Rev. Rul. 64-26

Advice has been requested whether the daily entries in the records pertaining to manufactured tobacco may be made in figures of whole pounds by dropping fractions of less than one-half pound and by increasing fractions of one-half pound or more to the next higher pound.

Section 270.183, of the Manufacture of Tobacco Products Regulations requires a manufacturer of tobacco products to keep records of his operations and transactions and to enter therein for such day the total quantity and kind of product manufactured, received, removed, and otherwise disposed of.

It has been determined that a manufacturer of tobacco products, in entering in his revenue records the daily totals of manufactured tobacco produced, received, removed, and otherwise disposed of, may drop fractions of less than one-half pound and increase fractions of one-half pound or more to the next higher pound. However, the daily totals by kind and quantity must be determined before fractions of pounds may be increased or decreased.

Revenue Ruling 60-119, C.B. 1960-1, 603, is hereby superseded.

¹ Prepared pursuant to Revenue Procedure 62-24, C.B. 1962-2, 489.