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Manufacturer of Tobacco Products
Requirements for Manufacturers of Tobacco Products
Your permit to manufacture tobacco products has recently been issued. It is important that you keep all approved documents on the premises readily available for examination by TTB officials.
Listed below is information about filing monthly reports, excise tax returns, and TTB F 5630.5t, Special Tax Registration and Return.
Except for removals in bond and transfers in bond, the taxes on tobacco products will be determined at the time of removal, and paid on the basis of a return. When you send your tax payment, you must include sufficient information to identify you as the taxpayer, the nature and purpose of the payment, and the tobacco products covered by the payment.
- Excise Tax Return, TTB Form 5000.24
Tobacco products removed for consumption or sale must be taxpaid on a semimonthly basis (see 27CFR 40.161 through 40.171). For prepayment requirements see 27 CFR 40.166 and 40.167. See tax rates. - Tax Period
Tax periods run from the 1st - 15th, and from the 16th to the end of the month (see 27 CFR 40.163). In September, three excise tax returns are due. For non-EFT payers, the second semimonthly period is divided into two payment periods, from the 16th through the 25th, and from the 26th through the 30th. For EFT payers, the second semimonthly period is divided into two payment periods, from the 16th through the 26th, and from the 27th through the 30th. (See 27 CFR 40.164).
With the exception of the two accelerated payments in September, the due dates are not later than 14 days after the close of the return period. If the 14th day falls on Saturday, Sunday, or legal holiday, the return is due on the immediately preceding day which is not a Saturday, Sunday, or legal holiday.
See the most recent excise tax due date schedule.
NOTE: Penalties and interest will be assessed if a return is not timely filed/paid. - Mail excise tax returns to:
TTB
Excise Tax
P.O. Box 790353
St. Louis, MO 63179-0353
Every manufacturer of tobacco products must make true and accurate inventories which must include all tobacco products and processed tobacco on hand required to be accounted for in the records kept under 27 CFR Part 40.
Every manufacturer of tobacco products must make a report for each month and for any portion of a month during which they engage in such business (see 27 CFR 40.201 and 202).
- TTB F 5210.5, Monthly Report – Manufacturer of Tobacco Products Or Cigarette Papers and Tubes as required by 27 CFR 40.202
The first reporting period begins with the effective date of your original permit to the end of the month. You must file the report whether or not any operations or transactions occurred during the reporting period.
Send reports to:
TTB Tobacco Unit
550 Main Street, Ste 8002
Cincinnati, OH 45202-3222
The reports are due no later than the 20th day of the succeeding month. - TTB F 5210.9, Inventory – Manufacturer of Tobacco Products Or Processed Tobacco as required by 27 CFR 40.201
The manufacturer must make such an inventory when they commence business, which must be the effective date of the permit issued upon original qualification under this part.
For a description of the records, inventories, and reports to be kept regarding the manufacture and disposition of tobacco products, see 27 CFR 40.181 through 40.202.
You should have been given an Identification Number (ID) and automatically enrolled in Pay.gov. If you do not have a user ID see the information below under “User Agreement”. We highly recommend you use this system for reports, excise tax payments and filing.
- What is an Electronic Funds Transfer (EFT)?
An EFT is a non-paper, computer-to-computer transfer of funds from a taxpayer's financial institution account to Treasury's account at a Federal Reserve Bank. Such transfers are initiated through an electronic terminal and not by check, money order, or other paper instrument. - Payments
TTB accepts electronic payments through the Federal Reserve Communications System and through Automated Clearing House (ACH) credit transfers. - Fedwire Transfers
EFT payments through the Federal Reserve Communications System (using Fedwire) to Treasury's main account at the Federal Reserve Bank of New York are completed on the day they are initiated, generally in a matter of minutes. The Federal Reserve guarantees the payment is final as soon as the receiving institution is notified. At that time the Federal Reserve debits the taxpayer’s bank account and the payment is credited to Treasury's for TTB. - ACH Credit Transfers
The ACH system is an electronic network for financial transactions in the United States. ACH credit transfers are completed on the following business day.
For general information on making EFT payments to TTB and to find out if you are required to make payments by EFT, please see our EFT Web page.
Manufacturers of tobacco products must pay Special Occupational Tax (SOT) per 27 CFR 40.31 through 40.33. As a manufacturer of tobacco products you are liable for this SOT on or before beginning business as a manufacturer of tobacco products.
