170.690 170.691

Bonded wine cellar records.
Inventories.

AUTHORITY: The provisions of this Part 170 issued under sec. 7805, 68A Stat. 917; 26 U.S.C. 7805, unless otherwise noted.

Subpart A-Restamping Packages of Distilled Spirits

SOURCE: The provisions of this Subpart A appear at 19 F.R. 9268, Dec. 29, 1954, unless otherwise noted.

§ 170.1 Scope of subpart.

The regulations in this subpart provide for the issuance of stamps to other than proprietors of distilled spirits plants for the restamping of packages of distilled spirits which have been duly stamped, but from which the stamps have been lost or destroyed by unavoidable accident.

[T.D. 6515, 25 F.R. 12732, Dec. 13, 1960]

§ 170.2 Statutory authority.

Section 5205(e), I.R.C., provides that the Secretary or his delegate may, under regulations prescribed by him, issue stamps for restamping packages of distilled spirits which have been duly stamped, but from which the stamps have been lost or destroyed by unavoidable accident.

[18 F.R. 9268, Dec. 29, 1954, as amended by TD. 6515. 25 FR. 12732. Dec. 13. 1960]

§ 170.3 Applications.

Applications for restamping packages of distilled spirits should be made in writing to the assistant regional commissioner, alcohol and tobacco tax, for the region in which the packages to be restamped are situated. The applicant should state in detail the number of packages, description of the contents, the place where the packages are located, the kind of stamps lost or destroyed, and the nature of the applicant's interest in the property. The applicant shall submit with his application a certified copy of the Internal Revenue Service form on which (a) as to a package filled in internal revenue bond, report was made of the gauge for withdrawal of the package from bond; or (b) as to a package filled after tax payment or determination, report was made of the gauge of the package at the time of its filling.

(T.D. 6515. 25 F.R. 12732, Dec. 18, 1960]
§ 170.4 Loss or destruction in transit.

If the stamps were lost or destroyed while packages to which they were affixed were in transit, the application must be accompanied by a statement of the consignor showing whether the packages were properly stamped when shipped and, if possible, a statement of someone having knowledge of the facts attending their loss or destruction en route. Each such statement shall be signed by the consignor or his authorized agent and immediately above the signature there will appear the following statement: "I declare under the penalties of perjury that this statement has been examined by me and to the best of my knowledge and belief is a true and correct statement."

§ 170.5 Loss or destruction before or after shipment.

In the event the stamps were lost or destroyed either before or after shipment of the packages to which they were affixed and while such packages were in the possession of the applicant, the application should be accompanied by a statement by the applicant

or

someone in his employ showing whether the packages were once duly stamped, or properly stamped when received, as the case may be, and detailing all the circumstances connected with the destruction of the stamps. Such statement shall be signed by the person by whom it is made and immediately above the signature there will appear the fol

lowing statement: "I declare under the penalties of perjury that this claim has been examined by me and to the best of my knowledge and belief is a true and correct statement."

§ 170.6 Issuance of stamps.

If the evidence presented, and the verification, inspection, and investigation (if any) show conclusively that the packages had been stamped as provided by law, that proper stamps had been issued for the containers, and that the loss or destruction of such stamps is satisfactorily explained, the assistant regional commissioner shall, after making suitable notation on the application, issue a distilled spirits stamp for placement on each container. He will cause the stamps to be delivered to the applicant by a representative of his office, who will instruct the applicant in regard to marking and affixing the stamps to the containers and supervise such marking and affixing of the stamps. [19 F.R. 9268, Dec. 29, 1954, as amended by T.D. 6515, 25 F.R. 12732, Dec. 13, 1960] § 170.7 Receipt.

In every case, the assistant regional commissioner should obtain a receipt from the person to whom distilled spirits stamps are issued for restamping and retain such receipt with the application files.

[19 F.R. 9268, Dec. 29, 1954, as amended by T.D. 6515, 25 F.R. 12732, Dec. 13, 1960]

Subpart B-[Reserved]

Subpart C-Regulations Respecting the Filing of Returns and Payment of Taxes on Distilled Spirits and Rectified Products by Return

SOURCE: The provisions of this Subpart C contained in T.D. 6877, 31 F.R. 3179, Feb. 26, 1966, unless otherwise noted. § 170.41

Scope of subpart.

This subpart provides regulations respecting (a) the deferred payment, by proprietors of distilled spirits plants, of taxes on distilled spirits pursuant to returns on Form 2522 and Form 4077, and of taxes on rectified products and wines pursuant to returns on Form 2527, (b) the periods to be covered by such returns, and (c) the times for filing such returns, with remittances. The requirements of this subpart with respect to control premises and controlled stock shall be applicable only to proprietors of bottling premises required to file returns on Form 4077 under the provisions of this subpart.

