Rev. Rul. 62-65

The tax imposed by the State of Missouri on the sale of cigarettes under Title X, Chapter 149, section 149.020 of the Revised Statutes of Missouri, Laws of 1955, as amended, is, on and after May 1, 1961, deductible under section 164(a) of the Internal Revenue Code of 1954 in computing taxable income by the consumer or user of the cigarettes, except that, in the case of an individual who elects to use the standard deduction or optional tax table, the taxes are not deductible unless attributable to a trade or business carried on by him which does not consist of the performance of services by the taxpayer as an employee. If the tax is attributable to a trade or business carried on by the individual, the amount of tax is deductible from gross income in computing adjusted gross income under section 62 of the Code.