Tobacco Products Importer or Manufacturer - Records of Large Cigar Wholesale Prices (TTB REC 5230/1)

In general, the Internal Revenue Code (IRC) at 26 U.S.C. 5701 imposes Federal excise taxes on tobacco products and cigarette papers and tubes. As described at 26 U.S.C. 5701(a)(2), the excise tax on large cigars, defined as those weighing more than 3 pounds per thousand, is based on a percentage of the price at which such cigars are sold by the manufacturer or importer. That tax is calculated as 52.75 percent of the sale price but is limited to not more than 40.26 cents per cigar. In addition, the IRC at 26 U.S.C. 5741, requires every manufacturer and importer of tobacco products to keep records as the Secretary of the Treasury prescribes by regulation. Under those IRC authorities, the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations at 27 CFR 40.187 and 41.181 respectively require domestic manufacturers and importers of tobacco products to keep records of their sale prices for large cigars. The required records must establish and verify the prices for which large cigars are sold by brand and size, and, if pertinent, by packaging. The required sale price records are necessary to protect the revenue as they allow TTB to ensure that respondents have correctly calculated and paid their excise tax liability for large cigars.

The latest form for Tobacco Products Importer or Manufacturer - Records of Large Cigar Wholesale Prices (TTB REC 5230/1) expires 2026-12-31 and can be found here.