§ 170.42 Other regulations applicable.

All provisions of Part 201 of this chapter not inconsistent with the provisions of this subpart shall remain in full force and effect, and all such provisions applicable to returns, remittances, bonds, and consents of surety, operations by alternate proprietors, and inventories and records, shall be applicable to returns, remittances, bonds, and consents of surety, operations by alternate proprietors, and inventories and records under this subpart.

[T.D. 6895, 31 F.R. 11974, Sept. 13, 1966] § 170.43 Meaning of terms.

When used in this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in Part 201 of this chapter and in this subpart.

Control premises. The premises, as provided in § 170.52, on which controlled stock is rectified, bottled, packaged, or stored.

Controlled stock. Stock on control premises, comprising:

(a) Tax-determined domestic spirits received for rectification or bottling;

(b) Tax-determined imported spirits received from internal revenue bond (as authorized by section 5232, I.R.C.) for rectification or bottling;

(c) Other tax-determined imported spirits dumped and reported on batch record Form 122 for use in production of rectified distilled spirits product;

(d) Alcoholic flavoring materials, wines, and products made with wine, dumped and reported on batch record Form 122 for use in production of a rectified distilled spirits product;

(e) Distilled spirits products received and dumped for reprocessing or rebottling;

(f) Any mixture of, or product made from, the preceding;

(g) Any of the preceding (1) on the control premises of a proprietor on the commencement of business under the provisions of this subpart, or (2) received from an outgoing proprietor as controlled stock under the provisions of § 170.56.

PAYMENT OF TAXES ON DISTILLED SPIRITS AND RECTIFIED PRODUCTS

§ 170.44 General.

Nothwithstanding any provision of Part 201 of this chapter, or of Subpart W

of this part, relating to (a) the periods to be covered by returns on Form 2522 for the deferred payment of taxes on distilled spirits, and on Form 2527 for the deferred payment of taxes on rectified products and wines, (b) the times for filing returns for the deferred payment of taxes, and (c) the amount of tax to be included for payment with such returns, proprietors of distilled spirits plants shall file returns for the deferred payment of taxes on distilled spirits, and on rectified products and wines, determined on and after the effective date of this subpart, on the forms, for the periods, by the times, and with remittances in the amounts, as provided in this subpart. § 170.45 Deferred payment of distilled spirits tax by proprietor of bonded premises.

A proprietor of bonded premises who has withdrawn spirits from such premises on determination and before payment of tax shall file a tax return covering such spirits on Form 2522, with remittance, for the periods and by the times provided in § 170.49. The proprietor of bonded premises shall include, for payment, on his return on Form 2522 the full amount of distilled spirits tax determined in respect of all spirits released for withdrawal from bonded premises on determination of tax during the period covered by the return (except spirits on which tax has been prepaid, and spirits withdrawn on determination of tax by proprietors of bottling premises). The proprietor of bonded premises who is qualified under bond, Form 2613 or 2615, to defer payment of distilled spirits tax, shall execute and file a return on Form 2522 to cover each return period, nothwithstanding that no tax is due for payment for such period. § 170.46 Deferred payment of distilled spirits tax by proprietor of bottling premises.

A proprietor of bottling premises who has assumed the liability for tax on spirits withdrawn from internal revenue bond under section 5174(a) (2), I.R.C., shall pay such tax pursuant to returns on Form 4077, or, if he is in default, pursuant to a prepayment return on Form 2521, as prescribed in § 170.51. Returns on Form 4077 shall be filed for the periods and by the times provided in § 170.49. The amount of such tax to be paid with each return on Form 4077 shall be computed as provided in § 170.50.

Spirits withdrawn from bond under section 5174(a) (2), I.R.C., shall be conveyed without delay to the bottling premises and shall be reported as received when they arrive at the bottling premises. The proprietor of each bottling premises who is qualified under bond, Form 2614 or 2615, to defer payment of distilled spirits tax, shall execute and file a return on Form 4077 to cover each return period, notwithstanding that no tax is due for payment on such form.

[T.D. 6877, 31 F.R. 3179, Feb. 26, 1966; 31 F.R. 3285, Mar. 2, 1966].

§ 170.47 Deferral denied under certain

conditions.

