Form 720X, Amended Quarterly Federal Excise Tax Return, is used to report adjustments to tax liability reported for previous quarters.

Form 720X, Amended Quarterly Federal Excise Tax Return, line 2, must be used for any adjustments to IRC section 4051(d), tire credit. A tax credit may be taken equal to the amount of tax that has been imposed on each tire that is sold on, or in connection with, the first retail sale of a taxable vehicle reported on IRS No. 33. Form 720X, must show an adjustment to IRS No. 33 on line 1 to allow the credit. Adjust the credit using CRN 366.

A claimant must be registered to file a claim for an alternative fuel credit and/or an alternative fuel mixture credit. If the claimant is not registered, they must apply for registration on Form 637, Application for Registration. Form 720X, line 2, must be used to report any adjustment to IRC section 6426, fuel credits. The claimant must have first used Form 720, Schedule C, to reduce their IRC section 4041 or IRC section 4081 fuel liability. (See Form 720 X instructions, line 2.) The claimant must use a separate line for each adjustment. See the table below for applicable types of credit, CRN's and credit rates.

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The IRC section 6415 conditions for claim allowance on Form 720X apply to IRS Nos. 22, 26, 27, and 28. The claimant must have repaid the amount of the tax to the person from whom it was collected or have the consent of that person for the allowance of the adjustment.

The IRC section 6416(a) conditions for claim allowance on Form 720X apply to all other IRS Nos. except 18, 19, 20, 21, 29, 30, 31, 51, 64, 98, and 115, 116 and 117; or if tax is based on use of IRS Nos. 61, 71, 79, and 112, 118, 120-124, and 101. IRS Nos. 61 and 101 can only be adjusted for periods ending before October 1, 2006. The claimant must not have included the tax in the price of the article and has not collected the tax from the purchaser or has the written consent of the ultimate purchaser for the allowance of the adjustment.

For each adjustment reported on line one of Form 720X, a statement must be attached, or line 6 can be used for providing:

Input an adjustment on MFT 03 for the quarter in which the tax was originally reported, or should have been reported, using TC 291 for a tax decrease or TC 290 for a tax increase, using the appropriate IRS No. Credit interest is allowable on an overpayment of tax liability report on a Form 720 filed for previous quarters.

If the box on line 5b of Form 720X is checked, the overpayment is shown on line 7 of Form 720. Line 6 of Form 720 should include the amount from line 7, if any, as an overpayment from a previous quarter.

Input an adjustment on MFT 03 for the quarter in which the tax was originally reported, or should have been reported, using TC 291 for a tax decrease or TC 290 for a tax increase on MFT 03 and appropriate IRS No. See IRM 20.1.4.10, Form 720 Reporting Requirements, if a failure to deposit penalty may apply.

For tax increases, input the tax increase on the appropriate prior tax period.

If you cannot determine there is an overpayment from the current period to satisfy the tax increase:

A CP 183 is generated and issued to the taxpayer when the taxpayer does not indicate an IRS No. on an original Form 720. In these cases:

If taxpayer replies:

If taxpayer fails to reply:

Form 720-TO, Terminal Operator Report, is an information return used by terminal operators to report their monthly receipts and disbursements of all liquid products to and from all approved terminals.

Form 720-CS, Carrier Summary, is an information return used by bulk transport carriers who receive liquid product from an approved terminal or deliver liquid product to an approved terminal to report their monthly receipts and deliveries.

Form 720-TO and Form-720-CS must be filed monthly. The report is due the last day of the month following the month in which the transaction occurs.

Form 720-TO and Form 720-CS are worked by a specific group in Excise Operations. Forward all returns/correspondence to:

Generally, after December 31, 2007, qualified subchapter's subsidiaries (QSubs) and eligible single-owner disregarded entities are treated as separate entities for excise tax payments and reporting purposes. QSubs and eligible single-owner disregarded entities must pay and report excise tax activities, register for excise tax activities, and claim any refunds, credits, and payments under the entity's employer identification number (EIN). These actions cannot take place under the owner's taxpayer identification number (TIN). Some QSubs and disregarded entities may already have an EIN. If the taxpayer is unsure if they have an EIN, the taxpayer may call the IRS Business and Specialty Tax line at 1-800-829-4933.

