Thread: April 1st tax
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Old April 1st, 2009, 01:25 AM
ZenSilk's Avatar
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Join Date: Aug 2007
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Default Re: April 1st tax

is the red bold saying anyone holding tobacco products is available for the tax?

(h) <<NOTE: 26 USC 5701 note.>> Floor Stocks Taxes.--
(1) Imposition of tax.--On tobacco products (other than
cigars described in section 5701(a)(2) of the Internal Revenue
Code of 1986) and cigarette papers and tubes manufactured in or
imported into the United States which are removed before April
1, 2009, and held on such date for sale by any person, there is
hereby imposed a tax in an amount equal to the excess of--
(A) the tax which would be imposed under section
5701 of such Code on the article if the article had been
removed on such date, over
(B) the prior tax (if any) imposed under section
5701 of such Code on such article.
(2) Credit against tax.--Each person shall be allowed as a
credit against the taxes imposed by paragraph (1) an amount
equal to $500. Such credit shall not exceed the amount of taxes
imposed by paragraph (1) on April 1, 2009, for which such person
is liable.
(3) Liability for tax and method of payment.--
(A) Liability for tax.--A person holding tobacco
products, cigarette papers, or cigarette tubes on April
1, 2009, to which any tax imposed by paragraph (1)
applies shall be liable for such tax.

(B) <<NOTE: Regulations.>> Method of payment.--The
tax imposed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe by regulations.
(C) Time for payment.--The tax imposed by paragraph
(1) shall be paid on or before August 1, 2009.
(4) Articles in foreign trade zones.--Notwithstanding the
Act of June 18, 1934 (commonly known as the Foreign Trade Zone
Act, 48 Stat. 998, 19 U.S.C. 81a et seq.) or any other provision
of law, any article which is located in a foreign trade zone on
April 1, 2009, shall be subject to the tax imposed by paragraph
(1) if--
(A) internal revenue taxes have been determined, or
customs duties liquidated, with respect to such article
before such date pursuant to a request made under the
1st proviso of section 3(a) of such Act, or
(B) such article is held on such date under the
supervision of an officer of the United States Customs
and Border Protection of the Department of Homeland
Security pursuant to the 2d proviso of such section
(5) Definitions.--For purposes of this subsection--
(A) In general.--Any term used in this subsection
which is also used in section 5702 of the Internal
Revenue Code of 1986 shall have the same meaning as such
term has in such section.
(B) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury or the Secretary's delegate.
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