- Registration
All manufacturers of tobacco products must register and pay SOT on or before the date you begin business for the first time, and then on or before July 1 of each year thereafter. We strongly recommend that you use Permits Online to register and pay SOT electronically. If filing online is not an option, you may alternatively mail TTB F 5630.5t with your payment to the address on the form. - Due Date
SOT is due prior to beginning your business operations and on July 1st of each year thereafter. The tax year runs from July 1st each year through the next June 30th. For example: the tax for the period July 1, 2009 through June 30, 2010, was due on July 1, 2009. The tax may be prorated the first year if operations begin after the month of July. SOT cannot be paid monthly. The full tax is due at the beginning of each tax period. You will not receive notification from TTB that the SOT is due. It is your responsibility to timely file the SOT return, along with payment. - How much is the Tax?
The SOT imposed on a manufacturer of tobacco products is $1,000 per year; however, if the business had gross receipts of less than $500,000 in the previous income tax year, the rate is $500 per year.
You must take into account all gross sales receipts, not just those derived from the business subject to special tax. For instance, sales receipts from other businesses such as a retail outlet, selling either tobacco or other property or services, must be included.
If you are a member of a controlled group as defined in section 5061(e)(3) of the Internal Revenue Code, you are not eligible for this reduced rate unless the total gross receipts for the entire group are less than $500,000. Please note, that the annual renewal form will always be prepared at the non-reduced rate. It will be your responsibility each tax year to determine whether or not you are eligible for the reduced rate. - Operations at More than One Location
If you receive a permit to manufacture tobacco products from TTB, which authorizes you to conduct operations at more than one location, and you are in fact conducting operations at more than one location, special tax is due for each location. - A special tax stamp is not transferable. Therefore, if there is a change in ownership of your business or business structure, such as a sole owner incorporating, or going into a partnership, the new owner is required to file a special tax registration and return and pay the tax from the month the change occurs through the next June 30.
If you submitted your application through Permits Online as well. This will ensure a more efficient application process with the capability to view existing information.
NOTE: Amendments within Permits Online are divided into two categories: commonly filed and commodity specific. Listed below are commonly filed amendments. See Permits Online for amendments specifically for tobacco manufacturers.
- Reporting Changes
Any change that affects your permit to manufacturer tobacco products such as the name, address, ownership, management or control of the business must be reported to TTB's National Revenue Center, 550 Main Street, Cincinnati, OH 45202, or you may call 1-877-882-3277. - Change in Factory Premises
Select this amendment if you will be moving your business operations to another location within the same state. If moving to another state you will need to file an original application. You will need to submit a new diagram, lease agreement, registration as a foreign corporation/LLC, if applicable and a superseding bond. - Change in Mailing Address and/or USPS change
Select this amendment if there has been a change to where you will receive mail, or if your address was changed by the US Postal Service but no physical move has taken place. - Add/Remove Signing Authority
Select this amendment if you will be making any changes to the existing signing authority on file. You will be required to attach the appropriate documentation showing where the authorization is granted. - Add/Remove Power of Attorney
Select this amendment if adding or removing individuals from outside your company with the power to sign and/or act on behalf of the company. When adding a Power of Attorney you are required to provide TTB F 5000.8. (Upload in Permits Online). - Change in Business Name
Select this amendment if there has been a change to your legal business entity’s name. You will need to attach a copy of your amended Articles showing the name change. - Add/Remove Trade Name
Proof of trade name registration, if required by the state or the county, must be uploaded and attached to your application. If the state or county does not require trade name registration, a signed and dated statement of this fact should be submitted. - Change in Control
A change in actual or legal control occurs when there are changes in stock ownership, LLC membership ownership, or possibly major changes in the corporate officers or directors of a corporation. In such situations, the legal business entity which operated the business in the past continues to operate the subject business. In other words, the same legal entity remains in existence which continues to operate the business in question.
If adding a new person an Owner Officer Information Application must be completed through Permits Online. - Change in Officer, Director, Member, or Stockholder/Interest
Select this amendment when there is a change in the officers, directors, members and managers, as well as any stockholders/interest holders who hold 10 percent or more. An Owner Office Information Application must be completed for each new person through Permits Online. - Add/Remove Variance or Alternate Method
Selecting this amendment is a request to vary from the regulations. You will need a letterhead notice stating the regulations you wish to vary from along with a reason why this variance is needed. - Termination of Business
Select this amendment if you are discontinuing business.