Generally, QSubs and eligible single-owner disregarded entities will continue to be treated as disregarded entities for other federal tax purposes (other than employment taxes). Example: Taxpayers filing a Form 4136, Credit for Federal Tax Paid on Fuels, with Form 1040, Individual Income Tax Return, can use the owner's TIN.

Electronic filing for Form 720, Quarterly Federal Excise Tax Return is available through an electronic return originator (ERO), transmitter, and/or intermediate service provider (ISP) participating in the IRS e-file program for excise taxes. The ERO, ISP and Transmitter can be separate entities; however, most of the electronic filed returns are filed using a web based service provider.

The Modernized e-File (MeF) system allows two alternative signature options for business taxpayers and the Electronic Return Originator (ERO) to sign electronic returns filed via MeF. The taxpayer must decide whether to use a Personal Identification Number (PIN) to sign the return or whether they authorize the ERO to enter the PIN chosen by the ERO. The filer can choose to sign the applicable Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, that must be scanned and attached to the return when transmitted. A paper copy of the scanned Form 8453, should not be mailed to the IRS. The business filer can also choose the Practitioner PIN Option, using the applicable Form 8879, e-file Signature Authorization, that is retained by the ERO as part of the taxpayer's record and is not sent to the IRS. An electronic return will be rejected if the required signatures are not present. See IRM 3.42.4, IRS e-file For Business Income Tax Returns, for additional information.

The Centralized Excise Operations (CEO) uses a Service Level Agreement with the Input Corrections Operations (ICO) to identify and review Line 4 credits reported on an e-filed Form 720 , Quarterly Federal Excise Tax Return.

A duplicate filing condition occurs when a return (TC 976) posts to a module already containing an original return (TC 150). IDRS generates a -A freeze which prevents any refund or offset from the tax module until an adjustment (TC 29X) is input. IDRS also generates a Transcript (TRNS) 193 or TRNS 293 which is associated with the TC 976 tax return. All excise duplicate filing conditions are systemically controlled on IDRS with category DUPX. All duplicate filing conditions age in 45 days and are not considered correspondence. If correspondence is attached to the duplicate return, the case must be re-controlled with category "TPRQ" . See IRM 21.7.9, BMF Duplicate Filing Conditions, for additional information.

The -A freeze must be resolved before closing the case. Determine and resolve the duplicate filing condition by examining and comparing the return and IDRS information. Use the TRNS 193, duplicate return, CFOL command codes (CCs), and original return (secure only if absolutely necessary) to resolve the case.

If the TRNS 193 is received with the duplicate return:

If the TRNS 193 is received without the duplicate return attached:

When adjusting accounts:

Input TC 29X to adjust tax, use appropriate IRS No. to match tax adjustment. For credit adjustment, use appropriate CRN to match credit adjustment.

The taxable period begins each July 1 and ends the following June 30.

For vehicles first used in July of the taxable period, Form 2290 is due by August 31.

For vehicles first used after July of the taxable period, Form 2290 for that period is due by the last day of the month following the month of first use.

Some taxpayers file several Form 2290's for one tax period. This is usually done because they have several offices and each office needs its own Schedule 1. Do not send a 673C letter in these situations.

A person must file a Form 2290 if the vehicle is registered, or required to be registered, in the person's name under state, District of Columbia, Canadian, or Mexican law, at the time:

A Form 2290 must also be filed by a person who acquires a vehicle for which tax had been suspended under the previous owner.

Generally, a stamped copy of Schedule 1 is required as proof of payment when a taxpayer registers a vehicle with a state.

A copy of the unstamped Schedule 1 and Form 2290 with Vehicle Identification Numbers (VINs) and a copy of the cancelled check, if the tax is not suspended, may also be used as proof of payment to register the vehicle.

