I don't know about this but I do know that I never heard of a single retailer being prosecuted for NOT complying with the Jenkins Act law to report their internet cigarette sales. The states were not interested in the law--they were interested in the taxes. Individuals not paying the taxes were caught by the State subpoenas of the cigarette sales records of the retailer. The on-line retailer probably never heard of the Jenkins Act as it is something dragged out from the 40's. Does that ignorance make him any more worthy of a pass by the law? It is all a bunch of crap anyway. We should be able to do the same as business and government do. Get the most from our money where ever it takes us with no penalties.