If you submitted your application through Permits Online all future amendments should be completed through Permits Online as well. This will ensure a more efficient application process with the capability to view existing information.
- Change of Corporate Officers and Directors (27 CFR 40.103)
Change must be made in writing to TTB within 30 days of action. Complete TTB F 5000.9 Personnel Questionnaire and updated signing authority, if appropriate - Partnership Changes (27 CFR 40.102)
Change in member of partnership is the same as original qualification (includes husband and wife partners) - Limited Partnership
Change of General Partner – Same as Original Qualification - Limited Liability Company (27 CFR 40.103)
For change in manager contact the National Revenue Center for guidance. - Change in Member within 30 days of change
Written notification to include updated list of members including titles, addresses and TTB F 5000.9 Personnel Questionnaire form or personnel information required on the application form. - Change of Stockholders holding more than 10 percent of stock of a corporation (27 CFR 40.103)
Within 30 days of action, notify TTB in writing setting out new stock distribution, number of shares held, and number of shares authorized by the Articles of Incorporation. Include a copy of corporate documents supporting the change on TTB F 5000.9 Personnel Questionnaire, within 30 days of change if more than 10 percent stock is held and not already on file with TTB. - Change of Ownership Interest for Members of LLC with more than 10 percent ownership interest (27 CFR 40.103)
Within 30 days of action, notify TTB in writing setting out new owners and their percentage of ownership interest. Include a copy of LLC documents supporting the change on TTB F 5000.9 Personnel Questionnaire within 30 days of change for interest holder of more than 10 percent and not already on file with TTB. - Change of Stock Control (27 CFR 40.104)
Within 30 days after change occurs, file TTB F 5200.3, Application for Permit form. Include copies of corporate documents supporting the change and updated TTB F 5100.1, Signing Authority form or TTB F 5000.8, Power of Attorney form if appropriate. - Change in Location (27 CFR 40.111)
Include – -
- TTB F 5200.16, Application for Amended Permit form (Surrender current permit)
- Lease/proof of ownership for space
- New diagram of factory
- Change of Address by the United States Postal Service (27 CFR 40.112)
Application for Amended Permit F 5200.16 (Surrender current permit) - Extension or curtailment of factory (27 CFR 40.114)
Must include – -
- TTB F 5200.16, Application for Amended Permit form (Surrender current permit)
- Diagram of factory, if required by 27 CFR 40.69
- Non-Contiguous Extension of Premises (see 27 CFR 40.69)
- TTB F 5200.16, Application for Amended Permit form (Surrender current permit)
- Diagram of factory, if required by 27 CFR 40.69
- If leased space, copy of lease
- Addition/Deletion of Trade Name/Operating Name (27 CFR 40.92)
-
- TTB F 5200.16, Application for Amended Permit form (Surrender current permit)
- If addition of trade name, copy of registration issued by the State or local authority. If not required, a statement to that effect and
- Amended Articles of Incorporation or Amended Articles of Organization
- Change of Corporate Name (27 CFR 40.93)
-
- TTB F 5200.16, Application for Amended Permit form
- Copy of registration issued by the State or local authority—if not required, a statement to that effect
- Amended Articles of Incorporation or Amended Articles of Organization
- Signature Authority (27 CFR 40.68)
Forms include – -
- Sole owner: TTB F 5000.8 Power of Attorney form for any designee
- Partnership: TTB F 5000.8 Power of Attorney form for each partner and any designee
- Corporation: Authorized in corporate documents, resolution or TTB F 5100.1 Signing Authority form; TTB F 5000.8 Power of Attorney form for any designee
- LLC: Authorized in organizational documents, resolution or TTB F 5100.1 Signing Authority form; TTB F 5000.8 Power of Attorney form for any designee
- Alternate Method or Procedure (27 CFR 40.45)
Written Application with specific description and reason for alternate method or procedure - Change of Bond Amount (27 CFR 40.133 through 136)
-
- TTB F 5200.25, Strengthening/superseding Bond
- TTB F 5200.26, Surety Tobacco Bond–Surety
- TTB F 5200.29, Tobacco Bond
- Change of Surety Company (27 CFR 40.136)
-
- TTB F 5200.26, Surety Tobacco Bond–Surety
- See list of approved sureties
- Discontinuance of Operations (27 CFR 40.331)
Letterhead notice stating date of discontinuance, name of successor (if applicable) AND certify that all tobacco products disposed of, and
Surrender permit with concluding inventory and concluding report (see 27 CFR 40.201 and 40.202).
