STATUS OF SPIRITS IN BOND ON JULY 1, 1959
Proprietors of industrial alcohol bonded warehouses,
internal revenue bonded warehouses, denaturing
plants, distillery denaturing bonded warehouses,
and others concerned:
Purpose. The purpose of this industry circular is to advise you of the
requirements of regulations proposed to be issued in 26 CFR Part 201 as
they relate to the status of distilled spirits on your premises on July 1,
Background. The provisions of Public Law 85-859 which become effective
July 1, 1959, will require you to qualify your premises as a distilled spirits
plant if you are to continue your operations on and after that date. Thus, the
qualified status of your present premises will terminate June 30, 1959, and it
will be necessary to formally effect the transfer to your distilled spirits plant
as of July 1, 1959, of the distilled spirits on, and in transit to, your present
Procedure to be followed. In order that you may have information which
will enable you to prepare for this transition, the requirements of proposed
regulations are summarized below.
INTERNAL REVENUE BONDED WAREHOUSE
If you are including an internal revenue bonded warehouse in your distilled
spirits plant, you must, before commencing business on July 1, effect the transfer of all distilled spirits in such warehouse to the distilled spirits plant. This
may be done in either one of two ways.
(1) File with the Government officer at your warehouse a modified
Form 236, in triplicate, covering the transfer of all spirits in the internal
revenue bonded warehouse to the distilled spirits plant. The modified Form
236 must show all the required information as to the spirits and containers
except that (a) the season of production may be shown in lieu of the date of
original entry for deposit, (b) the date of receipt in the warehouse need not
be shown, and (c) Forms 1520 and 1619 need not be furnished. Where the
space on Form 236 is not sufficient to show all spirits being transferred,
supplemental sheets will be attached to the Form 236.
(2) File a statement, in triplicate, signed by you or your duly authorized
agent, in substantially the following form:
I certify that is the duly qualified proprietor
(name of proprietor)
of Distilled Spirits Plant No. and that such plant is successor
to Internal Revenue Bonded Warehouse No. qualified to
operate on June 30,1959. I acknowledge that all spirits which were
on deposit in said internal revenue bonded warehouse at the close
of business June 30, 1959, as reflected by the records required to
be maintained in respect thereto under law and regulations in force
on such date, are on deposit in bond in Distilled Spirits Plant
No. at the beginning of business on July 1, 1959, and that,
pursuant to section 5005(c), I.R.C., is
(name of proprietor)
liable for the tax on such spirits.
In order that you may have the opportunity to check your records with those
maintained by the Government officer, that officer will notify you of the
number of packages and cases in each seasonal account as of April 30 and
May 31, 1959. If he has an opportunity to do so, the Government officer
will, prior to June 30, 1959, verify the number of packages and of cases
in his seasonal accounts and will advise you, as each seasonal account
is verified, of the date of such verification, the identity of the account,
and the number of packages (or cases) in the account.
INDUSTRIAL ALCOHOL BONDED WAREHOUSE
If you are including an industrial alcohol bonded warehouse in your distilled
spirits plant, you must, before commencing business on July 1, file with the
Government officer at your warehouse Forms 1440, in triplicate, covering the
transfer of all alcohol in such warehouse to the distilled spirits plant. Separate
Forms 1440 shall be filed for alcohol in (a) packages, (b) drums, (c) cases, (d)
other portable containers, and (e) bulk. These Forms 1440 will be used to establish the Government officer's record of alcohol on deposit at the distilled spirits
plant, corresponding to the records now maintained by Government officers of
spirits on deposit in internal revenue bonded warehouses.
If you are including a denaturing plant in your distilled spirits plant, you
must, before commencing business on July 1, file with the Government officer
at your plant Forms 1440, in triplicate, transferring all of the alcohol, including denatured alcohol, in the denaturing plant to the distilled spirits plant.
Separate Forms 1440 must be filed for undenatured alcohol, which must be
reported in proof gallons, and denatured alcohol, which must be reported in
wine gallons. In reporting denatured alcohol, no separation by formula is
DISTILLERY DENATURING BONDED WAREHOUSES
If you are including a distillery denaturing bonded warehouse in your distilled spirits plant, you must, before commencing business on July 1, file with
the Government officer at your plant modified Forms 236 covering the transfer of all undenatured rum and denatured rum to the distilled spirits plant. Separate
Forms 236 should be filed for undenatured rum (report in proof gallons) and
denatured rum (report in wine gallons).
SPIRITS IN TRANSIT
If, at the close of business on June 30, 1959, there is a possibility that
distilled spirits or alcohol are in transit (including, in the case of alcohol,
transfers from customs bond) to your premises, you must, before commencing
business on July 1, 1959, file a Form 236 or Form 1440, as appropriate, containing a statement substantially as follows:
Application is made herewith for the transfer to the bonded premises
of Distilled Spirits Plant No.________of any and all spirits which at the
close of business on June 30, 1959, were in transit to______________
(insert I.R.B.W., I.A.B.W., or D.P., as applicable)____________________,
(No. and State)
under the provisions of internal revenue law and regulations.
This statement will, of course, cover only the distilled spirits and alcohol
actually in transit at the close of business June 30, 1959.
EXECUTION OF FORMS
The Forms 236 or Forms 1440 must be executed by you as proprietor of
the distilled spirits plant which comes into existence on July 1 and must be filed,
in triplicate, with the Government officer at your distilled spirits plant.
Inquiries. Inquiries regarding this industry 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. 47479