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Industry Circular

Number: 59-62
Date: December 11, 1959

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


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                PERMITS ON AND AFTER JANUARY 1, 1960

Specially denatured alcohol and rum users and dealers,
    tax-free alcohol users, proprietors of distilled
    spirits plants, and others concerned:

    Purpose. The purpose of this industry circular is to inform you of the
continued use of existing withdrawal permits on and after January 1, 1960, and
until new withdrawal permits are issued.

    Background. Subparts M and N of 26 CFR Part 170, issued pursuant to the
Internal Revenue Code as amended by the Excise Tax Technical Changes Act of
1958, required all permittees holding permits to deal in or use specially de-
natured spirits or to use tax-free spirits on June 30, 1959, to file applications
for industrial use and withdrawal permits prior to July 1, 1959, if they intended
to continue operations on and after July 1. In most instances new withdrawal
permits were not issued pursuant to such applications. Except in the case of
permittees desiring changes in the terms of their existing permits, it is in-
tended that the existing permits remain in effect and use until the new regula-
tions, 26 CFR Parts 211 and 213, become effective sometime in 1960.

    Continued Use of Existing Withdrawal Permits. If you held a withdrawal
permit on June 30, 1959, and filed an application for a new withdrawal permit
before July 1, 1959, you will continue to withdraw specially denatured spirits or
tax-free alcohol, as the case may be, under the permit in force on June 30, 1959,
until the assistant regional commissioner (alcohol and tobacco tax) takes action
on your application. This holds true even though such permit would ordinarily
expire as of December 31, 1959. The quantity of tax-free or specially denatured
alcohol which you may withdraw, beginning with January 1, 1960, and continuing
until the new withdrawal permit is issued and effective, will be the same as that
which could have been withdrawn during the same period which began in January
of 1959.

    Entries on the Withdrawal Permits. Entries covering withdrawals on and
after January 1, 1960, will be made by the supplier on the back of your with-
drawal permit in the same manner as entries prior thereto. If available space
for such entries becomes exhausted, additional space should be provided by
attaching a letter-size sheet of paper to the bottom of the permit (reverse side), with scotch tape or other suitable adhesive. The lines between the various
columns should be extended down the additional sheet and the entries should be
continued on such sheet in regular sequence.

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






                                  Dwight E. Avis
                   Director, Alcohol and Tobacco Tax Division


                                            IRS - D. C. - 54275

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