 of a calendar year, each return required under § 40.6011(a)-1(a) must be filed by August 31 of
the year the tax is imposed. Each of these returns will be a return for the second calendar quarter of the year in which
the tax is imposed.
(c) Effective date. This section is effective April 1, 1991, for returns that relate to calendar quarters beginning after
December 31, 1990, and are filed after March 31, 1991.
 26 CFR § 40.6091-1
§ 40.6091-1 Place for filing returns.
(a) Quarterly returns. Except as provided in paragraph (b) of this section, quarterly returns must be filed in accordance
with the instructions applicable to the form on which the return is made.
(b) Hand-carried returns—(1) Persons other than corporations. Returns of persons other than corporations that are filed
by hand carrying must be filed with the district director for the Internal Revenue district in which is located the principal
place of business or legal residence of the person.
(2) Corporations. Returns of corporations that are filed by hand carrying must be filed with the district director for
the Internal Revenue district in which is located the principal place of business or principal office or agency of the
corporation.
(c) Monthly and semimonthly returns. Monthly and semimonthly returns required under § 40.6011(a)-1(b) must be filed
in accordance with the instructions of the district director requiring that filing.
(d) Effective date. This section is effective April 1, 1991, for returns that relate to calendar quarters beginning after
December 31, 1990, and are filed after March 31, 1991.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

 26 CFR § 40.6101-1
§ 40.6101-1 Period covered by returns.
(a) In general. See § 40.6011(a)-1(a)(2) for the rules relating to the period covered by the return.
(b) Effective date. This section is effective April 1, 1991, for returns that relate to calendar quarters beginning after
December 31, 1990, and are filed after March 31, 1991.
 26 CFR § 40.6109(a)-1
§ 40.6109(a)-1 Identifying numbers.
(a) In general. Every person required under § 40.6011(a)-1 to make a return must provide the identifying number required
by the instructions applicable to the form on which the return is made.
(b) Effective date. This section is effective April 1, 1991, for returns that relate to calendar quarters beginning after
December 31, 1990, and are filed after March 31, 1991.
 26 CFR § 40.6151(a)-1
*48179 § 40.6151(a)-1 Time and place for paying tax shown on return.
(a) In general. Except as provided by statute, the tax must be paid at the time prescribed in § 40.6071(a)-1 or 40.6071(a)-2
for filing the return, and at the place prescribed in § 40.6091-1 for filing the return.
(b) Special rule for floor stocks tax imposed by section 4682(h). The floor stocks tax imposed by section 4682(h) (relating
to ozone-depleting chemicals) on January 1 of a calendar year, must be paid by June 30 of the year the tax is imposed.
Payments must be accompanied by Form 8109, Federal Tax Deposit Coupon, and deposited in accordance with the
instructions applicable to that form. In accordance with the instructions to Form 8109, mark the boxes on Form 8109
for “720” and “2nd Quarter.”
(c) Cross reference. For provisions relating to use of Government depositaries, see §§ 40.6302(c)-1, 40.6302(c)-2,
40.6302(c)-3, and 40.6302(c)-4.
(d) Effective date. This section is effective April 1, 1991, for returns that relate to calendar quarters beginning after
December 31, 1990, and are filed after March 31, 1991.
 26 CFR § 40.6302(c)-0
§ 40.6302(c)-0 Table of contents.
This section lists captions contained in §§ 40.6302(c)-1, 40.6302-2(c)-1, 40.6302(c)-3, and 40.6302(c)-4.

§ 40.6302(c)-1Use of Government depositaries.
(a) Overview.
(b) In general.
(1) Semimonthly deposits required.
(i) General rule.
(ii) Special rule for gasoline tax deposits for September.
(iii) Treatment of taxes imposed by chapter 33.
(2) Definition of net tax liability.
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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(3) Computation of net tax liability.
(4) Failure to comply with deposit requirements.
(5) Amount of deposit.
(i) In general.
(ii) Special rule for gasoline tax deposits for September.
(iii) Exceptions; cross references.
(6) Time to deposit.
(i) In general.
(ii) Exceptions; cross references.
(iii) Special rule for gasoline tax deposits for September.
(c) Amount of deposit; safe harbor rules.
(1) Applicability.
(i) In general.
(ii) Separate applicability to each class of tax.
(2) Safe harbor rule based on look-back quarter liability.
(i) In general.
(ii) Amount of special deposit.
(iii) Modification for tax rate increases.
(A) Applicability.
(B) Modification.
(C) Effective date.
(iv) Modification for gasoline tax deposits for September.
(A) Applicability.
(B) Modification.
(C) Effective date.
(3) Safe harbor rule based on current liability.
(i) In general.
(ii) Amount of special deposit.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(iii) Modification for gasoline tax deposits for September.
(A) Applicability.
(B) Modification.
(iv) Effective date.
(d) Remittance of deposits.
(e) Exceptions.
(1) Taxes excluded.
(2) One-time filings.
(3) De minimis exception.
(i) In general.
(ii) Effective date.
(f) Cross references.
(g) Effective date.
§ 40.6302(c)-2 Special rules for use of Government depositaries under section 4681.
(a) Overview.
(b) In general.
(1) Time to deposit.
(2) Amount of deposit; safe harbor rule based on look-back quarter liability.
(i) In general.
(ii) Modification for tax rate increases.
(A) Applicability.
(B) Modification.
(3) Amount of deposit; safe harbor rule based on current liability
(i) In general.
(ii) Effective date.
(c) Effective date.
§ 40.6302(c)-3 Special rules for use of Government depositaries under chapter 33.
(a) Overview.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(b) Alternative method for computing deposits.
(1) In general.
(i) Alternative method.
(ii) Using more than one method to compute deposits.
(2) Applicability.
(i) In general.
(ii) Separate account.
(iii) Change of method.
(3) Period during which tax is considered as collected.
(4) When amounts are billed.
(c) Time to deposit.
(d) Amount of deposit
(e) Reporting of tax.
(f) Transitional rule for first calendar quarter of 1993.
(1) Applicability.
(2) Rule.
(i) Crediting of deposits.
(ii) Return of tax for fourth calendar quarter of 1992.
(3) Example.
(g) Effective date.
§ 40.6302(c)-4 Special rule for use of Government depositaries under section 4081.
(a) Overview.
(b) Time to deposit under the 14-day rule.
(c) Qualified person defined.
(1) In general.
(2) Related groups.
(d) Effective date and termination date.
26 CFR § 40.6302(c)-1
§ 40.6302(c)-1 Use of Government depositaries.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(a) Overview. This section sets forth the general rule that any person required to file a quarterly return under §
40.6011(a)-1(a)(2) must make deposits of taxes reported on the return. Rules relating to the time for making a deposit
and its amount are provided, including safe harbor rules for computing the amount of a deposit. Return filers generally
have an obligation to make semimonthly deposits of tax in advance of the due date of the return. Under this section,
taxes that are required to be deposited on the same schedule are grouped together into classes of tax and referred to
collectively as “9-day rule taxes,” “30-day rule taxes,” “alternative method taxes,” or “14-day rule taxes.” Paragraph (b)
(6) of this section sets forth the general rule that the deposit of tax for a semimonthly period is due by the ninth day of
the following semimonthly period (the “9-day rule”). Most of the taxes to which this part 40 relates are required to be
deposited in accordance with this rule (the “9-day rule taxes”). Exceptions to the 9-day rule are set forth in other sections.
Unless otherwise provided, the safe harbor rules set forth in this section apply as well to deposits of alternative method
and 14-day rule taxes. Section 40.6302(c)-2 (relating to taxes imposed on ozone-depleting chemicals by section 4681)
provides special rules for the time to make deposits of section 4681 taxes (the “30-day rule” and “30-day rule taxes”)
and the safe harbor rules for computing the amount of those deposits. Section 40.6302(c)-3 (relating to taxes imposed
on communications services and air transportation by chapter 33) provides an alternative method for computing the
amount of deposits of chapter 33 taxes (the “alternative method” and “alternative method taxes”). Section 40.6302(c)-4
(relating to taxes imposed on gasoline by section 4081) provides a special rule under which qualified persons may make
deposits of section 4081 taxes (the “14-day rule” and “14-day rule taxes”).
(b) In general—(1) Semimonthly deposits required—(i) General rule. Except as provided by statute or by paragraph (e)
of this section, each person required under § 40.6011(a)-1(a)(2) to file a quarterly return must make a deposit of tax for
each semimonthly period (as defined in § 40.0-1(c)) in which liability is incurred.
*48180 (ii) Special rule for gasoline tax deposits for September. In the case of deposits of taxes imposed by section
4081 (relating to gasoline) for the second semimonthly period in September, separate deposits are required for the period
September 16th-22nd and the period September 23rd-30th.
(iii) Treatment of taxes imposed by chapter 33. For purposes of this part 40, a tax imposed by chapter 33 (relating to
communications services and air transportation) is treated as a tax liability incurred during the semimonthly period in
which that tax is collected (or, in the case of the alternative method, is considered as collected).
(2) Definition of net tax liability. The term “net tax liability” means the tax liability for the specified period plus or minus
any adjustments allowable in accordance with the instructions applicable to the form on which the return is made.
(3) Computation of net tax liability. The net tax liability for a semimonthly period may be computed by dividing by
two the net tax liability incurred during the calendar month that includes that semimonthly period, provided that this
method of computation is used for all semimonthly periods in the calendar quarter.
(4) Failure to comply with deposit requirements. If a person fails to make deposits as required under this part 40, that
failure may be reported to the appropriate district director and the Internal Revenue Service may withdraw the person's
right to use the safe harbor rules of paragraph (c) of this section and § 40.6302(c)-2(b)(2) and (3) in computing deposits.
(5) Amount of deposit—(i) In general. The deposit of tax for each semimonthly period must be not less than the amount
of net tax liability incurred during that semimonthly period. Except as provided under paragraph (c)(2) of this section
and § 40.6302(c)-2(b)(2) (relating to safe harbor rules based on look-back quarter liability), no deposit is required for
any semimonthly period in which no tax liability is incurred.
(ii) Special rule for gasoline tax deposits for September. Each deposit of taxes imposed by section 4081 (relating to
gasoline) for the periods September 16th-22nd and September 23rd-30th must be not less than the amount of net tax
liability incurred under section 4081 during the period. However, if net tax liability is computed on the basis of the rule

