Floor Stocks Tax FAQs

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If you want to know about recent changes in the law and regulations, you may visit the following Web sites: THOMAS (The Library of Congress) and The Federal Register. If you are concerned with the accuracy of this information, please contact TTB or your legal advisor.

General

G1:	What is a floor stocks tax?
G2:	Who is liable for the floor stocks tax?
G3:	What products are covered by the floor stocks tax?
G4:	I received a floor stocks tax return, but I am not engaged in a business involving the sale of tobacco products or cigarette papers or tubes. What should I do?
G5:	I received a floor stocks tax return, but I only sell large cigars. What should I do?

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Inventory

I1:	Why do I have to take an inventory?
I2:	When do I have to take an inventory?
I3:	As far as my inventory, would it be acceptable if I just figure out how much tax I owe per tobacco product and pay the floor stocks tax by that method?
I4:	Taking an inventory on April 1, 2009, will be very difficult for me. Is there any way to avoid a physical inventory?
I5:	When I perform my inventory on April 1, 2009, how much detail do I have to show in my inventory records – do I have to show by the brand of the product?
I6:	Do the products in vending machines have to be included in my inventory?
I7:	How should I handle in-transit merchandise when I do my inventory?
I8:	I have some products on hand that I will be returning to my supplier. Some of it is damaged, and I can’t sell it. Some of it is “O.K.”, but it hasn’t been selling well, and I want to get it off my shelves and send it back. Do I have to count these products in my floor stocks tax inventory?
I9:	Products marked “not for sale” or “complimentary.”
I10:	How long do I have to keep my inventory records?
I11:	Will TTB audit my inventory results?

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Filing Requirements

FR1:	Copies of the floor stocks tax return and instructions are available on the TTB website.
FR2:	Do I have to file separate returns for all of my locations?
FR3:	When must I file my return?
FR4:	How do I pay my tax?

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Controlled Groups

CG1:	What types of business structures are considered a controlled group?
CG2:	How do the special provisions concerning the floor stocks tax relate to control groups?
CG3:	Can the tax owed by all businesses in a control group be paid with one tax return?

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Credits

C:	What type of credit is available against the floor stocks taxes?

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Miscellaneous

M1:	How can I tell what tax class my products belong to?
M2:	I have roll-your-own products that contain tobacco and papers within a retail package. Do I have to count the papers for the floor stocks tax and pay the tax on these papers?
M3:	I don’t have the money to pay my entire floor stocks tax liability. What can I do?
M4:	Will I owe floor stocks tax on tobacco for use in making cigars or for use as cigar wrappers?
M5:	Where can I get more information?

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Language Links

Floor Stocks Tax FAQs

General

Inventory

Filing Requirements

Controlled Groups

Credits

Miscellaneous