SEMIMONTHLY TAX RETURNS
Proprietors of bonded wine cellars
and others concerned:
The purpose of this circular is to give you advance information
concerning changes being made in return periods, and the times for filing
returns, covering deferred payment of taxes by proprietors of bonded
A change is being made in the periods to be covered by semimonthly
returns for the deferred payment of taxes, so that each period will
fall wholly within a calendar month. A change is also being made so
that there may be a two-step increase in the period of time that the
payment of taxes may be deferred.
The change to the new return period system will be made by providing
a short transitional period which will run from September 24 through
September 30, 1965. Your return, with remittance, for this period must
be filed not later than October 5, 1965 (unless October 1, 4, or 5 is a
statewide legal holiday in your State).
After this transitional period, the return periods will run from the
first day of each month to the 15th day of that month, and from the 16th
day of each month to the last day of that month. Also, if you are
qualified for extended deferral, your returns, with remittances, for the
periods starting after September 30, 1965, and continuing through the
period ending June 30, 1966, may be filed as late as the 10th calendar
day after the close of each return period; and commencing with the
period starting after June 30, 1966, not later than the last day of the
return period next succeeding the period covered by the return. If you
are not qualified for extended deferral, your returns and remittances
must be filed as at present; that is, within three calendar days,
excluding Saturdays, Sundays, and holidays. In any case, however, the
new return periods will be followed beginning with the month of October.
IMPORTANT In the following material relating to extended
deferral you will find references to bonds on Form 2053 "in a penal
sum sufficient to cover the maximum tax which will be outstanding at
any one time." This reflects a change from present requirements for
computing the penal sum of such a bond, but only if you are qualified
for the extended deferral. In such case, your bond on Form 2053 must
be in an amount which will cover not only the tax during a return
period but also the tax incurred after the close of the return period
and before your return, with remittance, is filed.
If you wish to become qualified for extended deferral you should
be guided by whichever of the next three paragraphs describes your
present bond coverage.
A. If your present tax deferral bond on Form 2053 is not in
the maximum penal sum, and the penal sum is not sufficient to
cover the maximum tax which will be outstanding at any one time,
you must either file a new bond on Form 2053 or a strengthening
bond, so that your bond will be in a penal sum sufficient to
cover the maximum amount of tax that will be outstanding at any
one time, or will be in the maximum penal sum. If you file a
strengthening bond, you must also file a consent of surety to
extend the terms of the existing bond to cover the extended
B. If your present tax deferral bond on Form 2053 is in the
maximum penal sum, or in a penal sum sufficient to cover the
maximum tax which will be outstanding at any one time under
the extended deferral, you must either give a consent of
surety to extend the terms of the existing bond to cover the
extended deferral, or give a new bond.
C. If you have not given a tax deferral bond on Form 2053,
and the maximum tax which will be outstanding at any one time
will not exceed $100, you may use the extended deferral system
without giving either a new bond or a consent of surety.
The new regulations will not require you to file any additional
bonds or any consents of surety if you do not wish to utilize the
option of extended deferral.
Where qualification for extended deferral is to be accomplished
through the filing of a consent of surety, the consent may be made
retroactively effective to the beginning of a return period if it is
filed with, and approved by your assistant regional commissioner before
the expiration of the three-day filing time for that period. However,
if a new bond is filed it may not be made retroactive, and it must be
filed with and approved by your assistant regional commissioner before
the commencement of the first return period for which it is to be
These changes will be implemented by a Treasury decision which
will add a new Subpart X to the regulations in 26 CFR Part 170.
Inquiries regarding this circular should refer to its number and
should be addressed to the office of your Assistant Regional Commissioner,
Alcohol and Tobacco Tax.
Harold A. Serr
Director, Alcohol and Tobacco Tax Division