PART 40—EXCISE TAX PROCEDURAL REGULATIONS Authority: 26 U.S.C. 7805. Section 40.6011(a)-1 also issued under 26 U.S.C. 6011(a). Section 40.6011(a)-2 also issued under 26 U.S.C. 6011(a). Section 40.6060-1 also issued under 26 U.S.C. 6060(a). Section 40.6071(a)-1 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 40.6109-1 also issued under 26 U.S.C. 6109(a). Section 40.6109-2 also issued under 26 U.S.C. 6109(a). Section 40.6302(a)-1 also issued under 26 U.S.C. 6302 (a) and (h). Section 40.6302(c)-1 also issued under 26 U.S.C. 6302(a) and (h). Section 40.6302(c)-2 also issued under 26 U.S.C. 6302(a). Section 40.6302(c)-3 also issued under 26 U.S.C. 6302(a). Section 40.6695-1 also issued under 26 U.S.C. 6695(b). Source: T.D. 8442, 57 FR 48177, Oct. 22, 1992, unless otherwise noted. § 40.0-1 Introduction. (a) In general. Excise Tax Procedural Regulations. See (b) References to forms. (c) Definition of semimonthly period. (d) Person. (e) Applicability dates Paragraph (a). (2) Paragraphs (b) and (c). (3) Paragraph (d). [T.D. 8442, 57 FR 48177, Oct. 22, 1992; 58 FR 6575, Jan. 29, 1993, as amended by T.D. 8887, 65 FR 36326, June 8, 2000; T.D. 8963, 66 FR 41776, Aug. 9, 2001; T.D. 9486, 75 FR 33686, June 15, 2010; T.D. 9602, 77 FR 72728, Dec. 6, 2012; T.D. 9621, 78 FR 34876, June 11, 2013; T.D. 9948, 86 FR 5001, Jan. 19, 2021; T.D. 10003, 89 FR 55510, July 5, 2024] § 40.6011(a)-1 Returns. (a) In general Return required. Quarterly Federal Excise Tax Return, (2) Period covered by return In general. (ii) First return. (iii) Floor stocks tax return. (3) Person required to file the return. (b) Monthly and semimonthly returns In general. (2) Certain persons liable for tax on taxable fuel. (i) Is a bonded registrant (as defined in § 48.4101-1(b) of this chapter) at any time during the period; (ii) Has been registered under section 4101 for less than one year at the beginning of the period; (iii) Meets the acceptable risk test of § 48.4101-1(f)(3) of this chapter by reason of § 48.4101-1(f)(3)(i)(B) of this chapter at any time during the period; (iv) Has failed to comply with the applicable provisions of § 48.4101-1(h) of this chapter (relating to the terms and conditions of registration); (v) Is liable for tax under § 48.4082-4(a) of this chapter (relating to the back-up tax on diesel fuel and kerosene) at any time during the period; or (vi) Is liable for tax under section 4081 (relating to the tax on taxable fuel) at any time during the period and is not registered under section 4101 at that time. (c) Fees on health insurance policies and self-insured health plans In general. (2) Applicability date. (d) Tax on the sale of designated drugs. (e) Applicability dates Paragraph (a)(2)(i). (2) Paragraph (c). See (3) Paragraph (d). [T.D. 8442, 57 FR 48177, Oct. 22, 1992, as amended by T.D. 8659, 61 FR 10452, Mar. 14, 1996; 61 FR 58005, Nov. 12, 1996; T.D. 8748, 63 FR 25, Jan. 2, 1998; T.D. 8879, 65 FR 17153, Mar. 31, 2000; T.D. 8887, 65 FR 36326, June 8, 2000; T.D. 8963, 66 FR 41776, Aug. 9, 2001; T.D. 9602, 77 FR 72728, Dec. 6, 2012; T.D. 10003, 89 FR 55511, July 5, 2024] § 40.6011(a)-2 Final returns. (a) In general Permanent cessation of operations. (2) Change in law without cessation of operations. (b) Special rule for one-time filings In general. (2) Deposits not required. (c) Special rule for floor stocks taxes. [T.D. 8442, 57 FR 48177, Oct. 22, 1992, as amended by T.D. 8685, 61 FR 58005, Nov. 12, 1996; T.D. 8963, 66 FR 41776, Aug. 9, 2001] § 40.6060-1 Reporting requirements for tax return preparers. (a) In general. (b) Effective/applicability date. [T.D. 9436, 73 FR 78454, Dec. 22, 2008; 74 FR 5105, Jan. 29, 2009] § 40.6071(a)-1 Time for filing returns. (a) Quarterly returns. (b) Monthly and semimonthly returns Monthly returns. (2) Semimonthly returns. (c) Fees on health insurance policies and self-insured health plans Specified health insurance policies. (2) Applicable self-insured health plans. (d) Effective/Applicability date. [T.D. 8442, 57 FR 48177, Oct. 22, 1992, as amended by T.D. 8963, 66 FR 41776, Aug. 9, 2001; T.D. 9602, 77 FR 72728, Dec. 6, 2012] § 40.6091-1 Place for filing returns. (a) Quarterly returns. (b) Hand-carried returns Persons other than corporations. (2) Corporations. (c) Monthly and semimonthly returns. [T.D. 8442, 57 FR 48177, Oct. 22, 1992, as amended by T.D. 8968, 66 FR 41776, Aug. 9, 2001; T.D. 9158, 69 FR 55744, Sept. 16, 2004; T.D. 9602, 77 FR 72728, Dec. 6, 2012] § 40.6101-1 Period covered by returns. See § 40.6011(a)-1(a)(2) for the rules relating to the period covered by the return. [T.D. 8963, 66 FR 41776, Aug. 9, 2001] § 40.6107-1 Tax return preparer must furnish copy of return to taxpayer and must retain a copy or record. (a) In general. (b) Effective/applicability date. [T.D. 9436, 73 FR 78454, Dec. 22, 2008; 74 