Rev. Proc. 57-34

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to provide manufacturers of tobacco more detailed instructions relative to accounting for tobacco in process and manufactured tobacco in their records, reports, and inventories.

SEC. 2. BACKGROUND.

The manner of reporting tobacco materials on inventories and reports was contained in Revenue Procedure 57-11, C.B. 1957-1, 344, which provided for the showing of tobacco materials on the inventories and reports under the classifications of `unstemmed tobacco' and `other tobacco materials' only. In this connection, there appears to be some misunderstanding as to the proper accounting for tobacco in process, and when tobacco in process should be regarded as manufactured tobacco and should be so reported by manufacturers on Form 2141, Record to be Kept by Manufacturer of Tobacco, Form 2134, Monthly Report-Manufacturer of Tobacco, and Form 2130, Inventory-Manufacturer of Tobacco.

SEC. 3. RECORDS, REPORTS, AND INVENTORIES.

Tobacco in the process of manufacture should be shown in the records, Form 2141, reports, Form 2134, and inventories, Form 2130, as tobacco materials, under the classification of `Other tobacco materials.' For the purpose of making entries in such records, reports, and inventories, manufacturers of tobacco should regard all tobacco (other than plug or twist) as tobacco materials until it is packaged for removal, furnished to employees for personal consumption or use, or removed for sale, consumption, or use.

SEC. 4. EFFECT ON OTHER DOCUMENTS.

Revenue Procedure 57-11, C.B. 1957-1, 344, is hereby supplemented

SEC. 5. 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.