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Industry Circular

Number: 55-8
Date: April 26, 1955

U.S. TREASURY DEPARTMENT
Internal Revenue Service
Washington 25, D.C.

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Requirements for the Procurement of Tax-free Alcohol and Specially Denatured Alcohol by Agencies of the United States

Federal agencies authorized to procure and use tax-free alcohol and specially denatured alcohol:

1. The attached statement of "Excerpts from the Regulations in Part 182 of the 1954 Code of Federal Regulations, Relating to the Procurement and Use of Alcohol, Free of Tax, by the United States and Governmental Agencies Thereof," is transmitted herewith for your information and guidance in procuring necessary supplies of tax-free alcohol and specially denatured alcohol.

2. It is suggested that each branch, office or installation of your agency concerned with the procurement of tax-free alcohol (undenatured ethyl alcohol) or specially denatured alcohol be furnished a copy of this circular and the excerpts from our regulations. The regulations in Part 182 of the 1954 Code of Federal Regulations relating to the procurement of tax-free alcohol and specially denatured alcohol by the United States or governmental agencies thereof do not differ materially from those appearing in Part 182 of the 1939 Code of Federal Regulations (identified as Regulations 3) and therefore do not affect existing permits and authorizations.

3. Applications on Form 1444, in triplicate, for the procurement of tax-free alcohol and applications on Form 1486 in triplicate, for the procurement of specially denatured alcohol are required to be filed directly with the Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington 25, D. C. Each application, in triplicate, must be signed by the head of the department, or independent bureau or agency, or by some person duly authorized by him to sign such applications. Attention is also called to the fact that evidence of such authority for other persons to sign must be filed with the Director. Failure to have such authorization on file has in some instances resulted in the necessity for return of the application and delay in the issuance of the permit.

4. Where it is desired that the permit issued on Form 1444 or Form 1486 be furnished directly to the vendor named in the application request therefor should be made by the agency applicant otherwise the permit will be forwarded to the agency for transmission by it to the vendor. If the agency desires a copy of the permit for its records where the original is to be forwarded directly by us to the vendor it should prepare the application in quadruplicate rather than in triplicate.

5. This Service desires to issue the permits promptly. It will greatly aid in this situation therefore if care is taken in preparing the application to specify the name of the vendor and the registry number and location of the industrial alcohol plant or bonded warehouse in the case of applications for tax-free alcohol, Some applications have specified the-principal office of the vendor rather than the location of the plant which has necessitated return of the application. Similar care should be taken in the case of applications prepared for specially denatured alcohol.

6. Attention is also called to the fact that a permit on Form 1444 or Form 1486 may not be amended for change in location of the vendor or for any other purpose. New application and permit are required in such cases.

7. Permits no longer required should be returned to this Service for cancellation.

8. Additional copies of this circular and attachments, in limited quantities, and necessary copies of Forms 1444 and 1486 will be available upon request.

9. Inquiries concerning this industry circular should refer to the number thereof and to the symbols 0:AT:PPt.

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Dwight E. Avis,
Director, Alcohol and Tobacco Tax Division.

Attachment

EXCERPTS FROM THE REGULATIONS IN PART 182 OF THE 1954 CODE OF FEDERAL REGULATIONS, RELATING TO THE PROCUREMENT AND USE OF ALCOHOL, FREE OF TAX, BY THE UNITED STATES AND GOVERNMENTAL AGENCIES THEREOF.

UNITED STATES OR GOVERNMENTAL AGENCY TO PROCURE TAX-FREE ALCOHOL

Sec. 182.171 Application, Form 1444.. Alcohol may be withdrawn tax-free by the United States, or any governmental agency thereof, upon filing application Part I of Form 1444, "Application by the United States or Governmental Agency for Permit to Procure Alcohol Free of Tax," and issuance of permit therefor. The Form 1444 shall be executed in triplicate and forwarded direct to the Director, Alcohol and Tobacco Tax Division. The application must state the name of the department or independent bureau or agency, and the name of the proprietor of the industrial alcohol plant or bonded warehouse, the registry number and location thereof, from which alcohol will be withdrawn tax-free. (68A Stat. 655; 26 U.S.C. (I.R.C.) 5304)

Sec. 182.172 Signing of Application. The application shall be signed by the head of the department or independent bureau or agency to which such tax-free alcohol is to be shipped, or by some other person duly authorized by such head of a department or independent bureau or agency. Evidence of such authority shall be furnished the Director, Alcohol and Tobacco Tax Division.

