April 2009

THIS ISSUE Greetings!  We hope you are having a substantial and honorable month!  This issue includes the publication of tobacco regulations and a notice of proposed rule making, floor stock frequently asked questions, information on our floor stocks tax form, notice of federal tax increases on tobacco, and our 2008 Performance and Accountability Report . If you have content ideas or questions for the editors please send them to: Susan Stewart Evans, Executive Liaison for Industry Matters susan.stewart-evans@ttb.gov Frosty Chapman, State Liaison forrest.chapman@ttb.gov

TTB PUBLISHES TOBACCO REGULATIONS AND NOTICE OF PROPOSED RULEMAKING

We have published regulations on the increase in tax rates on tobacco products and the floor stocks tax.  See temporary rule T.D. TTB–75 and the related notice of proposed rulemaking, Notice No. 93.

FLOOR STOCKS TAX FAQs

Floor Stocks Tax Frequently Asked Questions.  These new Floor Stocks Tax FAQs address topics such as conducting an inventory, determining floor stocks tax liability, filing a return, and paying the floor stocks tax required by the Children’s Health Insurance Program Reauthorization Act of 2009 (Pub. L. 111–3).

INCREASE IN FEDERAL EXCISE TAX AND IMPOSITION OF FLOOR STOCKS TAX ON TOBACCO PRODUCTS, CIGARETTE PAPERS, AND CIGARETTE TUBES

The Children’s Health Insurance Program Reauthorization Act of 2009 (“Act,” Public Law 111-3), was signed into law on February 4, 2009.  The Act increases the Federal excise tax on all tobacco products and cigarette papers and cigarette tubes, effective April 1, 2009.  In addition, the Act imposes a floor stocks tax on all tobacco products (except large cigars), cigarette papers and cigarette tubes held for sale on April 1, 2009.   TTB is in the process of mailing pre-printed floor stocks tax returns to businesses that we have identified as potential taxpayers.  We cannot ensure that every person liable for floor stocks tax will receive a pre-printed return.  We anticipate that pre-printed returns will begin to arrive in mailboxes beginning on March 26, 2009, and should have arrived by June 30, 2009.  The tax return form is available online for use by those who do not receive a pre-printed return.  The use of the pre-printed documents expedites the processing of all returns, so we encourage their use.

• 2009 Floor Stocks Tax Return (TTB F 5000.28T09)
• Instructions for TTB F 5000.28T09
• Read TTB Industry Circular 2009-1
• Read more about the Federal Excise Tax Increase and Related Provisions.

TTB RELEASES 2008 PERFORMANCE AND ACCOUNTABILITY REPORT

On March 18, 2009, TTB published its fifth annual Performance and Accountability Report.  TTB elects to publicly report its performance and financial data each year to provide full transparency and accountability for its use of taxpayer dollars.  In FY 2008, the Bureau met or exceeded its targets for each of its six performance measures, including four new measures in their baseline year.

Read TTB’s FY 2008 Performance and Accountability Report

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