Proposed Amendment of 26 CFR Part 194, Liquor
Dealers, as Applicable to Records Kept by
Wholesale Dealers in Distilled Spirits
Wholesale Dealers in Liquors and Others Concerned:
1. This circular is being issued to provide information to
wholesale dealers in liquors concerning the effects of a Treasury
decision amending the Liquor Dealers regulations (26 CFR Part 194)
as indicated in a notice of proposed rulemaking published in the
Federal Register on August 9, 1955. It is hoped that the Treasury
decision may be issued in sufficient time to become effective on
October 1, 1955 to permit dealers to change over to the new system
of recordkeeping and reporting prior to their seasonal upswing in
business. Consequently, it is felt that the major changes should
be publicized in advance to permit an orderly transition from the
old to the new methods of recordkeeping and reporting.
2. Under the amendments of the regulations, as proposed when
the Treasury decision becomes effective, you as a wholesale dealer
in liquors must:
(A) Prepare, daily, commercial records of the physical receipt
and disposition of distilled spirits and a recapitulation record
showing the total wine gallons of distilled spirits received and disposed of during the day. No specific form of record has been devised.
Each dealer may devise his own method of keeping the prescribed commercial records of receipt and disposition on the basis of the requirements of the Treasury decision. The record of receipt prescribed
by the Treasury decision shall show (a) name and address of the consignor, (b) date of receipt, (c) brand name, (d) name of producer or
bottler, (e) kind of spirits, except that this may be omitted if the
dealer keeps available for inspection a separate list or record
identifying "kind" with the brand name, (f) quantity actually received
(showing number of packages, if any, and number of cases by size of
bottle, and explaining any shortage, breakage, leakage, or other
difference from the quantity shown on the commercial papers covering
the shipment), and (g) serial numbers of packages and cases, unless
such serial numbers are available on the consignor's invoice or
attachment thereto. The prescribed record of disposition shall how (a) name and address of consignee, (b) date of disposition, (c) kind
of spirits, except that this may be omitted if the dealer keeps
available for inspection a separate list or record identifying "kind"
with the brand name, (d) brand name, (e) number of packages, if any,
and number of cases by size of bottle, and (f) serial numbers of the
cases or packages, unless such serial numbers are shown on commercial
papers attached thereto.
(B) Prepare and submit, on Forms 52A and 52B, daily or periodic)
reports, prepared from your prescribed commercial records, of the
physical receipt and disposition of distilled spirits, unless you are
relieved of this requirement by your assistant regional commissioner,
Alcohol and Tobacco Tax, pursuant to an application filed by you.
Any dealer who desires to be so relieved should file such application
as soon as possible, preferably by October 1, 1955.
(C) Submit a monthly report on Form 338, on or before the 10th
day of the following month, showing the total wine gallons of distilled spirits (a) on hand at the beginning of the month, (b) received during the month, (c) disposed of during the month, and (d)
remaining on hand at the end of the month.
3. In the event that you should wish to establish and maintain,
as your prescribed commercial record, a book record of receipts and
dispositions, by using Forms 52A for receipts and Forms52B for
dispositions, you may do so provided these forms are modified by you
to include a column, in each, for the brand names of the distilled
spirits received and disposed of. Column 6 on each form may be used
for that purpose. However, if you are using mechanical office
equipment for posting Forms 52A and 52B and there is no immediate
provision for recording brand names thereon and you desire to
continue using such forms and equipment you may then file a letterhead application (in duplicate) with your assistant regional commissioner before October 1, 1955 requesting temporary permission to
dispense with listing brand names on the forms posted by machine
provided your application shows that you will provide a suitable
system for keying or cross referencing entries on the forms so
that they may be traced to particular invoices of purchase or sale
Which will show the brand names.
4. Should any of you desire to continue the present system
of entering receipts and dispositions of distilled spirits in
Record 52 you may do so without any further action on your part,
provided you modify the Record 52 to reflect the brand names of
the spirits reported therein, However, the filing of periodic
reports on Forms 52A and 52B will be unnecessary where the assistant
regional commissioner has, pursuant to application, relieved you of
that requirement Where any of you desire to continue maintaining
Record 52 and encounter mechanical problems of posting brand names,
the procedure suggested in paragraph 3 may be followed.
5. You will not be required to maintain records or render
reports with regard to transactions in distilled spirits warehouse
receipts or third party transactions after the effective date of the
6. A copy of the Treasury decision will be furnished you,upon
application,by your assistant regional commissioner, Alcohol and
Tobacco Tax, as soon as copies are available for distribution,
7. Inquiries concerning this industry circular should refer
to the number thereof and to the symbols O:AT:PP:R.
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division