Tobacco Products Importer or Manufacturer - Records of Large Cigar Wholesale Prices (TTB REC 5230/1)

In general, the Internal Revenue Code (IRC) at 26 U.S.C. 5701 imposes Federal excise taxes on tobacco products and cigarette papers and tubes, and, as described at 26 U.S.C. 5701(a)(2), the excise tax on large cigars is based on a percentage of the price at which such cigars are sold by the manufacturer or importer. In addition, the IRC at 26 U.S.C. 5741, requires every manufacturer and importer of tobacco products to keep records in such manner as the Secretary shall by regulation prescribe. Under those IRC authorities, the TTB regulations at 27 CFR 40.187 and 41.181 require that manufacturers and importers of large cigars maintain certain records regarding the price for which those cigars are sold. The required records are necessary to protect the revenue as they allow TTB to verify that the appropriate amount of Federal excise tax is paid on large cigars. (Federal excise taxes on other tobacco products (small cigars, small and large cigarettes, snuff, chewing tobacco, pipe tobacco, and roll-your-own tobacco) are based either on the product’s weight per thousand or its weight per pound; see 26 U.S.C. 5701.)

The latest form for Tobacco Products Importer or Manufacturer - Records of Large Cigar Wholesale Prices (TTB REC 5230/1) expires 2023-08-31 and can be found here.