Section 1320-04-03-.05 - RECORDS AND REPORTS(1) Manufacturing distributors, wholesale dealers and jobbers and tobacco distributors must keep and preserve such adequate and complete records as are necessary to substantiate the payment of all Tennessee tobacco taxes imposed by law. Such records shall include but not necessarily be limited to the following: A receiving record of all such merchandise received during the month or accounting period which shall indicate the date, invoice number, quantity, brand, from whom received, and in the case of cigarettes whether stamped or unstamped or other untaxed tobacco products, or other evidence or records as specified in T.C.A. § 1320-4-3-.04. Any licensee failing to maintain adequate records to fully substantiate the receipt ant disposition of all tobacco products handled by him shall be unconditionally liable for tobacco taxes on all such products for which proper accounting cannot be made.(2) Affixing agents shall keep a record and inventory of all cigarette tax stamps used, and the number of stamps on hand at the end of the month. Every license shall permit an authorized agent of the Department to inspect at any reasonable time, at all locations, including any conveyance for delivery, all tobacco products, invoices, books, papers and memoranda including the general books, both operating and proprietary ledgers, pertaining to the sale, purchase, storage and distribution of tobacco products.(3) Manufacturing distributors, wholesale dealers and jobbers and tobacco distributors must maintain and preserve for a period of three (3) years all reports of receipt, purchase, sale and distribution of tobacco products and cigarette tax stamps and make same accessible to the Department for inspection at all reasonable times. Any person operating a tobacco manufacturer's warehouse shall maintain and preserve for a period of three (3) years all reports of receipt and distribution of tobacco products and make same accessible to the Department for inspection at all reasonable times. The Commissioner upon written application may, in his discretion, grant permission for the destruction of records in a lesser period of time.(4)(a) Manufacturing distributors and wholesale dealers and jobbers shall submit to the Commissioner a report upon such forms as may be prescribed by the Commissioner. Reports shall be filed on or before the 15th day after the end of the licensee's preceding month's accounting period. An accounting is required of all cigarettes, cigars and other tobacco products handled during the accounting period covered by the report. The payment of tax applicable to all tobacco products other than cigarettes shall accompany the report by wholesale dealers and jobbers. Manufacturing distributors shall be required to report any pay tax on all tobacco products distributed as samples, gifts, etc., and on Tennessee sales to other than licensed Tennessee wholesale dealers and jobbers, such rate of tax being 6 1/2 mills on each cigarette and 6% of the purchaser's cost price of other tobacco products. Failure to file the report and pay such taxes within the time prescribed may result in the assessment of penalty and interest.(b) The Commissioner may at his discretion require other dealers in tobacco products to submit reports of their purchase, sale, and distribution of such products, the reports to be submitted for such period and to contain such information as the Commissioner may require. Incomplete, delinquent, false of fraudulent reports shall be grounds for revocation or suspension of the tobacco license. Direct or indirect assistance in the evasion of the payment of the tobacco tax or in the violation of the Tobacco Tax Law or any rule and regulation promulgated pursuant thereto, will be grounds for revocation or suspension of license.(5) It shall be the duty of every wholesaler and retailer, as those terms are defined in T.C.A. § 47-25-302, to keep and preserve for a period of three (3) years suitable records of all sales and purchases and such other books of account as may be necessary to determine compliance with the Unfair Cigarette Sales Law, T.C.A. § 47-25-301 et seq. Such records and other books of account shall include but not be limited to all invoices, bills of lading, pertinent records whether stored electronically or otherwise, papers and memoranda reflecting sales and purchases, operating and proprietary ledgers, and any other document of information that may be required by the Commissioner, and all such books and records shall be open to examination at all reasonable hours to the Commissioner or any of his authorized agents.Tenn. Comp. R. & Regs. 1320-04-03-.05
Original rule certified June 7, 1974. Amendment ruled April 30, 1975; effective May 30, 1975. Amendment filed April 15, 1987; effective July 29, 1987.Authority: T.C.A. §§67-3108 and 67-101.