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PRACTICE AREAS

REGULATED SUBSTANCES

TOBACCO

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Overview

Tobacco importers, wholesalers and distributors all need different types of licenses to sell tobacco products on both the federal and state level. Additionally, on the tax side, the tobacco tax scheme is very different from other tax schemes, because the product is taxed both at the federal and state level. Further, depending on the type of tobacco product being sold the taxes vary on both the federal and state level, bringing another level to the analysis of the tax exposure. It is important to have a seasoned attorney that understands the ins and outs of the tobacco licensing and tax scheme.

Licensing

The tobacco industry is heavily regulated by government agencies on all levels. As a result, a business is required to obtain a license to import, manufacture, and sell tobacco products. Depending on the type of business conducted, different businesses need different types of licenses.

Different types of licenses a business may need depending on its activities include:

Tobacco Importer/Exporter License

Importers of raw tobacco or tobacco products are required to obtain a federal license from the Alcohol & Tobacco Tax and Trade Bureau as well as a license from the state where tobacco products will be imported into.

Tobacco Manufacturer License

Manufacturers of cigarettes and other tobacco products are required to obtain a license from the Alcohol & Tobacco Tax and Trade Bureau as well as a license from the state where tobacco products are manufactured.

 Tobacco Wholesaler/Distributor License

Wholesalers/distributors of cigarettes and other tobacco products are required to obtain licenses from the states where they plan to sell tobacco products.

Cigar

Cigar Federal/state tax audit defense

Under federal law, a cigar is any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco (other than any roll of tobacco which is a cigarette). From a federal perspective, cigars are taxed depending on whether they are “small” or “large” cigars. Small cigars, which are cigars that weigh up to 3 pounds per thousand, are taxed at $50.33 per thousand. Large cigars on the other hand are those that weigh more than 3 pounds per thousand and are taxed at 52.75% of the sales price but that amount is capped at $40.26 cents per cigar.

Many state laws follow that of the federal statutes. Some states, like Alabama and Arizona, tax cigars based on weight. Other states have a different rate of tax for cigars than other forms of tobacco. Maryland, for example, charges 30% on other tobacco items, yet 70% on cigars. Michigan takes an opposite approach and requires a 32% tax on tobacco and 15% tax on cigars. Still other states, like Florida, do not tax cigars at all.

It is important to understand the taxing scheme for your state as each state can be very different. It is advisable to have a tobacco tax professional at your side when working through the different taxing schemes in the various states. Many states often have loopholes for items like cigars, which can be exploited to obtain large refunds.

Some reasons you may be entitled to a refund include:

     Change in laws

     Destruction of tobacco property by natural disaster

     Error in calculations

     Overpayment of taxes

Whether you are a small business or a global corporation, we are equipped to handle audit defense and refund claims of all complexities.

We understand that the tax refund process for cigar taxes is not simple. In fact, they are confusing even for most tax professionals, but we deal specifically with cigar and tobacco tax refunds every single day. We know the administrative procedures inside and out, from the paperwork to how to approach your state's tax authorities. We work hard to make sure you are able to put money back into your business.

We can help you through the refund process by:

   Reviewing all your pertinent tax returns and information to determine if you are due a refund.

   Gathering and filing all the necessary paperwork.

   Communicating with the respective state agency to finalize your refund claim.

We are ready to represent clients all across the U.S. Our team of tax professionals has an in-depth understanding of each state's cigar tax laws and refund procedures. Trust in our over 50 years of collective experience and over millions of dollars in refunds recovered for our clients.

Cigarette Tax Refund

Do you believe you may be due a refund for the cigarette taxes that your business paid? If so, talk to our cigarette refund tax consultants for help. Many business owners find it very difficult to obtain their rightful refunds, not only because of the complex process, but also because state agencies tend to make it intentionally difficult. Our team of experienced tax consultants can guide you through the steps, making the refund process easy and simple for you.

WHAT CAN OUR CIGARETTE CONSULTANTS DO TO HELP YOU?

   We can analyze your company's previous tax returns to see whether you qualify for a refund.

   We can organize, prepare, and file the necessary paperwork on your behalf.

   We can follow up with the state agency to make sure your claim is processed and you receive your check.

   If your refund is denied, we can assist you in challenging the denial.

Our cigarette tax consultants have 50+ years of combined accounting and legal experience, and we have successfully filed millions of dollars for our clients in tax refunds. You can trust that we have the expertise you need to assert your legal rights and put money back into your business.

Cigarettes follow cigars in that they are taxed depending on whether they are “small” or “large” cigarettes. Small cigarettes, which are cigarettes that weigh up to 3 pounds per thousand, are taxed at $50.33 per thousand. Large cigarettes on the other hand are those that weigh more than 3 pounds per thousand and are tax taxed at $105.69 per thousand with certain measurement restrictions. Federal law also taxes cigarette papers and cigarette tubes.

