[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR46.196]

[Page 971]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 46_MISCELLANEOUS REGULATIONS RELATING TO TOBACCO PRODUCTS AND 
CIGARETTE PAPERS AND TUBES--Table of Contents
 
  Subpart I_Floor Stocks Tax on Cigarettes Held for Sale on January 1, 
                       2000 and on January 1, 2002
 
Sec. 46.196  Floor stocks requirements.

    (a) Take an inventory. Establish the quantity of cigarettes subject 
to the floor stocks tax held for sale at the beginning of the tax 
increase dates (January 1, 2000 and January 1, 2002). You may take a 
physical inventory or you may use a book or record inventory, as 
specified in Sec. Sec. 46.205 and 46.206.
    (b) Compute tax amount. Compute the amount of tax for the cigarettes 
held for sale at the start of each of the tax increase dates. Refer to 
the table shown in Sec. 46.222. Apply the tax credit as provided by 
Sec. 46.223.
    (c) File tax return. After you have computed the floor stocks tax, 
you must file a return for each tax increase date if tax is due.
    (d) Maintain records. Maintain all records used to determine the 
quantity of cigarettes on hand at the start of each tax increase date. 
You must also maintain all computations used to determine the amount of 
tax owed. Refer to Sec. 46.241.

(Approved by the Office of Management and Budget under control number 
1512-0554)

                               Inventories