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

provided in paragraph (b)(3) of this section, the deposit for each period must not be less than one-fourth of the September
net tax liability under section 4081.
(iii) Exceptions; cross references. Special rules for determining the amount to deposit are provided in paragraph (c)
of this section (relating to safe harbor rules), paragraph (e)(3) of this section (relating to the de minimis exception), §
40.6302(c)-2(b)(2) and (3) (relating to safe harbor rules for section 4681 taxes), and § 40.6302(c)-3(d) (relating to the
alternative method for chapter 33 taxes).
(6) Time to deposit—(i) In general. The deposit of tax for any semimonthly period must be made by the ninth day of
the following semimonthly period (the “9-day rule”). Thus, under the 9-day rule generally, the deposit of tax for the first
semimonthly period in a month is due by the 24th day of that month and the deposit of tax for the second semimonthly
period in a month is due by the 9th day of the following month.
(ii) Exceptions; cross references. The 9-day rule does not apply to deposits for which rules are prescribed by paragraph
(b)(6)(iii) of this section (relating to deposits of gasoline tax for September), § 40.6302(c)-2 (relating to deposits of section
4681 taxes (“30-day rule taxes”)), § 40.6302(c)-3 (relating to the alternative method for computing deposits of chapter
33 taxes (“alternative method taxes”)), or § 40.6302(c)-4 (relating to deposits by qualified persons of section 4081 taxes
(“14-day rule taxes”)).
(iii) Special rule for gasoline tax deposits for September—(A) The deposit of taxes imposed by section 4081 (relating to
gasoline) for the period September 16th-22nd is due by September 27th. If September 27th falls on a Saturday, Sunday,
or legal holiday in the District of Columbia, the due date of the deposit is the immediately preceding day which is not
a Saturday, Sunday, or legal holiday in the District of Columbia. Section 40.6302(c)-4 (relating to the 14-day rule) does
not apply to extend the due date of this deposit.
(B) The deposit of taxes imposed by section 4081 (relating to gasoline) for the period September 23rd-30th is due as
provided under paragraph (b)(6)(i) of this section or § 40.6302(c)-4.
(c) Amount of deposit; safe harbor rules—(1) Applicability—(i) In general. This paragraph (c) provides the safe harbor
rules for deposits of 9-day rule taxes, alternative method taxes, and 14-day rule taxes.
(ii) Separate applicability to each class of tax. The rules of this paragraph (c) are applied separately to each class of tax.
For this purpose, all 9-day rule taxes are treated as one class of tax, all alternative method taxes are treated as a second
class of tax, and all 14-day rule taxes are treated as a third class of tax.
(2) Safe harbor rule based on look-back quarter liability—(i) In general. Except as provided in paragraph (c)(2)(iii) of
this section, any person that made a return of tax reporting a class of tax to which this paragraph (c) applies for the
second preceding calendar quarter (the “look-back quarter”) is considered to have complied with the requirement of this
part 40 for deposit of taxes in that class for the current calendar quarter if—
(A) The deposit of those taxes for each semimonthly period in the current calendar quarter is not less than 1 /6 (16.67
percent) of the net tax liability reported for the class of tax for the look-back quarter;
(B) Each deposit is made on time;
(C) In any case in which the due date of the return is extended under § 40.6071(a)-1(a)(2) (relating to filing a single return),
a special deposit (the amount of which is determined under paragraph (c)(2)(ii) of this section) is made by the last day
of the first calendar month following the end of the quarter; and

