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Industry Circular

Number: 59-11
Date: March 18, 1959

Office of the Commissioner of Internal Revenue Alcohol and Tobacco Tax Division

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QUALIFICATION OF DEALERS IN SPECIALLY DENATURED SPIRITS

CAUTION

SECTION 5271 I. R. C., AS AMENDED BY PUBLIC LAW 85-859, (72 STAT. 1370) PROVIDES THAT NO PERSON SHALL PROCURE OR DEAL IN SPECIALLY DENATURED SPIRITS ON AND AFTER JULY 1, 1959, UNTIL HE HAS FILED AN APPLICATION TO DO SO

Dealers in specially denatured alcohol and others concerned:

What application should you file? In order to continue to procure and deal in specially denatured spirits (formerly called specially denatured alcohol) on and after July 1, 1959, you are required to make application on Form 1474 Revised April 1959), copies included, for an industrial use permit (formerly called a basic permit) to deal in specially denatured spirits and an application on Form 1477 (Revised April 1959), copies included, for a permit to procure specially denatured spirits.

What quantities should you show on your applications? Your application for an industrial use permit, Form 1474, requires that you state the quantity of specially denatured spirits that will be on hand, in transit, and unaccounted for at any one time. This quantity will determine the penal sum of your bond.

Your application on Form 1477 will require that you state the maximum quantity of specially denatured spirits which will be withdrawn during the term of the permit, considered to be one year.

Period to be entered on Form 1477. Your entry for the beginning of the period should be July 1,1959,but the ending date should be left blank at this time.

What should be done about your bond? You shall submit a new bond, Form 1475, or you may continue your current bond by filing a consent of surety, Form 1533, copies attached, extending the terms of the bond to cover specially denatured spirits on hand, in transit, and unaccounted for on and after July 1, 1959. If you have submitted a strengthening bond, such bond shall also be covered by a separate consent of surety. If you increase the quantity, you should submit a strengthening bond or a new bond. Where and when qualifying documents should be filed. The above described applications and consent of surety with the necessary supporting documents outlined in the accompanying excerpts from the proposed regulations shall be filed in duplicate with your assistant regional commissioner (alcohol and tobacco tax). They should be filed as soon as possible after you receive the forms in order to expedite handling in the office of your assistant regional commissioner.

Result if applications are not filed prior to July 1, 1959. If you do not file the two applications and the consent of surety on your bonds prior to July 1, 1959, you will not be entitled to deal in specially denatured spirits on and after July 1, 1959, and the vendor named on your current withdrawal permit will be notified by the assistant regional commissioner that you may not continue to withdraw specially denatured spirits.

Continuation of permits on and after July 1, 1959. The proposed regulations provide that if you hold a permit as a dealer, have a valid withdrawal permit on Form 1477 on June 30,1959, and have filed the required applications, you may continue to deal in and withdraw specially denatured spirits on and after July 1, 1959, under such permits until final action is taken on your applications.

Inquiries. Inquiries in regard to this industry circular should refer to its number and be addressed to the office of your assistant regional commissioner. (alcohol and tobacco tax).

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Dwight E. Avis
Director, Alcohol and Tobacco Tax Division

IRS D. C. 46856

 
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