ROUNDING OFF FRACTIONS OF POUNDS
OF MANUFACTURED TOBACCO
Manufacturers of tobacco:
Purpose. The purpose of this industry circular is to
advise you of a recent ruling by this office concerning
rounding off fractions of pounds of manufactured tobacco,
in the maintenance of records and in the preparation of
semimonthly tax returns.
Substance of Ruling. Fractions of pounds may be rounded
off to the nearest pound in the recording, required by 26 CFR
296.118, of daily totals of manufactured tobacco removed sub-
ject to tax, and in reporting such removals in Section III of
the semimonthly tax return. However, the daily totals must
be determined before fractions of pounds can be rounded off,
following the accepted formula of disregarding fractions of
less than one-half pound and increasing fractions of one-half
pound or more to the next whole pound.
Inquiries. Inquiries in regard to this industry circular
should refer to its number and be addressed to the office of
your assistant regional commissioner (alcohol and tobacco tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division