UNITED STATES OR GOVERNMENTAL AGENCY TO PROCURE SPECIALLY DENATURED ALCOHOL

Sec. 182.173 Application, Form 1486. Specially denatured alcohol may be withdrawn by the United States or any governmental agency thereof upon filing application on Part I of Form 1486, "Application by the United States or Governmental Agency for Permit to Procure Specially Denatured Alcohol," and issuance of permit therefor. The Form 1486 shall be executed in triplicate and forwarded direct to the Director, Alcohol and Tobacco Tax Division. The application must state the name of the department or independent bureau or agency and the name of the proprietor of the denaturing plant or of the bonded dealer from whom the specially denatured alcohol is to be purchased. (68A Stat. 655; 26 U.S.C. (I.R.C.) 5304)

Sec. 182.174 Signing of Application. The application shall be signed by the head of the department or independent bureau or agency to which such specially denatured alcohol is to be shipped, or by some other person duly authorized by such head of a department or independent bureau or agency. Evidence of such authority shall be furnished the Director, Alcohol and Tobacco Tax Division.

GENERAL

Sec. 182.229 Limitations under permit.

(b) Permit to Procure Alcohol Free of Tax by the United States or Governmental Agency Thereof, Form 1444. Permits on Form 1444 will not limit the quantity of alcohol authorized to be procured. Such permits, however, shall name the proprietor of the industrial alcohol plant or bonded warehouse, the number and location thereof, from which alcohol, free of tax, shall be procured. If it is desired to procure alcohol from more than one industrial alcohol plant or bonded warehouse a separate permit must be procured, authorizing withdrawal from each such plant or warehouse.

(f) Permit to Procure Specially Denatured Alcohol by the United States or Governmental Agency, Form 1486.The quantity of specially denatured alcohol which may be withdrawn by the United States or governmental agency will not be limited.

APPLICATION BY UNITED STATES OR GOVERNMENTAL AGENCY

Sec. 182.306 Issuance of permit. Upon receipt of an application on Form 1444 or Form 1486 from the United States or governmental agency thereof for permit to use alcohol free of tax or specially denatured alcohol, as the case may be, if approved by the Director, Alcohol and Tobacco Tax Division, he will issue permit on Part II of the Form 1444 or Form 1486, as the case may be. Basic permits, Form 1444 or Form 1486, shall be numbered serially according to the class of permit in the order of issuance. The serial number of permits, Form 111A-4, shall be preceded by the symbol "US-TF," and permits, Form 1486, shall be preceded by the symbol "US-SDA." The original copy of the Form 1444 or Form 1486 shall be forwarded to the department, bureau, office, or other agency of the United States making application for the permit. One copy will be retained by the Director, Alcohol and Tobacco Tax Division, for his files, and the remaining copy shall be forwarded to the assistant regional commissioner of the region in which the industrial alcohol bonded warehouse, denaturing plant, or dealer in specially denatured alcohol named as vendor in the application, is located. (68A Stat. 655, 658; 26 U.S.C. (I.R.C.) 5304, 5310)

TAX-FREE WITHDRAWAL BY THE UNITED STATES OR GOVERNMENTAL AGENCY

Sec. 182.580 General. Alcohol may be withdrawn from any industrial alcohol plant or bonded warehouse tax-free for the use of the United States or any governmental agency thereof, pursuant to permit issued on Form 1444. (68A Stat. 658; 26 U.S.C. (I.R.C.) 5310)

Sec. 182.581 Permit, Form 1444. The proprietor of the warehouse may not ship alcohol to the United States or governmental agency thereof unless he is named as vendor in the basic permit, Form 1444, and such permit is in his possession. The permit may remain in the possession of the proprietor of the bonded warehouse until it is cancelled or is recalled by the department or governmental agency to which issued. (68A Stat. 655, 658; 26 U.S.C. (I.R.C.) 5304, 5310)

Sec. 182.582 Gauge of alcohol. The proprietor will gauge each package of alcohol withdrawn tax,-free, unless withdrawn on the original gauge, and prepare Form 1440, in triplicate, giving the details of such gauge. he shall prepare one copy of Form 1453. He will indicate on the form, in the space provided, the address of the assistant regional commissioner of the region in which the bonded warehouse is located. The packages shall be marked in accordance with sections 182.518182.526. The proprietor will deliver the forms to the storekeepergauger who will check them with the records and the permit and if found to agree therewith he will initial them. Upon shipment of the alcohol, he will send one copy of Form 1440 to the assistant regional commissioner of the region in which the warehouse is located, one copy each of Forms 1440 and 1453 to the consignee and give the remaining copy of Form 1440 to the proprietor for filing in accordance with section 182.643h. Upon receipt of the alcohol by the United States or governmental agency thereof Forms 1440 and 1453 will be disposed of in accordance with section 182.898. (68A Stat. 658; 26 U.S.C. (I.R.C.) 5310)

Sec. 182.583 Bill of lading. Where the alcohol is transported from the bonded warehouse by a common carrier, the person to whom the alcohol was delivered for shipment shall furnish a copy of the bill of lading covering transportation of the alcohol from the point of shipment to final destination to the storekeeper-gauger, who will forward the same to the assistant regional commissioner with Form 1440.

Sec. 182.584 Notice and receipt of shipment, Form 1453.At the time of shipping alcohol tax-free to the United States or governmental agency thereof, Form 1453 will be prepared and disposed of in accordance with section 182.582. Upon receipt of the alcohol by the United States or governmental agency thereof, Form 1453 will be disposed of in accordance with section 182.898. (68A Stat. 658; 26 U.S.C. (I.R.C.) 5310)

WITHDRAWAL OF SPECIALLY DENATURED ALCOHOL

Sec. 182.754d United States or governmental agency; withdrawal permit, Form 1486. Specially denatured alcohol may be shipped to the United States or governmental agencies thereof upon receipt of permit, Form 1486, issued by the Director, Alcohol and Tobacco Tax Division, in accordance with section 182.173. Form 1453-A shall be prepared and disposed of as provided in section 182.785. (68A Stat. 655, 658, 661; 26 U.S.C. (I.R.C.) 5304, 5310, 5331)

RECORDS AND REPORTS OF PROPRIETOR

Sec. 182.785 Form 1453-A. When specially denatured alcohol is shipped to the United States or a governmental agency thereof, the proprietor of the denaturing plant will prepare Form 1453-A, in quadruplicate. Where shipment is made in a tank truck the date required by section 182.754b or section 182.754c, as the case may be, to be entered on Form 1473 will be entered on Form 1453-A for such transaction. The proprietor will mail two copies of Form 1453-A to the consignee, except in the case of tank truck shipments, when he will enclose one copy in a sealed envelope addressed to the Government officer to whom the specially denatured alcohol is consigned and give the same to the driver of the tank truck for delivery to such officer. He will forward a copy of Form 1453-A to the assistant regional commissioner of the region in which the consignor's premises are located. He will retain the remaining copy for filing in accordance with section 182.788. Upon receipt of the specially denatured alcohol, the receiving Government officer will execute the certificate of receipt on Forms 1453-A, after noting thereon any loss or deficiency in the shipment, and will forward one copy to the assistant regional commissioner specified at the bottom of the form and retain the other copy for his records.

TAX-FREE ALCOHOL

Sec. 182.897 Procurement of alcohol. Alcohol may be withdrawn tax-free by the United States or any governmental agency thereof, upon filing of application and the issuance of permit therefor on Form 1444, in accordance with section 182.171. Upon issuance of permit, Form 1444, by the Director, Alcohol and Tobacco Tax Division, to the United States or governmental agency thereof, the department, bureau, commission, or independent office or agency may procure alcohol free of tax in any quantity desired from the proprietor of the industrial alcohol plant or bonded warehouse named as vendor in such permit. The permit shall be forwarded to the vendor named therein by the department or agency to which the permit is issued. The vendor will enter thereon the number of proof gallons transferred to the permittee, date and sign the same, and return the permit to the consignee. Further like transfers may be made under such permit during the term thereof: Provided, That the permit may remain in the possession of the vendor until the expiration thereof or until it is recalled by the department or agency to which issued. When it is desired to secure alcohol from more than one industrial alcohol plant or bonded warehouse, such additional permit or permits as may be necessary may be obtained. (68A Stat. 655, 658; 26 U.S.C. (I.R.C.) 5304, 5310)

