SEMIMONTHLY TAX RETURNS
Manufacturers of tobacco products
and others concerned:
The purpose of this circular is to give you advance information
concerning changes being made in return periods, and the times for
filing returns, covering deferred payment of taxes by manufacturers
of tobacco products.
A change is being made in the periods to be covered by semimonthly
returns for the deferred payment of taxes, so that each period will fall
wholly within a calendar month. A change is also being made so that
there may be a two-step increase in the period of time that payment of
taxes may be deferred.
The change to the new return period system will be made by providing
a short transitional period to run from September 24 through September
30, 1965. Your return, with remittance, for this period must be filed
not later than October 5, 1965 (unless October 1, 4, or 5 is a statewide
legal holiday in the State in which your return is required to be filed).
After this transitional period, the return periods will run from
the first day of each month through the 15th day of that month, and from
the 16th day of each month through the last day of that month. Also,
if you are qualified for extended deferral, your returns, with remittances,
for periods starting after September 30, 1965, and continuing through
the period ending June 30, 1966, may be filed as late as the 10th calendar
day after the close of each period; and commencing with the period starting after June 30, 1966, not later than the last day of the return period
next succeeding the period covered by the return. If you are not qualified for extended deferral, your returns and remittances must be filed
as at present; that is, within three business days. I n any case, however, the new return periods will be followed beginning with the month
If you wish to become qualified for extended deferral, you must
either furnish an extension of coverage, Form 2105, of your existing
bond to cover the extended deferral, or furnish a new bond on Form 3070.
The new regulations will not require you to file any additional
bonds or any additional extensions of coverage if you do not wish to
utilize the option of extended deferral.
Where qualification for extended deferral is to be accomplished
through the filing of an extension of coverage, the extension of coverage may be made retroactively effective to the beginning of a return
period if it is filed with and approved by your assistant regional commissioner before the expiration of the three-day filing time for that
period. However, if a new bond is filed it may not be made retroactive,
and it must be filed with and approved by your assistant regional commissioner before the commencement of the first return period for which
it is to be effective.
These changes will be implemented by a Treasury decision which
will add a new Subpart E to the regulations in 26 CFR Part 296.
Form 3071, Tax Return Manufacturer of Tobacco Products, is being
revised to make it compatible with the new tax return periods. Until
this revision is accomplished and the revised form is issued for use,
you are requested to file your tax returns on the February 1965 revision
of Form 3071. The beginning and ending dates of the period to be covered
by the return should be entered in Item 6 on the return form. The
quantities of tobacco products removed subject to tax during the period
should be entered in Column (d), and Columns (b) and (c) should be
ignored. Any supplies of Form 3071 revised prior to February 1965
that may be in your possession should be destroyed.
Inquiries regarding this circular should refer to its number and
should be addressed to the office of your Assistant Regional Commissioner,
Alcohol and Tobacco Tax.
Harold A. Serr
Director, Alcohol and Tobacco Tax Division