Rev. Proc. 57-7

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to announce the issuance of Form 2141, Record To Be Kept by Manufacturer of Tobacco, and to provide instructions and guidelines for the proper recording of the information required by section 275.132 of the Regulations relating to Manufactured Tobacco (Manufacturers, Importers, and Dealers).

SEC. 2. DESCRIPTION OF FORM 2141.

Form 2141 consists of a single sheet 21 by 16 inches perforated on a center fold line to make a double sheet 10 1/2 by 16 inches. The form contains five sections, namely, section I, Account of Tobacco Materials Received; section II, Account of Tobacco Materials Shipped, Delivered, Lost, and Destroyed; section III, Account of Manufactured Tobacco; section IV, Account of Stamps; and section V, Account of Taxpaid Manufactured Tobacco Received. These are designed to record such operations and transactions for a period of one month.

SEC. 3. ISSUANCE.

Prior to January 1, 1957, each Assistant Regional Commissioner, Alchol and Tobacco Tax, will furnish an initial supply of six copies of Form 2141 to every tobacco manufacturer in his region. The form will be used by such manufacturers covering transactions on and after January 1, 1957.

SEC. 4. USE.

The headings of the accounts and columns and the footnotes on the form provide appropriate reference and general instructions to guide the manufacturer in recording the required information. However, additional instructions are furnished with respect to the recording of the following operations and transactions to insure a clear understanding of the major changes made in the record:

.01 Receipt and disposition of tobacco materials .-The receipt of tobacco materials into the factory and the subsequent shipment, delivery, loss, or destruction of such tobacco materials shall be redelivery, 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 fertilizers, insecticide, or nicotine-but not including waste). A separate entry shall be made in the record with respect to each receipt, shipment, or other disposition of tobacco materials.

.02 Receipt of untaxpaid manufactured tobacco .-The receipt of untaxpaid manufactured tobacco from another factory, in export warehouse, customs custody, and by withdrawal from the market, shall be recorded as a combined single daily entry in section III of the form, in the column headed `Received Without Payment of Tax.' However, with respect to such manufactured tobacco withdrawn from the market, the manufacturers should first determine the disposition to be made thereof and so record only that quantity of manufactured tobacco that is to be reworked, reconditioned, or reduced to materials. The quantity of manufactured tobacco which is reduced to materials shall then also be recorded in section III in the column headed `Reduced to Materials.' The quantity of tobacco materials obtained from such reduction of manufactured tobacco shall then also be recorded in section I of the form.

.03 Receipt of taxpaid manufactured tobacco .-The receipt of taxpaid manufactured tobacco into the factory and the subsequent disposition of such manufactured tobacco shall be recorded in section V of the form. The manufactured tobacco to be recorded in this section includes the taxpaid tobacco received from another factory, and the taxpaid tobacco of the manufacturer which is returned to the factory, for reshipment in the same condition as received.

.04 Loss and destruction of manufactured tobacco .-The loss or destruction of manufactured tobacco which has been recorded as manufactured, or as recived without payment of tax, and which is lost or destroyed prior to removal from the factory, shall be recorded in section III of the form, in the column headed `Lost and Destroyed.'

.05 Loss, destruction, and mutiliation of stamps .-The loss, destruction, or mutilation of stamps which have been recorded as received (including those affixed to packages which have not been removed from the factory) shall be recorded in section IV of the form, in the column headed `Lost, Destroyed, and Mutilated.'

.06 Reduction of manufactured tobacco to materials .-The reduction to tobacco materials of manufactured tobacco which has been recorded as manufactured, or as recived without payment of tax, shall be recorded in section III of the form, in the column headed `Reduced to Materials.'

SEC. 5. EFFECT ON OTHER DOCUMENTS.

.01 Section 9 of Revenue Procedure 55-11, C.B. 1955-2, 912, which established an interim procedure pending the issuance of Form 2141, will not be applicable as to records covering transactions on and after January 1, 1957.

.02 Section 3 of Revenue Procedure 56-3, C.B. 1956-1, 1018, is modified to refer to Form 2141, in line of Form 74, Book to be Kept by Manufacturers of Tobacco and Snuff, as to transactions on and after January 1, 1957.

.03 Revenue Ruling 56-76, C.B. 548, which prescribed a uniform procedure for the keeping of tobacco, cigar, and cigarette factory records, is hereby superseded as to manufactured tobacco records maintained on and after January 1, 1957.

SEC. 6. 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.