(a) In general. Each return or claim for refund of any tax to which this part 40 applies prepared by one or more signing tax return preparers must include the identifying number of the preparer required by Sec. 1.6695-1(b) of this chapter to sign the return or claim for refund in the manner stated in Sec. 1.6109-2 of this chapter.
(b) Effective/applicability date. This section is applicable to returns and claims for refund filed after December 31, 2008. [T.D. 9436, 73 FR 78454, Dec. 22, 2008; 74 FR 5105, Jan. 29, 2009] Sec. 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 Sec. 40.6071(a)-1 for filing the return, and at the place prescribed in Sec. 40.6091-1 for filing the return. [T.D. 8968, 66 FR 41776, Aug. 9, 2001] Sec. 40.6302(a)-1 Voluntary payments of excise taxes by electronicfunds 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] Sec. 40.6302(c)-1 Deposits.
(a) In general--(1) Semimonthly deposits required. Except as provided by statute, or by paragraph (e) of this section, each person required under Sec. 40.6011(a)-1(a)(2) to file a quarterly return must make a deposit of tax for each semimonthly period (as defined in Sec. 40.0-1(c)) in which tax liability is incurred.
(1) Semimonthly deposits required. Except as provided by statute, or by paragraph (e) of this section, each person required under Sec. 40.6011(a)-1(a)(2) to file a quarterly return must make a deposit of tax for each semimonthly period (as defined in Sec. 40.0-1(c)) in which tax liability is incurred.
(2) Treatment of taxes imposed by chapter 33. For purposes of this part 40, tax imposed by chapter 33 (relating to communications and air transportation) is treated as a tax liability incurred during the semimonthly period--
(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. 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.
(4) Computation of net tax liability for a semimonthly period. The net tax liability for a semimonthly period may be computed by--
(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--(1) In general. The deposit of tax for each semimonthly period must be not less than 95 percent of the amount of net tax liability incurred during the semimonthly period.
(1) In general. The deposit of tax for each semimonthly period must be not less than 95 percent of the amount of net tax liability incurred during the semimonthly period.
(2) Safe harbor rules--(i) Applicability. The safe harbor rules of this paragraph (b)(2) are applied separately to taxes deposited under the alternative method provided in Sec. 40.6302(c)-3 (alternative method taxes) and to the other taxes for which deposits are required under this section (regular method taxes).
(i) Applicability. The safe harbor rules of this paragraph (b)(2) are applied separately to taxes deposited under the alternative method provided in Sec. 40.6302(c)-3 (alternative method taxes) and to the other taxes for which deposits are required under this section (regular method taxes).
(ii) Regular method taxes. Any person that made a return of tax reporting regular method taxes 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 regular method taxes for the current calendar quarter if--
(A) The deposit of regular method taxes for each semimonthly period in the current calendar quarter is not less than \1/6\ of the net tax liability for regular method taxes reported for the look-back quarter;
(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. Any person that made a return of tax reporting alternative method taxes for the look-back quarter is considered to have complied with the requirement of this part 40 for deposit of alternative method taxes for the current calendar quarter if--
(A) The deposit of alternative method taxes for each semimonthly period in the current calendar quarter is not less than \1/6\ of the net tax liability for alternative method taxes reported for the look-back quarter;
(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. The safe harbor rules of this paragraph (b)(2) do not apply to regular method taxes or alternative method taxes 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 unless the deposit of those taxes for each semimonthly period in the calendar quarter is not less than \1/6\ of the tax liability the person would have had with respect to those taxes for the look-back quarter if the increased rate of tax had been in effect for the look-back quarter.
(v) Failure to comply with deposit requirements. If a person fails to make deposits as required under this part 40, the IRS may withdraw the person's right to use the safe harbor rules of this paragraph (b)(2).
(c) Time to deposit--(1) In general. The deposit of tax for any semimonthly period must be made by the 14th day of the following semimonthly period unless such day is a Saturday, Sunday, or legal holiday in the District of Columbia in which case the immediately preceding day which is not a Saturday, Sunday, or legal holiday in the District of Columbia is treated as the 14th day. Thus, 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.