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(D) The amount of any underpayment of those taxes is paid by the due date of the return.
(ii) Amount of special deposit. The amount of the special deposit required under paragraph (c)(2)(i)(C) of this section
with respect to a class of tax is not less than the lesser of—
(A) The amount by which net tax liability with respect to taxes in that class (other than taxes imposed by chapter 33) for
the current calendar quarter exceeds that net tax liability for the look-back quarter; and
(B) The amount of any underpayment of taxes in that class for the current calendar quarter.
(iii) Modification for tax rate increase—(A) Applicability. The safe harbor rule of paragraph (c)(2)(i) of this section is
modified for the first and second calendar quarters beginning on or after the effective date of an increase in the rate of
any tax to which this part 40 applies.
(B) Modification. The safe harbor rule of paragraph (c)(2)(i) of this section does not apply to a class of tax for those
calendar quarters unless the deposit of taxes in that class for each semimonthly period in the calendar quarter is not less
than 1 /6 (16.67 percent) of the tax liability the person would have had with respect to that class for the look-back quarter
if the increased rate of tax had been in effect for that look-back quarter.
(C) Effective date. This paragraph (c)(2)(iii) is effective for deposits that relate to calendar quarters beginning after
December 31, 1992.
*48181 (iv) Modification for gasoline tax deposits for September—(A) Applicability. In the case of a class of tax that
includes taxes imposed by section 4081 (relating to gasoline), the safe harbor rule of paragraph (c)(2) (i) of this section
is modified for deposits of tax for the second semimonthly period in September.
(B) Modification. The safe harbor rule in paragraph (c)(2)(i) of this section does not apply to that class of tax for the third
calendar quarter unless each deposit of taxes in that class for the periods September 16th-22nd and September 23rd-30th
is not less than 1 /12 (8.34 percent) of the net tax liability reported for that class of tax for the look-back quarter.
(C) Effective date. This paragraph (c)(2)(iv) is effective for deposits that relate to calendar quarters beginning after
December 31, 1992.
(3) Safe harbor rule based on current liability—(i) In general. A person is considered to have complied with the
requirement of this part 40 for deposit of a class of tax to which this paragraph (c) applies for a calendar quarter if—
(A) The deposit of those taxes for each semimonthly period in the calendar quarter is not less than 95 percent of the net
tax liability incurred with respect to those taxes during the semimonthly period;
(B) Each deposit is made on time; and
(C) In any case in which the due date of the return is extended under § 40.6071(a)-1(a)(2) (relating to filing a single return),
a special deposit (the amount of which is determined under paragraph (c)(3)(ii) of this section) is made by the last day
of the first calendar month following the end of the quarter; and
(D) The amount of any underpayment of those taxes is paid by the due date of the return.
(ii) Amount of special deposit. The amount of the special deposit required under paragraph (c)(3)(i)(C) of this section
with respect to a class of tax is not less than the lesser of—
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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(A) An amount equal to 5 percent of net tax liability with respect to taxes in that class (other than taxes imposed by
chapter 33) for the current calendar quarter; and
(B) The amount of any underpayment of taxes in that class for the current calendar quarter.
(iii) Modification for gasoline tax deposits for September—(A) Applicability. In the case of a class of tax that includes
taxes imposed by section 4081 (relating to gasoline), the safe harbor rule of paragraph (c)(3)(i) of this section is modified
for deposits for the second semimonthly period in September.
(B) Modification. The safe harbor rule of paragraph (c)(3)(i) of this section does not apply to that class of tax for the
third calendar quarter unless—
(1) The deposit of taxes in that class for the period September 16th-22nd is not less than 47.5 percent of the net tax
liability for section 4081 taxes for the second semimonthly period in September; and
(2) The total deposit of taxes in that class for the semimonthly period is not less than 95 percent of the net tax liability
for that class of tax for the semimonthly period.
(iv) Effective date. This paragraph (c)(3) is effective for deposits that relate to calendar quarters beginning after December
31, 1992.
(d) Remittance of deposits. A completed Form 8109, Federal Tax Deposit Coupon, must accompany each deposit. The
deposit must be remitted, in accordance with the instructions applicable to the form, to a financial institution authorized
as a depositary for federal taxes (as provided in 31 CFR part 214) or to a Federal Reserve bank.
(e) Exceptions—(1) Taxes excluded. No deposit is required in the case of the taxes imposed by section 4042 (relating to
fuel used on inland waterways), section 4161 (relating to sport fishing equipment and bows and arrows), and section
4682(h) (relating to floor stocks tax on ozone-depleting chemicals).
(2) One-time filings. No deposit is required in the case or any taxes reportable on a one-time filing (as defined in §
40.6011(a)-2(b)).
(3) De minimis exception—(i) In general. For any calendar quarter, no deposit is required if the net tax liability for the
quarter does not exceed $2,000.
(ii) Effective date. This paragraph (e)(3) is effective for deposits that relate to calendar quarters beginning after December
31, 1992.
(f) Cross references. For provisions relating to penalties for failure to make deposit of taxes, see section 6656.
(g) Effective date. Except as otherwise provided, this section is effective April 1, 1991, for deposits that relate to calendar
quarters beginning after March 31, 1991.
 26 CFR § 40.6302(c)-2
§ 40.6302(c)-2 Special rules for use of Government depositaries under section 4681.
(a) Overview. This section sets forth special rules for deposits of tax imposed by section 4681 (relating to ozone-depleting
chemicals), including rules relating to the time to deposit and safe harbors. The general rules relating to deposits are set
forth in § 40.6302(c)-1 and apply unless inconsistent with the rules set forth below.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(b) In general—(1) Time to deposit. In the case of tax imposed by section 4681 (section 4681 tax), the deposit of tax for
a semimonthly period must be made by the last day of the second following semimonthly period (the “30-day rule”).
Thus, under the 30-day rule generally, the deposit of tax for the first semimonthly period in a month is due by the 15th
day of the following month and the deposit of tax for the second semimonthly period in a month is due by the end of
the following month.
(2) Amount of deposit; safe harbor rule based on look-back quarter liability—(i) In general. Except as provided in
paragraph (b)(2)(ii) of this section, any person that made a return of section 4681 tax for the second preceding calendar
quarter (the “look-back quarter”) is considered to have complied with the requirement of this part 40 for deposit of that
tax for the current calendar quarter if—
(A) The deposit of that tax for each semimonthly period in the current calendar quarter is not less than 1 /6 (16.67 percent)
of the net tax liability under section 4681 reported for the look-back quarter;
(B) Each deposit is made on time; and
(C) The amount of any underpayment of that tax for the current calendar quarter is paid by the due date of the return.
(ii) Modification for tax rate increases—(A) Applicability. The safe harbor rule of paragraph (b)(2)(i) of this section is
modified for the first and second calendar quarters beginning on or after the effective date of—
(1) An increase in the base tax amount under section 4681(b); or
(2) A change in the tax treatment of ozone-depleting chemicals that are described in section 4682(g).
(B) Modification. The safe harbor rule in paragraph (b)(2)(i) of this section does not apply for those calendar quarters
unless the deposit of section 4681 taxes for each semimonthly period in the calendar quarter is not less than 1 /6 (16.67
percent) of the tax liability the person would have had under section 4681 for the look-back quarter if the increased base
tax amount or the change in treatment had been in effect for that look-back quarter.
(3) Amount of deposit; safe harbor rule based on current liability—(i) In general. A person is considered to have complied
with the requirement of this part 40 for deposit of section 4681 tax for a calendar quarter if—
(A) The deposit of that tax for each semimonthly period in the calendar *48182 quarter is not less than 95 percent of
the net tax liability incurred under section 4681 during the semimonthly period;
(B) Each deposit is made on time; and
(C) The amount of any underpayment of that tax for the calendar quarter is paid by the due date of the return.
(ii) Effective date. This paragraph (b)(3) is effective for deposits that relate to calendar quarters beginning after December
31, 1992.
(c) Effective date. Except as otherwise provided, this section is effective April 1, 1991, for deposits that relate to calendar
quarters beginning after March 31, 1991.
 26 CFR § 40.6302(c)-3
§ 40.6302(c)-3 Special rules for use of Government depositaries under chapter 33.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(a) Overview. This section sets forth an alternative method for computing the amount of deposits of taxes imposed by
chapter 33, and provides rules relating to the time for making a deposit and the amount of tax to be reported on the
return of tax for each quarter by persons using the alternative method. The safe harbor rules for computing deposits of
tax using the alternative method and the general rules relating to deposits are set forth in § 40.6302(c)-1 and apply unless
inconsistent with the rules set forth below.
(b) Alternative method for computing deposits—(1) In general—(i) Alternative method. Any person required to collect
and pay over any tax imposed by chapter 33 may compute the amount of that tax to be deposited on the basis of amounts
considered as collected (the “alternative method”) instead of on the basis of actual collections of tax.
(ii) Using more than one method to compute deposits. A person may compute deposits of tax imposed by one or more
sections of chapter 33 using the alternative method provided by this section and compute deposits to taxes imposed by
other sections of chapter 33 on the basis of amounts actually collected using the 9-day rule of § 40.6302(c)-1(b)(6). For
purposes of this paragraph (b)(1)(ii), the taxes imposed by section 4261(a) and (b) are treated as taxes imposed by the
same section.
(2) Applicability—(i) In general. A person may use the alternative method with respect to a tax only if the person—
(A) Separately accounts for the tax in accordance with paragraph (b)(2)(ii) of this section; and
(B) Makes a return of the tax on the basis of the amount of the tax that is considered as collected.
(ii) Separate account. The account required under paragraph (b)(2)(i)(A) of this section (the “separate account”) must
reflect for each month—
(A) All items of the tax that are included in amounts billed or tickets sold to customers during the month; and
(B) Items of adjustment (including bad debts and errors) relating to the tax for prior months within the period of
limitations on credits or refunds.
(iii) Change of method. The method of computing deposits of tax imposed by a section of chapter 33 (as described in
paragraph (b)(1)(ii) of this section) may be changed only at the beginning of a calendar quarter. Before a person changes
the method used to compute the amount of tax to be deposited and reported for a calendar quarter, the person must
notify the Commissioner so that proper adjustments may be made in order to properly reflect that person's collections
of excise tax.
(3) Period during which tax is considered as collected. For purposes of this section, the tax included in amounts billed
or tickets sold during a semimonthly period (as defined in § 40.0-1(c)) is considered as collected during the first seven
days of the second following semimonthly period. Thus, the tax included in amounts billed or tickets sold during the
first semimonthly period of a calendar month is considered as collected during the period of the 1st day through the 7th
day of the following month; the tax included in amounts billed or tickets sold during the second semimonthly period of a
calendar month is considered as collected during the period of the 6th day through the 22nd day of the following month.
(4) When amounts are billed. For purposes of this section, an amount is billed on the earlier of the date the amount is
received or the date a bill for the amount is rendered.
(c) Time to deposit. Under the alternative method, the deposit of tax for any semimonthly period must be made by the
third banking day after the seventh day of that semimonthly period. Thus, for example, the deposit for the semimonthly

