Reports of Tobacco Materials Used by
Manufacturers of Tobacco Products
Manufacturers of tobacco, cigars, and cigarettes:
1. The purpose of this industry circular is to advise you
that, beginning with your monthly report for October 1955, you
will not be required to report, in item 9 of Form 2134 or 2136,
the use of tobacco materials in the manufacture of your products.
2. This action is taken after a careful study of the matter
and after considering representations made by a number of tobacco
industry representatives that it is extremely difficult, if not
impossible in many cases, to determine accurately each month the
quantity of tobacco materials used in the production of tobacco
products. On the other hand, this office has been informed that
the rendering of an inventory of tobacco materials held in each
tobacco products factory at the close of December 31 of each year
will not impose a hardship on manufacturers of tobacco products.
Since such inventories, in connection with the present monthly
reports of tobacco materials received, lost or destroyed, and
removed, will enable the Internal Revenue Service to determine the
quantities of tobacco materials used in each factory during the
calendar year for audit and statistical purposes, it has been
decided to discontinue the reporting, by manufacturers, of tobacco
materials used each month and, under authority of Section 5721 of
the Internal Revenue Code of 1954 and Sections 270.141(c) and
275.131(c) of regulations, 26 CFR (1954) Parts 270 and 275, respectively, to require such manufacturers to furnish for each of their
factories an inventory of tobacco materials held in the factory as
of the beginning of business on January 1 of each year. Detailed
instructions with respect to such inventories will be furnished to
you in the near future.
3. Inquiries in regard to this industry circular should refer
to the number thereof and should be directed to the appropriate
Assistant Regional Commissioner, Alcohol and Tobacco Tax.
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division |