Licensed Distributor Reports & Wholesaler to Wholesaler Reports New Reporting Requirements T.C.A. §...

Licensed Distributor Reports & Wholesaler to Wholesaler Reports

New Reporting Requirements T.C.A. § 67-4-2604

Who is Required to Report?

Tennessee Code Annotated section 67-4-2604 requires “each licensed agent” to submit these reports by the 15th day of every month.

The following persons may be granted a license under the licensure provisions of Tenn. Code Ann. §67-4-1015(c)(1): manufacturing distributors; tobacco manufacturer warehouses; wholesale dealers and jobbers; and tobacco distributors.

When are you Required to Report and What are the Penalties for False Reporting?

Must be submitted no later than the fifteenth (15th) calendar day of each month.

If a licensed agent is found to have knowingly filed a false report, the commissioner is authorized to revoke or suspend the license of such licensed agent. Civil penalties may also be imposed

These reports are filed under penalty of perjury.

Licensed Distributor Reports—What has Changed?

Biggest change is that licensed agents are now required to report ALL Brand Families (not just NPM Brand Families) to which they either:

AFFIX THE TAX STAMP - OR -

OTHERWISE PAY THE TAX DUE (In the case of roll-your-own, this would be paying the Other Tobacco Product Tax due).

Licensed Distributor Reports—How to Fill Out Properly

Reporting Period:

Month: If you stamped the product or paid tax on it in June, then you should write “June” in the blank beside “Month.”

Year: If you stamped the product or paid tax on it in 2009, then you should write “2009” in the blank beside “Year.”

Reporting will most often be for the previous month and year, due by the 15th the following month.

Licensed Distributor Reports—How to Fill Out Properly (continued…)

Tobacco Wholesale Account Number: This number should begin with 8600. This is not your excise tax account number or stamp account number.

Business Name: The name of your business as submitted on your tobacco licensing application.

Address: Business Address.City, State, Zip: Same as above—the address of

your business.Email address: This should be filled out for a

company officer who can answer questions on the forms and the information contained on them.


BOXES ON THE RIGHT-HAND SIDE OF THE PAGE …. HOW DO I KNOW WHICH ONE(S) TO CHECK?

If you have previously filed a report, made a mistake on such report which needs to be corrected, and are filing an amended report … check the box titled “AMENDED REPORT.”

There are additional requirements for filing an amended report which will be covered in a later slide. These requirements can be found on the Instructions page.


Packaging Box: Packaging is now only required to be submitted ANNUALLY, BY AUGUST 30TH OF EACH YEAR. If you check this box, you are certifying that the packaging has not changed since the last LDR submission. This box should be checked only if you ARE NOT submitting packaging.

If packaging has changed, DO NOT check this box, but rather, include the new packaging samples with your report.


There are three additional boxes on the right-hand side of this form. If you are not reporting any quantities/numbers on your Licensed Distributor Report, you must check one of the following boxes:

No TN Sales ActivityBig Cigars OnlyAll products pre-stamped or tobacco product

tax pre-paid during this reporting period (No TN stamps were affixed during this reporting period).


No TN Sales Activity:This means you had no Tennessee sales

activity in the previous month…whether stamped or unstamped…or TN tax paid.

If you affixed any Tennessee tax stamps to packs of cigarettes, bidis, or little cigars or paid the Tennessee tax on any roll-your-own tobacco, DO NOT CHECK THIS BOX BUT RATHER FILL OUT THOSE NUMBERS ON THE REPORT.


Big Cigars Only:

Only check this box if the only tobacco product you paid tax on in Tennessee during the prior month was big cigars.


All Products Pre-Stamped or Tobacco Product Tax Pre-Paid this Reporting Period.

Check this box only if your company DID NOT AFFIX TENNESSEE TAX STAMPS TO ANY CIGARETTES OR BIDIS DURING THE PRIOR MONTH AND/OR DID NOT PAY ANY OTHER TOBACCO PRODUCT TAX ON ANY ROLL-YOUR-OWN TOBACCO DURING THE PRIOR MONTH.


Box reading: IF ANY UNSTAMPED OR STAMPED TOBACCO PRODUCTS WERE SOLD TO ANOTHER LICENSED DISTRIBUTOR, ALSO ATTACH W2W FORM TO THIS REPORT.

New Requirement - Check this box if you sold any tobacco products to another licensed agent, whether you stamped that product or not and fill out the W2W form. Instructions for filling out that form will be covered later.

Licensed Distributor Reports—How to Report Product You Affixed a Tax Stamp To or Otherwise Paid the Tax Due (RYO)

Column 1: List the Number of cigarettes, bidis (also referred to as “beedies”) or little cigars…or ounces of RYO…products that you either affixed a tax stamp to or otherwise paid the tax due.

This number should be in individual increments for cigarettes, bidis and little cigars. For example, if you tax stamped one carton worth of “X” brand cigarettes during the prior month, you would need to report “200” in this column as the number of cigarettes stamped.

Licensed Distributor Reports—How to Report Product You Affixed a Tax Stamp To or Otherwise Paid the Tax Due (RYO)

Column 1 continued:If you are reporting RYO, you must report

this amount in ounces.

For example, if you paid the other tobacco product tax on 3-8 ounce bags of RYO, then you would need to report the number “24.0” ounces in column one.


Column 2 – Brand Family:This is the brand family name of the

cigarettes, little cigars, bidis, or RYO, on which you paid tax during the prior month.

For example … if you paid tax on one pack of Marlboro Lights, two packs of Marlboro Reds, and one pack of Marlboro Ultra Lights during the prior month, you would need to list “Marlboro” in the brand family identification column and report the appropriate amount (in this case, 80 cigarettes).