For Federal regulations pertaining to your operations, refer to Title 27 Code of Federal Regulations (CFR), Alcohol, Tobacco Products and Firearms, Part 40 or see our tobacco regulations Web page.
- Tobacco Authority Under Title 26, Internal Revenue Code
Chapter 52 -- Tobacco Products and Cigarette Papers and Tubes
There are additional responsibilities and requirements that you may have to meet including state laws.
- TTB personnel have the right of entry into your premises.
- All taxpaid products on the bonded premises must be clearly marked and segregated.
- Please ensure you are in compliance with your state and local authorities before beginning operations (including building/use permits and zoning requirements).
If you have any questions, please contact the National Revenue Center at 1-877-882-3277 or at National Revenue Center.
Tobacco Importer
Requirements for Tobacco Importers Operations
TTB has approved your application to import tobacco products. You must keep all approval documents readily available for examination by TTB officials.
The following information explains the requirements you must meet to maintain your business.
You can file your operational report and/or file your excise tax returns and make payments electronically using Pay.gov.
As an importer of tobacco products you must keep records and submit reports of the physical receipt and disposition of tobacco products. These records and reports must be retained at your premises for not less than three years. See 27 CFR 41.204 through 208.
- Monthly Report - Tobacco Products or Processed Tobacco Importer (TTB F 5220.6)
This report must be filed each month and sent to this office no later than the 15th day of the month following the month which the report covers (your first report covering July will be due by August 15th.) You must file this report even if no transactions occurred during the reporting period. You can file electronically using Pay.gov (recommended) or submit the paper form to TTB (see address below). Download TTB F 5220.6 [PDF]. - Where to File if using a Paper Form:
Alcohol and Tobacco Tax and Trade Bureau
National Revenue Center
550 Main St, Room 8970
Cincinnati, Ohio 45202-3222
Prepare and keep records at the tobacco importer premises; they should be available for inspection by a TTB officer during business hours. Preserve required records for a period of not less than three years from either the date of the transaction or the date of the last entry required to be made, whichever is later.
You must report to us any change in the name, address, ownership, management, or control of the business without delay. If you filed your original application on paper, and haven't requested that your data be migrated to our Permits Online system, you should file these amendments on the TTB forms described in the applicable regulations. If you filed your original application through Permits Online, you should also electronically file your amendments in Permits Online. For more information about changes see the regulations at 27 CFR 40.41.220-228.
- Change in Location
Select this amendment if you will be moving your business operations to another location within the same state. If moving to another state you will need to file an original application. If moving to another state you will need to file an original application. You will need to submit a new diagram (if applicable) and either a superseding bond or consent of surety (if applicable). - Change in Mailing Address
Select this amendment if there has been a change to where you will receive mail. - Change in Address – USPS
Select this amendment if your address was changed by the United States Postal Service but no physical move has taken place. - Add/Remove Signing Authority
Select this amendment if you will be making any changes to the existing signing authority on file. You will be required to attach the appropriate documentation showing where the authorization is granted. - Add/Remove Power of Attorney
Select this amendment if adding or removing individuals from outside your company with the power to sign and/or act on behalf of the company. When adding a Power of Attorney you can upload the form in Permits Online. (TTB F 5000.8 [PDF]). - Change in Business Name
Select this amendment if there has been a change to your legal business entity's name. You will need to attach a copy of your amended articles showing the name change. - Change in Control
A change in actual or legal control occurs when there are changes in stock ownership, LLC membership ownership, or possibly major changes in the corporate officers or directors of a corporation. In such situations, the legal business entity which operated the business in the past continues to operate the subject business. In other words, the same legal entity remains in existence which continues to operate the business in question.
If adding a new person an Owner Officer Information Application must be completed through Permits Online. - Change in Officer, Director, Member, or Stockholder/Interest
Select this amendment when there is a change in the officers, directors, members and managers, as well as any stockholders who hold 10 percent or more. An Owner Officer Information Application must be completed for each new person through Permits Online. - Add/Remove Variance or Alternate Method
Selecting this amendment is a request to vary from the regulations. You will need a notice stating the regulations you wish to vary from along with a reason why this variance is needed. - Termination of Business
Select this amendment if you are discontinuing business.
- Laws – Tobacco Authority Under Title 26, Internal Revenue Code
Chapter 52 -- Tobacco Products and Cigarette Papers and Tubes
Part 41 – Importation of tobacco products and cigarette papers and tubes
An Importers permit expires five years from the effective date shown on the permit.
