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Rev. Rul. 64-18


Rev. Rul. 64-18; 1964-1 C.B. 577

DATED
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Citations: Rev. Rul. 64-18; 1964-1 C.B. 577

Obsoleted by Rev. Rul. 66-22

Rev. Rul. 64-18 1

Advice has been requested whether tobacco products provided by manufacturers without payment of tax for employees, off-factory personal consumption may be accumulated and distributed weekly.

Section 5704(a) of the Internal Revenue Code of 1954 provides, in part, that tobacco products may be furnished by a manufacturer of such products, without payment of tax, for use or consumption by employees, in such quantities, and in such manner as the Secretary of the Treasury or his delegate shall by regulations prescribe.

Section 270.231 of the Manufacture of Tobacco Products Regulations provides, in part, that manufacturers of tobacco products may furnish to each employee, for off-factory personal consumption, not more than five large cigars or cigarettes, 20 small cigars or cigarettes, or two ounces of manufactured tobacco, without determination and payment of tax, on each day the employee is at work. Such products furnished for off-factory consumption shall be taken from the factory by the employee on the day furnished.

It is held that tobacco products furnished by manufacturers, without payment of tax, for employees' off-factory personal consumption may not be accumulated and distributed to the employees on a weekly basis. Such tobacco products must be given to the employees on the day for which furnished and removed from the factory by the employees on that day.

Revenue Ruling 61-44, C.B. 1961-1, 652, is hereby superseded.

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

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