REGULATIONS COVERING SEMIMONTHLY TAX RETURNS
Manufacturers of tobacco products:
Purpose. The purpose of this industry circular is to advise you of
the issuance of Treasury Decision 6929 (32 F.R. 13865) effective
December 1, 1967, which relates to regulations in 26 CFR Part 270
entitled "Manufacture of Cigars and Cigarettes" and 26 CFR Part 296
entitled "Miscellaneous Regulations Relating to Cigars, Cigarettes,
and Cigarette Papers and Tubes" and to furnish you with revised pages
of Part 270 for insertion in your looseleaf copy.
Background. Treasury Decision 6849, effective September 24, 1965,
added temporary transitional regulations (Subpart E) to 26 CFR Part 296
so that semimonthly return periods for the deferred payment of taxes
on cigars and cigarettes would fall entirely within a calendar month,
and provided for an extension of the time for filing such returns upon
proper bond qualification. Treasury Decision 6929 merely removes these
temporary transitional regulations from 26 CFR Part 296 and incorporates
them into the permanent regulations in 26 CFR Part 270.
Effect. There is no substantive change in the new regulations for
filing semimonthly tax returns. If you are qualified for extended
deferral of the time for filing your semimonthly tax returns, i.e.,
not later than the last day of the next return period rather than not
later than 3 business days following the end of the return period, you
may continue extended deferral under the permanent regulations. You
are not required to take any action. If you have not qualified for
extended deferral and wish to do so, you should file a new bond or
extension of coverage of bond in accordance with Section 270.142.
Inquiries. 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
Part 270 - Manufacturer of Cigars and Cigarettes