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60TOBACCOOUTLETBUSINESSJULYAUGUST2009ACleanSweepthenext12monthsbecauseo0thex2oortaxandtheadditionalcapitaltheyx19llneedduetothesignifcantpriceincreases.I0awholesalerisdoing10000cartonsaweekandtheiraverageturntoretailersistwoweeksx14thatmeanstheyx19rex2oating20000cartonssotheyx19regoingtoneed200000incapital.Manywholesalersarenx19tgoingtobeabletocomeupwiththecapital.x1dJonRandpresidentandownero0Dis-countSmokeShopinSt.Louissharesasimilardistributorconcern.x1cWehadaloto0lostsalesinAprilbecauseo0dis-tributorsnotbeingabletosupplyusx1dhesays.x1cWewerewellintothethirdweeko0Aprilbe0oreourinventorywasevenclosetobeingacceptableagain.x1dDistributorissuesasideperhapsthebestnewsaboutpreparing0orthex2oortaxisthatitenabledtobaccooutletstodevelopgoodplanningandmanagementskillsmoving0orwardx14somethingtheywillneedwithFDAcontrolsloomingnextonthehorizon.TOBSevenFloorStockStaxFactSOnAug.1tobaccooutletretailerscanhappilyputx2oortaxcalculationsandpay-mentsbehindthem.Butasalastreviewretailersshouldconsiderthesekey0acts1.TeBissuedax1cmistakex1dmemox14didyougetitTeAlcoholandobaccoaxandradeBureauBissuedacorrectedseto0instructions0orretailersandwholesalerstousewhencalculatingandflingtheirx2oorstockstaxreturn.Intheoriginalseto0instructionssenttoNAOmembersonMarch14theinstructionsincorrectlyreversedthedefnitionso0smallandlargecigarettes.Whilethex2oorstockstaxreturnitsel0correctlydescribessmallandlargecigarettesthefve-pageseto0instructionsissuedbytheBhadthedefnitionsreversed.Butmakenomistakeaboutitx14itwillnotbeaseasilycorrected0orretailersandwholesalerswhomakesucherrorsontheirx2oorstockstaxreturnsx14soyoushouldcheckandrecheckyourfgures.I0yourinventoryortaxcalculationrecordscontainanerrorthatresultsinanunderpaymento0taxyoumustfleanadditionaltaxreturnonwhichyoushowandpaytheadditionaltaxinterestandanyapplicablepenalties.I0yourerrorresultsinanoverpaymentyoucanfleaclaim0orare0und.2.Remembertodottheinventoryix19sinyourdocumentation.Indeterminingx2oortaxeitherphysicalinventoryorrecordbookinventoryisallowedbuteachhasveryspecifcdocumentationrequirementssocare0ullychecktheflinginstructions0oreach.3.x1cUnmerchantablesx1dcanbeunmentionable.AnyproductsheldonApril120090orreturntoasupplierbecauseo0somede0ectordamagearenotsubjecttoax2oorstockstaxhoweveryoumustphysicallysegregatesuchproductsandincludetheminaseparatesectiono0yourinventoryrecord.I00oranyreasontheyarenotsubse-quentlydestroyedorreturnedyouthenmustfleanadditionalx2oorstockstaxreturnandpaythetaxonthem.4.BOGOswillcostyou.Productsmarkedx1cnot0orsalex1dorx1ccomplimentaryx1dthatareparto0asale0orexamplex1cbuyonegetone0reex1dknownasaBOGOx14aresubjecttox2oorstockstaxandmustbeincludedintheinventory.5.Remembertotakeyour500exemption.Eachtobaccooutletbusinessisal-loweda500creditagainstthex2oorstockstaxx14butthatisperbusinessnotperstore.Tecreditmaybedividedequallyamongstoresorapportionedinanyothermanner.6.Eveni0yournettaxdueis0areturnmustbefledbyJuly312009x14andnotadaylater.Your2009x2oorstockstaxreturnmustbepostmarkedbythisdatewithalltaxespaid.7.Remembertomaintaingoodrecords.Youmustkeepyourrecordsinsupporto0thereturn0orthreeyears0romthedatethatyouflethereturnoruntilJuly312012whicheverdateislater.Terequiredrecordsincludeacopyo0yourinventoryyourtaxcomputationsnamesaddressesandemployeridentifcationnumberso0allcontrolledgroupmembersi0applicableacopyo0yourx2oorstockstaxreturnalisto0locationscoveredbythetaxreturnandi0applicableacopyo0instructions0oranyapprovedalternatemethodorprocedure.Inventoryrecordsshouldbekeptatyourprincipalplaceo0business.SOURCESTheNationalAssociationofTobaccoOutletsNATOandtheAlcoholandTobaccoTaxandTradeBureauoftheU.S.DepartmentoftheTreasurywww.TTB.gov.x1cWewillseeanumberofdistributorsgoingoutofbusinessinthenext12months.x1d