Floor Stocks Tax Refunds
A BILL ON MARCH 17, 1955 WAS BEING CONSIDERED BY A HOUSESENATE CONFERENCE COMMITTEE WHICH WOULD CONTINUE THE PRESENT
RATES OF TAX ON LIQUORS. IF SUCH PROPOSED LEGISLATION BECOMES
LAW ON OR BEFORE APRIL 1, THE INSTRUCTIONS SET FORTH BELOW WILL
NOT APPLY SINCE THERE WOULD BE NO CHANGE IN TAX RATES AND THEREFORE NO REFUNDS.
To Wholesale Liquor Dealers, Retail Liquor
Dealers, and Others Concerned:
Are you eligible for a tax refund? YES! IF on April 1,1955 you hold
taxpaid distilled spirits, imported perfumes containing distilled spirits,
beer, or wines for sale (or for use in the manufacture or preparation of
nonbeverage products), and comply with requirements described herein.
How much will the refund be? AMOUNTS VARY-Refunds are authorized
on fully taxpaid articles as follows:
||Amount of Refund
|| $ 1.50
|Imported perfumes containing distilled spirits
| Wines containing not more than
14 percent alcohol by volume
|Wines containing more than 14
percent but not exceeding
21 percent alcohol by volume
|Wines containing more than 21
percent but not exceeding
24 percent alcohol by volume
|Champagne and other sparkling
|Artificially carbonated wines
What must you do? TWO THINGS MUST BE DONEFIRST, at the close of
business on March 31,1955, take an inventory of all articles on which you
desire to claim floor stocks tax refund and SECOND, file such inventory with
a claim for refund with the Assistant Regional Commissioner, Alcohol and
How do you prepare your inventory? Inventory reports must be prepared
as indicated by the instructions in the attachment to this circular.
Short-cuts 1. Kinds of spirits may be abbreviated; "brandy" as "B"
"gin" as "G", etc, 2. Where serial numbers of a group of cases run consecutively, it will be sufficient to report the first and last numbers,
separated by a hyphen. 3. You may group your distilled spirits items by
proof if you like, using one or more pages for each proof, IF you group the
items by proof, you need only total the wine gallons on each sheet so used
and then convert that one figure to proof gallons. This saves converting to
proof gallons for each item.
Where do you get the claim form? From the Assistant Regional Commissioner, Alcohol and Tobacco Tax, of the internal revenue region in which you
are located on or after April 15, 1955. You must retain the duplicate copy
of Form 2163 at the address shown on the claim. The duplicate copy of each
inventory will be retained at the place of business for which the inventory
is prepared. These duplicate copies must be available for inspection by any
internal revenue office until April 1,1957.
When must the claim be filed? Not later than May 1,1955 or within
thirty days from the effective date of regulations issued pursuant to section
5063, Internal Revenue Cede of 1954, whichever is the later. Claim and inventory reports must be filed with the Assistant Regional Commission, Alcohol and Tobacco Tax, in the internal revenue region in which you are located.
Claimants holding two or more classes of articles (i.e. distilled spirits,
wine, beer, etc.)may wish to file claims for refund only on one or more classes
of articles. Inventories are not required for those articles which are not to
be made the subject of a claim for refund.
Manufacturers of nonbeverage products may not claim refund on spirits
used, as defines in part 197 of Title 26 of the Code of Federal Regulations,
or which have been rendered unit for beverage use, in the manufacturing of
nonbeverage products. Spirits recovered in the maufacture of nonbeverage
products eligible for drawback are not subject to floor stocks tax refund.
Spirits held in process, not yet used or eligible for refund as set forth in
part 197, are eligible for floor stocks tax refund and must be identified as
to batch number, the name of the product being manufactured, and formula
number, if any.
Where can you receive help and additional instructions? Additional
information is available at the offices of Assistant Regional Commissioners,
Alcohol and Tobacco Tax, Supervisors in Charge of branch offices, Alcohol and
Tobacco Tax, or District Directors of Internal Revenue, Further, your trade
associations, suppliers, etc., have indicated willingness to aid you.
Dwight E. Avis,
Director, Alcohol and Tobacco Tax Division