Instructions For Form 522 - Alaska Cigarette And Tobacco Products Monthly Tax Return

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Instructions for Alaska Cigarette and Tobacco
Products Monthly Tax Return
Late payment of tax. If the full amount of tax is not paid when due, the
General Instructions
return is subject to a failure to pay penalty of 5% of the unpaid tax for
Use Form 522 to report your monthly cigarette and tobacco products
each 30 day period or portion of a period the payment is late, up to a
activity and remit the Alaska cigarette and tobacco products excise tax
maximum of 25%. If during any period or portion of a period, both the
to the Alaska Department of Revenue, Tax Division. A return must be
failure to file and failure to pay penalties are applicable, only the failure to
filed even if no cigarettes or tobacco products have been manufactured,
file penalty is imposed.
imported, acquired or sold during the month covered by the return. All
schedules that pertain to your business must be completed and all
Failure to obtain a license. If a person manufactures, imports, acquires
required attachments must accompany the return to constitute a complete
or sells cigarettes in the state and fails to hold a license as required by AS
filing.
43.50.010 or AS 43.50.035, the person is liable for the tax plus a penalty
A single return may be filed for a cigarette business conducted in several
of 100% of the tax.
locations, with several licenses, even if the business holds licenses within
Misconduct involving unstamped cigarettes or stamps in the first
more than one cigarette business category. For example, a taxpayer
holding two distributor’s licenses and three direct-buying retailer’s
degree. A person commits the crime of misconduct involving unstamped
licenses may file one return. If a single return is filed for more than one
cigarettes or stamps in the first degree if the person sells or distributes
license, you must include all license numbers in the “License Number(s)”
5,000 or more unstamped cigarettes in a single transaction; owns or
box on all pages of the return.
possesses 5,000 or more unstamped cigarettes with the intent to sell;
acquires, holds, transports, imports, or possesses 10,000 or more
unstamped cigarettes; affixes a previously used stamp to a cigarette
Payment
Pay your taxes using the Online Tax Information System (OTIS) at www.
package; or possesses, sells or distributes a previously used stamp.
Misconduct involving unstamped cigarettes or stamps in the first degree
tax.alaska.gov. Note that you must be an existing taxpayer with the Tax
is a class C felony.
Division to pay electronically. If you are a first-time taxpayer, contact
the Tax Division at (907) 465-2320 or visit for
Misconduct involving unstamped cigarettes or stamps in the
information.
second degree. A person commits the crime of misconduct involving
unstamped cigarettes or stamps in the second degree if the person sells
ACH Debit (EFT) - OTIS accommodates Automated Clearing House
or distributes at least one but less than 5,000 unstamped cigarettes in a
(ACH) debit payments. If your bank account has a debit block, your
single transaction; owns or possesses at least one but less than 5,000
online payment request will be rejected by your bank. Rejected
unstamped cigarettes with the intent to sell; acquires, holds, transports,
payments may result in late payment penalties and/or interest.
imports or possesses at least 601 but less than 10,000 unstamped
cigarettes; or is not licensed or authorized by the Department to possess
If you think your bank account has a debit block, contact your bank before
stamps and possesses a stamp that is not affixed to a cigarette package.
making an online payment to register the State of Alaska as an authorized
Misconduct involving unstamped cigarettes or stamps in the second
ACH debit originator. The company ID for the Alaska Department of
degree is a class A misdemeanor.
Revenue is 0000902050.
Unauthorized transfer of unaffixed stamps.
A licensee may not
ACH Credit (Credit Cards) - OTIS does not accept ACH credit or credit
sell, exchange or otherwise transfer stamps not affixed to a package
card transactions.
of cigarettes to another person without the prior written approval of the
Department. The Department may assess a civil fine of not less than
Wire Transfers - If you are paying by wire transfer, log on to the OTIS
$1,000 nor more than $10,000 for a violation of this provision.
f
website at
or instructions.
Cigarette Shipping Restrictions
Generally, it is illegal to ship or receive cigarettes through the mail unless
Checks - Note that if your total payment exceeds $100,000 you are
required to pay electronically or by wire transfer. If you are paying by
the person shipping the cigarettes holds a current cigarette license issued
check, make your check payable to the State of Alaska and mail it with
by the Department of Revenue and the person receiving the cigarettes
holds a current tobacco endorsement issued by the Alaska Department
your return to:
of Commerce Community and Economic Development or the person
TAX DIVISION
receiving the cigarettes provides the shipping company an affidavit
ALASKA DEPARTMENT OF REVENUE
stating they are 19 years of age or older and are receiving the cigarettes
PO BOX 110420
for personal consumption. In the above cases, the cigarettes must be
JUNEAU AK 99811-0420
stamped showing that the cigarette tax has been paid. However, the
following entities may receive stamped or unstamped cigarettes through
Due Date
the mail from any source:
The return is due by the end of the month following the month in which
cigarettes and tobacco products were imported, acquired or sold,
1) A person who holds a current cigarette license issued by the
or cigarette tax stamps were purchased. Tax returns filed without a
Alaska Department of Revenue.
signature and all required schedules and attachments will be deemed to
2) An operator of a customs bonded warehouse under 19 USC
be incomplete and therefore, not filed.
1311 or 19 USC 1555.
3) An instrumentality of the federal government.
Interest
Under Alaska Statute 43.05.225, interest will be assessed on any unpaid or
4) An Indian tribal organization authorized to possess untaxed
delinquent tax. Interest is compounded quarterly at the applicable rate for
cigarettes.
each quarter. Refer to or contact the Tax Division for
Please note: Only the Metlakatla and Klawock Indian Communities are
applicable rates.
Indian tribal organizations authorized to possess untaxed, unstamped
cigarettes. Individual members of these communities are subject
Penalties
to the excise tax and may not purchase cigarettes through the mail
Late filing of return. Returns not filed by the due date are subject to a
unless they provide the affidavit described above and purchase
failure to file penalty of 5% of the unpaid tax for each 30 day period or
portion of a period the return is late, up to a maximum of 25%.
cigarettes from an entity licensed by the Department of Revenue.
0405-522i - Rev 09/12 - page 1

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