Cigars and Cigarettes
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
cigars and cigarettes:
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 cigars and
cigarettes, 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. You will continue to use
all forms required by such provisions of existing regulations and
3. Section 5705 of the 1954 Code, which becomes effective
January 1, 1955, provides that taxes on cigars and cigarettes may be
refunded to the manufacturer or importer thereof on proof satisfactory
to the Secretary or his delegate that the claimant manufacturer or
importer has paid the tax on such cigars and cigarettes which are lost
(otherwise than by theft) or destroyed, by fire, casualty, or act of
God, while in the possession or ownership of the claimant on and
after January 1, 1955. This section of the Code also provides that if
tax has not yet been paid on cigars and cigarettes, so lost or destroyed, relief from such tax may be extended upon the filing of a
claim for allowance of loss in the same manner as a claim for refund.
Therefore, if you incur such a loss or destruction on or after January 1,
1955, you should promptly report the facts and circumstances surrounding
the loss or destruction to the Assistant Regional Commissioner, Alcohol
and Tobacco Tax, and file with him an appropriate claim.
4. Although the permit provisions of Chapter 52 of the new Code
with respect to manufacturers of cigars and cigarettes will become
effective January 1, 1955, applications for permit to authorize the continuance of operations by persons now so qualified will not be
required to be filed pending the effective date of the new regulations implementing the Code.
5. 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