Rev. Ruling 66-123
Advice has been requested whether a cigar which has a tip attached by means of a paper band which overlaps the tip an wrapper and which is not removable can still be classified as a cigar.
Section 5702(a) of the Internal Revenue Code of 1954 defines a cigar as "any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette within the meaning of subsection (b)(2))." Section 5702(b) of the Code defines a cigarette as "(1) any roll of tobacco wrapped in paper or in any substance not containing tobacco, and (2) any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in paragraph (1)." Similar definitions of "cigar" and "cigarette" are prescribed in 26 CFR 270.11.
It is held that where the paper band is used as a means of joining the cigar to the tip and is no larger than necessary for that purpose it is not a part of the wrapper and its use would not preclude classification of the product as a cigar.
Revenue ruling 65-56, C.B. 1965-1, 601, is hereby superseded.
26 U.S.C. 5702; 27 CFR 270.11