Instructions For Ttb F 5000.28t09 (Page 3 of 5) in pdf

2. Record (book) inventory requirements.

You may use a record (book) inventory if you have source records that show:

(a) The quantity and date of receipts and dispositions of all products.

(b) The name and address of the consignor and consignee (unless sales are over-the-counter at retail).

April 1, 2009.

(d) The brand name of each product.

You may not use ratios, averages, or estimates to determine the quantity of inventory held subject to tax. Your

backup documentation must support your inventory results.

3. Products in transit.

Products in transit must be included in your inventory if you hold title to the products. If you have transferred the

title, your records must document the title transfer.

You may use the following guidelines to establish who holds title to products in transit:

(a) If State law mandates the change in title, no agreement or contract between seller and buyer can alter it.

(b) In the absence of State law, the Uniform Commercial Code allows the seller and buyer to agree when title

passes. If there is no State law or agreement, the Uniform Commercial Code states that title transfer

depends on how the seller ships the products.

Free on board (F.O.B.) destination.

(1)

The title transfer occurs when the seller completes the

performance of the physical delivery of the products.

Free on board (F.O.B.) shipping point.

(2)

The title transfer occurs when the seller transfers the title at the

time and place of shipment, which is generally by common carrier.

4. Products in a foreign-trade zone.

You are liable for the floor stocks tax and must take an inventory of taxable goods held in a foreign-trade zone if:

(a) Internal revenue taxes have been determined or customs duties liquidated pursuant to the first proviso of

section 3(a) of the Act of June 18, 1934 (48 Stat. 998, 19 U.S.C. 81a et seq.), or (b) the taxable goods are held by

a Customs and Border Protection officer pursuant to the second proviso of section 3(a) of the Act of June 18,

1934 (48 Stat. 998, 19 U.S.C. 81a et seq.).

5. Products held in bond.

If you are a manufacturer or export warehouse proprietor and hold products in TTB bond on the tax increase date,

the floor stocks tax does not apply to those items. Likewise, if you have products held in a customs bonded

warehouse, the floor stocks tax does not apply to those items.

6. Unmerchantable products.

If you hold any products on April 1, 2009, for return to a supplier because of some defect or damage, you are not

required to pay the floor stocks tax on those products; however, you must physically segregate any such

unmerchantable products and include them in a separate section of your inventory record. If, for any reason, the

tobacco products or cigarette papers or tubes that were determined to be unmerchantable are not subsequently

returned or destroyed, you must file an additional floor stocks tax return and pay tax on such products.

7. Products in vending machines.

You must inventory products held in vending machines for retail sale, and include them in your final inventory.

Products in vending machines are subject to the floor stocks tax.

2009 Floor Stocks Tax Inventory and Return Filing Instructions (03/2009)

Page 3 of 5

TTB P 5000.28T09

OMB No. 1513-0129 (09/30/2009)

Instructions For Ttb F 5000.28t09 Page 3

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