PROPOSED AMENDMENT OF 26 CFR PARTS 270 AND 275
Manufacturers of tobacco, cigars, and cigarettes:
Purpose. The purpose of this industry circular is to acquaint you with the
provisions of a notice of proposed rulemaking, published in the Federal Register
August 14, 1957, which would amend the regulations in 26 CFR Parts 270 and
275.
Background. In existing regulations, sections 270.142 and 275.132,
"Records," require manufacturers of tobacco products to keep records of
their operations and transactions for tobacco tax purposes on prescribed
internal revenue forms. Studies and surveys indicate that many manufacturers
of tobacco, cigars, and cigarettes maintain commercial records of their operations and transactions that contain information identical to that required to be
entered in internal revenue records. In such instances the prescribed internal
revenue records are merely posted from the commercial records maintained
by the manufacturers. Such manufacturers of tobacco products and many internal revenue officers have recommended that commercial records be utilized for
internal revenue tobacco tax purposes in lieu of the prescribed internal revenue
records.
Proposed Changes. It is proposed to amend sections 270.142 and 275.132 to
provide that manufacturers of tobacco products may utilize for tobacco tax purposes, commercial records which contain information concerning their operations and transactions similar to that required to be shown in the internal
revenue records prescribed by these sections, but that where a manufacturer
does not maintain and utilize commercial records which completely and adequately reflect his operations he shall keep the prescribed internal revenue
record, together with all auxiliary and supplemental records of individual
operations and transactions from which such record is compiled.
Comments. The notice of proposed rulemaking provides that, prior to
adoption, consideration will be given to any data, views, or arguments pertaining
thereto which are submitted in writing, in duplicate, to the Director, Alcohol and
Tobacco Tax Division, Internal Revenue Service, Washington 25, D. C., within
30 days from the date of publication in the Federal Register.
Inquiries. Inquiries regarding this circular should refer to its number and
be addressed to the office of your assistant regional commissioner (alcohol and
tobacco tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division
IRS-D.C.-31144
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