SECTION 3401.—DEFINITIONS [COLLECTION OF INCOME TAX AT SOURCE ON WAGES] Rev. Rul. 59-236 26 CFR 31.3401(a)-1: Wages (Also Sections 3121, 3306; 31.3121(a)-1, 31.3306(b)−1.) Amounts paid by an employer to or on behalf of a newly hired employee for the expenses incurred by such employee in moving himself, his family and household goods to the new place of employ. ment are, under the circumstances, "wages" for Federal employment tax purposes and for purposes of the withholding of income tax at source on wages. Rev. Rul. 55-140, C.B. 1955-1, 317, amplified. Advice has been requested relative to the treatment, for Federal employment tax purposes and for purposes of the withholding of income tax, of amounts paid by an employer to or on behalf of a newly hired employee for the expenses incurred by such employee in moving himself, his family and household goods under the circumstances set forth below. The M manufacturing corporation with headquarters in the State of New York, hired a new employee living with his family in California. In accordance with its usual practice, the corporation agreed to pay a fixed-rate mileage allowance to its new employee to cover the cost of travel by automobile from the employee's former residence to the headquarters city of the corporation. If the employee preferred to travel with his family by air, the corporation would reimburse him for the cost of the air travel. The employee could have his household goods moved at his own expense and then seek reimbursement or he could have the move made by one of certain specified moving companies located in the headquarters city of the corporation, whereupon the corporation would pay the cost of such move directly to the moving company. Section 3401(a) of the Internal Revenue Code of 1954, relating to the Collection of Income Tax at Source on Wages (chapter 24, subtitle C, Internal Revenue Code of 1954), defines the term "wages," with exceptions not here material, as all remuneration for services performed by an employee for his employer, including the cash value of all remuneration paid in any medium other than cash. Revenue Ruling 55-140, C.B. 1955-1, 317, holds that expenses incurred by an employee in moving his family and household goods from one locality to another where he had accepted a new employment with another employer are nondeductible expenses and that allowance or reimbursements received from the new employer for such expenses must be included in gross income. In United States v. Sherrill O. Woodall, et al., 255 Fed. (2d) 370, certiorari denied, 358 U.S. 824, the court held, in effect, that amounts received by two employees as reimbursement for the costs of moving themselves and their families from Texas and Kentucky to their place of new employemnt in New Mexico, were compensation for personal services and therefore includible in gross income. Revenue Ruling 54-429, C.B. 1954-2, 53, insofar as material here, concludes that there is no essential difference between the payment of a moving cost directly by the employer and the payment of such cost Similarly, such amounts constitute "wages" for purposes of the taxes under the Federal Insurance Contributions Act and the Fed- eral Unemployment Tax Act (chapters 21 and 23, respectively, sub- TITLE 26-INTERNAL REVENUE, 1954.-CHAPTER I, SUBCHAPTER E, PART 296.— MISCELLANEOUS REGULATIONS RELATING TO TOBACCO MATERIALS, TO- BACCO PRODUCTS, AND CIGARETTE PAPERS AND TUBES Interim regulations for taxpayment of cigars, cigarettes, and manufactured tobacco by return OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To Officers and Employees of the Internal Revenue Service and In order to provide for taxpayment of cigars, cigarettes, and manu- factured tobacco by return, the interim regulations designated as Sub- part E of 26 CFR Part 296 (§§ 296.101 through 296.128) are prescribed pursuant to the Internal Revenue Code of 1954 (Title 26 U.S.C.), as amended by Public Law 85-859 [72 Stat. 1275] [C.B. 1958–3, 92]. Subpart E-Interim Regulations for Taxpayment of Cigars, Cigarettes, and Section 296.106 Information to be shown on the semimonthly return of manufacturer. 296.107 Adjustments in the semimonthly return of manufacturer. 296.108 Time of filing of semimonthly return by manufacturer. 296.109 Return of importer. 296.110 Return of importer prior to importation from Puerto Rico. 296.111 Return of proprietor of customs bonded manufacturing warehouse, class 6. 296.125 Method of taxpayment of forfeited, condemned, or abandoned tobacco products. 296.126 Customs' collection of internal revenue taxes on certain importations of tobacco products. 296.127 Importation of packages of tobacco products stamped prior to June 24, 1959. 296.128 Accounting for and disposition of unaffixed stamps. § 296.101 SCOPE OF THIS SUBPART.-The regulations in this subpart prescribe temporary rules for the payment by manufacturers and importers of the internal revenue tax with respect to tobacco products, and temporary procedures relating thereto. Any provisions or requirements contained in Parts 270 and 275 of this chapter, and 26 CFR (1939) Parts 141 and 451, are hereby superseded to the extent that they are inconsistent with or in conflict with the provisions or requirements of this subpart. $296.102 FORMS PRESCRIBED.-The Director is authorized to prescribe all forms required by this subpart. All of the information called for in each form shall be furnished, as indicated by the headings on the form and the instructions thereon or issued in respect thereto, and as required by this subpart. DEFINITIONS § 296.103 MEANING OF TERMS.-When used in this subpart and in forms prescribed under this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms "includes" and "including" do not exclude things not enumerated which are in the same general class. Assistant regional commissioner.