A vehicle may be registered without proof of payment (Schedule 1) if the person registering the vehicle presents a copy of the bill of sale showing that the vehicle was purchased either new or used within the last 60 days. Employees answering the Excise toll-free number and Taxpayer Assistance Centers should use the instructions in the chart below.

Use the chart below for the established Form 2290 (after the first year) filer. The chart is for employees answering calls on the Excise toll-free telephone number and Taxpayer Assistance Centers.

Taxpayer payment must show Employer Identification Number (EIN) and date the tax period begins. A Social Security Number (SSN) cannot be used to make a payment.

There are two methods of payment:

Using EFTPS is voluntary. For the EFTPS payment to be timely, the taxpayer must make the transaction one business day before the payment is due. See IRM 21.7.8.4.2.12, Form 2290, Electronic Filing For Taxpayers Reporting 25 Or More Vehicles.

The Form 2290 filer is entitled to have an installment agreement (I/A), per IRC section 6159, to pay their tax. However, they cannot receive their Schedule 1 to register their vehicle until the total tax is paid in full. If the taxpayer elects to have an installment agreement, after payments are received and the total tax is paid in full, the taxpayer needs to notify Centralized Excise to receive their stamped Schedule 1. Centralized Excise, at that time will request the return from Files, check the return for accuracy, and mail or fax the Schedule 1 to the taxpayer.

Form 2290 contains a taxable gross weight "Tax Computation" table for Categories A-V and full year’s tax due in each category (vehicle in use during July); and Category W for tax-suspended vehicles.

Refer to Form 2290 instructions, Partial Period Tax Tables, Table 1, for the amount of prorated tax due for vehicles first used after July.

The tax rate for logging vehicles is reduced by 25 percent. This reduction is reflected in the annual tax and partial period tax tables. A vehicle qualifies as a logging vehicle if:

Beginning July 1, 2005, the reduced rate of tax for Canadian and Mexican vehicles was repealed per the American Jobs Creation Act, HR 4520. Taxpayers reporting Canadian or Mexican vehicles must use column (1) (a) of Form 2290, "Tax Computation" table to figure their annual tax.

Statement in Support of Suspension of Tax, Part II of Form 2290, must be completed if taxpayer expects to use a vehicle on public highways 5,000 miles or less (7,500 miles or less for agricultural vehicles) during the tax period.

Tax on that vehicle is suspended for the tax period if the mileage use limit is not exceeded.

If vehicle is transferred while the suspension in effect, the suspension of tax continues until vehicle is used more than 5,000 miles (7,500 for agricultural vehicles), during taxable period. This includes miles vehicle was used by seller for portion of taxable period prior to transfer.

Once vehicle use exceeds 5,000 miles (7,500 for agricultural vehicles), the new owner is liable for tax for taxable period.

Seller (transferor) is to provide buyer (transferee) with statement that includes:

New owner files Form 2290 by the last day of the month following the month in which vehicle was first used by the new owner and attaches statement to return.

If transferor does not provide statement to transferee, then transferor is also liable for tax if the mileage use limit is exceeded. See IRM 21.7.8.4.2.13, Tax on Used Vehicles Acquired During the Tax Period, for filing and tax payment information for the second owner of a vehicle that was transferred during a taxable period when the vehicle was not under a suspension of tax.

If after filing Form 2290 , the taxable gross weight category of a vehicle increases within same taxable period, the taxpayer must file another Form 2290 reporting additional tax due.

The required return and payment of tax is due by last day of month following month in which taxable gross weight increased and is reported on Form 2290, line 3, "Additional tax from increase in taxable gross weight."

See page 5 of Form 2290 instructions under the heading of " Line 3" to determine the tax if the taxable weight increases.

Because additional tax is not due until the last day of month following the month in which weight increased, input additional tax assessment with TC 298 using due date of second required return as interest start date.

