ATF FORM 5000.24, EXCISE TAX RETURN
Proprietors of Distilled Spirits Plants and Bonded Wine
Cellars, Brewers, Manufacturers of Cigars, Cigarettes,
Cigarette Papers and Tubes, and Others Concerned:
Purpose. The purpose of this circular is to advise
you of the implementation, on January 1, 1986, of a new
Alcohol, Tobacco and Firearms (ATF) tax return, ATF Form
5000.24, Excise Tax Return.
Background. 26 U.S.C. 5061(a) and 5703(b) require that
the excise taxes on distilled spirits, wine, beer, cigars,
cigarettes, and cigarette papers and tubes be collected
on the basis of a return. Currently, ATF regulations in
27 CFR Parts 19, 240, 245, 270, and 285 prescribe the use
of eight different return forms for the collection of
these various taxes. In order to simplify the returns
processing procedure, we have consolidated these eight
forms into a single new return, ATF Form 5000.24, Excise
Tax Return. Accordingly, ATF regulations are being
amended to delete references to old tax form numbers
and titles and to require the use of ATF Form 5000.24.
Effective Date. Amended regulations prescribing
the use of ATF Form 5000.24, Excise Tax Return, become
effective on January 1, 1986. Returns covering taxable
removals made on and after January 1, 1986, shall be
on ATF Form 5000.24. Returns covering taxable removals
made before January 1, 1986, shall be on one of the eight
existing tax return forms even when the return and payment
are not due until a date in 1986.
Obsolete Tax Return Forms. The following tax return
forms may not be used to pay the tax on removals made
after December 31, 1985:
ATF F 5110.32 - Prepayment Return - Distilled Spirits Tax
ATF F 5110.35 - Distilled Spirits Tax Return - Deferred
ATF F 2050 (5120.27) - Wine Tax Return
ATF F 2052 (5120.37) - Prepayment Return - Wine Tax
ATF F 2034 (5130.7) - Beer Tax Return
ATF F 3071 (5210.7) - Tax Return - Manufacturer of Tobacco
ATF F 2617 (5210.11) - Prepayment Tax Return - Manufacturer
of Tobacco Products
ATF F 2137 (5230.1) - Monthly Tax Return - Manufacturer of
Cigarette Papers and Tubes
Taxpayers Not Affected. The implementation of ATF
Form 5000.24, Excise Tax Return, does not affect taxpayers
in Puerto Rico, who shall continue to file the return
forms prescribed in 27 CFR Part 250 and 27 CFR Part 275.
Discussion. The item headings and instructions on
ATF Form 5000.24, Excise Tax Return, are, we believe,
sufficiently clear to enable you to complete the form
correctly. What follows, then, is not an item-by-item
explanation of ATF Form 5000.24, but rather a general
discussion of its more significant features. Please note:
this discussion is not meant to be, nor is it, a substitute
for reading the instructions on the form.
ATF Form 5000.24 must be used in conjunction with
both the prepayment and the deferred payment of excise
taxes on alcoholic beverages, tobacco products, and
cigarette papers and tubes. This dual use of the Excise
Tax Return represents a fundamental change for proprietors
of distilled spirits plants and bonded wine cellars and
for manufacturers of cigars and cigarettes, all of whom
currently use one form for prepayments of tax and another
form for deferred or semimonthly payments.
So that ATF personnel can distinguish which type of
return you have filed, you must always indicate in item 4
of ATF Form 5000.24 whether the return covers the prepay-
ment of taxes or a tax return period.
Please note that there have been no changes in tax
return periods or in the prescribed times for filing
returns. Except as provided otherwise in regulations,
proprietors of distilled spirits plants and bonded wine
cellars, brewers, and manufacturers of cigars and
cigarettes must continue to file semimonthly returns.
Manufacturers of cigarette papers and tubes must continue
to file monthly returns.
Currently, all taxpayers, except proprietors of
distilled spirits plants, are required to show on their
returns quantities of taxable commodities removed subject
to tax during the period covered by the return. These
quantities, multiplied by the applicable tax rate or rates,
become the amount of tax for which the taxpayer is liable.
With the implementation of ATF Form 5000.24, no taxpayer
will any longer be required to report quantities of
commodities removed subject to tax.
The decision to exclude these quantity figures from
ATF Form 5000.24 was based, in part, on unsolicited
recommendations from taxpayers. Those who wrote to us
pointed out that quantities of taxable commodities removed
subject to tax are shown in records which regulations
require every taxpayer to prepare and keep available for
inspection by ATF officers. To list these same quantities
on tax returns was, they said, unnecessarily burdensome.
We realize that some taxpayers may find the format of
the existing returns helpful in calculating the dollar
amount of their tax liabilities. Not only do some of the
current forms provide space for listing quantities of
products removed subject to tax, they also show the tax
rate or rates by which these quantities are to be
multiplied to arrive at the dollar amount of the tax
liability. This type of format can be particularly useful
when the products at a given plant (bonded wine cellars
and cigarette papers and tubes factories are two examples
of such plants) are taxed at more than one rate.
We encourage those of you who like the format of the
existing returns to continue to use them, as "worksheets"
for calculating the amount of tax to be shown in item 9(b)
of ATF Form 5000.24. Please keep in mind, however, that
for tax liabilities incurred after December 31, 1985, the
only tax return form you are allowed to file is ATF Form
5000.24. Also, if you do intend to use the old forms as
worksheets, you will need to provide your own copies since
ATF will not stock these forms after December 31, 1985.
In reporting your tax liability in item 9(b) of ATF
Form 5000.24, be sure to make your entry or entries on
the appropriate product line or lines. Since a separate
return must be filed for each distilled spirits plant,
each bonded wine cellar, each brewery, each tobacco
products factory, and each cigarette papers and tubes
factory making removals subject to tax, only manufacturers
of cigars and cigarettes would ever have occasion to make
more than one entry in item 9(b): provided the products
were removed from the same factory, there would be one
entry for cigars and a second entry for cigarettes.
You need not be concerned about the Internal Revenue
Service (IRS) numbers in item 9(c) of ATF Form 5000.24.
The IRS uses these numbers to collect and publish
statistical data on the sources of tax collections.
Availability of ATF Form 5000.24, Excise Tax Return.
You should have received an initial supply of ATF Form
5000.24, Excise Tax Return, along with this circular. If
you did not, please contact the office of the Regional
Director (Compliance), Bureau of Alcohol, Tobacco and
Firearms, for the area where your business is located
and that office will send you an initial supply of the new
form. Thereafter, as you need additional copies of ATF
Form 5000.24, you should requisition them from the
ATF Distribution Center, 7943 Angus Court, Springfield,
Inquiries. Inquiries concerning this circular
should refer to its number and should be addressed to the
Regional Director (Compliance), Bureau of Alcohol, Tobacco
and Firearms, for the region in which your business is