RECORDKEEPING REQUIREMENTS IMPOSED BY
27 CFR 19.761 AND 27 CFR 19.762
RECORD OF TAX DETERMINATION
Proprietors of Distilled Spirits Plants and Others
Purpose. This Industry Circular provides distilled
spirits plant proprietors and others concerned with
clarification of the recordkeeping requirements imposed by
27 CFR 19.761 and 27 CFR 19.762. The information in this
circular supercedes the advice given in Industry Circular
91-4, dated April 1, 1991.
Background. 27 CFR 19.761 requires that distilled
spirits plant proprietors maintain a record of tax
determination. This regulation states that a serially
numbered invoice or shipping document, signed or initialed
by an agent or employee of the proprietor, will constitute
the record of tax determination.
On April 1, 1991, the Bureau issued Industry Circular
91-4 which advised distilled spirits plant proprietors that
the serial numbers used on these invoices or shipping
documents should be sequential and uninterrupted.
Recently, the Bureau conducted a further review of
the recordkeeping requirements in 27 CFR 19.761 and the
interpretation of this section as published in Industry
Circular 91-4. This review found that sequential and
uninterrupted serial numbers on invoices and shipping
documents can assist Bureau personnel in their audit of tax
determination records. However, 27 CFR 19.762 already
requires that proprietors maintain a daily summary record
of tax determination. This summary record must show, for
each day on which tax determinations occur, the serial
numbers of the records of tax determination.
Since distilled spirits plants already maintain this
summary record of tax determinations, it is not essential
that invoices and shipping documents which are used as the
record of tax determination have sequential, uninterrupted serial numbers. A properly maintained summary record, as
required by 27 CFR 19.762, provides sufficient information
to identify the invoices and shipping records for each
Conclusion. After careful consideration, the Bureau
has concluded that the daily summary record, required by 27
CFR 19.762, provides sufficient identification of the daily
records of tax determination required under 27 CFR 19.761.
Accordingly, the advice provided in Industry Circular 91-4
is superceded. Distilled spirits plant proprietors do not
need to use serially numbered invoices and shipping
documents which constitute the record of tax determination
in a sequential or uninterrupted series.
Distilled spirits plant proprietors should note that
27 CFR 19.761 continues to require serially numbered
invoices or shipping documents, signed or initialed by an
agent or employee of the proprietor, which constitute the
record of tax determination. Only the procedure that these
records be sequential and uninterrupted is superceded. In
addition, the requirement for a daily summary record
imposed by 27 CFR 19.762 remains in effect.
Inquiries. Inquiries concerning this circular should
refer to its number and be addressed to the Associate
Director (Compliance Operations), Bureau of Alcohol,
Tobacco and Firearms, 650 Massachusetts Avenue, N.W.,
Washington, D.C. 20226.