If Form 2290 has been filed to suspend the tax and the vehicle is used more than 5,000 miles (7,500 for agricultural vehicles), an amended Form 2290 must be filed and the tax paid.

Once the mileage use limit is exceeded, tax is due for the taxable period, regardless of when the limit was exceeded and is computed on the basis of the month the vehicle was first used in that period. If a suspended vehicle exceeds 5,000 miles (7,500 for agriculture) within the tax period, the tax is due as follows:

No interest is charged if return is filed and tax is paid by last day of month following month in which vehicle use exceeded 5,000 miles (7,500 for agricultural vehicles).

Assess tax using TC 298 with due date of return, on which vehicles were reported as taxable, as interest start date.

The taxpayer is required to check the Amended Return box on page 1 of Form 2290 and to the right of "Amended Return" write the month in which the mileage use limit was exceeded. If the taxpayer does not indicate when the vehicle exceeded 5,000 miles (7,500 miles for agricultural vehicles), assess tax with TC 290 and let interest compute as normal. Contact taxpayer explaining that the month vehicle exceeded 5,000 miles (7,500 for agricultural vehicles) could not be established.

Beginning July 1, 2005, an installment privilege previously available for Form 2290 was eliminated. The installment payment line on Form 2290 was deleted (Lines 8-10 were renumbered to lines 7-9). Tax is due in full with the filing of Form 2290. Penalties and interest accrue if the tax is not paid in full. See IRM 20.1.2, Failure to File/Failure to Pay Penalties.

Electronic filing for taxpayers reporting 25 or more vehicles is mandatory, per the American Jobs Creation Act, HR 4520, beginning July 1, 2005. The Excise Tax E-filing and Compliance program (ETEC) became available for tax periods July 2007 and subsequent on August 8th, 2007.

To review Form 2290, access EUP (Employee User Portal). See IRM 3.42.8.4.1, Employee User Portal, for information to access EUP.

If the tax is fully paid, the Schedule 1 for an electronically filed return is systemically sent to the electronic return originator (ERO). The ERO and/or the Intermediate Service Provider (ISP) will provide the taxpayer with the original electronic (water marked), copy of Schedule 1.

The taxpayer can file multiple Form 2290's and/or amended returns electronically. See IRM 21.7.8.4.1.24, Electronic Filing for Form 720, Quarterly Excise Tax Return, for information on signature requirements.

If a previous owner of a registered vehicle uses the vehicle first during a taxable period, the previous owner is liable for the tax only for the months the vehicle was used by the previous owner. See IRM 21.7.8.4.2.16, Form 2290, Claims, for information about prorating the tax for claiming a refund. See IRM 21.7.8.4.2.8, Form 2290, Vehicle Transferred While Tax is Suspended, for information about vehicles transferred while tax is suspended.

The second owner is liable for the tax for the remaining months of the taxable period the vehicle is used on public highways by the second owner. Form 2290 must be filed and the tax paid by the last day of the month after the month the vehicle is first used on a public highway.

If the previous owner used the vehicle on public highways and has not paid the tax, and the new owner uses the vehicle before the end of the taxable period, the new owner becomes liable for the total tax for the entire period to the extent not paid by the previous owner. The new owner must file Form 2290, Heavy Highway Use Tax Return, and pay the tax by the last day of the month after the month notification is received from the IRS that the tax has not been paid in full.

Form 2290(SP) and instructions are available in the Spanish Language.

Beginning July 1, 2005, Form 2290(FR) and its instructions are available in the French language. Publications and correspondence may also be considered in the French language at a later date.

If a taxable vehicle is registered in the name of both the owner and another person, the owner is liable for the tax. This rule also applies to dual registration of a leased vehicle.

Any vehicle operated under a dealer's tag, license, or permit is considered registered in the name of the dealer.

Beginning January 1, 2005, use CRN 365 for line 5 (credit) adjustments. Submission Processing transcribes line 5 using CRN 365 in initial processing. If a credit adjustment is required for line 5, input using TC 290 and CRN 365. A TC 766 will generate for CRN 365. To reverse the credit, input TC 290 and CRN 365 (with a minus).

