Issuance of Records To Be Kept
by Manufacturers of Cigars and
Cigarettes
Manufacturers of cigars and cigarettes:
1. Purpose
The purpose of this industry circular is to announce the issuance
of Form 2142, Record To Be Kept By Manufacturer of Large Cigars, and
Form 2143, Record To Be Kept By Manufacturer of Small Cigars And Large
And Small Cigarettes, and to provide instructions and guidelines for
the proper recording of the information required by regulations,
26 CFR 270.142.
2. Description of Forms 2142 and 2143
Form 2142 consists of a single sheet 21 by 16 inches perforated
on a center fold line to make a double sheet 10 1/2 by 16 inches. The
form contains three sections; Section I, Account of Tobacco Materials
Received, Section II, Account of Tobacco Materials Shipped, Delivered,
Lost, and Destroyed, and Section III, Account of Large Cigars, which
are designed to record such operations and transactions for a period
of one month. A supplemental Form 2142-A, printed as a single sheet
10 1/2 by 16 inches, containing Section IV, Account of Stamps, and
Section V, Account of Taxpaid Large Cigars Received, is provided for
use by a manufacturer of large cigars using stamps for taxpayment, and
by a manufacturer receiving into his factory taxpaid large cigars.
Form 2143 is identical to Form 2142 in size and design, and contains
five sections; Section I, Account of Tobacco Materials Received,
Section II, Account of Tobacco Materials Shipped, Delivered, Lost,
and Destroyed, Section III, Account of Small Cigars, Large Cigarettes,
or Small Cigarettes, Section IV, Account of Stamps, and Section V,
Account of Taxpaid Small Cigars, Large Cigarettes, or Small Cigarettes
Received.
3. Issuance of the Forms
Six copies of Form 2142 or 2143, as the case may be, will be
furnished initially by the Assistant Regional Commissioner, Alcohol
and Tobacco Tax, prior to January 1, 1957, to each manufacturer, in
his region, for use beginning such date.
4. Use of Forms 2142 and 2143
The headings of the accounts and columns and the footnotes on
the forms Provide appropriate reference and general instructions to
guide the manufacturer in recording the required information. However,
additional instructions are furnished with respect to the recording of
the following operations and transactions to insure a clear understanding of the major changes made in the records.
(a) Receipt and Disposition of Tobacco Materials
The receipt of tobacco materials into the factory and the
subsequent shipment, delivery, loss, or destruction of such
tobacco materials shall be recorded under only the two classifications of unstemmed tobacco (tobacco from which the stem or
mid-rib has not been removed and other tobacco materials (all
other tobacco materials, including stems-if received or if
shipped or delivered to manufacturers of tobacco products,
dealers in tobacco materials, or for purposes other than
fertilizer, insecticide, or nicotine-but not including waste).
A separate entry shall be made in the record with respect to
each receipt, shipment, or other disposition of tobacco materials.
(b) Receipt of Untaxpaid Cigars and Cigarettes
The receipt of untaxpaid cigars or cigarettes from another
factory, an export warehouse, customs custody, and by withdrawal
from the market, shall be recorded as a combined single daily
entry in Section III of the appropriate form, in the column
headed "Received Without Payment of Tax." However, with respect
to such cigars and cigarettes withdrawn from the market, the
manufacturers should first determine the disposition to be made
thereof and so record only those cigars or cigarettes that are
to be reworked, reconditioned, or reduced to materials. Those
cigars or Cigarettes which are reduced to materials shall then
also be recorded in Section III in the column headed "Reduced
to Materials." The quantity of tobacco materials obtained from
such reduction of cigars or cigarettes shall then also be recorded in Section I of the appropriate form.
(c) Receipt of Taxpaid Cigars and Cigarettes
The receipt of taxpaid cigars or cigarettes into the factory
and the subsequent disposition of such cigars or cigarettes shall
be recorded in Section V of the appropriate form. The cigars or
cigarettes to be recorded in this section include those taxpaid
cigars or cigarettes received from another factory, and those
taxpaid cigars or cigarettes of the manufacturer which are
returned to the factory, for reshipment in the same condition
as received.
(d) Loss and Destruction of Cigars and Cigarettes
The loss or destruction of cigars or cigarettes which have
been recorded as manufactured, or as received without payment
of tax, and which are lost or destroyed prior to removal from
the factory, shall be recorded in Section III of the appropriate
form, in the column headed "Lost and Destroyed."
(e) Loss Destruction and Mutilation of Stamps
The loss, destruction, or mutilation of stamps which have
been recorded as received (including those affixed to packages
which have not been removed from the factory) shall be recorded
in Section IV of the appropriate form, in the column headed
"Lost, Destroyed, and Mutilated."
(f) Reduction of Cigars and Cigarettes to Materials
The reduction to tobacco materials of cigars or cigarettes
which have been recorded as manufactured, or as received without
payment of tax, shall be recorded in Section III of the appropriate form, in the column headed "Reduced to Materials."
5. Effect on Prior Instructions
Any prior instructions relative to the keeping of the internal
revenue record which are inconsistent or in conflict with the instructions
contained in this Industry Circular or printed on the respective forms,
are hereby amended or superseded accordingly.
6. 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
Directors, Alcohol and Tobacco Tax Division
IRS-23662
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