Many state laws follow that of the federal statutes for cigarettes. Other states have a different rate of tax for cigarettes than other forms of tobacco. Many states tax tubes and wrapping papers while others do not. It is important to understand that just because federal tax is due, it is not automatically due in your state(s).

For qualifying cases, we can provide our services on a contingency fee basis, which means that you don't pay us anything until you receive your refund. Our fees will come directly out of the refund proceeds after the check is issued. This means that you have nothing to lose with our services. We take care of all the details while you focus on your business - all at no loss to you.

It is important to understand the taxing scheme for your state(s) as each state can be very different. It is advisable to have a tobacco tax professional at your side when working through the different taxing schemes in the various states. Many states often have loopholes for items like cigarettes which can be exploited to obtain large refunds.

If you are ready to get started, just give our office a call to speak with a cigarette tax consultant. We can take you through the entire process and make sure that your claim is diligently prepared, thorough, and effective. Our cigarette consultants have successfully filed millions of dollars in refunds for our clients. You can be confident that we know exactly what it takes to get you your money back.

Smokeless Tobacco Tax Refunds

Federal law defines smokeless tobacco to mean snuff or chewing tobacco. “Snuff" means any finely cut, ground, or powdered tobacco that is not intended to be smoked. "Chewing Tobacco" means any leaf tobacco that is not intended to be smoked. If it meets one of those definitions, snuff is taxed at $1.51/lb. and chew at just $.5033 per pound.

Many state laws follow that of the federal statutes. Some states, like Alabama and Arizona, tax chew and snuff based on weight. Other states have a different rate of tax for chew or snuff than other forms of tobacco. For example, Oklahoma taxes chewing tobacco (60%) a different rate that it taxes all other tobacco products (80%).

WHAT CAN YOU EXPECT IN THE REFUND PROCESS?

     Our team can analyze your previous tax returns to see whether you are eligible for a refund

     We prepare all the relevant documents required for a refund claim

     We file the claim with your respective state's tax agency

     We stay in touch with the state agency until your refund is issued

We have represented millions of dollars in refund claims for clients. From local convenience stores to global, publicly traded companies, we have handled tax refund claims for businesses of all sizes. With over 50 years of collective experience in accounting and taxation laws, we have developed innovative ways to help our clients get their refunds back efficiently and promptly.

Our solutions are effective because we are not afraid to put in the hard work for our clients. We are even able to accept tax refund cases on a contingency fee basis in some instances. This means that our clients do not pay us anything upfront. We are paid a percentage of the refunds you receive from the state agency.

It is important to understand the taxing scheme for your state as each state can be very different. It is advisable to have a tobacco tax professional at your side when working through the different taxing schemes in the various states. Many states often have loopholes for items like cigars which can be exploited to obtain large refunds.

As a business owner, we understand how important it is that you are able to put money back into your business quickly. This includes prompt refunds for the taxes your business overpaid for your smokeless tobacco and other tobacco products. We focus on helping businesses all across the country file and obtain the refunds that they are entitled to receive. Whether you overpaid or a recent law has changed allowing you to receive a refund, turn to our tobacco tax consultants for assistance. We file refunds for all state tax agencies.

 

Pipe Tobacco Refund

Pipe tobacco means any tobacco that, due to appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to be smoked in a pipe from a federal law perspective. If it can meet that expansive definition, pipe tobacco requires a tax at $2.8311/lb. It must be paid by the first person to manufacture or import it into the United States.

Our tobacco consultants have over 50 years of combined experience representing businesses all across the country, filing millions of dollars in tobacco tax refunds. Our experienced tax consultants are attorneys and CPAs with solid accounting backgrounds and knowledge of each state's refund procedures.

We can guide you through the refund process, which involves:

     Assessing your refund eligibility by looking at previous tax returns

     Gathering requested paperwork for your claim

     Filing paperwork in a timely manner

     Following up with state tax agencies to verify the progress of your claim

We know what it takes to get your refund in a timely manner, effectively filing refund claims for all tobacco-related products, including pipe tobacco. We are here to walk you through the refund claims process from beginning to end. In fact, we can handle all the details for you so you don't have to worry about a thing. All you need to do is focus on what's important - running your business. We work hard so you have the refund you need to put back into your business.

It is important to understand the taxing scheme for your state as each state can be very different. It is advisable to have a tobacco tax professional at your side when working through the different taxing schemes in the various states. Many states often have loopholes for items like cigars which can be exploited to obtain large refunds.