Taxpayers may use line 5 of the Form 2290 to claim a credit for tax paid in the three following circumstances:

The amount of the line 5 credit cannot exceed tax liability reported on the return. Input an adjustment transaction on MFT 60, using TC 290 and CRN 365. Any excess credit must be claimed as a refund using Form 8849, Schedule 6.

Alternatively, the taxpayer can make a claim on Form 8849, Schedule 6, versus taking a line 5 (credit) on Form 2290. See IRM 21.7.8.4.5.7.1, Form 8849, Schedule 6, Form 2290, Claims Relating to Taxes Reported on Form 2290.

There are no provisions in the law to allow for a credit, exemption, or refund for:

Reject claim using appropriate "C" letter.

The ability to request an extension to pay tax has always been available for Form 2290 filers in the same way as it is available for all taxpayers.

There are specific standards and policies for granting extensions. See IRM 5.14.1.6, Multi-functional Installment Agreement Authority (Formerly Extension of Time to Pay.

If you determine the request for an extension is not valid:

A stamped Schedule 1 must not be returned to the taxpayer until the tax is paid in full.

If it appears a mistake on Schedule 1 is a typographical error (transposed characters), stamp Schedule 1 and return one copy to taxpayer. Attach second copy to return.

If new VIN is totally different from old VIN, taxpayer must explain why VIN is different. Contact the taxpayer and process as appropriate based upon the taxpayer's response. The VIN may be different for several reasons.

If the explanation is insufficient, the taxpayer must pay tax on new VIN before Schedule 1 is sent back.

If a copy of Schedule 1 was sent to taxpayer, assess tax for new VIN and inform taxpayer accordingly.

During the Form 2290 paper (pipeline) process, the Schedule 1 can be erroneously detached from the original tax return or misrouted to a campus function. In some cases, the Schedule 1 is mailed to the IRS without a tax return or returned to the campus as undeliverable. A separated schedule is called a Loose Schedule 1 and is routed to the Excise Operations for resolution.

The Excise Operations will research IDRS with the information available on the Schedule 1 and take the following action:

If unable to determine reason for duplicate return filing, compare VIN numbers between TC 150 and TC 976.

A first return must be filed and the occupational tax must be paid before a taxpayer begins accepting taxable wagers. The tax period begins each July 1 and ends the following June 30.

If wagers are first accepted in any month other than July, the first return covers the tax period from the start of business until the following June 30 and the tax is prorated for the first year by multiplying the applicable monthly rate by the number of months remaining in the taxable year. See page 2 of Form 11-C regarding "line 2" instructions on how to prorate the tax.

A first return is also due in certain situations in which there has been a change in ownership or control. The above rules apply. The return must be filed within 30 days of the following changes:

A supplemental registration return must be filed, but no additional tax is due when certain conditions are met. See IRM 21.7.8.4.3.3, Form 11-C, Supplemental Registration Returns.

A renewal return must be filed by July 1 for each year in which a principal or agent accepts taxable wagers.

A first return must be filed before wagers are accepted. Whether a first return is timely filed and whether penalties may be appropriate is determined by the Centralized Excise Tax Function at the Cincinnati Campus. All automatic penalties on first returns must be reviewed.

A renewal return must be filed by July 1, when required.

A supplemental registration return must be filed according to certain provisions. See IRM 21.7.8.4.3.3, Form 11-C, Supplemental Registration Returns, below.

Although additional tax is not due, a supplemental registration return must be filed by principals:

Although additional tax is not due, a supplemental registration return must be filed by agents:

Refer all tax decreases to Cincinnati IRS Campus (CIRSC) Excise Tax Function. There is no provision in the law to allow a refund for a portion of a year during which the person receives no taxable wagers. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

If an original return is available, use Blocking Series (BS) 08 to adjust account.

If only an amended return is available, use BS 15 to adjust account.