Rev. Proc. 57-11

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to furnish instructions relative to the manner of reporting tobacco materials by manufacturers of tobacco products in their inventories and reports, after January 1, 1957.

SEC. 2. INVENTORY, FORM 2130 OR 2131.

In any inventory required to be made after January 1, 1957, on Form 2130, Inventory-Manufacturer of Tobacco, or Form 2131, Inventory-Manufacturer of Cigars and Cigarettes, manufacturers of tobacco products shall show all tobacco materials under only the two classifications of unstemmed tobacco (tobacco from which the stem or mid-rib has not been removed) and other tobacco materials (all other tobacco materials, including stems if received or intended for use in manufacture, but not including waste).

SEC. 3. MONTHLY REPORT, FORM 2134 OR 2136.

Beginning with the report for the month of January, 1957, manufacturers of tobacco products shall show in the report, Form 2134, Monthly Report-Manufacturer of Tobacco, or Form 2136, Monthly Report-Manufacturer of Cigars and Cigarettes, as the case may be, all tobacco materials under only the two classifications of unstemmed tobacco (tobacco from which the stem or mid-rib has not been removed) and other tobacco materials (all other tobacco materials, including stems if received or if shipped or delivered to manufacturers of tobacco products, dealers in tobacco materials, or for purposes other than fertilizer, insecticide, or nicotine, but not including waste).

SEC. 4. MODIFICATION OF PRESENT FORMS.

Until the inventory and the report forms are revised, manufacturers of tobacco products should appropriately modify section I of such forms to show only the two classifications of unstemmed tobacco and other tobacco materials .

SEC. 5. INTERNAL REVENUE RECORDS OF MANUFACTURERS.

This manner of reporting tobacco materials is consistent with the way manufacturers will record tobacco materials in the new internal revenue records, Form 2141, Record To Be Kept by Manufacturer of Tobacco, Form 2142, Record To Be Kept by Manufacturer of Large Cigars, and Form 2143, Record To Be Kept by Manufacturer of Small Cigars and Large and Small Cigarettes, which will be issued for use beginning January 1, 1957.

SEC. 6. EFFECT ON OTHER DOCUMENTS.

.01 The instructions contained in paragraph three of Revenue Procedure 56-3, C.B. 1956-1, 1018, are not applicable as to inventories submitted on and after January 1, 1957.

.02 The provision of Revenue Ruling 56-74, C.B. 1956-1, 541, requiring transactions in tobacco materials to be reported under the classifications of unstemmed and stemmed leaf tobacco, is hereby modified to require such reporting under the classifications of unstemmed tobacco and other tobacco materials as to reports submitted on and after January 1, 1957.

SEC. 7. INQUIRIES.

Inquiries in regard to this Revenue Procedure should refer to the number thereof and should be directed to the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax.