PART V ADMINISTRATIVE AND MISCELLANEOUS MATTERS 26 CFR 601.311: Imposition of taxes; regulations. (Also Part I, Section 5704; 270.146, 270.152, 275.135, and 275.141.) Rev. Proc. 59-8 Packages containing tobacco products produced by one manufacturer and transferred in bond, without payment of tax, to another manufacturer of such products should, in the required mark, identify the transferee manufacturer by name and location, or by permit number. SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to advise manufacturers of tobacco products as to which manufacturer's name and location, or permit number (to be shown in the mark as required by section 270.152 of the regulations relating to Cigars and Cigarettes-Manufacturers, Importers, and Dealers, and section 275.141 of the regulations relating to Manufactured Tobacco-Manufacturers, Importers, and Dealers), should appear on packages of tobacco products produced and packaged by one manufacturer and transferred in bond to another such manufacturer. Under the provisions of section 5704(b) of the Internal Revenue Code of 1954 and sections 270.152 and 275.141 of the regulations, a manufacturer of tobacco products may transfer such products under his bond, without payment of tax, to the factory of any qualified manufacturer of such products. When so transferred, the products are exempt from the packaging requirements of sections 270.144 and 275.134 of the regulations. However, the regulations contemplate that the products may be shipped in bulk or in packages, as desired. When the products are transferred in packages, the question has been raised whether the mark on such packages should identify the transferee or transferor. SEC. 3. IDENTIFICATION OF TRANSFEREE MANUFACTURER. Packages containing tobacco products produced by one manufacturer and transferred in bond, without payment of tax, to another manufacturer of such products should, in the mark required by the regulations, identify the transferee manufacturer by name and location, or by permit number, since he becomes liable for the tax on such products upon their receipt and would usually be the proper claimant in respect to a refund or allowance provided by law. SEC. 4. INQUIRIES. Inquiries regarding this Revenue Procedure should refer to its number and be addressed to the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax. 26 CFR 601.301: Imposition of taxes, qualification requirements, and regulations. (Also Part III-C, Section 5(e); 4.39, 4.45.) Rev. Proc. 59-9 Certificates of origin and identity and certificates of authenticity of vintage dates for bottled imported wines will not be demanded until further announcements are made by the Director, Alcohol and Tobacco Tax Division. SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to inform importers of wine, and others concerned, of the provisions of sections 4.39 and 4.45 of the Federal Labeling and Advertising of Wine Regulations regarding certificates of origin and identity and certificates of authenticity of vintage dates. SEC. 2. BACKGROUND. Section 4.39, of the Federal Labeling and Advertising of Wine Regulations, Regulations 4, under the Federal Alcohol Administration Act, provides, with respect to imported wines bottled in this country, that the year of vintage may be stated only if the bottler possesses a certificate issued by a duly authorized official of the country of origin of such wine identifying the original container as containing vintage wine as defined in section 4.1 of the regulations, and certifying: .01 That the laws of the country of origin regulate the appearance of vintage dates upon labels of wine produced for home consumption. .02 That the wine in question has been produced in conformity with such laws, and, .03 That the wine would be entitled, under such laws, to bear the vintage date if sold in such country. SEC. 3. AMENDMENTS OF THE REGULATIONS RELATING TO LABELING AND ADVERTISING of WINE. The regulations have been amended by Treasury Decision 6319, I.R.B. 1958-43, 20, to authorize the Director, Alcohol and Tobacco Tax Division, effective January 2, 1959: .01 To require in the case of imported bottled wine bearing a such wine has been authorized by the foreign government) certifying as to the identity of the wine and that the wine has been produced in compliance with the laws of that foreign government regulating the production of wine for home consumption. SEC. 4. CERTIFICATES OF ORIGIN AND IDENTITY AND CERTIFICATES OF AUTHENTICITY OF VINTAGE Dates. Although the Director, Alcohol and Tobacco Tax Division is authorized on the effective date of amendment to require certificates of origin and identity and certificates of authenticity of vintage dates, such certificates will not be demanded until such time as the Director has definitely established that the laws of the foreign