Rev. Rul. 56-73

Manufacturers of tobacco products are no longer required to report the use of tobacco materials in the manufacture of tobacco products. Such information has heretofore been reported in item 9 of Form 2134, Monthly Report-Manufacturer of Tobacco, in the case of manufactured tobacco, and in item 9 of Form 2136, Monthly Report-Manufacturer of Cigars and Cigarettes, in the case of cigars and cigarettes. In lieu of reporting tobacco materials used monthly, each manufacturer of tobacco products will render an inventory of tobacco materials held in each tobacco products factory at the close of December 31 of each year. 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. The taking of inventories is required under the authority of section 5721 of the Internal Revenue Code of 1954 and sections 270.141(c) and 275.131(c) of the Regulations relating to Cigars and Cigarettes (Manufacturers, Importers, and Dealers), and to Manufactured Tobacco (Manufacturers, Importers, and Dealers), respectively.

Section 11 of Revenue Procedure 55-12, C.B. 1955-2, 914, contained instructions to be followed until Form 2136 was available for distribution. Therefore, since Form 2136 is now in use, Revenue Procedure 55-12, supra , is hereby modified by eliminating therefrom section 11.