Rev. Proc. 57-8

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to announce the issuance of Form 2142, Record to be Kept by Manufacturers of Large Cigars, and Form 2143, Record to be Kept by Manufacturers of Small Cigars and Large and Small Cigarettes, and to provide instructions and guidelines for the proper recording of the information required by section 270.142 of the Regulations relating to Cigars and Cigarettes (Manufacturers, Importers, and Dealers).

SEC. 2. DESCRIPTION OF FORMS 2142, 2142-A AND 2143.

Form 2142 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 three sections, namely, section I, Account of Tobacco Materials Received; section II, Account of Tobacco Materials Shipped, Delivered, Lost, and Destroyed; and section III, Account of Large Cigars. These are designed to record such operations and transactions for a period of one month. A supplemental Form 2142-A, printed as a single sheet 10 1/2 by 16 inches, containing section IV, Account of Stamps, and section V, Account of Taxpaid Large Cigars Received, is provided for use by a manufacturer of large cigars using stamps for taxpayment and by a manufacturer receiving into his factory taxpaid large cigars. Form 2143 is identical to Form 2142 in size and design, and 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 Small Cigars, Large Cigarettes, or Small Cigarettes; section IV, Account of Stamps; and section V, Account of Taxpaid Small Cigars, Large Cigarettes, or Small Cigarettes Received.

SEC. 3. ISSUANCE.

Each Assistant Regional Commissioner, Alcohol and Tobacco Tax, will furnish an initial supply of six copies of Form 2142 or Form 2143, as the case may be, to each manufacturer in his region for use to cover transactions on and after January 1, 1957.

SEC. 4. USE.

The headings of the accounts and columns and the footnotes on the forms 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 records:

.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 recorded 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). 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 cigars and cigarettes .-The receipt of untaxpaid cigars or cigarettes from another factory, an export warehouse, customs custody, and by withdrawal from the market, shall be recorded as a combined single daily entry in section III of the appropriate form, in the column headed `Received Without Payment of Tax.' However, with respect to such cigars and cigarettes withdrawn from the market, the manufacturers should first determine the dispostion to be made thereof and so record only those cigars or cigarettes that are to be reworked, reconditioned, or reduced to materials. Those cigars or cigarettes which are 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 sigars or cigarettes shall then also be recorded in section I of the appropriate form.

.03 Receipt of taxpaid cigars and cigarettes .-The receipt of taxpaid cigars or cigarettes into the factory and the subsequent disposition of such cigars or cigarettes shall be recorded in section V of the appropriate form. The cigars or cigarettes to be recorded in this section include those taxpaid cigars or cigarettes received from another factory, and those taxpaid cigars or cigarettes of the manufacturer which are returned to the factory, for reshipment in the same condition as received.

.04 Loss and destruction of cigars and cigarettes .-The loss or destruction of cigars or cigarettes which have been recorded as manufactured, or as received without payment of tax, and which are lost or destroyed prior to removal from the factory, shall be recorded in section III of the appropriate form, in the column headed `Lost and Destroyed.'

.05 Loss, destruction, and mutilation 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 appropriate form, in the column headed `Lost, Destroyed, and Mutilated.'

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

SEC. 5. EFFECT ON OTHER DOCUMENTS.

.01 Section 10 of Revenue Procedure 55-12, C.B. 1955-2, 914, which established an interim procedure pending the issuance of Forms 2142 and 2143, will not be applicable as to records maintained on and after January 1, 1957.

.02 Section 3 of Revenue Procedure 56-3, C.B. 1956-1, 1018, is modified to refer to Forms 2142 and 2143, in lieu of Form 73-Part 1, Book to be Kept by Manufacturers of Large Cigars, and Form 73-Part 2, Book for Use by Manufacturers of Small Cigarettes, Large Cigarettes, or Small Cigars, respectively, as to transactions on and after January 1, 1957.

.03 Revenue Ruling 56-76, C.B. 1956-1, 548, which prescribed a uniform procedure for the keeping of tobacco, cigar and cigarette factory records, is hereby superseded as to cigar and cigarette 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 Assistant Regional Commissioner, Alcohol and Tobacco Tax.