Tax Audit Division

Floor Stocks Tax FAQs

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General Questions | Inventory | Filing Requirements | Controlled Groups | Credits | Miscellaneous

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If you want to know about recent changes in the law and regulations, you may visit the following Web sites:  THOMAS (The Library of Congress) and The Federal Register. If you are concerned with the accuracy of this information, please contact TTB or your legal advisor.

General

G1:

What is a floor stocks tax?

G2:

Who is liable for the floor stocks tax?

G3:

What products are covered by the floor stocks tax?

G4:

I received a floor stocks tax return, but I am not engaged in a business involving the sale of tobacco products or cigarette papers or tubes.  What should I do?

G5:

I received a floor stocks tax return, but I only sell large cigars.  What should I do?

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Inventory

I1:

Why do I have to take an inventory?

I2:

When do I have to take an inventory?

I3:

As far as my inventory, would it be acceptable if I just figure out how much tax I owe per tobacco product and pay the floor stocks tax by that method?

I4:

Taking an inventory on April 1, 2009, will be very difficult for me.  Is there any way to avoid a physical inventory?

I5:

When I perform my inventory on April 1, 2009, how much detail do I have to show in my inventory records – do I have to show by the brand of the product?

I6:

Do the products in vending machines have to be included in my inventory?

I7:

How should I handle in-transit merchandise when I do my inventory?

I8:

I have some products on hand that I will be returning to my supplier.  Some of it is damaged, and I can’t sell it.  Some of it is “O.K.”, but it hasn’t been selling well, and I want to get it off my shelves and send it back.  Do I have to count these products in my floor stocks tax inventory?

I9:

Products marked “not for sale” or “complimentary.”

I10:

How long do I have to keep my inventory records?

I11:

Will TTB audit my inventory results?

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Filing Requirements

FR1:

Copies of the floor stocks tax return and instructions are available on the TTB website.

FR2:

Do I have to file separate returns for all of my locations?

FR3:

When must I file my return?

FR4:

How do I pay my tax?

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Controlled Groups

CG1:

What types of business structures are considered a controlled group?

CG2:

How do the special provisions concerning the floor stocks tax relate to control groups?

CG3:

Can the tax owed by all businesses in a control group be paid with one tax return?

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Credits

C:

What type of credit is available against the floor stocks taxes?

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Miscellaneous

M1:

How can I tell what tax class my products belong to?

M2:

I have roll-your-own products that contain tobacco and papers within a retail package.  Do I have to count the papers for the floor stocks tax and pay the tax on these papers?

M3:

I don’t have the money to pay my entire floor stocks tax liability.  What can I do?

M4:

Will I owe floor stocks tax on tobacco for use in making cigars or for use as cigar wrappers?

M5:

Where can I get more information?

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Page last reviewed/updated: 09/04/2012

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