- Renewal
Importers of tobacco products wishing to continue operations beyond the expiration of the permit must apply for renewal of the permit within the 30 days prior to expiration of the permit. See the instructions in Permits Online for further guidance. - Renewal Qualification
Permits will be renewed only for those who have engaged in the importing of tobacco products under the current permit during the one-year period immediately prior to the date of the application to renew.
It is the permit holder's responsibility to comply with federal and state requirements. This information does not relieve an importer of his/her responsibility to comply with any other additional federal and state requirements for tobacco products which may not be listed.
- Master Settlement Agreement (MSA)
If your business deals in cigarettes, roll-your-own tobacco, or smokeless tobacco, most states impose MSA fees and requirements. These fees and requirements are in addition to any state excise taxes. For information contact the National Association of Attorneys General. - U.S. Department of Health and Human Services
The Federal Cigarette Labeling and Advertising Act (FCLAA), 15 U.S.C. 1335a(a), in part, requires that each person who manufactures, packages, or imports cigarettes annually submit to the Department of Health and Human Services (HHS), a list of ingredients added to tobacco in the manufacturer of cigarettes (Ingredient Report). The Centers for Disease Control and Prevention (CDC), Office on Smoking and Health (OSH), has been delegated the responsibility of implementing these provisions. The Ingredient Report must include all additives and flavors. Submissions are due to CDC, OSH by March 31st; and for importers, the Ingredient Report is also due upon initial importation into the United States. The report submitted by March 31st each year must represent the ingredients added to tobacco in the manufacture of cigarettes during the previous calendar year. See the HHS website for more information. - The Smokeless Tobacco Health Education Act (CSTHEA)
15 U.S.C. 4403(a)(1)(A), in part requires each manufacturer, packager, or importer of smokeless tobacco products to annually submit to HHS the list of ingredients added to tobacco in the manufacture of smokeless tobacco products (Ingredient Report). CSTHEA, 15 U.S.C. 4403(a)(1)(B), further requires the submission of the quantity of nicotine contained in each smokeless tobacco product (Nicotine Report). - Warning Statement
Warning Statements are required by Title 15 U.S.C. sections 1333 and 4402 for cigarettes and smokeless tobacco enforced by the Federal Trade Commission (FTC). See the FTC website for more information.
The Food and Drug Administration received authority to regulate tobacco products under the Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act). Tobacco products are subject to the same general requirements that apply to other FDA-regulated products.
There are additional responsibilities and requirements that you may have to meet, including state laws.
- TTB personnel have the right of entry into your premises.
- Please ensure you are in compliance with your state and local authorities before commencing operations (including building/use permits and zoning requirements). If you intend to sell your products in any other State (other than the state in which you are applying), you must contact each state individually because they all have different shipping laws.
Export Warehouse
Requirements New Tobacco Export Warehouse
TTB has approved your permit to operate an export warehouse. It is important that you keep all approved documents readily available for examination by TTB officials.
There are requirements that you must meet to maintain your business. We are providing this information to help you meet these requirements.
Excise Tax Return (TTB Form 5000.24)
- The tax on tobacco products, cigarette papers and tubes becomes immediately due and payable when proof of export is not furnished within 90 days of the date of removal of the tobacco products, cigarette papers or tubes.
- The taxes shall be paid to TTB, with sufficient information to identify the taxpayer, the nature and purpose of the payment and the articles covered by the payment. You may use TTB Form 5000.24 for this purpose per 27 CFR 44.67. Taxes may be filed through Pay.gov (recommended) or submitted by mail to TTB to the address on the form. Download TTB F 5000.24 [PDF].
Electronic Funds Transfer
- What is an Electronic Funds Transfer (EFT)?
An EFT is a non-paper, computer-to-computer transfer of funds from a taxpayer's financial institution account to Treasury's account at a Federal Reserve Bank. Such transfers are initiated through an electronic terminal and not by check, money order, or other paper instrument. - Payments
TTB accepts electronic payments through the Federal Reserve Communications System and through Automated Clearing House (ACH) credit transfers. - Fedwire Transfers
EFT payments through the Federal Reserve Communications System (using Fedwire) to Treasury's main account at the Federal Reserve Bank of New York are completed on the day they are initiated, generally in a matter of minutes. The Federal Reserve (Fed) guarantees the payment is final as soon as the receiving institution is notified. The Fed debits the taxpayer’s bank account and credits the account of Treasury for TTB. - ACH Credit Transfers
The ACH system is an electronic network for financial transactions in the United States. ACH credit transfers are completed on the following business day.
