RYO Machine Rental Litigation - TTB Ruling 2010-04
On Monday, November 15, 2010, the United States District Court for the Northern District of Ohio temporarily enjoined the Treasury Department, TTB and "their agents, servants, employees, successors, representatives and assigns, and all others in active concert and privity with them who receive actual notice" from enforcing the provisions of Chapter 52 of the Internal Revenue Code dealing with manufacturers of tobacco products against retailers who maintain commercial cigarette-making machines on their premises for use by consumers to facilitate the manufacturing of cigarettes, as interpreted in TTB Ruling 2010-04. The temporary restraining order (TRO) was extended on November 29 and will remain in force until the close of business on December 13, 2010, unless before that time, the court further extends it or TTB consents to a longer extension.As a result of this TRO, TTB is not taking enforcement action at this time under the Internal Revenue Code of 1986, relative to the TTB Ruling and all requirements set forth therein. TTB has alerted all Bureau employees of the TRO that, at this time, TTB is enjoined from enforcing the TTB Ruling or authorizing others to enforce the TTB Ruling. Please note that the TRO does not rescind the TTB Ruling, but restrains TTB from enforcing it. Accordingly, the TRO does not waive any valid tax liability or other IRC obligations that may arise during the pendency of this litigation and which would be resolved at such time as TTB is no longer subject to a court-ordered restraint or completion of the litigation.