Cigarette Papers and Tubes
Procedure for the Interim from January 1,1955
Until the Effective Date of Regulations to be
Prescribed Under the Internal revenue Code of 1954
Manufacturers and importers of cigarette papers and tubes;
1. The purpose of this industry circular is to notify you that
new regulations to implement Chapter 52 of the Internal Revenue Code
of 1954, as it relates to manufacturers and importers of cigarette
papers and tubes, will not become effective on January 1, 1955.
2. Until the new regulations become effective, pursuant to
Section 7807(a) of the 1954 Code the applicable provisions of existing
Regulations 8,73,and 76, which are not inconsistent with the 1954
Code, will continue in effect until the new and superseding regulations become effective. You will continue to use all forms required
3. Section 5701(d) and (e) of the Internal Revenue Code of 1954,
which imposes taxes on cigarette papers and tubes, becomes effective
January 1.1955. Under these provisions of the Code, cigarette papers
and tubes which measure more than 6 1/2 inches in length are taxable
at the rates prescribed, counting each 2 3/4 inches, or fraction
thereof, of the length of each paper or tube as one cigarette paper
or cigarette tube.
4. Section 5705 of the 1954 Code, providing for refund or
allowance of tax, becomes effective January 1,1955. Under this section of the Code, taxes paid on cigarette papers and tubes may be
refunded, where such articles are withdrawn from the market; or the
articles are lost (otherwise than by theft) or destroyed, by fire,
casualty, or act of God, while in the possession or ownership of the
manufacturer or importer; or where the tax on cigarette papers or
tubes has been pain in error by the manufacturer or importer thereof.
This section also provides that if tax has not yet been paid on cigarette
5. Although the permit provisions of Chapter 52 of the new
Code with respect to manufacturers of cigarette papers and tubes
will become effective January 1, 1955, applications for permits
by persons operating as such manufacturers on January 1, 1955,
will not be required to be filed pending the effective date of the
new regulations implementing-the Code.
6. Inquiries in regard to this industry circular, and any
inquiries regarding your operations on and after January 1, 1955,
pending the effective date of new regulations, should be directed
to the Assistant Regional Commissioner, Alcohol and Tobacco Tax.
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division