Home.Floor Stocks Tax Inventory and Filing
Floor Stocks Tax Inventory and Filing Information
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Floor Stocks Tax Form and Instructions
The Children’s Health Insurance Program Reauthorization Act of 2009 (“Act,” Public Law 111-3), was signed into law on February 4, 2009.
The Act increases the Federal excise tax on all tobacco products and cigarette papers and cigarette tubes, effective April 1, 2009. In addition, the Act imposes a floor stocks tax on all tobacco products (except large cigars), cigarette papers and cigarette tubes held for sale on April 1, 2009.
A floor stocks tax is a one-time excise tax placed on a commodity undergoing a tax increase. The amount of the floor stocks tax is equal to the difference between the new tax rate and the one just previous to it. Any person who holds tobacco products (except large cigars), cigarette papers, or cigarette tubes is liable for the floor stocks tax on April 1, 2009. This includes, for example, wholesalers and retail dealers, as well as manufacturers and importers who are holding taxpaid or tax determined products.
Each person is allowed a credit against the tax of $500. Liability for the floor stocks tax must be established by inventory. The Act stipulates that the floor stocks tax must be paid on or before August 1, 2009. Because August 1 is a Saturday, the floor stocks tax must be paid on or before the preceding day, July 31, 2009, in accordance with 26 U.S.C. 5703(b)(2)(E).
Important Dates
March 26, 2009 |
First day inventory may be taken* |
April 1, 2009 |
Floor stocks tax effective date |
April 10, 2009 |
Last day inventory may be taken* |
June 30, 2009 |
Last mailing by TTB of pre-printed tax returns. |
July 31, 2009 |
Floor stocks tax return and tax payment are due |
* The inventory must be taken after March 25, 2009, and before April 11, 2009; if taken on any day other than April 1, 2009, it must be reconciled (adjusted) to reflect the actual quantity of products held at the beginning of business, April 1, 2009.
Helpful Information and Resources
- Common Floor Stocks Tax (FST) Errors
- TTB F 5000.28T09, 2009 Floor Stocks Tax Return – Tobacco Products and Cigarette Papers and Tubes
- TTB P 5000.28T09, Instructions for TTB F 5000.28T09
- Industry Circular 2009-1, Increase in Federal Excise Tax and Imposition of Floor Stocks Tax on Tobacco Products, Cigarette Papers, and Cigarette Tubes
- TTB Ruling 2009–1, Taxable Weight of Tobacco Products
- TTB Procedure 2009–1, Procedure for Certain Tobacco Products and Cigarette Papers and Tubes Withdrawn from the Market
- Federal Excise Tax Increase and Related Provisions
- Floor Stocks Tax FAQs
- TTB Procedure 91-1, TTB Procedure for Payment of Tax by Electronic Fund Transfer
Where to File?
Send returns and payments to:
Alcohol and Tobacco Tax and Trade Bureau
2009 Floor Stocks Tax
P. O. Box 790208
St. Louis, MO 63179-0208
Contact Information
Ask your Floor Stocks Tax questions by sending an email to ttbtobacco@ttb.treas.gov or by calling the NRC toll free at 1-877-TTB-FAQS (1-877-882-3277)
| Page last reviewed/updated: 09/04/2012 |
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