TTB authorized use of online filing system for tobacco SOT

Jun 22, 2020
Jun 22, 2020
0 min. read
Excise tax consulting

Tobacco proprietors must file their special occupation tax by June 30

On June 19, the Alcohol and Tobacco Tax and Trade Bureau (TTB) announced the launch of a new online filing process for tobacco taxpayers to file their special occupation tax (SOT). The filing system is accessed through the TTB’s Permits Online page and requires a user account and signing authority to file. 

Every manufacturer of tobacco products, cigarette papers and tubes and proprietors of tobacco export warehouses, must pay the SOT associated with its activity. The tax rate is $1000 per year, with a reduced tax rate of $500 per year for taxpayers who meet the definition of small proprietors. The tax is due on or before the date the taxpayer begins its business and then every June 30 thereafter. Prior to the launch of the online filing process, the return was required to be paper filed. 

Washington National Tax observations

The new simplified, streamlined online filing process of the SOT will be welcomed by taxpayers. The launch of the online tool serves as a reminder of the upcoming June 30 filing deadline of the SOT for affected taxpayers. Taxpayers who are not sure of their tax liability should contact their tax advisor to determine if they are liable for the tax and for what amount. 

RSM contributors

Subscribe to RSM tax newsletters

Tax news and insights that are important to you—delivered weekly to your inbox