§ 194.292 Wine bottling.

Each person desiring to bottle, package, or repackage taxpaid wines shall, before carrying on such operations, apply and receive permission from the regional director (compliance), as required under Part 231 of this chapter. The decanting of wine by caterers or other retail dealers for table or room service, banquets, and similar purposes shall not be considered as "bottling," if the decanters are not furnished for the purpose of carrying wine away from the area where served.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5352))

[T.D. ATF-62, 44 FR 71694, Dec. 11, 1979]

197.43

§ 194.293 Mixing cocktails in advance of sale.

Certificates in lieu of lost stamps. 197.47a Retention of special tax stamps.

197.55 197.56

Change to higher rate.

Change to lower rate.

197.57 Absence of liability, refund of spe

cial tax.

197.58 Filing of claims.

197.59 Time limit for filing claim.

Subpart E-Bonds and Consents of Sureties

197.65

General.

197.66 Corporate surety.

197.67 Filing of powers of attorney.

197.68 Deposit of collateral.

197.69 Consents of surety.

197.70 Approval required.

197.71 Authority to approve.

197.72 Additional or strengthening bonds.

197.73 New or superseding bonds.

197.75

TERMINATION OF BONDS

General.

197.76 Notice by surety of termination of bond.

197.77 Extent of release of surety from liability under bond.

197.79 Notice of termination. 197.80

Release of collateral.

cines, medicinal preparations, food products, flavors, or flavoring extracts, which are unfit for beverage purposes; the payment of special (occupational) taxes in order to be eligible for drawback; claims; formulas and samples; losses; and records and reports of distilled spirits received and used in the manufacture of nonbeverage products.

[T.D. 6670, 28 FR 9670, Sept. 4, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975)

§ 197.2 Forms prescribed.

(a) The Director is authorized to prescribe all forms, including bonds and records, required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part.

(b) "Public Use Forms" (ATF Publication 1322.1) is a numerical listing of forms issued or used by the Bureau of Alcohol, Tobacco and Firearms. This publication may be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

(c) Requests for forms should be mailed to the ATF Distribution Center, 3800 South Four Mile Run Drive, Arlington, Virginia 22206.

(5 U.S.C. 552(a); 80 Stat. 383, as amended) [T.D. ATF-92, 46 FR 46917, Sept. 23, 1981] § 197.3 Incorporations by reference.

(a) "The United States Pharmacopeia (Twentieth Revision, Official from July 1, 1980) and The National Formulary (Fifteenth Edition, Official from July 1, 1980)", published together as "The USP and NF Compendia”, are incorporated by reference in this part. This incorporation by reference was approved by the Director of the Federal Register. This publication may be inspected at the Office of the Federal Register, Room 8401, 1100 L Street NW., Washington, D.C., and is available from the United States Pharmacopeial Convention, Inc., 12601 Twinbrook Parkway, Rockville, Maryland 20852. (See §§ 197.96 and 197.109;

see also § 197.5, Time distilled spirits are used.)

(b) "The Homeopathic Pharmacopoeia of the United States" (Volume I, 8th Edition, 1979) is incorporated by reference in this part. This incorporation by reference was approved by the Director of the Federal Register. This publication may be inspected at the Office of the Federal Register, Room 8401, 1100 L Street NW., Washington, D.C., and is available from the American Institute of Homeopathy, 7297-8H Lee Highway, Falls Church, Virginia 22042. (See §§ 197.96 and 197.109; see also 197.5, Time distilled spirits are used.)

(Pub. L. 89-554, 80 Stat. 383, as amended (5 U.S.C. 552(a)))

[T.D. ATF-92, 46 FR 46917, Sept. 23, 1981]

Subpart B-Definitions

§ 197.5 Meaning of terms.

As used in this part, unless the context otherwise requires, terms shall have the meaning ascribed in this subpart.

ATF officer. An officer or employee of the Bureau of Alcohol, Tobacco and Firearms (ATF) authorized to perform any function relating to the administration or enforcement of this part.

Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the Department of the Treasury, Washington, D.C.

Director of the service center. "Director of the service center" shall mean the Director, Internal Revenue Service Center, in each of the internal revenue regions.