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

period beginning on January 1, 1993 (relating to amounts billed between December 1st and December 15, 1992) is due
by January 12, 1993, three banking days after January 7, the seventh day of the semimonthly period.
(d) Amount of deposit. Under the alternative method, the deposit of tax for any semimonthly period must be not less
than the net amount of tax that is considered as collected during that semimonthly period. The net amount of tax that
is considered as collected during the semimonthly period must be either the net amount of tax reflected in the separate
account for the corresponding semimonthly period of the preceding month or one-half the net amount of tax reflected
in the separate account for the preceding month.
(e) Reporting of tax. If a tax is deposited under the alternative method for a calendar quarter, the return of tax for the
quarter must report the net amount of the tax that is considered as collected during the quarter and not the amount
of the tax that is actually collected during the quarter. The amount to be reported for each month is the net amount
of tax reflected in the separate account for the preceding month. For example, amounts billed in December, January,
and February are considered as collected during January, February, and March, and are reported as the collections of
tax for January, February, and March (the first calendar quarter). Thus, the net amount of tax reflected in the separate
accounts for December, January, and February is the amount reported as collections for the first quarter.
(f) Transitional rule for first calendar quarter of 1993—(1) Applicability. This paragraph (f) applies to a chapter 33 tax
if the person—
(i) Erroneously applied the “considered collected” method provided under § 49.6302(c)-1(a)(1) of this chapter in the
fourth calendar quarter of 1992 by calculating deposits of that tax on the basis of amounts billed or tickets sold during
the quarter rather than on the basis of taxes considered as collected during the quarter; and
(ii) Uses the alternative method provided under this section to calculate deposits and make a return of that tax for the
first quarter of 1993.
(2) Rule.—(i) Crediting of deposits. If this paragraph (f) applies to a tax, any deposits of the tax computed on the basis
of amounts billed or tickets sold during December 1992 are credited to the first calendar quarter of 1993.
(ii) Return of tax for fourth calendar quarter of 1992. If this paragraph (f) applies to a tax, the amount of the tax to
be reported on the person's return for the fourth calendar quarter of 1992 must be the amount of the tax included in
amounts billed or tickets sold in October and November 1992.
(3) Example. The application of this paragraph (f) may be illustrated by the following example:
(a) Facts. (i) X, a corporation, has been providing air transportation subject to tax under section 4261 (a) and (b) for
several years and is required to collect and pay over these taxes. X maintains a separate account in which all items of
these taxes are recorded. For calendar quarters beginning before January 1, 1993, including the fourth quarter of 1992,
X erroneously applied the “considered collected” method of computing *48183 deposits of these taxes by treating the
tickets sold during each quarter as the collections for the quarter. For quarters beginning after December 31, 1992, X
uses the alternative method provided by this section for computing deposits of these taxes.
(ii) For the period September 1, 1992, through December 31, 1992, X's separate account reflects the following amounts
of tax:
Sept. 1st-15th

Sept. 16th-30th

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$4,000

4,000

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

Oct. 1st-15th

Oct. 16th-31st

Nov. 1st-15th

Nov. 16th-30th

Dec. 1st-15th

Dec. 16th-31st

(iii) During the period October 1992 through January 1993, X made the following deposits:
Date

7,000

7,000

5,000

5,000

9,000

9,000

Amount

Oct. 13th
$4,000

Oct. 27th
4,000

Nov. 12th
7,000

Nov. 26th
7,000

Dec. 10th
5,000

Dec. 28th
5,000

Jan. 12th
9,000

Jan. 27th
9,000

(iv) X credited the October deposits (relating to tickets sold in September) to the third quarter of 1992 and reported the
tax included in tickets sold in September as third quarter collections on the Form 720 for the third quarter. Following
the same procedure, X credited the November, December, and January deposits (relating to the October, November,
and December tickets sold) to the fourth quarter.
(b) Transitional rule. In order to use the alternative method beginning with the first calendar quarter of 1993, X must
deposit and report the amount of tax that is considered as collected in the quarter rather than the amount of tax included
in tickets sold during the quarter. Under paragraph (f)(2)(i) of this section, X's January deposits (relating to the tickets
sold in December) will be credited to the first quarter of 1993. X must report on the Form 720 for the fourth quarter
only the $24,000 of tax included in the October and November tickets sold. The amount of tax included in the tickets
sold in December must be reported on the Form 720 for the first quarter of 1993.
(g) Effective date. This section is effective January 1, 1993, for deposits of taxes that are considered as collected after
December 31, 1992. (i.e., tax with respect to amounts billed or tickets sold after November 30, 1992), and for returns
of tax for quarters beginning after September 30, 1992. The provisions that apply in the case of semimonthly deposits
under the considered collected method before the effective date of this section are contained in 26 CFR § 49.6302(c)-1(a)
(1) (revised as of April 1, 1992).
 26 CFR § 40.6302(c)-4
§ 40.6302(c)-4 Special rule for use of Government depositaries under section 4081.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(a) Overview. This section set forth a special rule for deposits of taxes imposed by section 4081 (relating to gasoline).
This section does not apply to the deposit for the period September 16th-22nd required under § 40.6302(c)-1(b)(6)(iii).
The general rules, including the amount to deposit and safe harbors, are set forth in § 40.6302(c)-1 and apply unless
inconsistent with the rules set forth below.
(b) Time to deposit under the 14-day rule—(1) In the case of taxes imposed by section 4081, a qualified person may make
deposits of the tax for a semimonthly period by the fourteenth day following the semimonthly period if the deposit is
made by transfer between accounts with the same Government depositary (the “14-day rule”). Thus, under the 14-day
rule generally, the deposit of tax for the first semimonthly period in a month is due by the 29th day of that month and
the deposit of tax for the second semimonthly period in a month is due by the 14th day of the following month.
(2) If the due date under paragraph (b)(1) of this section falls on a Saturday, Sunday, or legal holiday in the District
of Columbia, the due date of the deposit is the immediately preceding day which is not a Saturday, Sunday, or legal
holiday in the District of Columbia.
(c) Qualified person defined—(1) In general. The term “qualified person” means—
(i) Any independent refiner (within the meaning of section 4995(b)(4) (as in effect on January 6, 1983)); or
(ii) Any person whose average daily production of crude oil for the preceding calendar quarter did not exceed 1,000
barrels.
(2) Related groups. In determining whether a person's production exceeds 1,000 barrels per day, the rules of section
4992(e) (as in effect on January 6, 1983) relating to allocation within related groups shall apply. Thus, for persons who are
members of the same related group (within the meaning of section 4992(e)(2)) at any time during the preceding calendar
quarter, the 1,000 barrel amount will be reduced for each such person by allocating that amount among all such persons
in accordance with the rules of section 4992(e).
(d) Effective date and termination date. This section is effective April 1, 1991, for deposits that relate to calendar quarters
beginning after March 31, 1991. This section terminates on the date that section 518 of the Highway Act of 1982
terminates.
 26 CFR § 40.9999-1
§ 40.9999-1 Examples.
The following examples illustrate the rules of this part 40.
Example 1. Luxury tax; one-time filing. (i) Facts. On March 20, 1991, A, an individual, purchases a new automobile
outside the United States for $102,000. In April of 1991, A imports the automobile into the U.S. and uses it for personal
use. At the time of importation, the automobile's retail value is $100,000. Thus, A is liable for the luxury tax imposed by
section 4001. The amount of A's section 4001 tax liability is $7,000, 10% of the amount by which the $100,000 retail value
exceeds $30,000. The liability is incurred in the second calendar quarter of 1991, the quarter during which the automobile
is imported and used. The fuel economy of the automobile's model type is at least 22.5 miles per gallon, so that A is
not liable for the gas guzzler tax imposed by section 4064. A did not import the automobile in the course of its trade or
business, does not engage in any activities with respect to which tax is reportable on Form 720 in the course of a trade
or business, and was not required to file a Form 720 for the preceding calendar quarter.
(ii) Filing requirement. A must file a return of the luxury tax on Form 720 (§ 40.6011(a)-1(a)(1)) for the second calendar
quarter of 1991 (§ 40.6011(a)-1(a)(2)) reporting A's $7,000 luxury tax liability. The Form 720 is due by July 31, 1991, the
last day of the first month following the calendar quarter (§ 40.6071(a)-1(a)(1)). A's Form 720 for the second calendar
quarter of 1991 is a first return (§ 40.6011(a)-1(a)(2)(ii)). Because A did not import the automobile in the course of its
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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