For general information on making EFT payments to TTB and to find out if you are required to make payments by EFT, please read TTB Procedure 2011-1 or see our EFT Web page. The information above is provided as a supplement to the Procedure.
You can file your operational report and/or file your excise tax returns and make payments electronically using Pay.gov. It’s secure, free, faster, and less costly than using paper forms.
Monthly Operations Reports must be filed as required by the 27 Code of Federal Regulations.
- Report – Proprietor of Export Warehouse (TTB F 5220.4)
As required by 27 CFR 44.147 the first reporting period will begin with the effective date of your original permit to the end of the month. Your report can be filed through Pay.gov (recommended) or submitted to the National Revenue Center (address below); however, you must file the report whether or not any operations or transactions occurred during the reporting period. The reports are due on or before the 20th day following the end of the month covered in the report. Download TTB F 5220.4 [PDF]
Inventory – Export Warehouse Proprietor (TTB F 5220.3)
As required by 27 CFR 44.144, an opening inventory shall be made by the export warehouse proprietor at the time you commence business which shall be the effective date of the permit issued upon original qualification under this part. The inventory must be prepared in duplicate by the proprietor. The original inventory report can be filed through Pay.gov (recommended) or submitted to the National Revenue Center (address below) and the duplicate must be retained by the proprietor. Download TTB F 5220.3 [PDF]
Where to file using a Paper Form:
National Revenue Center
550 Main Street, Room 8970
Cincinnati, OH 45202
27 CFR 44.142(a) describes the records to be kept regarding the receipt and removal of tobacco products, cigarette papers and tubes and processed tobacco from the export warehouse premises. Additionally, 27 CFR 44.142(b) describes the requirements for filing and maintaining Taxable Articles Without Payment of Tax form TTB F 5200.14, for the receipt and removal of those tobacco products, cigarette papers and tubes, and processed tobacco.
- Where to File
Alcohol and Tobacco Tax and Trade Bureau
Excise Tax
P.O. Box 790353
St. Louis, MO 63179-0353
Any change in the name, address, ownership, management or control of the business must be reported to TTB without delay. If you filed your original application on paper, and haven't requested that your data be migrated to our Permits Online system, you should file these amendments on the TTB forms described in the applicable regulations. If you filed your original application through Permits Online, you should also electronically file your amendments in Permits Online. For more information see the regulations at 27 CFR 44.101-112.
- Change in Location (Premises)
Select this amendment if you will be moving your business operations to another location within the same state. If moving to another state you will need to file an original application. You will need to submit a new diagram and file an amended Special Tax Return within 30 days. See CFR 27 46.126. - Change in Mailing Address
Select this amendment if there has been a change to where you will receive mail. - Change in Premises Address – USPS
Select this amendment if your address was changed by the United States Postal Service but no physical move has taken place. - Add/Remove Signing Authority
Select this amendment if you will be making any changes to the existing signing authority on file. You will be required to attach the appropriate documentation showing where the authorization is granted. - Add/Remove Power of Attorney
Select this amendment if you are adding or removing individuals from outside your company with the power to sign and/or act on behalf of the company. When adding a Power of Attorney you are required to upload into Permits Online Power of Attorney form TTB F 5000.8. - Change in Business Name
Select this amendment if there has been a change to your legal business entity’s name. You will need to attach a copy of your amended Articles showing the name change. - Add/Remove Trade Name
Proof of trade name registration, if required by the state or the county, must be uploaded and attached to your application. If the state or county does not require trade name registration, a signed and dated statement of this fact should be submitted. - Change in Control
A change in actual or legal control occurs when there are changes in stock ownership, LLC membership ownership, or possibly major changes in the corporate officers or directors of a corporation. In such situations, the legal business entity which operated the business in the past continues to operate the subject business. In other words, the same legal entity remains in existence, which continues to operate the business in question.
If adding a new person, an Owner Officer Information Application must be completed through Permits Online. - Change in Officer, Director, Member, or Stockholder/Interest
Select this amendment when there is a change in the officers, directors, members and managers, as well as any stockholders/interest holders who hold 10 percent or more. An Owner Officer Information Application must be completed for each new person through Permits Online. - Add/Remove Variance or Alternate Method
Selecting this amendment is a request to vary from the regulations. You will need a letterhead notice stating the regulations you wish to vary from along with a reason why this variance is needed.
