Ruling 56-690

Rev. Ruling 56-690

Termination of Basic Permit

Section 1.44 of the Regulations relating to Basic Permit Requirements under the Federal Alcohol Administration Act provides, in part, that if any basic permit is transferred by operation of law or if actual or legal control of the permittee is acquired, directly or indirectly, then such permit shall be automatically terminated at the expiration of a period of 30 days unless within that 30 days an application for a new basic permit is made. Held, the withdrawal of one or more members of a partnership, whether active or silent, constitutes a change in legal control and necessitates the filing of an application for a new basic permit under the Federal Alcohol Administration Act and regulations, even though the remaining partner or partners may continue to conduct the business under the same special tax stamp pursuant to the Regulations relating to Liquor Dealers.

27 U.S.C. 204; 27 CFR 1.44