trade or business and is not otherwise required to file a Form 720 for the calendar quarter on account of transactions in
the course of a trade or business, the return is a one-time filing (§ 40.6011(a)-2(b)). As a one-time filing, A's Form 720
also constitutes a final return. Therefore, in accordance with the instructions for Form 720, A checks the box marked
“Final Return.”
(iii) Payment requirement. Because A's Form 720 is a one-time filing, A is not required to make deposits of tax (§
40.6302(c)-1(e)(2)). Instead, A pays the $7,000 of tax with the return.
Example 2. Luxury tax; deposit requirement; safe harbor based on current liability. (i) Facts. On March 16, 1993, B,
an individual in the business of automobile dealing, sells in a first retail sale a new automobile subject to the luxury tax
imposed by section 4001. The amount of B's section 4001 tax liability is $12,000. The sale of the automobile is in the course
of B's business, but B does not expect to sell any other automobiles subject to the luxury tax. B is not required to file a
Form 720 for the first calendar quarter of 1993 by reason of any other activity, and has not in the past filed a Form 720.
(ii) Filing requirement. B must file a return of the luxury tax (§ 40.6011(a)-1(a)(1)) on Form 720 for the first calendar
quarter of 1993 (§ 40.6011(a)-1(a)(2)) reporting B's $12,000 luxury tax liability. The Form 720 is due by April 30, 1993, the
last day of the first month following the calendar quarter (§ 40.6071(a)- *48184 1(a)(1)). Although B does not ordinarily
engage in transactions giving rise to a luxury tax liability in B's business, the tax is due with respect to a transaction
engaged in by B in the course of a trade or business. Thus, the return is not a one-time filing under § 40.6011(a)-2(b), and
B must file a Form 720 for each subsequent calendar quarter until B files a final return in accordance with § 40.6011(a)-2
(§ 40.6011(a)-1(a)(2)). However, if B does not expect to incur liability for luxury tax in subsequent quarters (i.e., has
permanently ceased all operations with respect to which liability for tax was incurred), B's Form 720 also constitutes a
final return (§ 40.6011(a)-2(a)(1)), and B is not required to file a return reporting zero tax liability in subsequent quarters.
If B's Form 720 is also a final return, B checks the box marked “Final Return” in accordance with the instructions for
the return.
(iii) Deposit requirement; in general. Because the return is not a one-time filing, B is required to make a deposit of tax
(§ 40.6302(c)-1(b)(1)(i)) for the semimonthly period in which the liability was incurred. Under § 40.6302(c)-1(b)(5)(i), B
must deposit an amount not less than the net tax liability incurred during the semimonthly period, in this case $12,000.
Deposits of luxury tax for a semimonthly period are due by the 9th day of the following semimonthly period (the 9-day
rule under § 40.6302(c)-1(b)(6)(i)). Thus, B must deposit the $12,000 by April 9, 1993. Form 8109, Federal Tax Deposit
Coupon, completed in accordance with the instructions to the form must accompany the deposit (§ 40.6302(c)-1(d)).
(iv) Deposit requirement; safe harbor. B may also meet the deposit requirement by using a safe harbor rule. B did not
file a return for the second preceding calendar quarter, so B does not qualify for the safe harbor based on look-back
quarter liability (§ 40.6302(c)-1(c)(2)(i)), but B may use the safe harbor based on current liability (§ 40.6302(c)-1(c)(3)
(i)). Under this safe harbor, B's deposit for the semimonthly period must be at least 95% of B's net tax liability for the
semimonthly period (§ 40.6302(c)-1(c)(3)(i)(A)), B's deposit must be timely (§ 40.6302(c)-1(c)(3)(i)(B)), and B must pay
the amount of any underpayment of tax by the due date of the return (§ 40.6302(c)-1(c)(3)(i)(D)). B meets this safe harbor
by depositing $11,400 (95% of $12,000) by April 9, 1993, and by paying $600 (the amount of the underpayment ($12,000
minus $11,400)) with the return by April 30, 1993.
Example 3. Classes of tax (diesel fuel tax, foreign insurance tax, ozone-depleting chemicals tax); books kept on a monthly
basis; deposit requirement; safe harbor based on look-back quarter liability. (i) Facts. (1) M, a corporation, is a diesel
fuel wholesaler registered under section 4101 with respect to the tax imposed by section 4091, and is therefore treated as
a producer for purposes of the section 4091 tax on the sale of diesel fuel by its producer. M's net diesel fuel tax liability
in the fourth quarter of 1990 was $36,000. The diesel fuel tax liability incurred by M during each calendar month in the
second calendar quarter of 1991 is as follows:

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

Apr. 1st-30th
$10,000

May 1st-31st
15,000

Jun. 1st-30th
12,000

Total
$37,000

(2) M also purchases insurance from a foreign insurer, thereby incurring liability for the tax imposed by section 4371
on policies issued by a foreign insurer. M's net section 4371 tax liability in the fourth quarter of 1990 was $6,000. The
section 4371 liability incurred by M during each calendar month in the second calendar quarter of 1991, is as follows:
Apr. 1st-30th
$0

May 1st-31st
0

June 1st-30th
6,000

Total
$6,000

(3) In addition, M imports into the United States and sells CFC-12, an ozone-depleting chemical subject to tax under
section 4681. M's net ozone-depleting chemicals tax liability for the fourth calendar quarter of 1990 was $3,300. The
ozone-depleting chemicals tax liability incurred by M during each calendar month in the second calendar quarter of
1991 as follows:
Apr. 1st-30th
$1,300