From the initial paperwork and claims preparation to filing and communicating with state tax authorities, we are hands-on with every case that we take. We'll keep you updated on your refund at every step, working proactively to prevent any possible complications. To avoid any potential refund disasters, make sure that you work with a proven tax professional.

RYO Tobacco Tax Refund

Roll-your-own tobacco or RYO carries a relatively high tax burden. Tobacco is considered RYO under federal law if it is any tobacco which, due to its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes or cigars, or for use as wrappers thereof. If it falls into the RYO category, then it is taxed at a staggering $24.78/lb. It must be paid by the first person to manufacture or import it into the U.S.

Many states, such as California, Colorado, Connecticut, Georgia, Illinois, Iowa, Kentucky, Maine, Maryland, Michigan, Mississippi, Nebraska, New Hampshire, North Dakota, Ohio, Virginia, and Wisconsin may have viable refund opportunities if you or your client’s company sells blunt wraps or cigar wrappers.

RYO is one of the faster developing areas of tobacco that states have struggled to keep up. If you sell RYO, particularly blunt wraps or cigar wrappers, then many states have large loopholes that may provide for significant refund opportunities. For example, in Florida, an administrative court determined that blunt wraps are not taxable because Florida did not amend its law to mirror the federal government’s law.

WHY CALL OUR RYO TOBACCO TAX REFUND CONSULTANTS?

   50+ years’ combined tax law and accounting experience

   Millions of dollars recovered for clients in tobacco tax refunds

   Contingency fees sometimes available

   Free consultation offered to all potential clients

   Successfully represented local convenience stores and global corporations alike

If you believe you may be owed a refund for the taxes you paid on your roll-your-own tobacco products, don't hesitate to ask our experienced tax consultants for help. We understand that tax-related issues can be stressful and even confusing. Even a knowledgeable tax professional may not be familiar with tobacco tax refunds. These types of legal and accounting services require unique knowledge of tobacco tax laws. At our office, our tax professionals have in-depth knowledge of each state's refund claim procedures. We know how to file a claim to get you your money back.

Our goal is to get you the maximum refund that you are due from your state tax agency. We serve businesses nationwide, from small businesses to global corporations. No matter what your claim involves or how complicated your tax situation, our professionals are ready to take your case. We've successfully secured millions of dollars in refunds for our clients.

Our tobacco tax refund services include:

·         Determining your refund eligibility by looking at your company's prior tax returns

·         Collecting all the relevant paperwork for your claim

·         Filing your tax refund with your state's tax agency

·         Keeping in touch with the state agency to make sure your claim is in order

Don't allow your funds to stay in the hands of the government when you can invest this money back into your business. Learn more about filing for a refund and what you may expect to receive. We can walk you through the process and handle all the details of the claim for you. Our team is here to make the process as simple and stress free as possible.

E-cigarette Tax Refund

E-Cigarettes are a new and growing industry across the country and the globe. States view these as low hanging fruit to tax. While many states have regulated e-cigarettes or vapor, only two states have taxed it so far. Louisiana and North Carolina have begun taxing vapor products. Both states have imposed a 5 cents per milliliter tax on vapor products. But unlike most cigars, cigarettes, and other tobacco products, vapor and e-cigarettes have a very different supply chain. States are struggling to regulate and tax these trendy products. While most tobacco products are taxed at the wholesale level, both North Carolina and Louisiana have structured their taxing schemes to impose the tax on the wholesaler OR THE RETAILER.

WHY CALL OUR E-CIG TAX CONSULTANTS?

   We bring 50+ years’ combined legal and accounting experience

   We have successfully filed millions of dollars in refunds

   Contingency fees offered in some cases

   Free consultation for every potential client to evaluate options

For the first time, certain retailers will be forced to file and pay tax on vapor products. Keep an eye on your state as it could be next. Whether you are a small business or a global corporation, we are equipped to handle your refund claims.

Some reasons you may be entitled to a refund include: change in laws, destruction of tobacco property by natural disaster, error in calculations, and overpayment of taxes.

We understand that the tax refund process for e-cigarette and vapor taxes is not simple. In fact, they are confusing even for most experienced tax professional, but we deal specifically with e-cigarette, vapor, and tobacco tax refunds every single day. We know the administrative procedures inside and out, from the paperwork to how to approach your state's tax authorities. We work hard to make sure you are able to put money back into your business.

We can help you through the refund process by:

     Reviewing all your pertinent tax returns and information to determine if you are due a refund

     Gathering and filing all the necessary paperwork

     Communicating with the respective state agency to finalize your refund claim

We are ready to represent clients all across the U.S. Our team of tax professionals has an in-depth understanding of each state's cigar tax laws and refund procedures. Trust in our over 50 years of collective experience and over millions of dollars in refunds recovered for our clients.

 

 

CONTACT US TO DISCUSS YOUR CASE

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