QUALIFICATION OF DEALERS IN SPECIALLY DENATURED SPIRITS
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quantity of specially denatured spirits which will be withdrawn during the term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
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
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
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).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division
IRS D. C. 46856