SAMPLING BULK SPIRITS AT TIME OF
GAUGE FOR TAXPAYMENT
Proprietors of registered distilleries, fruit
distilleries, industrial alcohol plants, internal revenue bonded warehouses, and
industrial alcohol bonded warehouses,
and others concerned:
Purpose. The purpose of this circular is to advise you of a program for
checking the accuracy of proof determination where distilled spirits are gauged
in bulk gauging tanks for taxpayment.
Background. Determination of tax by the bulk gauging method has emphasized the need for accuracy in proofing. An error of one tenth of a degree of
proof can cause an error of hundreds of dollars in determining tax liability on a
tank of spirits. The sampling program is designed as a means to check instruments, verify proof determinations, and insure fair treatment for taxpayers.
Procedure. The procedures are, briefly: (a) a pint sample will be taken
from each lot, after thorough agitation but before the spirits are weighed for
taxpayment; (b) each week a representative number of such samples will be
selected for proof checking; and (c) unused samples and remnants of samples
tested on the premises will be returned to the proprietor and may either be
dumped into lots of untaxpaid homogeneous spirits, returned to the distilling
system, or destroyed.
Storage of Samples. Samples will be stored under Government lock in the
Government office or in the gauging area of the plant or warehouse.
Inquiries. Inquiries regarding this circular should refer to the number
thereof and be addressed to the office of your assistant regional commissioner
(alcohol and tobacco tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division
IRS D. C. 31556