May 1st-31st
1,500

June 1st-30th
1,500

Total
$4,300

(4) M keeps its books on a monthly basis. M makes deposits and files Form 720 each quarter to report liability for
the diesel fuel tax, the section 4371 tax, and the ozone-depleting chemicals tax. M's total net tax liability for the second
calendar quarter of 1991 is $47,300.
(ii) Filing requirement. Because M must report ozone-depleting chemicals tax, M's Form 720 for the second calendar
quarter of 1991 is due by Tuesday, September 3, 1991. The Form 720 would ordinarily be due by August 31st (the last
day of the second month after the end of the calendar quarter (§ 40.6071(a)-2(a)), but August 31, 1991 is a Saturday,
and Monday, September 2, 1991, is Labor Day, a legal holiday. Thus, under section 7503, M has additional time to file.
If M had reported only diesel fuel and section 4371 tax liability on M's Form 720 for the second calendar quarter of
1991, the Form 720 would have been due by July 31, 1991, the last day of the first month after the end of the calendar
quarter (§ 40.6071(a)-1(a)(1)). However, only one Form 720 is filed for a calendar quarter (§ 40.6071(a)-1(a)(2)). Thus,
M's responsibility for reporting ozone-depleting chemicals tax allows M to delay the filing of the Form 720. Although
M may delay the filing of its Form 720 until two months after the quarter ends, M must deposit the full amount of the
diesel fuel tax and foreign insurance tax for the quarter by the date the return of those taxes would ordinarily be due (i.e.
July 31, 1991) (§ 40.6071(a)-1(a)(2)). Under § 40.6011(a)-1(a)(2), M must continue to file a Form 720 for each calendar
quarter until M files a final return in accordance with § 40.6011(a)-2.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(iii) Deposit requirement; in general. M is required to make a deposit of tax for each semimonthly period in which liability
is incurred (§ 40.6302(c)-1(b)(1)(i)). M is required to make deposits of tax because M's liability for the quarter exceeds
$2,000 (§ 40.6302(c)-1(e)(3)). Deposits of diesel fuel tax and section 4371 tax for a semimonthly period are due by the
9th day of the following semimonthly period (the 9-day rule under § 40.6302(c)-1(b)(6)(i)). The 9-day rule does not apply
to ozone-depleting chemicals tax (§ 40.6302(c)-1(b)(6)(ii)). Deposits of ozone-depleting chemicals tax for a semimonthly
period are due by the last day of the second following semimonthly period (the 30-day rule under § 40.6302(c)-2(b)(1)).
M uses the rule provided under § 40.6302(c)-1(b)(3) to compute its net tax liability for each semimonthly period. Thus,
M divides monthly net tax liability for each tax by two to determine its semimonthly liability. The amount of M's deposit
for a semimonthly period under the 9-day rule must be not less than the total net tax liability for 9-day rule taxes incurred
during the semimonthly period (§ 40.6302(c)-1(b)(5)(i)). The amount of M's deposit for a semimonthly period under the
30-day rule must be not less than the total net tax liability for 30-day rule taxes incurred during the semimonthly period
(§ 40.6302(c)-1(b)(5)(i)). Accordingly, M meets the deposit requirement if M makes the following deposits:
Deposit due by

Amount
Class of tax

Apr. 24th
$5,000 9-day rule

May 9th
5,000 9-day rule

May 15th
650 30-day rule

May 24th
7,500 9-day rule

May 31st
650 30-day rule

June 10th
7,500 9-day rule

June 17th
750 30-day rule

June 24th
9,000 9-day rule

July 1st
750 30-day rule

July 9th
9,000 9-day rule

July 15th
750 30-day rule

July 31st
750 30-day rule

The deposit due on Monday, June 10th would ordinarily be due on June 9th, but June 9, 1991, is a Sunday, Thus, under
section 7503, M has additional time to make the required deposit. Similarly, the deposits otherwise due on June 15th
and June 30th are due under section 7503 on the next succeeding day that is not aSaturday or Sunday.
(iv) Deposit requirements; safe harbor. M may also meet the deposit requirement by using a safe harbor rule. M uses
the safe harbor based on look-back quarter liability for both the diesel fuel and section 4371 taxes (9-day rule taxes) and
the ozone-depleting chemicals tax (30-day rule tax). This is permitted because M filed a return reporting both of those
classes of tax for the fourth quarter of 1990 (the look-back quarter under §§ 40.6302(c)-1(c)(2)(i) and 40.6302(c)-2(b)(2)
(i)). The safe harbor rules apply separately to 9-day rule and 30-day rule taxes (§ 40.6302(c)-1(c)(1)(ii)). Therefore, M
must compute the amount to deposit separately for each class of tax.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

*48185 (1) M's combined net tax liability in the look-back quarter for 9-day rule taxes was $42,000. M computes the
amount to deposit for 9-day rule taxes based on M's combined look-back quarter liability for those taxes. Accordingly,
M meets the safe harbor for 9-day rule taxes by—
(A) Depositing $7,000 ( 1 /6 of $42,000, M's combined net 9-day rule tax liability for the fourth calendar quarter of 1990
(§ 40.6302(c)-1(c)(2)(i)(A))) by the due dates specified above for 9-day rule taxes (§ 40.6302(c)-1(c)(2)(i)(B)); and
(B) Depositing $1,000 (the amount by which the net 9-day rule tax liability for the second calendar quarter of 1991
($43,000) exceeds the net 9-day rule tax liability for the look-back quarter ($42,000) by July 31, 1991 (§ 40.6302(c)-1(c)
(2)(i)(C)).
(2) M's net tax liability in the look-back quarter for 30-day rule taxes was $3,300. Accordingly, M meets the safe harbor
for 30-day rule taxes by—
(A) Depositing $550 ( 1 /6 of $3,300, M's ozone-depleting chemicals tax liability for the fourth calendar quarter of 1990
(§ 40.6302(c)-2(b)(2)(i)(A))) by the due dates specified above for 30-day rule taxes (§ 40.6302(c)-2(b)(2)(i)(B)); and
(B) Paying $1,000 (the amount by which the net 30-day rule tax liability for the second calendar quarter of 1991 ($4,300)
exceeds the net 30-day rule tax liability for the look-back quarter ($3,300)) by September 3, 1991, the due date of the
return (§ 40.6302(c)-2(b)(2)(i)(C)).
Example 4. Air transportation tax; deposits and reporting based on alternative method. (i) Facts. (1) P, a corporation
engaged in providing air transportation subject to tax under section 4261 (a) and (b), is responsible for collecting and
paying over that tax. P maintains a separate account in which all items of air transportation tax included in tickets sold
are recorded and makes returns of tax on the basis of amounts considered as collected. P does not compute the amount
of deposits of tax on the basis of actual collections. P files Form 720 on a quarterly basis to report the tax. P reported
$54,000 of section 4261 (a) and (b) tax for the third calendar quarter of 1992. P is not required to report any other taxes
on its Form 720.
(2) For the last month of 1992 and the first two months of 1993, P's separate account reflects the following:
Tickets sold during

Tax

Dec. 1st-15th
$11,000

Dec. 16th-31st
11,000

Jan. 1st-15th
7,500

Jan. 16th-31st
7,500

Feb. 1st-15th
9,500

Feb. 16th-28th
9,500

Total
$56,000

(3) The tax is considered as collected during the first week of the second semimonthly period following the semimonthly
period in which the tickets were sold to the customers. Accordingly, the tax included in tickets sold during the period
December 1992 through February 1993 is considered as collected as follows:

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

For tickets sold during

Tax is considered as collected during

Dec. 1st-15th
Jan. 1st-7th

Dec. 16th-31st
Jan. 16th-22nd

Jan. 1st-15th
Feb. 1st-7th

Jan. 16th-31st
Feb. 16th-22nd

Feb. 1st-15th
Mar. 1st-7th

Feb. 16th-28th
Mar. 16th-22nd

(ii) Filing requirement. Because P is responsible for collecting and paying over air transportation tax, P must file the
return of that tax (§ 40.6011(a)-1(a)(3)). P's Form 720 for the first calendar quarter of 1993 is due by Tuesday, June 1,
1993. P's Form 720 would ordinarily be due by May 31, 1993 (the last day of the second month after the end of the
calendar quarter (§ 40.6071(a)-2(a)), but May 31, 1993, is Memorial Day, a legal holiday. Thus, under section 7503, P
has additional time to file. Under § 40.6011(a)-1(a)(2), P must continue to file a Form 720 for each calendar quarter until
P files a final return under § 40.6011(a)-2.
(iii) Deposit requirement; in general. Because P maintains the separate account required under § 40.6302(c)-3(b)(2)(ii) and
makes returns of tax on the basis of amounts of tax considered as collected, P may use the alternative method to compute
the amount of tax to be deposited (§ 40.6302(c)-3(b)(2)). P is required to make a deposit of tax for each semimonthly
period in which tax is considered as collected (§ 40.6302(c)-1(b)(1)(iii)). P must deposit an amount not less than the net
amount of tax that is considered as collected during the semimonthly period (§ 40.6302(c)-3(d)). Under the alternative
method, deposits of air transportation tax are due by the third banking day after the end of the week during which the
tax is considered as collected (§ 40.6302(c)-3(c)). Accordingly, P meets the deposit requirement for the first quarter of
1993 if P makes the following deposits:
By Jan. 12th
$11,000