FR 5105, Jan. 29, 2009] § 40.6109-1 Tax return preparers furnishing identifying numbers for returns or claims for refund. (a) In general. (b) Effective/applicability date. [T.D. 9436, 73 FR 78454, Dec. 22, 2008; 74 FR 5105, Jan. 29, 2009] § 40.6151(a)-1 Time and place for paying tax shown on return. Except as provided by statute, the tax must be paid at the time prescribed in § 40.6071(a)-1 for filing the return, and at the place prescribed in § 40.6091-1 for filing the return. [T.D. 8968, 66 FR 41776, Aug. 9, 2001] § 40.6302(a)-1 Voluntary payments of excise taxes by electronic funds transfer. Any person may voluntarily remit by electronic funds transfer any payment of tax to which this part 40 applies. Such payment must be made in accordance with procedures prescribed by the Commissioner. [T.D. 8828, 64 FR 37677, July 13, 1999] § 40.6302(c)-1 Deposits. (a) In general Semimonthly deposits required. (2) Treatment of taxes imposed by chapter 33. (i) In which that tax is collected; or (ii) In the case of the alternative method, in which that tax is considered as collected. (3) Definition of net tax liability. (4) Computation of net tax liability for a semimonthly period. (i) Determining the net tax liability incurred during the semimonthly period; or (ii) 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. (b) Amount of deposit In general. (2) Safe harbor rules Applicability. (ii) Regular method taxes. (A) The deposit of regular method taxes for each semimonthly period in the current calendar quarter is not less than 1/6 (B) Each deposit is made on time; (C) The amount of any underpayment of regular method taxes is paid by the due date of the return; and (D) The person's liability does not include any regular method tax that was not imposed at all times during the look-back quarter or a tax on a chemical not subject to tax at all times during the look-back quarter. (iii) Alternative method taxes. (A) The deposit of alternative method taxes for each semimonthly period in the current calendar quarter is not less than 1/6 (B) Each deposit is made on time; (C) The amount of any underpayment of alternative method taxes is paid by the due date of the return; and (D) The person's liability does not include any alternative method tax that was not imposed at all times during the look-back quarter and the month preceding the look-back quarter. (iv) Modification for tax rate increase. 1/6 (v) Failure to comply with deposit requirements. (c) Time to deposit In general. (2) Exceptions. (d) Deposits required by electronic funds transfer. electronic funds transfer, (e) Exceptions Taxes excluded. (i) Section 4042 (relating to fuel used on inland waterways); (ii) Section 4161 (relating to sport fishing equipment and bows and arrow components); (iii) Section 4682(h) (relating to floor stocks tax on ozone-depleting chemicals); (iv) Sections 4375 and 4376 (relating to fees on health insurance policies and self-insured insurance plans); (v) Section 5000B (relating to indoor tanning services); and (vi) Section 5000D (relating to the sale of designated drugs). (2) One-time filings. (3) De minimis exception. (f) Applicability dates Paragraphs (a) through (d). (2) Paragraph (e). see [T.D. 8963, 66 FR 41776, Aug. 9, 2001, as amended by T.D. 9486, 75 FR 33686, June 15, 2010; T.D. 9507, 75 FR 75903, Dec. 7, 2010; T.D. 9602, 77 FR 72728, Dec. 6, 2012; T.D. 9621, 78 FR 34846, June 11, 2013; T.D. 10003, 89 FR 55511, July 5, 2024] § 40.6302(c)-2 Special rules for September. (a) In general Separate deposits required for the second semimonthly period. (2) Amount of deposit In general. (A) Determining the amount of net tax liability for regular method taxes reasonably expected to be incurred during the second semimonthly period in September; (B) Treating 11/15 (C) Treating the remainder of the amount determined under paragraph (a)(2)(i)(A) of this section (adjusted to reflect the amount of net tax liability for regular method taxes actually incurred through the end of September) as the net tax liability for regular method taxes incurred during the period September 27th through 30th. (ii) Safe harbor rules. (A) The deposit of taxes for the period September 16th through 26th is not less than 11/90 (B) The total deposit of taxes for the second semimonthly period in September is not less than 1/6 (3) Time to deposit. (A) September 29th is a Saturday, in which case the deposit must be made by September 28th; or (B) September 29th is a Sunday, in which case the deposit must be made by September 30th. (ii) The deposit required for the period ending September 30th must be made at the time prescribed in § 40.6302(c)-1(c). (b) Persons not required to use electronic funds transfer. (1) Periods. (2) Amount of deposit. 