(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, 39, and 49 (except for the chapter 32 tax imposed by section 4181 (firearms tax) and the chapter 36 taxes imposed by sections 4461 (harbor maintenance tax) and 4481 (heavy vehicle use tax)), and to floor stocks taxes imposed on articles subject to any of these taxes. 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 certain insurance policies; chapter 36 to taxes imposed on transportation by water; chapter 38 to environmental taxes; chapter 39 to taxes imposed on registration-required obligations; and chapter 49 to taxes imposed on indoor tanning services. References in this part to ``taxes'' also include references to the fees imposed by sections 4375 and 4376. 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 to a 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) Effective/applicability date. This part applies to returns that relate to periods beginning after March 31, 2013. For rules that apply before that date, see 26 CFR part 40 (revised as of April 1, 2013). [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] Sec. 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.
(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 paragraphs (b) and (c) 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 Sec. 40.6011(a)-2 is filed. In the case of one-time filings (as defined in Sec. 40.6011(a)-2(b)) and returns of floor stocks taxes under Sec. 40.6011(a)-2(c), a first return is also a final return.
(i) In general. Except as provided in paragraphs (b) and (c) 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 Sec. 40.6011(a)-2 is filed. In the case of one-time filings (as defined in Sec. 40.6011(a)-2(b)) and returns of floor stocks taxes under Sec. 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.
(iii) Floor stocks tax return. A return reporting liability for a floor stocks tax described in Sec. 40.0-1(a) is a return for the calendar quarter in which the tax payment is due and not the calendar quarter in which the liability for tax is incurred.
(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--(1) In general. 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 Sec. 40.0-1(c)). Each person so notified by the district director must make a return 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.
(1) In general. 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 Sec. 40.0-1(c)). Each person so notified by the district director must make a return 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.
(2) Certain persons liable for tax on taxable fuel. The district director may require a person to make a return of tax for a monthly or semimonthly period in the manner prescribed in paragraph (b)(1) of this section if the person--
(i) Is a bonded registrant (as defined in Sec. 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 Sec. 48.4101-1(f)(3) of this chapter by reason of Sec. 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 Sec. 48.4101-1(h) of this chapter (relating to the terms and conditions of registration);
(v) Is liable for tax under Sec. 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--(1) In general. A return that reports liability imposed by section 4375 or 4376 is a return for policies or plans with policy or plan years ending in the previous calendar year, and, for issuers that determine the average number of lives covered under a policy for purposes of section 4375 using the member months method under Sec. 46.4375-1(c)(2)(v) or the state form method under Sec. 46.4375-1(c)(2)(vi) of this chapter, the return is for all policies in effect during the previous calendar year. The second sentence of paragraph (a)(2)(i) of this section (relating to filing quarterly returns regardless of whether liability is incurred) does not apply to a person that files a Form 720, ``Quarterly Federal Excise Tax Return,'' only to report liability imposed by section 4375 or 4376.
(1) In general. A return that reports liability imposed by section 4375 or 4376 is a return for policies or plans with policy or plan years ending in the previous calendar year, and, for issuers that determine the average number of lives covered under a policy for purposes of section 4375 using the member months method under Sec. 46.4375-1(c)(2)(v) or the state form method under Sec. 46.4375-1(c)(2)(vi) of this chapter, the return is for all policies in effect during the previous calendar year. The second sentence of paragraph (a)(2)(i) of this section (relating to filing quarterly returns regardless of whether liability is incurred) does not apply to a person that files a Form 720, ``Quarterly Federal Excise Tax Return,'' only to report liability imposed by section 4375 or 4376.
(2) Applicability date. This paragraph (c) applies to returns that report liability imposed by section 4375 or 4376. [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] Sec. 40.6011(a)-2 Final returns.
(a) In general--(1) Permanent cessation of operations. Any person that is required under Sec. 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 Sec. 40.6011(a)-1.
(1) Permanent cessation of operations. Any person that is required under Sec. 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 Sec. 40.6011(a)-1.
(2) Change in law without cessation of operations. Any person that is required under Sec. 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.
(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 Sec. 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. [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]