By Jan. 27th
11,000

By Feb. 10th
7,500

By Feb. 25th
7,500

By Mar. 10th
9,500

By Mar. 25th
9,500

(iv) Deposit requirement; safe harbor. P may also meet the deposit requirement by using a safe harbor rule (§
40.6302(c)-1(c)(1)(i)). P uses the safe harbor based on look-back quarter liability. This is permitted because P filed a
return reporting tax imposed on air transportation under section 4261 (a) and (b) for the third quarter of 1992 (the lookback quarter under § 40.6302(c)-1(c)(2)(i)). P meets this safe harbor by—
(1) Depositing $9,000 ( 1 /6 of $54,000, P's net tax liability for the third calendar quarter of 1992 (§ 40.6302(c)-1(c)(2)(i)
(A)) by the due dates specified above (§ 40.6302(c)-1(c)(2)(i)(B)); and

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(2) Paying $2,000 (the amount by which the net tax liability for the first calendar quarter of 1993 ($56,000) exceeds the net
tax liability for the look-back quarter ($54,000)) by June 1, 1993, the due date of the return (§ 40.6302(c)-1(c)(2)(i)(D)).
(v) Reporting requirement. Under the alternative method, P's Form 720 for the first quarter of 1993 reports the $56,000
of air transportation taxes considered as collected during that quarter (§ 40.6302(c)-3(e)).

PART 43—EXCISE TAX ON TRANSPORTATION BY WATER
Par. 2. Part 43 is amended as follows:
1. The authority citation is revised to read:
Authority: 26 U.S.C. 7805.
2. Section 43.0-1 is revised to read:
 26 CFR § 43.0-1
§ 43.0-1 Introduction.
The regulations in this part 43 are designated “Excise Tax on Transportation by Water.” The regulations relate to the
taxes on transportation by water imposed by section 4471 of the Internal Revenue Code. See part 40 of this chapter for
regulations relating to returns, payments, and deposits of taxes imposed by section 4471.
3. Sections 43.6011(a)-1T, 43.6011(a)-2T, 43.6071(a)-1T, 43.6091-1T, 43.6101-1T, 43.6109(a)-1T, 43.6151(a)-1T, and
43.6302(c)-1T are removed.

PART 44—TAXES ON WAGERING; EFFECTIVE JANUARY 1, 1995
Par. 3. Part 44 is amended as follows:
1. The authority citation is revised to read:
Authority: 26 U.S.C. 7805.
2. Section 44.4402-1T is redesignated as § 44.4402-1 and the word “(temporary)” is removed from the section heading.
3. The authority citation following § 44.6091-1 is removed.

PART 46—EXCISE TAX ON POLICIES ISSUED BY FOREIGN INSURERS AND OBLIGATIONS NOT IN
REGISTERED FORM
Par. 4. Part 46 is amended as follows:
1. The authority citation is revised to read:
Authority: 26 U.S.C. 7805.
2. Section 46.0-1T is removed and § 46.0-1 is added to read:
 26 CFR § 46.0-1
§ 46.0-1 Introduction.

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

The regulations in this part 46 relate to the taxes on policies issued by foreign insurers imposed by chapter 34 of the
Internal Revenue Code and the tax on the issuer of registration-required obligations not issued in registered form imposed
by chapter 39 of the Internal Revenue Code. See part 40 of this chapter for regulations relating to *48186 returns,
payments, and deposits of taxes imposed by chapters 34 and 39.
3. The authority citation at the beginning of subpart B is removed.
4. The authority citation at the end of § 46.4371-4 is removed.
5. Subparts D and E are removed.

PART 48—MANUFACTURERS AND RETAILERS EXCISE TAXES
Par. 5. Part 48 is amended as follows:
1. The general authority citation is revised to read:
Authority: 26 U.S.C. 7805.* * *
 26 CFR § 48.0-1T
§ 48.0-1T (Removed)
2. Section 48.0-1T is removed and § 48.0-1 is added to read:
 26 CFR § 48.0-1
§ 48.0-1 Introduction.
The regulations in this part 48 are designated “Manufacturers and Retailers Excise Tax Regulations.” The regulations
relate to the excise taxes imposed by chapter 31 and 32 of the Internal Revenue Code. Chapter 31 (relating to retail
taxes) imposes tax on certain luxury items, special fuels, fuel used in commercial transportation on inland waterways,
and heavy trucks and trailers. Chapter 32 (relating to manufacturers taxes) imposes tax on gas guzzler automobiles,
highway-type tires, gasoline, diesel and aviation fuel, coal, certain vaccines, and sporting goods. Although chapter 32
also imposes a tax on firearms, this tax is under the jurisdiction of the Bureau of Alcohol, Tobacco, and Firearms. See
part 40 of this chapter for regulations relating to returns, payments, and deposits of taxes imposed by chapters 31 and
32 (other than the tax on firearms imposed by section 4181).
3. The authority citation following § 48.4041-2T is removed.
 26 CFR § 48.4042-226 CFR § 48.4051-1T
§ § 48.4042-2(d) and 48.4051-1T (Removed)
4. Sections 48.4042-2(d) and 48.4051-1T are removed.
5. The heading for subpart H is revised to read:

Subpart H—Motor Vehicles, Tires, Tubes, Tread Rubber, and Gasoline
6. The undesignated center heading preceding § 48.4091 is removed.
(Removed)
7. Sections 48.4091, 48.4091-0, 48.4091-1, 48.4091-2, 48.4091-3, 48.4091-4, 48.4091-5, 48.4092-1, 48.4093-1, and
48.4093-2 are removed.
 26 CFR § 48.4121-1
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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

§ 48.4121-1 (Amended)
8. Section 48.4121-1 is amended by removing paragraph (e).
9. The heading for subpart I is added to read:

Subpart I—Coal
10. Section 48.4121-1 is removed from subpart H and added to subpart I.
11. The heading for subpart K is revised to read:

Subpart K—Sporting Goods
12. The undesignated center heading preceding § 48.4161(a) is removed.
 26 CFR § 48.4181-126 CFR § 48.4181-226 CFR § 48.4182-126 CFR § 48.4182-2
§§ 48.4181-1, 48.4181-2, 48.4182-1 and 48.4182-2 (Removed)
13. Sections 48.4181-1, 48.4181-2, 48.4182-1, and 48.4182-2 are removed.
(Removed)
14. Sections 48.6011(a)-1, 48.6011(a)-2, 48.6071(a)-1, 48.6081(a)-1, 48.6091-1, 48.6101-1, 48.6109-1, 48.6151-1,
48.6151-1T, 48.6161(a)-1, 48.6302(c)-1, 48.6302(c)-2, 48.6402(a)-1, and 48.6404(a)-1 are removed.

PART 49—FACILITIES AND SERVICES EXCISE TAXES
Par. 6. Part 49 is amended as follows:
1. The authority citation is revised to read:
Authority: 26 U.S.C. 7805.
2. Section 49.0-1T is removed and § 49.0-1 is added to read:
 26 CFR § 49.0-1
§ 49.0-1 Introduction.
The regulations in this part 49 are designated “Facilities and Services Excise Taxes.” The regulations relate to the taxes
on communications and transportation by air imposed by chapter 33 of the Internal Revenue Code. See part 40 of this
chapter for regulations relating to returns, payments, and deposits of taxes imposed by chapter 33.
3. Section 49.4251-2(c) is revised to read:
 26 CFR § 49.4251-2
§ 49.4251-2 Rate and application of tax.
*****
(c) Liability for, and return of, tax. The taxes imposed by section 4251 are payable by the person paying for the services
rendered, and must be paid to the person rendering the services who is required to collect the tax and return and pay
over the tax.
 26 CFR § 49.4271-1T

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

§ 49.4271-1T (Redesignated as § 49.4271-1 and Amended)
4. Section 49.4271-1T is amended by:
a. Redesignating the section as § 49.4271-1 are removing the word “(temporary)” from the section heading.
b. Removing the authority citation at the end of the section.
5. The heading for subpart E is amended by removing the word “(Reserved)”.
6. Section 49.4271-1 is removed from subpart D and added to subpart E.