10/15 10/90 (3) Time to deposit. (i) September 28th is a Saturday, in which case the deposit must be made by September 27th; or (ii) September 28th is a Sunday, in which case the deposit must be made by September 29th. (c) Effective date. [T.D. 8963, 66 FR 41777, Aug. 9, 2001, as amended by T.D. 9507, 75 FR 75904, Dec. 7, 2010] § 40.6302(c)-3 Deposits under chapter 33. (a) Overview. (b) Alternative method for computing deposits In general Alternative method. (ii) Using more than one method to compute deposits. (2) Applicability In general. (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. (A) Must reflect for each month all items of tax that are included in amounts billed or tickets sold to customers during the month; (B) May not reflect an item of adjustment for any month during a quarter if the adjustment results from a refusal to pay or inability to collect the tax and the uncollected tax has not been reported under § 49.4291-1 of this chapter on or before the due date of the return for that quarter; and (C) Must reflect for each month 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. (3) Period during which tax is considered as collected. (4) When amounts are billed. (c) Time to deposit. legal holiday (d) Computation of net amount of tax that is considered as collected during a semimonthly period. (e) Reporting of tax. (f) Special rules for September Deposits required. (2) Time to deposit In general. (ii) Due date on Saturday or Sunday. (3) Amount of deposit. (i) Determining the net amount of alternative method taxes reflected in the separate account for the first semimonthly period in September (or one-half of the net amount of alternative method taxes reasonably expected to be reflected in the separate account for the month of September); (ii) Treating 11/15 (iii) Treating the remainder of the amount determined under paragraph (f)(3)(i) of this section (adjusted, if that amount is based on reasonable expectations, to reflect actual taxes charged through the end of September) as the amount charged during the period September 12th-15th. (4) Safe harbor rule based on look-back quarter liability. (i) The deposit for alternative method taxes charged during the period September 1st-11th is not less than 11/90 (ii) The total deposit for alternative method taxes charged during the first semimonthly period in September is not less than 1/6 (5) Persons not required to use electronic funds transfer. (i) The taxes for which separate deposits must be made are the taxes charged during the periods September 1st-10th and September 11th-15th. (ii) The deposit required for taxes charged during the period beginning September 1st must be made by September 28. A deposit that would otherwise be due on September 28 must be made by September 27 if September 28 is a Saturday and by September 29 if September 28 is a Sunday. (iii) The generally applicable fractions and percentage are modified to reflect the different deposit periods in accordance with the following table: Generally applicable fractions and percentage Modifications for non-EFT depositors 11/15 10/15. 11/90 10/90. 69.67 percent 63.33 percent. (g) Effective date. [T.D. 8442, 57 FR 48177, Oct. 22, 1992, as amended by T.D. 8685, 61 FR 58006, Nov. 12, 1996; 63 FR 15292, Mar. 31, 1998; T.D. 8963, 66 FR 41778, Aug. 9, 2001; T.D. 9051, 68 FR 15941, Apr. 2, 2003; T.D. 9149, 69 FR 48394, Aug. 10, 2004; T.D. 9221, 70 FR 49869, Aug. 25, 2005; T.D. 9507, 75 FR 75904, Dec. 7, 2010; 76 FR 709, Jan. 6, 2011] § 40.6694-1 Section 6694 penalties applicable to tax return preparer. (a) In general. (b) Effective/applicability date. [T.D. 9436, 73 FR 78454, Dec. 22, 2008; 74 FR 5106, Jan. 29, 2009] § 40.6694-2 Penalties for understatement due to an unreasonable position. (a) In general. (b) Effective/applicability date. [T.D. 9436, 73 FR 78455, Dec. 22, 2008; 74 FR 5106, Jan. 29, 2009] § 40.6694-3 Penalty for understatement due to willful, reckless, or intentional conduct. (a) In general. (b) Effective/applicability date. [T.D. 9436, 73 FR 78455, Dec. 22, 2008; 74 FR 5106, Jan. 29, 2009] § 40.6694-4 Extension of period of collection when tax return preparer pays 15 percent of a penalty for understatement of taxpayer's liability and certain other procedural matters. (a) In general. (b) Effective/applicability date. [T.D. 9436, 73 FR 78455, Dec. 22, 2008] § 40.6695-1 Other assessable penalties with respect to the preparation of tax returns for other persons. (a) In general. (b) Effective/applicability date. [T.D. 9436, 73 FR 78455, Dec. 22, 2008; 74 FR 5106, Jan. 29, 2009] § 40.6696-1 Claims for credit or refund by tax return preparers. (a) In general. (b) Effective/applicability date. [T.D. 9436, 73 FR 78455, Dec. 22, 2008; 74 FR 5106, Jan. 29, 2009] § 40.7701-1 Tax return preparer. (a) In general. (b) Effective/applicability date. [T.D. 9436, 73 FR 78455, Dec. 22, 2008]