REPORTING ORDINARY AND IDENTIFIABLE
CELLAR LOSSES BY PROPRIETORS OF
BONDED WINE CELLARS
Proprietors of bonded wine cellars
and others concerned:
Purpose. This circular is issued to inform you, in advance, of the
provisions of a revenue ruling which will soon be published in the
Internal Revenue Bulletin.
Background. Section 240.903 of the Wine Regulations provides that
(1) the proprietor of every bonded wine cellar shall make a detailed
report on Form 702-C, Inventory of Wine, of each inventory taken by
him of all wine on storage at his wine cellar at the close of business
on June 30 and December 31 of each year; (2) Form 702-C shall be
attached to Form 702 for the month to which it pertains; and (3) if at
other times complete actual inventories of wine are taken and losses
disclosed thereby are reported on the monthly report (Form 702),
Form 702-C will be prepared and forwarded with the monthly report.
Provisions of ruling. The revenue ruling holds that, unless requested
to do so by your Assistant Regional Commissioner, you need not take a
complete actual inventory of wine on storage or submit Form 702-C when
reporting on Form 702, Monthly Report of Wine Cellar Operations, an
identifiable loss sustained during the month, such as a loss in
filtering a particular lot of wine.
Inquiries. Inquiries concerning this circular should refer to its
number and be addressed to the office of your Assistant Regional
Commissioner, Alcohol and Tobacco Tax.
Harold A. Serr
Director, Alcohol and Tobacco Tax Division