Distilled spirits. Distilled spirits shall mean that substance known as ethyl alcohol, ethanol, spirits, or spirits of wine in any form (including all dilutions and mixtures thereof, from whatever source or by whatever process produced), which are fully taxpaid or tax-determined at the distilled spirits rate.

Director of the service center. The Director, Internal Revenue Service Center, in each of the internal revenue regions.

District director or district director of internal revenue. The Director, In

ternal Revenue Service, in any of the internal revenue districts.

Filed. Subject to the provisions of 26 CFR 301.7502 through 301.7503-1, a claim for drawback shall be deemed to have been "filed" when it is delivered to the office of the proper regional director (compliance), and by that office received.

Intermediate products. Products containing distilled spirits which are not subject to drawback until used in a nonbeverage product eligible for drawback.

Nonbeverage products. Medicines, medicinal preparations, food products, flavors, or flavoring extracts, in the manufacture or production of which distilled spirits are used under the provisions of 26 U.S.C. 5131 through 5134 and this part, and which are unfit for use for beverage purposes.

Regional director (compliance). The principal ATF regional official responsible for administering regulations in this part.

Tax year. The period which begins July 1 and ends on the following June 30.

Time distilled spirits are used. The "time" at which distilled spirits shall be deemed to have been used is when the product contains the ingredients called for by an approved formula, or formulas prescribed by the United States Pharmacopoeia, the National Formulary, or the Homeopathic Pharmacopoeia of the United States, as the case may be.

Total annual withdrawals. The total quantity of distilled spirits (proof gallons), which are used in the manufacture or production of nonbeverage products during a year.

U.S. C. The United States Code.

Used. Distilled spirits shall be deemed to have been "used" in the manufacture of a product under this part, when such spirits are either consumed in such manufacture or are incorporated in the product; except that spirits lost by causes such as spillage, leakage, breakage, or theft, prior to or during the process of manufacture, shall not be deemed to be consumed in such manufacture.

Year. "Year" shall mean the period which begins July 1 and ends on the following June 30.

[T.D. ATF-48, 43 FR 13543, Mar. 31, 1978; 44 FR 55845, Sept. 28, 1979, as amended by T.D. ATF-62, 44 FR 71695, Dec. 11, 1979]

Subpart C-Special Tax

$197.25 Payment and rates of special tax.

Each person who uses distilled spirits in the manufacture or production of medicines, medicinal preparations, food products, flavors, or flavoring extracts which are unfit for beverage purposes, in order to be eligible for drawback on the distilled spirits so used, must pay special tax at the rate of $25 per annum for total annual use not exceeding 25 proof gallons of distilled spirits; $50 per annum for total annual use not exceeding 50 proof gallons; or $100 per annum for total annual use of more than 50 proof gallons. Where a claim is filed in the first quarter of a tax year, covering distilled spirits used during the preceding tax year, and special tax has not been paid for the preceding tax year, special tax for such preceding tax year must be paid in the appropriate amount. Special tax, based upon estimated use, may be paid in advance of actual use. Adjustments of the special tax where improperly paid will be made in accordance with §§ 197.55 and 197.56. The manufacturer is not required to pay the special tax if he does not claim drawback on the distilled spirits used by him.

[T.D. 6670, 28 FR 9670, Sept. 4, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55845, Sept. 28, 1979]

§ 197.26 Special tax for each place.

A separate special tax must be paid for each place at which distilled spirits are used in the manufacture or production of nonbeverage products if a claim is filed for drawback of tax on distilled spirits so used at each such place.

§ 197.27 Time for payment of special tax.

The special tax shall be paid before a claimant is eligible for drawback. Regardless of the portion of a tax year covered by a claim, the full annual special tax of $25, $50, or $100, as the case may be, shall be paid.

[T.D. 6670, 28 FR 9670, Sept. 4, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55845, Sept. 28, 1979]

§ 197.28 Filing of return and payment of special tax.

(a) General. Returns shall be filed on IRS Form 11, with payment of tax, with the director of the service center serving the internal revenue district in which the place of manufacture is located.

(b) Multiple locations. If a taxpayer is subject to special (occupational) tax at two or more locations, he shall file one special tax return Form 11 (prepared in the manner prescribed in § 197.29), with payment of tax to cover all such locations. The return with tax shall be filed with the director of the service center serving the internal revenue district in which the taxpayer's principal place of business (or principal office in the case of a corporate taxpayer) is located. In addition, he shall prepare, in duplicate, a list identified with his name, address, employer identification number, class of tax, and period covered by his return. The list shall show, by States, the name (and trade name, if any) and address of each location (including the taxpayer's principal place of business, or principal office, if subject to special tax) for which special tax is being paid. The original of the list shall be attached to the Form 11, as a part of his return, and the copy shall be retained by the taxpayer for a period of not less than 2 years.

[T.D. ATF-70, 45 FR 33980, May 21, 1980] EXECUTION OF FORM 11

§ 197.29 General.

Special tax returns, Form 11, may be procured from the director of the service center or from any district director and shall disclose, in the spaces provided, the following:

(a) The true name of the taxpayer, which may be followed by the words "trading as" and any trade name under which the business is conducted. (b) The employer identification number (see §§ 197.29a through 197.29c).

(c) The exact location of the place of business, as by name and number of building or street, and where these do not exist, some particularization in addition to the post office address; except, that in the case of one return for two or more locations, as provided for in § 197.28, the location to be shown on the Form 11 shall be that of the taxpayer's principal place of business (or principal office in the case of a corporate taxpayer).

(d) The kind of business carried on. (e) Except in the case of a corporation, the true names of all persons having a proprietary interest in the business. While it is not necessary that the names of all persons having a proprietary interest in the business appear on the special tax stamp, the names must be disclosed on the return, Form 11.

[T.D. 7110, 36 FR 8036, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 197.29a Employer identification number. The employer identification number (defined at § 301.7701-12 of this chapter) of the taxpayer who has been assigned such a number shall be shown on each Form 11, including amended Form 11, filed pursuant to the provisions of this part. Failure of the taxpayer to include his employer identification number on Form 11 may result in assertion and collection of the penalty specified in § 301.6676-1 of this chapter.

(75 Stat. 828; 26 U.S.C. 6109, 6676)

[T.D. 6606, 27 FR 8521, Aug. 25, 1962, as amended by T.D. 7008, 34 FR 3668, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 197.29b Application for employer identification number.

(a) An employer identification number will be assigned pursuant to application on Form SS-4 filed by the taxpayer. Form SS-4 may be obtained from the director of the service center or from any district director.

(b) An application on Form SS-4 for an employer identification number shall be made by every taxpayer who files a return on Form 11, but who prior to the filing of his first return on Form 11 has neither secured an em

ployer identification number nor made application therefor. Such application on Form SS-4 shall be filed on or before the seventh day after the date on which such first return on Form 11 is filed.

(c) Each taxpayer shall make appliIcation for and shall be assigned only one employer identification number, regardless of the number of places of business for which the taxpayer is required to file Form 11.

(75 Stat. 828; 26 U.S.C. 6109)

[T.D. 7008, 34 FR 3668, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 197.29c Execution of Form SS-4.

The application on Form SS-4, together with any supplementary statement, shall be prepared in accordance with the form, instructions, and regulations applicable thereto, and shall set forth fully and clearly the data therein called for. The application shall be filed with the district director of any internal revenue district in which the taxpayer operates a business subject to special tax, except that, where the instructions on or relating to Form SS-4 so provide, Form SS-4 shall be filed with the director of the service center serving such district. The application shall be signed by (a) the individual, if the person is an individual; (b) the president, vice president, or other principal officer, if the person is a corporation; (c) a responsible and duly authorized member or officer having knowledge of its affairs, if the person is a partnership or other unincorporated organization; or (d) the fiduciary, if the person is a trust or estate.

(75 Stat. 828; 26 U.S.C. 6109)

[T.D. 7008, 34 FR 3668, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 197.29d Hand-carried returns.

Notwithstanding the provisions of this part relating to the filing of returns on Form 11 for special (occupational) tax, such returns which are filed by hand carrying shall be filed with the district director of the internal revenue district in which the taxpayer's business is located or, as to a single return prepared under the pro