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Industry Circular

Number: 60-42

Date: October 21, 1960

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


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Proprietors of distilled spirits plants, and others concerned:

Purpose. This circular is issued to advise you that denominational red strip stamps for sizes of 1/2 pint or more will not be issued or used after December 31, 1960.

Background. With the issuance of revised regulations in 26 CFR. Part 201, effective July 1, 1960, and as noted in Industry Circular No. 60-16, the printing of denominational red strip stamps, except the "less than 1/2 pint" size, was discontinued, and a new nondenominational standard size stamp has been issued to replace them. You were advised to continue to use red strip stamps of a particular denomination (1/2 pint or larger) as long as such denomination was furnished to you and until your stock became exhausted or you were instructed to make other disposition of them.

Effective date. Effective January 1, 1961, the use of denominational red strip stamps, other than the "less than 1/2 pint" size, by domestic bottlers of distilled spirits will be discontinued, and such bottlers will use only the standard (nondenominational) red strip stamp for all bottles having a capacity of 1/2 pint or more.

Ordering new strip stamps. In order to be able to effect an uninter- rupted change-over to the use of the standard size red strip stamp effective January 1, 1961, bottlers are advised to requisition an adequate quantity of the new standard size red strip stamps sufficiently in advance of that date to insure having them on hand. In preparing requisitions on Form 428 for the new standard size red strip stamp, insert in the blank line in column (a), the word "Standard".

Disposition of denominational red strip stamps. Each bottler who, at the close of his business for the calendar year 1960, has in his possession any unused denominational red strip stamps of a size of 1/2 pint or more should, not later than December 31, 1960, prepare an inventory, in dupli- cate, of such stamps. Each denomination should be listed separately in the inventory. The stamps and the inventory will be delivered, on request, to the assigned officer who will, after verifying the number of stamps, endorse a receipt therefor on both copies of the inventory, noting any exceptions, and return one copy to the bottler.

Accounting for red strip stamps. In preparing Form 2260 for the month in which the stamps are delivered to the assigned officer, the proprietor should enter in the appropriate columns on line 7 the total number of red strip stamps turned over to the assigned officer, as evidenced by the endorsed inventory returned to the proprietor.

Inquiries. Inquiries regarding this circular should refer to its number and be addressed to your assistant regional commissioner, alcohol and tobacco

Dwight Avis

Dwight E. Avis

Director Alcohol and Tobacco Tax Division

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