(1) In general. The deposit of tax for any semimonthly period must be made by the 14th day of the following semimonthly period unless such day is a Saturday, Sunday, or legal holiday in the District of Columbia in which case the immediately preceding day which is not a Saturday, Sunday, or legal holiday in the District of Columbia is treated as the 14th day. Thus, 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) Exceptions. See Sec. 40.6302(c)-2 for the special rules for September. See Sec. 40.6302(c)-3 for the special rules for deposits under the alternative method.
(d) Deposits required by electronic funds transfer. All deposits required by this part must be made by electronic funds transfer, as that term is defined in Sec. 31.6302-1(h)(4) of this chapter.
(e) Exceptions--(1) Taxes excluded. No deposit is required in the case of the taxes imposed by--
(1) Taxes excluded. No deposit is required in the case of the taxes imposed by--
(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 health plans); and
(v) Section 5000B (relating to indoor tanning services).
(2) One-time filings. No deposit is required in the case of any taxes reportable on a one-time filing (as defined in Sec. 40.6011(a)-2(b)).
(3) De minimis exception. For any calendar quarter, no deposit is required if the net tax liability for the quarter does not exceed $2,500.
(f) Effective/applicability date. This section applies to deposits and payments made after March 31, 2013. For rules that apply before that date, see 26 CFR part 40 (revised as of April 1, 2013). [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] Sec. 40.6302(c)-2 Special rules for September.
(a) In general--(1) Separate deposits required for the second semimonthly period. In the case of deposits of taxes not deposited under the alternative method (regular method taxes) for the second semimonthly period in September, separate deposits are required for the period September 16th through 26th and for the period September 27th through 30th.
(1) Separate deposits required for the second semimonthly period. In the case of deposits of taxes not deposited under the alternative method (regular method taxes) for the second semimonthly period in September, separate deposits are required for the period September 16th through 26th and for the period September 27th through 30th.
(2) Amount of deposit--(i) In general. The deposits of regular method taxes for the period September 16th through 26th and the period September 27th through 30th must be not less than 95 percent of the net tax liability for regular method taxes incurred during the respective periods. The net tax liability for regular method taxes incurred during these periods may be computed by--
(i) In general. The deposits of regular method taxes for the period September 16th through 26th and the period September 27th through 30th must be not less than 95 percent of the net tax liability for regular method taxes incurred during the respective periods. The net tax liability for regular method taxes incurred during these periods may be computed by--
(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\ of the amount determined under paragraph (a)(2)(i)(A) of this section as the net tax liability for regular method taxes incurred during the period September 16th through 26th; and
(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. The safe harbor rules in Sec. 40.6302(c)-1(b)(2) do not apply for the third calendar quarter unless--
(A) The deposit of taxes for the period September 16th through 26th is not less than \11/90\ of the net tax liability for regular method taxes reported for the look-back quarter; and
(B) The total deposit of taxes for the second semimonthly period in September is not less than \1/6\ of the net tax liability for regular method taxes reported for the look-back quarter.
(3) Time to deposit. (i) The deposit required for the period beginning September 16th must be made by September 29th unless--
(i) The deposit required for the period beginning September 16th must be made by September 29th unless--
(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 Sec. 40.6302(c)-1(c).
(b) Persons not required to use electronic funds transfer. The rules of this section are applied with the following modifications in the case of a person not required to deposit taxes by electronic funds transfer.
(1) Periods. The deposit periods for the separate deposits required under paragraph (a) of this section are September 16th through 25th and September 26th through 30th.
(2) Amount of deposit. In computing the amount of deposit required under paragraph (a)(2)(i)(B) of this section, the applicable fraction is \10/15\. In computing the amount of deposit required under paragraph (a)(2)(ii)(A) of this section, the applicable fraction is \10/90\.
