Rev. Proc. 58-7

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to advise manufacturers of tobacco products that inventories of tobacco materials, tobacco products, and tax stamps, held in each factory as of January first of each year, are no longer required.

SEC. 2. BACKGROUND.

In the past, manufacturers of tobacco products have been required to furnish inventories, as of the first of each calendar year, of tobacco materials, tobacco products, and tax stamps. In recent years, such inventories have been used principally for the compilation of statistics, particularly in the area of `tobacco materials used.'

SEC. 3. DETERMINATION.

In order to effect economies by eliminating requirements and services no longer considered necessary, it has been determined to discontinue the compilation and release of statistics relating to tobacco materials used in the manufacture of tobacco products. This determination is based upon the finding that such statistics are no longer necessary in the administration of the internal revenue laws or for industry purposes. The discontinuance of such statistics makes it possible to eliminate the requirement for the furnishing of inventories by manufacturers of tobacco products, as of January first of each year, of tobacco materials, tobacco products, and tax stamps. This determination is not intended in any way to modify the provisions of section 270.141(c) of the Regulations relating to Cigars and Cigarettes (Manufacturers, Importes, and Dealers) or section 275.131(c) of the Regulations relating to Manufactured Tobacco (Manufacturers, Importers, and Dealers).

SEC. 4. EFFECT ON OTHER DOCUMENTS.

Revenue Ruling 56-73, C.B. 1956-1, 539, is modified to apply only to inventories which may be required under sections 270.141 and 275.131 of the regulations. Revenue Procedure 57-11, C.B. 1957-1, 739, and Revenue Procedure 57-34, C.B. 1952-2, 1107, as they relate to inventories, will continue to be followed as to inventories which may be required under the above sections.

SEC. 5. INQUIRIES.

Inquiries with respect to this Revenue Procedure should refer to the number thereof and should be addressed to the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax.