tax as a rectifier or, except as provided in § 170.618, to qualify as a dealer in liquors in order to prepare, manufacture, or sell products described in §§ 170.613 and 170.614, or products declared by the Director to be unfit for use for beverage purposes.

(b) Manufacturers recovering taxpaid alcohol. A manufacturer who recovers taxpaid distilled spirits from dregs or marc or percolation or extraction, or from medicines, medicinal preparations, food products, flavors, or flavoring extracts, which do not meet the manufacturer's standards, is not required to qualify or pay special tax as a rectifier, if such manufacturer uses the recovered distilled spirits exclusively in the manufacture of medicine, medicinal preparations, food products, flavors, or flavoring extracts, which are unfit for use for beverage purposes.

(c) Records. Each manufacturer intending to recover taxpaid distilled spirits under the provisions of paragraph (b) of this section shall notify the assistant regional commissioner of his intention to do so and advise where such operations will be conducted. Such manufacturer shall keep a record of the distilled spirits recovered and the subsequent use to which they are put. The records shall show, (1) the date of recovery, (2) the commodity from which the spirits were recovered, (3) the amount of distilled spirits recovered, (4) the amount of recovered distilled spirits reused, (5) the commodity in which the recovered distilled spirits were reused, and (6) the date of such reuse. Such records shall be retained at the premises where the recovery operations are conducted for not less than two years, and shall be available during regular business hours for examination by internal revenue officers. (72 Stat. 1328; 26 U.S.C. 5025)

§ 170.618 Sale of products for beverage use; special tax.

Any person (including the manufacturer) who sells for beverage purposes any of the products described in §§ 170.613 and 170.614, or any other product declared by the Director to be unfit for use for beverage purposes, or any distilled spirits recovered as provided in § 170.617(b), or who sells any such substance under circumstances from which it might reasonably appear that it is the intention of the purchaser to procure the same for sale or use for bev

erage purposes, is required to pay special tax as a wholesale dealer in liquors or a retail dealer in liquors, as the case may be, and, in the case of a manufacturer, may also be required to pay special tax as a rectifier (plus any penalties and interest due).

(72 Stat. 1338, 1340, 1343; 26 U.S.C. 5081, 5111, 5113, 5121)

Subpart V-[Reserved]

Subpart W-Temporary Regulations Respecting the Filing of Tax Returns by Proprietors of Distilled Spirits Plants

SOURCE: The provisions of this Subpart W contained in T.D. 6848, 30 F.R. 11599, Sept. 10, 1965, unless otherwise noted.

This subpart provides temporary regulations respecting (a) the periods to be covered by returns filed by proprietors of distilled spirits plants 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, and (b) the times for filing such returns, with remittances. § 170.642 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. § 170.643 General.

Notwithstanding any provision of Part 201 of this chapter 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, and (b) the times for filing returns on such forms, for the deferred payment of taxes, proprietors of distilled spirits plants shall file returns for deferred payment of taxes with remittances, for the periods, and by the times, provided in this subpart.

§ 170.645

Times for filing. (a) General. Returns on Forms 2522 and 2527, with remittances, shall, unless the proprietor is qualified for extended deferral, be filed not later than the third business day next succeeding the last day of each return period. The provisions of § 201.383 of this chapter regarding (1) the 2 p.m. time of filing the return and remittance, (2) the person with whom the return and remittance shall be filed, and (3) the date of delivery when delivery is by United States mail, shall be applicable to the filing of returns, with remittances, under this subpart. Also, the provisions of Part 201 of this chapter relating to default in deferred payment of taxes shall be applicable to default in deferred payment of taxes under this subpart. A return on Form 2522 shall be executed and filed to cover each return period notwithstanding that no tax is due for payment for such period.

(b) Extended deferral. A proprietor who is qualified as provided in § 170.646 for extended deferral shall file returns with remittances, for return periods to and including the return period ending June 30, 1966, as follows:

(1) For return periods ending on the 15th day of the month, not later than the 25th day of the same month; and

(2) For return periods ending on the last day of a month 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, a proprietor who is qualified as provided in § 170.646 for extended deferral shall file returns, with remittances, for each such return period, not later than the last day of the return period next succeeding that period.

§ 170.646 Qualification for extended deferral.

(a) Returns on Form 2522. A proprietor who desires to file returns, Form 2522, with remittances, with benefit of the extended deferral periods, prescribed by § 170.645(b), and whose bond then in force on Form 2613, 2614, or 2615, covering deferred payment of taxes is not in a sufficient penal sum, shall give a new bond in a sufficient penal sum on Form 2613, 2614, or 2615, as applicable, or a strengthening bond to increase the total penal sum of the bonds in force to a sufficient penal sum.

(b) Returns on Form 2527. A proprietor who desires to file returns, Form 2527, with remittances, with benefit of extended deferral, may give a new bond on Form 2601 or give a consent of surety as provided in paragraph (c) of this section to extend the terms of the bond, Form 2601, then in force.

(c) Consents of surety. A proprietor who desires to file returns on Forms 2522 and 2527 under an existing bond, with benefit of extended deferral, shall file a consent of surety on Form 1533 to extend the terms of such bond. Each consent on Form 1533 shall identify the particular bond to which it applies and shall contain a statement of purpose as follows:

To continue in effect said bond (including all extensions or limitations of terms and conditions previously consented to and approved), notwithstanding that the time for payment of the tax may be deferred as provided for by regulations in 26 CFR 170.645 (b).

(d) Effective date for extended deferral. A proprietor may file returns with benefit of extended deferral only after the applicable bonds and consents of surety required by this section have been filed with and approved by the assistant regional commissioner. The benefit of extended deferral shall commence with the return for the first return period fully covered by such bonds and consents of surety, but in no case shall the extended deferral apply to the return period which begins September 24, 1965. § 170.647 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, shall be applicable to returns, remittances, bonds, and consents of surety, under the provisions of this subpart.

Subpart X-Temporary Regulations Respecting the Filing of Tax Returns by Proprietors of Bonded Wine Cellars

SOURCE: The provisions of this Subpart X contained in T.D. 6848, 30 F.R. 11600, Sept. 10, 1965, unless otherwise noted.

§ 170.651 Scope of regulations.

This subpart provides temporary regulations respecting the periods to be covered by returns filed by proprietors of

The first (transitional) return period under the provisions of this subpart shall commence on September 24 and run through September 30, 1965; thereafter, the return periods shall run from the 1st day of each month through the 15th day of that month, and from the 16th day of each month through the last day of that month.

§ 170.655 Times for filing.

(a) General. Returns on Form 2050, with remittances, shall, unless the proprietor is qualified for extended deferral, be filed not later than the third calendar day next succeeding the last day of each return period, excluding any Saturday, Sunday, or legal holiday in the District of Columbia, or any statewide holiday of the State in which the return is required to be filed. The provisions of Part 240 of this chapter regarding the date of delivery when delivery is by United States mail shall be applicable to the filing of returns, with remittances, under this subpart. Also, the provisions of Part 240 of this chapter relating to default in deferred payment of taxes shall be applicable to default in deferred payment of taxes under this subpart. Except as provided in § 240.592 of this chapter, a return on Form 2050 shall be executed and filed to cover each return period, notwithstanding that no tax is due for such period.

(b) Extended deferral. A proprietor who is qualified as provided in § 170.656 for extended deferral shall file returns, with remittances, for return periods to and including the return period ending June 30, 1966, as follows:

(1) For return periods ending on the 15th day of the month, not later than the 25th day of the same month; and

(2) For return periods ending on the last day of a month, 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, a proprietor who is qualified as provided in § 170.656 for extended deferral shall file returns, with remittances, for each such return period, not later than the last day of the return period next succeeding that period.

§ 170.656 Qualification for extended deferral.

(a) Deferral covered by operating bond only. A proprietor who has not given a tax deferral bond on Form 2053, may file returns, Form 2050, with remittances, with benefit of extended deferral, under his existing bond Form 700 or Form 2601, without further qualification, provided the amount of tax unpaid at any one time will not exceed $100.

(b) Deferral covered by bond on Form 2053. A proprietor who has on file a tax deferral bond on Form 2053 in a penal sum which is less than that required under § 170.657, and who desires to file returns, Form 2050, with remittances, with benefit of the extended deferral periods prescribed by § 170.655(b), shall give a new bond in a sufficient penal sum on Form 2053 or give a strengthening bond to increase the total penal sum of the bonds in force to a sufficient penal

sum.

(c) Consents of surety. A proprietor who desires to file returns on Form 2050 under an existing bond on Form 2053, with benefit of extended deferral, shall file a consent of surety on Form 1533 to extend the terms of the bond. Each consent on Form 1533 shall identify the particular bond to which it applies and shall contain a statement of purpose as follows:

To continue in effect said bond (including all extensions or limitations of terms and conditions previously consented to and approved), notwithstanding that the time for payment of the tax may be deferred as provided for by regulations in 26 CFR 170.655(b).

(d) Effective date of extended deferral. A proprietor may file returns with benefit of extended deferral only after the applicable bonds and consents of surety required by this section have been filed with and approved by the asisstant regional commissioner. The benefit of extended deferral shall commence with the return for the first return period fully covered by such bonds and consents of surety, but in no case shall the extended deferral apply to the return period which begins September 24, 1965.

§ 170.657

Penal sum of bond, Form

2053. Notwithstanding any provision of Part 240 of this chapter, the penal sum of the tax deferral bond on Form 2053, covering extended deferrals, shall be in an amount not less than the tax which, at any one time, will be chargeable against such bond but not paid: Provided, That the penal sum of such bond shall not exceed $250,000, and in no case shall the penal sum be less than $500.

(72 Stat. 1379; 26 U.S.C. 5354)

§ 170.658 Other regulations applicable. All provisions of Part 240 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, shall be applicable to returns, remittances, bonds, and consents of surety, under the provisions of this subpart.

Subpart Y-Temporary Regulations Respecting the Filing of Tax Returns by Brewers

SOURCE: The provisions of this Subpart Y contained in T.D. 6848, 30 F.R. 11601, Sept. 10, 1965, unless otherwise noted.

§ 170.661 Scope of regulations.

This subpart provides temporary regulations respecting the periods to be covered by returns filed by brewers on Form 2034 for the deferred payment of taxes on beer, and the times for filing such returns, with remittances.

§ 170.662 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 245 of this chapter.

Notwithstanding any provision of Part 245 of this chapter relating to (a) the periods to be covered by returns on Form 2034 for the deferred payment of taxes on beer, and (b) the times for filing returns on such form, for the deferred payment of taxes, brewers shall file returns for deferred payment of taxes with remittances, for the periods, and by the times, provided in this subpart. § 170.664 Return periods.

The first (transitional) return period under the provisions of this subpart shall commence on the brewer's business day beginning on September 24 and run through his business day beginning on September 30, 1965; thereafter, the return periods shall run from the brewer's business day beginning on the 1st day of each month through his business day beginning on the 15th day of that month, and from the brewer's business day beginning on the 16th day of each month through his business day beginning on the last day of that month. § 170.665 Times for filing.

(a) General. Returns on Form 2034 for deferred payment of taxes, with remittances, shall, unless the brewer is qualified for extended deferral, be filed not later than the close of the third calendar day next succeeding the 15th calendar day, or the last calendar day, of the month, as the case may be, excluding Saturadys, Sundays, legal holidays of the District of Columbia, and statewide legal holidays of the State in which the return is required to be filed. The provisions of Part 245 of this chapter regarding the date of delivery when delivery is by United States mail shall be applicable to the filing of returns, with remittances, under this subpart. Also, the provisions of Part 245 of this chapter relating to default in deferred payment of taxes shall be applicable to default in deferred payment of taxes under this subpart. A return on Form 2034 shall be executed and filed for each return period regardless of whether beer has been removed for consumption or sale during the return period or whether tax has been prepaid as provided in § 245.117c of this chapter during the return period.

(b) Extended deferral. A brewer who is qualified as provided in § 170.666 for extended deferral shall file returns, with remittances, for return periods to and

including the return period ending at the close of the brewer's business day beginning June 30, 1966, as follows:

(1) For return periods ending at the close of the brewer's business day beginning on the 15th calendar day of the month, not later than the 25th calendar day of that month; and

(2) For return periods ending at the close of the brewer's business day beginning on the last calendar day of a month, not later than the 10th calendar day of the month next succeeding that in which such business day began.

Commencing with the return for the period starting with the brewer's business day beginning on July 1, 1966, and for each subsequent return period, a brewer who is qualified as provided in § 170.666 for extended deferral shall file returns, with remittances, for each such period, not later than the last full calendar day of the return period next succeeding that period.

§ 170.666 Qualification for extended deferral.

(a) Bonds and consents of surety. A brewer who desires to file returns, Form 2034, with remittances, with benefit of the extended deferral periods prescribed by 170.665(b), may give a new bond on Form 1566 or give a consent of surety as provided in this section to extend the terms of the bond, Form 1566, then in force. Each consent on Form 1533 shall identify the particular bond to which it applies and shall contain a statement of purpose as follows:

To continue in effect said bond (including all extensions or limitations of terms and conditions previously consented to and approved), notwithstanding that the time for payment of the tax may be deferred as CFR provided for by regulations in 26 170.665(b).

(b) Effective date for extended deferral. A brewer may file returns with benefit of extended deferral only after the applicable bonds and consents of surety required by this section have been filed with and approved by the assistant regional commissioner. The benefit of extended deferral shall commence with the return for the first return period fully covered by such bonds and consents of surety, but in no case shall extended deferral apply to the return period commencing with the brewer's business day beginning on September 24, 1965.