Any change in the name, address, ownership, management or control of the business must be reported to TTB without delay.
Change in Location-within same State (27 CFR 44.108)
- Application for Amended Permit form TTB F 5200.16, (Surrender current permit)
- New diagram of export warehouse premises
- File an amended Special Tax Return within 30 days (27 CFR 46.126)
Change in Location to another State (27 CFR 44.108)
- You must file an original application as a new permit number will be issued. (Surrender current permit)
- New diagram of export warehouse premises
- File an amended Special Tax Return within 30 days (27 CFR 46.126)
- File a new bond, as a new permit number will be issued.
- Foreign corporation/LLC registration in new State if entity is incorporated and/or organized in a State other than where business will be conducted
Change in Mailing Address (only) by action of local authorities (27 CFR 44.109)
- Application for Amended Permit form TTB F 5200.16, (Surrender current permit)
- File an amended Special Tax Return
Change in Export Warehouse Premises, making diagram inaccurate (27 CFR 44.111)
- Application for Amended Permit form TTB F 5200.16 (Surrender current permit)
- Diagram of export warehouse premises, if required by 27 CFR 44.88.
Add/Delete Signing Authority. (27 CFR 44.87)
- Sole owner: Power of Attorney form TTB F 5000.8
- Partnership: Power of Attorney form TTB F 5000.8 for each partner and any designee
- Corporation: Authorized in corporate documents, resolution or Signing Authority form TTB F 5100.1; Power of Attorney form TTB F 5000.8 for any designee that is not an employee. You will be required to attach the appropriate documentation showing where the authorization is granted.
- LLC: Authorized in organizational documents, resolution or Signing Authority form TTB F 5100.1; Power of Attorney form TTB F 5000.8 for any designee
Change in Individual Name (27 CFR 44.101)
- Application for Amended Permit form TTB F 5200.16 filed within 30 days of change (Surrender current permit)
- File an amended Special Tax Return (27 CFR 46.126)
Addition/Deletion of Trade Name/Operating Name (27 CFR 44.102)
- Application for Amended Permit form TTB F 5200.16 filed within 30 days of change (Surrender current permit)
- If addition of trade name, copy of registration issued by the State or local authority
- If not required, a statement to that effect
Change of Corporate Name (27 CFR 44.103)
- Application for Amended Permit form TTB F 5200.16 filed within 30 days of change (surrender current permit)
- Amended Articles of Incorporation or Amended Articles of Organization
- File an amended Special Tax Return (27 CFR 46.126)
Change of Corporate Officers, Directors or Stockholders of a Corporation (27 CFR 44.106-107)
- Within 30 days of action—notify TTB in writing setting out the current list of officers, directors and stockholders;
- Identify each officer and director by name and title;
- Identify each stockholder by name, and number of shares held;
- Identify the number of shares issued and the number of shares authorized;
- File Personnel Questionnaire TTB F 5000.9 for each officer, director, or more than 10% stockholder;
Change of Members/Managers/Ownership Interest of a Limited Liability Company (LLC) (27 CFR 44.106-107)
- Within 30 days of action—notify TTB in writing setting out the current list of members, managers and interest holders of the LLC;
- Identify each member and/or manager by name and title;
- Identify each interest holder by name, % of ownership;
- File Personnel Questionnaire form TTB F 5000.9 for each member and/or manager, and more than 10% interest holder;
Alternate Method or Procedure (27 CFR 44.72)
- Written notice identifying the regulation you wish to vary from, along with specific description and reason the alternate method or procedure is needed.
Fiduciary Successor, (27 CFR 44.104)
- Taking over business as a continuing operation, the fiduciary shall before commencing operations make application for permit and file a bond (original qualification).
- If the fiduciary intends to liquidate the business, the fiduciary must notify TTB of its intent to liquidate the business and file a Change in Bond (Consent of Surety) of the predecessor’s bond.
Transfer of Ownership, (27 CFR 44.105)
- The current proprietor shall give notice of transfer, and the proposed successor shall make an application for permit and file a bond, as required, in ample time for examination and approval thereof before the desired date of such change.
- The predecessor shall make a closing inventory, (27 CFR 44.146) and closing report, (27 CFR 44.151) and surrender his permit along with the closing inventory and closing report.
