Rev. Proc. 59-35

SECTION 1. PURPOSE

The purpose of this Revenue Procedure is to give manufacturers and importers of tobacco, cigars, and cigarettes, additional information with regard to the return system for the taxpayment of cigars, cigarettes, and manufactured tobacco.

SEC. 2. BACKGROUND.

In order to provide for taxpayment of cigars, cigarettes, and manufactured tobacco by return, subpart E of Part 296, Interim Regulations for Taxpayment of Cigars, Cigarettes, and Manufactured Tobacco by Return, T.D. 6382, page 354, this Bulletin, has been prescribed pursuant to the Internal Revenue Code of 1954, as amended by the Excise Tax Technical Changes Act of 1958, Public Law 85-859, C.B. 1958-3, 92.

SEC. 3. PROCEDURE.

.01 Filing of tax return .-Manufacturers must be sure that all tax returns are timely filed. Manufacturers failing to file tax returns within the periods set forth in section 296.108 of the regulations will be liable to the penalties provided by law. Manufacturers who have been purchasing tobacco tax stamps from or filing daily cigar tax returns with a branch office of a District Director of Internal Revenue, should, on or after June 24, 1959, file their tax returns, with remittance, with the same branch office, unless otherwise advised by the Assistant Regional Commissioner, Alcohol and Tobacco Tax.

.02 Packages .-A package is defined in section 296.103 of the regulations as the container in which tobacco products are put up by the manufacturer or importer and offered for sale or delivery to the consumer. Each such package of tobacco products removed subject to tax must bear the mark as required by section 296.120 of the regulations. Tubes of cellophane, glass, or metal or similar containers, which hold only one cigar, are not packages within the meaning of this definition where they are sold or delivered from proper packages bearing the mark as required by section 296.120 of the regulations. Each package of tobacco products removed subject to tax, on or after June 24, 1959, must bear this mark regardless of the quantity of such product contained in the package. For example, 5-packs of cigars or 4-packs of cigarettes are packages and, where removed subject to tax, must bear this mark.

.03 Use of existing package stock .-Certain information formerly appearing on cigar, cigarette, and manufactured tobacco tax stamps will, on or after June 24, 1959, be required to be adequately stated on packages of domestic and imported tobacco products removed subject to tax as required by section 296.120 of the regulations, and as described in section 10 of Revenue Procedure 59-28, page 941, this Bulletin. Existing stocks of packages may be used, if modified to bear the required information. Packages removed for export need not show this information, but must bear the label or notice for export purposes required by section 296.121 of the regulations.

.04 Record of removals subject to tax .-Section 296.118 of the regulations requires every manufacturer of tobacco products to keep a supporting record of tobacco products removed from his factory subject to tax. This record must include the name and address of the person to whom shipped or delivered. A manufacturer removing tobacco products to his retail store at the same location as his factory, may show, as the person to whom shipped or delivered, `Removed to retail store at factory.'

SEC. 4. EFFECT ON OTHER DOCUMENTS.

Revenue Procedure 59-28, page 941, this Bulletin, concerning the return system for payment of taxes on tobacco products is hereby amplified.

SEC. 5. INQUIRIES.

Inquiries in regard to this Revenue Procedure should refer to its number and be addressed to the office of the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax.