[Code of Federal Regulations] [Title 26, Volume 16] [Revised as of April 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 26CFR40.6011(a)-2] [Page 6-7] TITLE 26--INTERNAL REVENUE CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED) PART 40_EXCISE TAX PROCEDURAL REGULATIONS--Table of Contents 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 [[Page 7]] 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. (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]