Tobacco Products Manufacturers - Supporting Records for Removals for the Use of the United States

Tobacco products and cigarette papers and tubes manufactured in or imported into the United States are subject to a Federal excise tax under the IRC at 26 U.S.C. 5701. However, pursuant to 26 U.S.C. 5704(b), manufacturers of tobacco products or cigarette papers and tubes may remove such articles, without payment of tax, "for use of the United States" under such regulations as the Secretary shall prescribe. In addition, under 26 U.S.C. 5741, all manufacturers and importers of tobacco products or cigarette papers and tubes are required to keep such records in such manner as the Secretary of the Treasury prescribes by regulation. Under these authorities, the TTB regulations require manufacturers to keep records related to the removals of tobacco products or cigarette papers or tubes for use of the United States, including the date of removal, the name and address of the Federal agency to which the products are shipped or delivered, the kind and quantity of products removed and, for large cigars, the sale price. Records must also be kept detailing any items removed for use of the United States and returned to the manufacturer. The required records are necessary to protect the revenue and prevent diversion of tobacco products by ensuring that the tax exemption is applied only to products that are delivered to a Federal agency for government use.

The latest form for Tobacco Products Manufacturers - Supporting Records for Removals for the Use of the United States expires 2021-02-28 and can be found here.