Partnership Changes (27 CFR 44.105)
- Change in member of Partnership: Same as Original Qualification (includes husband and wife partners)
- Limited Partnership: Change of General Partner – Same as Original Qualification
Change of Actual or Legal Control (27 CFR 44.107)
- A change in actual or legal control occurs when there are changes in stock ownership, LLC interest holding, or possibly major changes in the corporate officers or directors of a corporation. In such situations, the legal business entity which operated the business in the past continues to operate the subject business. In other words, the same legal entity remains in existence which continues to operate the business in question.
- Within 30 days after change occurs, file Application For Permit Under 26 U.S.C. Chapter 52 form TTB F 5200.3
- Updated Signing Authority form TTB F 5100.1 or Power of Attorney form TTB F 5000.8, if appropriate.
We’ve provided easy access, for you to read Chapter I, of Title 27 Code of Federal Regulations and public laws relating to the tobacco industry.
Tobacco Authority Under Title 26, Internal Revenue Code
Chapter 52 -- Tobacco Products and Cigarette Papers and Tubes
Regulations
Part 40 - Manufacture of tobacco products and cigarette papers and tubes
Part 41 - Importation of tobacco products and cigarette papers and tubes
Part 44 - Exportation of tobacco products and cigarette papers and tubes, without payment of tax, or with drawback of tax
Part 45 - Removal of tobacco products and cigarette papers and tubes, without payment of tax, for use of the United States
Part 46 - Miscellaneous regulations relating to tobacco products and cigarette papers and tubes
Export Warehouse Proprietors must pay Special Occupational Tax (SOT) per 27CFR 44.31 through 44.33. As an export warehouse proprietor, you are liable for this SOT on or before beginning business of an export warehouseman.
- Registration
All manufacturers of tobacco products must register and pay SOT on or before the date you begin business for the first time, and then on or before July 1 of each year thereafter. We strongly recommend that you use Permits Online to register and pay SOT electronically. If filing online is not an option, you may alternatively mail TTB F 5630.5t with your payment to the address on the form. - Due Date
SOT is due prior to beginning your business operations and on July 1st of each year thereafter. The tax year runs from July 1st each year through the next June 30th. For example: the tax for the period July 1, 2009, through June 30, 2010, was due on July 1, 2009. The tax may be prorated the first year if operations begin after the month of July. SOT cannot be paid monthly. The full tax is due at the beginning of each tax period. You will not receive notification from TTB that the SOT is due. It is your responsibility to timely file the SOT return, along with payment. - How much is the Tax?
The SOT imposed on a manufacturer of tobacco products is $1,000 per year; however, if the business had gross receipts of less than $500,000 in the previous income tax year, the rate is $500 per year.
You must take into account all gross sales receipts, not just those derived from the business subject to special tax. For instance, sales receipts from other businesses such as a retail outlet, selling either tobacco or other property or services, must be included.
If you are a member of a controlled group as defined in section5061(e)(3) of the Internal Revenue Code, you are not eligible for this reduced rate unless the total gross receipts for the entire group are less than $500,000. Please note, that the annual renewal form will always be prepared at the non-reduced rate. It will be your responsibility each tax year to determine whether or not you are eligible for the reduced rate. - Operations at More than One Location
If you receive a permit to manufacture tobacco products from TTB, which authorizes you to conduct operations at more than one location, and you are in fact conducting operations at more than one location, special tax is due for each location. - A special tax stamp is not Therefore, if there is a change in ownership of your business or business structure, such as a sole owner incorporating, or going into a partnership, the new owner is required to file a special tax registration and return and pay the tax from the month the change occurs through the next June 30.
The only law which TTB enforces that relates to the advertising of tobacco products and cigarette papers and tubes is a prohibition against lottery features and indecent, immoral pictures, print or representation attached to such packages.
For general advertising information related to tobacco products, the Federal Trade Commission may be helpful. The Federal Trade Commission enforces a variety of Federal antitrust and consumer protection laws.
There are additional responsibilities and requirements that you may have to meet including state laws.
- TTB personnel have the right of entry into your premises.
- All taxpaid products on the bonded premises must be clearly marked and segregated. Export warehouse premises may only be used for the storage of tobacco products and cigarette paper and tubes, upon with the tax has not been paid.
- Please ensure you are in compliance with your state and local authorities before commencing operations (including building/use permits and zoning requirements).
If you have any questions, please contact the National Revenue Center at 1-877-882-3277 or at National Revenue Center.