CONTINUATION OF DISTILLERS' EXISTING BONDS
AND NOTICES AFTER APRIL 30, 1959
Proprietors of distilleries
and others concerned:
Purpose. The purpose of this industry circular is to remind you of the
provisions of subpart H of 26 CFR Part 170, Miscellaneous Regulations Relating
to Liquor, under which the proprietor of a registered distillery or fruit distillery qualified to operate on April 30, 1959, may obtain a waiver of requirements for filing notice and executing new bond on May 1, 1959.
Background. Section 210(f) of the Excise Tax Technical Changes Act of
1958 (Public Law 85-859) is the statutory authority for the waiver referred to
above. Subpart H of 26 CFR Part 170 (issued as paragraph 1 of Treasury
Decision 6316, effective September 3, 1958), implements section 210(f) of the
statute. Effective July 1, 1959, proprietors will be required to qualify as
proprietors of distilled spirits plants under provisions of Public Law 85-859
which are effective on that date.
Procedure to obtain waiver. A distiller desiring a waiver of requirements
for filing notice and new bond on May 1, 1959, must file with the assistant regional commissioner, a timely written request therefor accompanied by Form
1533 and, if required by the circumstances, Form 1602. Subpart H of 26 CFR
Part 170 contains details of procedures to be followed and wording for the consent of surety on the distiller's bond.
Procedure where distiller's bond is given without surety. In an instance
where the distiller's bond on Form 30 is given without surety but instead is
supported by consent of surety on the distiller's transportation and warehousing
bond, Form 1571, the applicable requirements of 26 CFR 170.145 may be satisfied
by the filing of a consent on Form 1533, executed by the principal and the surety, reading as follows:
To extend the terms of the above-described bond, Form 1571, and the
distiller's bond, Form 30, dated_____________, effective____________, in
the penal sum of $100,000, written without surety, to cover operation of registered distillery No._______, (address), to continue in effect the terms
and conditions of said bond, Form 30, (including all extensions or limitations of such terms and conditions previously consented to and approved)
to cover operations from May 1, 1959, to June 30, 1959, both dates inclusive.
Where Form 30 1/2 is involved instead of Form 30, the correct form number
should of course be substituted.
Inquiry. Inquiries in regard to this industry circular should refer to its
number and be addressed to the office of the assistant regional commissioner
(alcohol and tobacco tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division
IRS D. C. 46209