governments concerned authorize the issuance of such certificates. When it has been determined that the countries have laws which authorize the issuance of certificates and certificates are actually being issued pursuant to such laws, importers of wines from such countries will be advised through official directives that on and after a specified date certificates will be required to effect release from Customs Custody of such imported wines. SEC. 5. INQUIRIES. Correspondence in regard to this Revenue Procedure should refer to its number and be addressed to the Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington 25, D.C., attention O:AT:BT. PART VI ITEMS OF GENERAL INTEREST CHANGES IN SPECIAL (OCCUPATIONAL) TAXES Announcement 59-37 Changes in special (occupational) taxes, principally concerning liquor dealers, go into effect July 1, 1959. These changes are provided by the Excise Tax Technical Changes Act of 1958, Public Law 85-859. Special tax renewal Form 11 for liquor dealers is scheduled to be mailed by District Directors of Internal Revenue during April 1959. A printed slip, Document 5140, will be enclosed containing the following information: Change in Due Date.-Special taxes must be paid on or before July 1, 1959, or before commencing business, to avoid penalties and interest. Taxpayers no longer have until the end of the month to file. NEW TAX RATES Classification Wholesale Dealer in Beer.. Retail Dealer in Beer. Retail Dealer in Beer (At Large). Wholesale Liquor Dealer.. Retail Liquor Dealer.... Medicinal Spirits Stamp Tax........ Retail Dealer in Liquors (At Large). Wholesale Dealer in Wines.. Retail Dealer in Wines.. Wholesale Dealer in Wines and Beer.... Retail Dealer in Wines and Beer_ Firearms: Class 5. Dealers of Special Type Guns......- Retail and Wholesale Dealers Redefined.—A retail dealer is one who sells only to consumers. Such a dealer no longer is liable for tax as a wholesaler in those instances where he sells 5 gallons or more to the same customer. A wholesale dealer is one who sells to other dealers. Wholesale dealers do not incur tax as retail dealers because of sales to consumers at the wholesalers' premises of liquors of the class covered by their wholesale stamp. Sales of 20 gallons or more.-Pertinent portions of section 5691(b) of the Internal Revenue Code of 1954 are recited to the effect that a sale of 20 gallons or more is presumptive of liability as a wholesale dealer unless it is satisfactorily shown that the sale was not made to a dealer. 1 Based on Technical Information Release 140, dated March 10, 1959. WITHHOLDING OF EMPLOYMENT AND INCOME TAXES BY TRUCK OWNERS AND OPERATORS 1 1 Announcement 59-38 Truck owners and operators are reminded to withhold Federal employment and income taxes from compensation paid to so-called "hired-unloading help." Withholding is also required in cases where truckers reimburse their employee-drivers who are authorized to engage and pay helpers to unload "drop" freight. The truck owners and operators are liable for both their share and their employees' share of employment taxes, even if they fail to withhold from compensation paid. This position was established by Revenue Ruling 55-543, C.B. 1955–2, 400. Additional information and assistance on this subject can be obtained from the offices of local District Directors of Internal Revenue. EXTENSION OF TIME FOR FILING CONSOLIDATED RETURNS 2 Announcement 59-39 The time for filing the return for a taxable year ending on or after December 31, 1958, but before June 30, 1959, by a corporation which is a member of an affiliated group having the privilege of making a consolidated return for such taxable year has been extended to September 15, 1959. Requests for an additional extension of time for filing such return beyond that set forth in the preceding paragraph to which the taxpayer may be entitled under section 6081 (a) or (b) of the Internal Revenue Code of 1954 should be addressed to the District Director of Internal Revenue in whose district the consolidated return will be filed. This extension of time shall not be construed as an extension of time for payment of tax nor as a waiver of liability for interest on any amount of tax due and unpaid as provided by law. ANNUAL REPORT OF THE COMMISSIONER OF INTERNAL REVENUE-FISCAL YEAR 1958 Announcement 59-40 The annual report of the Commissioner of Internal Revenue to the Secretary of the Treasury, which contains a comprehensive summarization of the work record of the Internal Revenue Service during the fiscal year ended June 30, 1958, has been prepared and is now available from the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C., at the price of sixty cents per copy. 1 Based on Technical Information Release 144, dated March 17, 1959. 2 Based on Technical Information Release 143, dated March 11, 1959. |