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Industry Circular

Number: 57-20
Date: July 22, 1957

Internal Revenue Service
Washington 25, D.C.


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To proprietors of industrial alcohol plants and warehouses, registered distilleries, fruit distilleries, internal revenue bonded warehouses, rectifiers and bottlers of distilled spirits, and others concerned:

Purpose. The purpose of this industry circular is to inform you of the Alcohol and Tobacco Tax Division's program presently planned in connection with H. R. 7125 85th Congress (Excise Tax Technical Changes Act of 1957) and to invite your participation in such program. The proposed bill was passed by the House of Representatives and has been referred by the Senate to its Finance Committee.

Liquor Regulations Program. The enactment of the proposed law will require new regulations concerning production and warehousing operations, since these operations in respect of industrial alcohol, beverage spirits, and wine spirits will be regulated under the same statutes. Extensive changes in the laws relating to rectifying and bottling of taxpaid distilled spirits and wines will require new regulations relating to these operations also. The present six regulations governing (1) the production, warehousing, and denaturation of industrial alcohol, (2) the production of distilled spirits at registered distilleries, (3) the production of wine spirits at fruit distilleries, (4) the warehousing of distilled spirits, (5) the bottling of taxpaid distilled spirits, and (6) the rectification of spirits and wines will be superseded probably by a single regulation, which will probably be known as "Distilled Spirits Plants" regulations. In addition, it will be necessary to revise all other regulations issued under chapter 51 of the Internal Revenue Code.

Industry Participation. The proposed legislation was evolved through the efforts and cooperation of the various segments of the industry and this Division. In the interest of continuing such cooperation, we are arranging for industry to participate in the development of the regulations, and are planning for a series of conferences with industry representatives. The subjects we have tentatively proposed for discussion at these conferences relate to the "Distilled Spirits Plants" regulations.

First conference. A conference was held July 10 and 11, to test whether sufficient benefit would derive to warrant a planned conference program. It was attended by those representatives of trade associations and industry whom we could contact on short notice, including the following:

Distilled Spirits Institute, Incorporated Kentucky Distillers Association League of Distilled Spirits Rectifiers, Inc. Manufacturing Chemists' Association, Inc. Wine and Spirits Wholesalers of America, Inc. Wine Institute

Plant security and construction and the closed distilling system were the subjects of discussion at that conference. We feel that all participants benefited from this conference and, therefore, we are arranging to hold conferences as often as possible and as long as they are necessary and practical.

Next conference. The next conference will be held for two days in Room 3313 of the Internal Revenue Building, Washington, D.C., beginning at 9:30 a.m., September 4, 1957. We understand that representatives of the above listed trade associations will attend this meeting.

Subjects for discussion. The subjects to be discussed are cistern room procedures, transfer in bond procedures, and production and warehousing records. Since our problem is the writing of new regulations rather than the revision of existing regulations, we would like you to approach this matter with the view that your suggestions will point to the requirements you consider should be in the regulations rather than the requirements of present regulations which you think should not be included. In other words, positive statements of your views, rather than negative statements concerning existing regulations, will be more helpful.

In the event you or your representative can attend the next conference we will be pleased to meet with you. We would like, however, for you to inform us as early as possible if you or your representative plan to attend, in order that any necessary space arrangements can be made.


Dwight E. Avis
Director, Alcohol and Tobacco Tax Division

IRS D. C. 30283

Industry Circular No. 57-20, Supp. No. August 15, 1957


Proprietors of industrial alcohol plants and warehouses, registered distilleries, fruit distilleries, internal revenue bonded warehouses, rectifiers and bottlers of distilled spirits, and others concerned:

You were advised, by Industry Circular No. 57-20, dated July 22, 1957, of this Division's planned regulations program in connection with H.R. 7125 85th Congress and that the next industry conference was scheduled to begin at 9:30 a.m., September 4, 1957, in Room 3313, Internal Revenue Service Building, Washington, D. C.

With the cooperation of industry representatives, material developed during the conference of July 10 and 11, 1957, has been revised, to some extent, and new material has been prepared. A draft of this material is attached for your information and use in the event that further discussion at the conference scheduled for September 4, 1957, is desired.

Although the principal subjects for discussion at the September 4th meeting were outlined in Industry Circular No. 57-20, any ideas or suggestions you may have with respect to the attached material will be welcomed.


Dwight E. Avis Director, Alcohol and Tobacco Tax Division

Attachment (680 KB)

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