TREATMENT OF WINE
Proprietors of bonded wine cellars
and others concerned:
This circular is to inform you of the provisions of Revenue Procedure
No. 62-34 which will be published in the Internal Revenue Bulletin in the
near future. The revenue procedure will outline the method of reporting the
quantity of water added to wine by bentonite slurry treatments.
Under the revenue procedure, in addition to entering the quantities of
wine as required by columns (c) through (h) of Form 2056, Record of Still
Wine, you will enter in an unused column of the form the quantity of water
added to such wines by bentonite slurry treatments. The column heading will
be appropriately revised to identify the entries.
The total quantity of water used in bentonite slurries, as shown on
Form 2056, will be reported at Line 8 or 9 in Part 1 of Form 702, Monthly
Report of Wine Cellar Operations. A notation descriptive of the entry will
be made on the line used.
Inquiries concerning this circular should refer to its number and be
addressed to your Assistant Regional Commissioner (Alcohol and Tobacco Tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division