Sec. 182.898 Receipt, Form 1453. Receipts of shipment of alcohol withdrawn tax-free for use of the United States or governmental agency thereof shall be made on Part II of Form 1453, when received from the proprietor of the plant or warehouse. The receipt of such shipment shall be promptly certified to on Form 1453 by the official or representative of the United States or governmental agency thereof to whom deliveries of such shipments are made and will be forwarded to the assistant regional commissioner of the region in which the plant or bonded warehouse is located as indicated at the bottom of the form. Such certificates of receipt shall disclose the quantity actually received in order that the same may be checked against the returns of the proprietor of the plant or bonded warehouse making the shipment. The copy of Form 1440 will be filed available for inspection by internal revenue officers. (68A Stat. 655, 658; 26 U.S.C. (I.R.C.) 5304, 5310)

Sec. 182.899 Use. Tax-free alcohol withdrawn under the provisions of law and the regulations in this part for use of the United States or governmental agency must be used solely for nonbeverage purposes. (68A Stat. 655, 658; 26 U.S.C. (I.R.C.) 5304, 5310)

Sec. 182.900 Destruction of marks and brands. When an original package of alcohol has been completely emptied all of the marks and brands required to be placed thereon by law and the regulations in this part shall be completely effaced or obliterated by painting, scraping, or otherwise. (See sections 182.533 to 182.536, inclusive.) (6$A Stat. 603, 690; 26 U.S.C. (I.R.C.) 5010, 5636)

Sec. 182.901 Carrier's receipt. The person or carrier transporting tax-free alcohol to any department or agency of the United States Government is required to procure a receipt from such department or agency, which receipt shall show the name and address of the consignor and consignee, the quantity of alcohol in the shipment, the date of delivery and the name of the person receiving the alcohol as agent for the consignee.

SPECIALLY DENATURED ALCOHOL

Sec. 182.902 Procurement of specially denatured alcohol. Specially denatured alcohol may be withdrawn by the United States or governmental agency thereof, upon filing of application and the issuance of permit therefor on Form 1486, in accordance with section 182.173. Upon issuance of permit on Part II of Form 1486, in accordance with the provisions of section 182.226 by the Director, Alcohol and Tobacco Tax Division, the permit shall be forwarded by the Government department, bureau, commission, or independent office or agency to the denaturer or bonded dealer from whom the specially denatured alcohol is to be obtained and will be the authority of such denaturer or bonded dealer to make shipment. The vendor shall enter the quantity and formula number shipped and sign the permit at the time shipment is made. After shipment has been made the

permit shall be returned to the proper department or office for use in obtaining further supplies when necessary. (68A Stat. 655, 658; 26 U.S.C. (I.R.C.) 5304, 5310)

Sec. 182.903 Receipt, Form 1453-A. Upon receipt of a shipment of specially denatured alcohol, the Government officer receiving the same shall execute certificate of receipt on Part II of Form 1453-A, received from the denaturer or bonded dealer, and will promptly forward the form to the assistant regional commissioner of the region in which the denaturing plant or bonded dealer is located, as specified at the bottom of the form. (68A Stat. 655, 658; 26 U.S.C. (I.R.C.) 5304, 5310)

Sec. 182.909 Delivery. (a)By shipper to carrier. The consignor will be responsible for proper delivery of tax-free or specially denatured alcohol, or of undenatured alcohol for transportation in tank trucks, to a carrier holding a basic permit to transport.

(b)By carrier to the United States or governmental agency. Where tax-free or specially denatured alcohol is shipped to any department, bureau, commission, or independent office or agency of the United States Government, the same may be delivered by the carrier transporting the alcohol or denatured alcohol without the necessity of receiving copy of permit to procure such alcohol.

(1)Receipt required. In such cases, however, the person transporting the tax-free or specially denatured alcohol shall procure a receipt from the consignee, which receipt shall show the name and address of the consignor and the consignee, the quantity of alcohol or specially denatured alcohol in the shipment, the date of delivery and the name of the person receiving the alcohol as agent for the consignee.

(2) Filing of receipt. The receipt shall be filed by the carrier in the file or binder containing copies of withdrawal permits covering other deliveries of tax-free or specially denatured alcohol. (68A Stat. 595, 655, 657; 26 U.S.C. (I.R.C) 5001, 5304, 5308)

IRS-9638

 
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