-An assistant regional commissioner (alcohol and tobacco tax) who is responsible to, and functions under the direction and supervision of, a regional commissioner. Business day. Every day except Saturday, Sunday, or a legal holiday of the District of Columbia or any statewide legal holiday of the State in which the return is required to be filed. Cigar. Any roll of tobacco wrapped in tobacco. Cigarette.-Any roll of tobacco, wrapped in paper or any substance other than tobacco. Determined or determination.-When used with respect to the tax on tobacco products, shall mean that the quantity, kind, and class of tobacco products to be removed subject to tax have been established as prescribed by this chapter so that the tax payable with respect thereto may be calculated. Director. The Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington, D.C. District director.-A district director of internal revenue. Factory.-The premises of a manufacturer of tobacco products as described in his permit issued under Chapter 52, I.R.C. Importer.-Any person in the United States to whom nontaxpaid tobacco products manufactured in a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States are shipped or consigned; any person who removes cigars for sale or consumption in the United States from a customs bonded manufacturing warehouse; and any person who smuggles or otherwise unlawfully brings tobacco products into the United States. I.R.C.-The Internal Revenue Code of 1954. Internal revenue officer.-An officer or employee of the Treasury Department duly authorized to perform any function relating to the administration or enforcement of this part. Manufactured tobacco.-Tobacco (other than cigars and cigarettes) prepared, processed, manipulated, or packaged, for removal, or merely removed, for consumption by smoking or for use in the mouth or nose, and any tobacco (other than cigars and cigarettes), not exempt from tax under Chapter 52, I.R.C., sold or delivered to any person contrary to the provisions of such chapter or regulations thereunder. Manufacturer of cigars and cigarettes.-Any person who manufactures cigars or cigarettes. The term "manufacturer of cigars and cigarettes" shall not include a person who produces cigars or cigarettes solely for his own personal consumption or a proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse. Manufacturer of tobacco.-Any person who prepares, processes, manipulates, or packages, for removal, or merely removes, tobacco (other than cigars and cigarettes) for consumption by smoking or for use in the mouth or nose, or who sells or delivers any tobacco (other than cigars and cigarettes) contrary to the provisions of Chapter 52, I.R.C., or regulations thereunder. The term "manufacturer of tobacco" shall not include (a) a person who in any manner prepares 509569-59-3 tobacco solely for his own personal consumption or use; (b) a proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse; (c) a farmer or grower of tobacco with respect to the sale of leaf tobacco of his own growth or raising, if it is in the condition as cured on the farm; or (d) a bona fide association of farmers or growers of tobacco with respect to sales of leaf tobacco grown by farmer or grower members, if the tobacco so sold is in the condition as cured on the farm, and if the association maintains records of all leaf tobacco, acquired or received and sold or otherwise disposed of, in accordance with Part 280 of this chapter. Manufacturer of tobacco products.-Any person who manufactures cigars or cigarettes, or who prepares, processes, manipulates, or packages, for removal, or merely removes, tobacco (other than cigars and cigarettes) for consumption by smoking or for use in the mouth or nose, or who sells or delivers any tobacco (other than cigars and cigarettes) contrary to the provisions of Chapter 52, I.R.C., or regulations thereunder. The term "manufacturer of tobacco products" shall not include (a) a person who in any manner prepares tobacco, or produces cigars or cigarettes, solely for his own personal consumption or use; (b) a proprietor of a customs bonded manufacturing warehouse with respect to the operation of such warehouse; (c) a farmer or grower of tobacco with respect to the sale of leaf tobacco of his own growth or raising, if it is in the condition as cured on the farm; or (d) a bona fide association of farmers or growers of tobacco with respect to sales of leaf tobacco grown by farmer or grower members, if the tobacco so sold is in the condition as cured on the farm, and if the association maintains records of all leaf tobacco, acquired or received and sold or otherwise disposed of, in accordance with Part 280 of this chapter. Package. The container in which tobacco products are put up by the manufacturer or importer and offered for sale or delivery to the consumer. Person.-An individual, partnership, association, company, corporation, estate, or trust. Region. An area, designated by the Secretary or his delegate, comprising the geographical jurisdiction of a regional commissioner of internal revenue. Removal or remove.-The removal of tobacco products from the factory or release from customs custody, including the smuggling or other unlawful importation of such articles into the United States. Tobacco products.-Manufactured tobacco, cigars, and cigarettes. U.S.C.-The United States Code. TAXES § 296.104 DETERMINATION OF TAX AND METHOD OF PAYMENT.-EXcept for removals without payment of tax and transfers in bond, as authorized by law, no tobacco products shall be removed until the tax thereon imposed by section 5701, I.R.C., has been determined. The payment of taxes on tobacco products which are removed on determination of tax shall be made by return in accordance with the provisions of this subpart. (72 Stat. 1417; 26 U.S.C. 5703) |