(3) Time to deposit. In the case of the deposit required under paragraph (a) of this section for the period beginning September 16th, the deposit must be made by September 28th unless--
(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. This section is applicable with respect to deposits that relate to calendar quarters beginning on or after October 1, 2001, except that paragraph (b) of this section does not apply after December 31, 2010. [T.D. 8963, 66 FR 41777, Aug. 9, 2001, as amended by T.D. 9507, 75 FR 75904, Dec. 7, 2010] Sec. 40.6302(c)-3 Deposits under chapter 33.
(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 Sec. 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.
(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.
(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 of taxes imposed by other sections of chapter 33 on the basis of amounts actually collected using the rule of Sec. 40.6302(c)-1(c)(1). 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--
(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)--
(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 Sec. 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. 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 Sec. 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 16th 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 business day after the seventh day of that semimonthly period. For purposes of this paragraph (c), a ``business day'' is any calendar day other than a Saturday, Sunday, or legal holiday. The term legal holiday means a legal holiday in the District of Columbia as defined in section 7503. Thus, for example, the deposit for the semimonthly period beginning on January 1, 2011 (relating to amounts billed between December 1st and December 15, 2010) is due by January 12, 2011, three business days after January 7, the seventh day of the semimonthly period. The deposit for the semimonthly period beginning on October 1, 2011 (relating to amounts billed between September 1st and September 15, 2011), is due by October 13, 2011, due to the October 10, 2011, Columbus Day holiday.
(d) Computation of net amount of tax that is considered as collected during a 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) Special rules for September--(1) Deposits required. In the case of alternative method taxes charged (that is, included in amounts billed or tickets sold) during the first semimonthly period in September, separate deposits are required for the taxes charged during the period September 1st-11th and the period September 12th-15th.
(1) Deposits required. In the case of alternative method taxes charged (that is, included in amounts billed or tickets sold) during the first semimonthly period in September, separate deposits are required for the taxes charged during the period September 1st-11th and the period September 12th-15th.
(2) Time to deposit--(i) In general. The deposit required for alternative method taxes charged during the period beginning September 1st must be made by September 29. The deposit required for alternative method taxes charged during the period ending September 15th must be made at the time prescribed in paragraph (c) of this section for making deposits for the first semimonthly period in October.
(i) In general. The deposit required for alternative method taxes charged during the period beginning September 1st must be made by September 29. The deposit required for alternative method taxes charged during the period ending September 15th must be made at the time prescribed in paragraph (c) of this section for making deposits for the first semimonthly period in October.
(ii) Due date on Saturday or Sunday. A deposit that would otherwise be due on September 29 must be made by September 28 if September 29 is a Saturday and by September 30 if September 29 is a Sunday.
(3) Amount of deposit. The deposits of alternative method taxes required for the period September 1st-11th and the period September 12th-15th must be not less than the amount of alternative method taxes charged during the respective periods. The amount of alternative method taxes charged during these periods may be computed by--
(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\ of that amount as the amount of taxes charged during the period September 1st-11th; and
(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. The safe harbor rule of Sec. 40.6302(c)-1(b)(2) does not apply for the fourth calendar quarter unless--
(i) The deposit for alternative method taxes charged during the period September 1st-11th is not less than \11/90\ of the net tax liability reported for alternative method taxes for the look-back quarter; and
(ii) The total deposit for alternative method taxes charged during the first semimonthly period in September is not less than \1/6\ of the net tax liability reported for alternative method taxes for the look-back quarter.
(5) Persons not required to use electronic funds transfer. In the case of a person that is not required to deposit excise taxes by electronic funds transfer (a non-EFT depositor), the rules of this paragraph (f) apply with the following modifications:
(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 Modifications for non-EFT
percentage depositors------------------------------------------------------------------------11/15.................................. 10/15.11/90.................................. 10/90.69.67 percent.......................... 63.33 percent.------------------------------------------------------------------------
(g) Effective date. This section is applicable with respect to deposits and returns that relate to taxes that are considered as collected in calendar quarters beginning on or after October 1, 2001, except that paragraph (b)(2)(ii)(B) of this section is applicable October 1, 2004, and except that paragraph (f)(5) of this section does not apply after December 31, 2010. [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]