Subparts F and G (Removed)
7. Subparts F and G are removed.

PART 51—(REMOVED)
Par. 7. Part 51 is removed.

PART 52—ENVIRONMENTAL TAXES
Par. 8. Part 52 is amended as follows:
1. The authority citation is revised to read:
Authority: 26 U.S.C. 7805.
Section 52.4682-3 also issued under 26 U.S.C. 4682(c)(2).
 26 CFR § 52.0-1T
§ 52.0-1T (Removed)
2. Section 52.0-1T is removed and § 52.0-1 is added to read:
 26 CFR § 52.0-1
§ 52.0-1 Introduction.
The regulations in this part 52 are designated “Environmental Tax Regulations.” The regulations relate to the
environmental taxes imposed by chapter 38 of the Internal Revenue Code. See part 40 of this chapter for regulations
relating to returns, payments, and deposits of taxes imposed by chapter 38.
3. Section 52.4681-1(b)(4) is revised to read:
 26 CFR § 52.4681-1
§ 52.4681-1 Taxes imposed with respect to ozone-depleting chemicals.
*****
(b) * * *
(4) Returns, payments, and deposits of tax. Rules requiring returns reporting the taxes imposed by sections 4681 and
4682 are contained in part 40 of this chapter. Part 40 of this chapter also provides rules relating to the use of Government
depositaries and to the time for filing returns and making payments of tax.
 * * * * *

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

(Removed)
4. Sections 52.6011(a)-1T, 52.6011(a)-2T, 52.6071(a)-1, 52.6071(a)-2T, 52.6071(a)-3T, 52.6091-1T, 52.6101-1T, *48187
52.6109(a)-1T, 52.6151(a)-1T, 52.6302(c)-1, and 52.6302(c)-2T are removed.

PART 145—TEMPORARY EXCISE TAX REGULATIONS UNDER THE HIGHWAY REVENUE ACT OF 1982
(PUB. L. 97-424)
Par. 9. Part 145 is amended as follows:
1. The authority citation is revised to read:
Authority: 26 U.S.C. 7805.
Sections 145.4051-1 and 145.4052-1 also issued under 26 U.S.C. 4051 and 4052.
 26 CFR § 145.9000-1
§ 145.9000-1 (Removed)
2. Section 145.9000-1 is removed.

PART 148—CERTAIN EXCISE TAX MATTERS UNDER THE EXCISE TAX TECHNICAL CHANGES ACT OF
1958
Par. 10. Part 148 is amended as follows:
1. The authority citation is revised to read:
Authority: 26 U.S.C. 7805.
 26 CFR § 148.1-326 CFR § 148.1-4
§§ 148.1-3 and 148.1-4 (Removed)
2. Sections 148.1-3 and 148.1-4 are removed.

PART 150—(REMOVED)
Par. 11. Part 150 is removed.

Appendix to Subchapter D—(Removed)
Par. 12. The appendix to subchapter D is removed.

PART 602—OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT
Par. 13. Part 602 is amended as follows:
1. The authority citation continues to read:
Authority: 26 U.S.C. 7805.
2. Section 602.101(c) is amended by:

© 2018 Thomson Reuters. No claim to original U.S. Government Works.

32

Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

a. Removing the following entries from the table:
 26 CFR § 602.101
§ 602.101 OMB control numbers.
*****
(c) * * *
CFR part or section where identified and described

Current OMB control number

*****

46.6011(a)-1

46.6011(a)-2

46.6061-1

46.6065-1

46.6071(a)-1

1545-0023

1545-0023

1545-0023

1545-0023

1545-0023

1545-0257

1545-0003

1545-0257

46.6109-1

46.6151-1

*****

48.4051-1T

1545-0143

*****

48.4091-0

48.4091-1

48.4091-2

48.4091-3

48.4091-4

48.4091-5

48.4092-1

48.4093-1

1545-0725

1545-0725

1545-0725

1545-0725

1545-0725

1545-0725

1545-0725

1545-0725

*****

48.4181-1

48.4181-2

48.4182-1

1545-1076

1545-0723

1545-0023

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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

1545-0723

1545-0723

48.4182-2

*****

48.6011(a)-1

48.6011(a)-2

1545-0723

1545-0023

1545-0723

1545-0257

1545-0723

1545-0723

1545-0723

1545-0723

1545-0023

1545-0723

1545-0257

1545-0143

1545-0023

48.6071(a)-1

48.6081(a)-1

48.6091-1

48.6101-1

48.6109-1

48.6151-1

48.6151-1T

48.6302(c)-1

*****

49.6011(a)-1

49.6011(a)-2

49.6109-1

49.6151-1

49.6302(c)-1

51.4988-2

1545-0029

1545-0023

1545-0029

1545-0257

1545-0257

1545-0222

1545-0226

1545-0230

1545-0230

1545-0230

1545-0230

1545-0224

51.4993-1

51.4993-2

51.4993-3

51.4993-4

51.4994-1
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Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

1545-0226

1545-0912

1545-0230

1545-0230

1545-0912

1545-0023

1545-0257

1545-0023

1545-0230

1545-0230

1545-0023

1545-0222

1545-0224

1545-0225

1545-0222

1545-0224

1545-0230

1545-0226

51.4995-1

51.4995-2

51.4995-3

51.4995-4

51.4995-5

51.4996-1

51.4997-1

51.4997-2

51.6402-1

*****

52.6302(c)-1

1545-0023

1545-0257

*****

148.1-3

148.1-4

150.4989-1

150.4993-1

150.4995-2

150.4995-3

1545-0014

1545-0230

1545-0230

1545-0230

1545-0230

1545-0023

1545-0257
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35

Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

1545-0023

1545-0230

1545-0230

1545-0023

1545-0222

1545-0222

1545-0224

1545-0222

1545-0222

1545-0224

1545-0224

1545-0224

1545-0224

1545-0224

1545-0226

1545-0678

1545-0685

150.4995-4

150.4995-5

150.4996-1

150.4997-1

150.4997-2

150.6050C-1

150.6076-1

150.6232(c)-1

150.6232(c)-2

150.6232(c)-3

150.6232(c)-4

150.6232(c)-5

150.6402-1

*****

b. Adding the following entries to the table:
 26 CFR § 602.101
§ 602.101 OMB control numbers.
*****
(c) * * *
CFR part or section where identified and described

Current OMB control number

*****

40.6302(c)-3(b)(2)(ii)

40.6302(c)-3(b)(2)(iii)

40.6302(c)-3(e)

40.6302(c)-3(f)(2)(ii)

© 2018 Thomson Reuters. No claim to original U.S. Government Works.

1545-1296

1545-1296

1545-1296

1545-1296

36

Procedural Rules for Excise Taxes Currently Reportable on Form 720, 57 FR 48174-01

*****

46.4371-4

1545-0023

*****

49.4271-1(d)

1545-0685

*****

Dated: September 29, 1992.
Shirley D. Peterson,
Commissioner of Internal Revenue.
Fred T. Goldberg, Jr.,
Assistant Secretary of the Treasury.

(FR Doc. 92-25429 Filed 10-21-92; 8:45 am)
BILLING CODE 4830-01-M

End of Document

© 2018 Thomson Reuters. No claim to original U.S. Government Works.

© 2018 Thomson Reuters. No claim to original U.S. Government Works.

37