Column 3 – Manufacturer Name and Address: This should be the name and address of the

company that actually manufactured the cigarettes, bidis, little cigars or RYO, not the name of the importer of such cigarettes, bidis or RYO in the case of imported tobacco products, nor the name of the wholesaler that sold you the cigarettes, bidis, little cigars or RYO.


Column 4 – Type of Product:

Please list the following for type of product:If cigarettes, list “C” or spell out cigarettes.If little cigars, list “LC” or spell out little

cigars.If roll-your-own, list “RC” or spell out roll-

your-own.If bidis or beedies, list “B” or spell out bidis

(or beedies).


Column 5 – Name and address of the entity from whom each brand family was purchased:

This should be the name and address of either another licensed agent (wholesaler) or the manufacturer or importer of the brand family from which you purchased the cigarettes, RYO, bidis, or little cigars.


Column 6 – Name and address of first importer (for foreign manufactured brand families only):

This should be the name and address of the importer, not the manufacturer. This company will be located in the United States and have a physical U.S. address.


Penalty of Perjury Provision: Asks you to read and states that the report only contains cigarettes (bidis also qualify here as cigarettes) or little cigars on which you have placed a tax stamp, or RYO on which you have paid the tax due. You are required to initial this box and then sign the form directly below it.

Clearly print the name of the company officer who signed this provision and then his/her title below that.

Date the report the date you actually sign it, and provide a working phone number and fax number.


If you are submitting more than one page of tobacco products on this form, please fill out the page number blanks in the lower right hand corners.

Example: You are submitting a total of four pages. The first page would be numbered “Page 1 of 4,” second page numbered “Page 2 of 4,” etc.

Additional pages must also be completely filled out (account number, name, month, year, signature and date in addition to the quantity being reported). Submit as many pages as necessary to report all product on which the tax was paid in the prior month.


Please note the address to which these reports must be sent:

Tennessee Department of Revenue, Andrew Jackson Building, 500 Deaderick Street, Nashville, TN 37242.

DO NOT ATTACH THIS REPORT TO YOUR TOB 552 FORMS … THEY ARE SENT TO DIFFERENT ADDRESSES.

If you sold any tobacco products to another licensed agent during the prior month … be sure to include the W2W form as well.


Things to Know and Remember:No processing of incomplete or illegible forms.Fill out the current form!Signature must be in BLUE permanent ink. Always date form after you sign it.Entries must be in permanent ink or

typewritten. No pencil entries allowed.Retain a copy for your files!If this is an amended report…see the next

slide!

Amended Licensed Distributor Reports—How to Fill Out Properly

Fill out the form as discussed above…and Attach all documentation to support

the new numbers being submitted.This includes invoices of all sales activity

and a detailed explanation as to why the report needs to be amended.

Wholesaler to Wholesaler Reporting Form (“W2W” Form)

Who Must Fill This Report Out? Any licensed agent that sold any tobacco products to another licensed agent (and you checked this box on the LDR form), whether stamped or unstamped! Do not fill this form out if you did not have any such sales in the prior month.

When Must This Be Submitted? At the same time as the Licensed Distributor Report … no later than the 15th day of each calendar month following the month in which sales took place.

W2W Form—How to Fill out Properly (continued…)

Reporting Period: As with the LDR, this line should be filled in with the month and year in which the sales activity occurred. Submit this form when you submit your LDRs.

If you sold the product to another licensed agent in June, then you should write “June” in the blank beside month.

Year: If sold the product to another licensed agent in 2009, then you should write “2009” in the blank beside year.

W2W Form—How to Fill out Properly (continued…)

Business Name. The name of your business as submitted on your tobacco licensing application.

Address: Business Address.City, State, Zip: Same as above—the

address of your business.Tobacco Wholesale Account Number: This

number should begin with 8600. Again, this is not your excise tax account number or your stamp account number.

W2W Form—How to Fill Out Properly (continued…)

Name and title of person authorizing the report. This should be the name of a company officer.

Email address: This should be filled out for a company officer who can answer questions pertaining to the forms and the information contained on them.

A working phone number and fax number should be included here for the business.


Column One: The date of shipment, or the date the product was sold/transferred to another licensed agent or distributor, should be recorded here.

Column Two: Using initials, indicate how the product was shipped, whether by distributor’s truck (DT), common carrier (CC), parcel post (PP), or customer truck (CT).


Column 3: Record the invoice number evidencing the sale/transfer of this product. There should be one for every sale.

Column 4: Enter the brand families sold/transferred. Fill out a separate line for each brand family.

Column 5: List what type of product was sold/transferred—cigarettes (C), little cigars (LC), bidis (or beedies) (B), or roll-your own tobacco (RYO).


Column 6: Indicate whether the product was sold/transferred stamped (S) or unstamped (U) with respect to each brand family.

Column 7: Provide the complete name and address of the company to whom the cigarettes were sold.

Column 8: Enter the number of sticks (or ounces if RYO) of product sold/transferred.


If using more than one page, number accordingly in the lower-right hand corner of the form.

Penalty of perjury line must be initialed, signature line filled in by a company representative, and form correctly dated, all in blue permanent ink.

Note the address to which the form must be sent: Tennessee Department of Revenue, Andrew Jackson Building, 500 Deaderick Street, Nashville, TN 37242.

Questions or Concerns?If you have any questions when filling out

these new forms, please do not hesitate to contact our office at the number listed below:

Rosanna Rostad, Paralegal, (615) 253-5832.

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