Revision of Report and Record Forms
Manufacturers of tobacco, cigars, and cigarettes:
Purpose. This industry circular is to inform you that the
following forms have been revised and to furnish guidelines for
Form 2134 Monthly Report-Manufacturer of Tobacco
Form 2136 Monthly Report-Manufacturer of Cigars
Form 2141 Record To Be Kept By Manufacturer of Tobacco
Form 2142 Record To Be Kept By Manufacturer of Large Cigars
Form 2143 Record To Be Kept By Manufacturer of Small
Cigars and Large and Small Cigarettes
Background. The report and record forms have been revised to
make them consistent with operations under the return system,
prescribed by regulations in Subpart E of 26 CFR Part 296, and
to make them mutually consistent.
Report Forms. The principal revision in the monthly report
forms has been the elimination of all items relating to the stamp
system which has been discontinued. In order to aid the administration
of the regulations in Subpart E of Part 296 of Title 26 of the Code of
Federal Regulations, lines have been provided for separately showing
tobacco products received in bond by transfer from other factories,
transfer from export warehouses, and release from customs custody. A
line, "Received by return to bond," has also been provided to separately
show taxpaid or tax determined products converted to untaxpaid status
(that is, in connection with a claim or by reworking or rehandling).
Lines have also been provided for separately showing disposition of
products for experimental purposes and for consumption by employees,
on and off the factory premises. Although manufacturers are not
required to make periodic inventories to determine shortages or overages
of tobacco products, lines have been provided to show the net shortage
or net overage disclosed by physical inventory taken during a month,
such as an inventory taken during an inspection or an inventory taken
by manufacturers in the course of operations. The lines for net
shortages or overages will be particularly applicable to large cigars,
since such products are difficult to accurately count when in a loose
condition and in large quantities, and are susceptible to loss and
breakage during grading, sorting, and packaging operations which generally
occur many days after the cigars have been made (and so recorded).
Therefore, overages and shortages frequently result which are disclosed
only by inventory. Such unaccounted for shortages are not to be confused
with known losses from such causes as fire, casualty, theft, or act of
God, and with destructions of tobacco products as provided in sections
270.155 and 275.144, which are to be reported in the line "Lost and
Record Forms. The record forms have been similarly revised to
conform with the report forms revision, thus enabling those manufacturers
who use such forms to abstract the information required to be shown in
the monthly report from the total lines of Section III of the record
forms. Individual columns have been provided for recording separately
each kind of removal or other disposition without payment of tax.
Section IV, "Account of Stamps," has been deleted and Section V has been
redesignated as Section IV on each of the record forms. The elimination
of "Account of Stamps" and the inclusion of "Account of Taxpaid and
Tax Determined Large Cigars Received" in revised Form 2142 make
Form 2142A obsolete.
Supply of Revised Forms. A supply of the appropriate revised
monthly report form will be furnished all manufacturers; a supply of
the appropriate revised record form will be furnished those manufacturers who are presently recording their operations and transactions
in such prescribed forms rather than utilizing commercial records.
Additional supplies of these forms may be obtained from your assistant
regional commissioner (alcohol and tobacco tax).
Effective Date. Please use these revised report and record forms
for operations and transactions occurring on and after January 1, 1960.
Inquiries. Inquiries regarding this industry circular should
refer to its number and be addressed to your assistant regional
commissioner (alcohol and tobacco tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division
IRS D. C. 5392