Any proprietor deferring payment of tax under the provisions of § 170.46 who, after having been advised of his deficiency by the assistant regional commissioner, fails to maintain the records required by, or who otherwise fails to conform to any provisions of, this subpart and who is then so notified by the assistant regional commissioner, may thereafter withdraw from internal revenue bond for rectification or bottling only spirits in respect of which the tax thereon has been paid prior to such withdrawal: Provided, That he shall be permitted to again withdraw spirits under the provisions of section 5174 (a) (2), I.R.C., if he satisfies the assistant regional commissioner that he is properly maintaining the prescribed records and will, in all respects, conform to the provisions of this subpart.

§ 170.48 Deferred payment of tax on rectified products.

A proprietor of bottling premises who has, during a return period, incurred liability for taxes determined on rectified products, and has not prepaid such taxes, shall file a tax return for that period, covering such products, on Form 2527, with remittance, in the full amount of the taxes so determined but not paid. Returns on Form 2527 shall be filed for the periods and by the times provided in § 170.49.

day of the same month; and returns for periods ending on the last day of a month shall be filed, with remittances, not later than the 10th day of the next succeeding month. Commencing with the return for the period beginning July 1, 1966, and for each subsequent return period, returns shall be filed, with remittances, for each such return period, not later than the last day of the return period next succeeding that period. The provisions of § 201.383 of this chapter regarding (a) the 2 p.m. time of filing the return and remittance, (b) the person with whom the return and remittance shall be filed, and (c) the date of delivery when delivery is by U.S. mail, shall be applicable to the filing of returns, with remittances, under this subpart.

(72 Stat. 1335; 26 U.S.C. 5061)

§ 170.50 Computation of amount of tax to be paid by proprietor of bottling premises.

A proprietor of bottling premises who is required to file returns on Form 4077 (as provided in § 170.46) shall, as of the close of each return period, compute the amount of tax to be paid with such return, in the following manner:

(a) Determine the balance of his outstanding liability from the record required by § 170.62, (less any payments made by returns on Form 4077 for prior return periods but filed subsequent to the close of the return period for which the computation is being made).

(b) Determine the tax value of the controlled stock inventory (1) by deducting from the total proof gallons in such inventory (i) the proof gallons of all alcoholic materials (distilled spirits, wines, products made with wine, and alcoholic flavoring materials) entered into controlled stock during the period which were not withdrawn from bond under the provisions of section 5174(a) (2), I.R.C., and (ii) the proof gallons in the controlled stock inventory of any mixture or product which derived less than half of its proof gallon content from tax-determined spirits, and (2) by multiplying the remainder of proof gallons by an amount equal to the rate of tax prescribed by section 5001 (a) (1), I.R.C.

(c) Determine, and pay with the return for the period, the amount by which the balance of his outstanding liability (as determined in paragraph (a) of this section) exceeds the tax value (as deter

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mined in paragraph (b) of this section) of the controlled stock inventory: Provided, That in any case where the proof gallons to be deducted from the controlled stock inventory under the provisions of paragraph (b) (1) of this section equals or exceeds the total proof gallons in the end of the period inventory of controlled stock, the total liability remaining unpaid (as determined under the provisions of paragraph (a) of this section) shall be paid with the return for the period.

(d) Notwithstanding the provisions of paragraph (c) of this section, the amount to be paid with the return shall be increased by any amount necessary to comply with the requirements of paragraphs (e) and (f) of this section, and shall be reduced by the amount of any authorized credit taken on the return.

(e) Any tax for which liability for payment was assumed under the provisions of section 5174 (a) (2), I.R.C., which has not been previously paid as provided in this subpart shall be paid with the return on Form 4077 for the twelfth return period next succeeding (1) the return period in which falls the date of receipt at the bottling premises of the spirits reported on the withdrawal form. or (2) the return period in which falls the twenty-first day after the date of the certificate of tax determination on the withdrawal form, whichever period occurs first.

(f) The outstanding liability which would remain after compliance with the provisions of paragraphs (a) through (e) of this section shall not exceed the tax value of the controlled stock removed by the proprietor during any six consecutive return periods within the thirty return periods preceding the period for which the return on Form 4077 is being prepared; such tax value to be computed by (1) determining (from the record prescribed by $ 170.61 (c) (3)) the total proof gallons removed from controlled stock during the six consecutive return periods, and (2) multiplying that total by an amount equal to the rate of tax prescribed by section 5001(a) (1), I.R.C. The six consecutive return periods shall be designated by the proprietor. The provisions of this paragraph shall not be applicable to the liability outstanding at the close of each of the first six return periods after the commencement of operations by the proprietor under this subpart.