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ProceduresNote: This file contains IRS Revenue Procedures and ATF/TTB Procedures for alcohol and tobacco. These procedures are available for your information; however, TTB cannot guarantee 100 percent accuracy. In addition, these procedures may be modified, superseded, or made obsolete by changes in laws and regulations and may not be a complete listing of all current and valid procedures. If you need to verify the content of any procedure, refer to the IRS or ATF Bulletins. Please inform us of any suspected errors or omissions at ttbquestions@ttb.treas.gov or TTB, 1310 G Street, NW – Room 200 East, Washington, DC 20220. [Warning: This file is 77 pages when printed.]
SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to set forth the approved methods for testing for spirits content certain chemicals produced and collected in the production facility of a distilled spirits plant. SEC. 2. BACKGROUND. Section 201.278 of the Distilled Spirits Plants Regulations provides that all chemicals produced, including chemical by-products of the spirits production system, shall be substantially free of spirits before being transferred to storage tanks or removed from the production facilities; the spirits content of such chemicals shall not, except as authorized by the Director, Alcohol and Tobacco Tax Division, exceed 10 percent volume; and the testing of such chemicals for spirits content will be conducted by the proprietor in accordance with methods approved by the Director. SEC. 3 REQUIRED APPARATUS AND REAGENTS. The apparatus and reagents required for testing the chemicals for spirits content are as follows: 1. Fusel oil tube-A&TTD type. (The bulb holds three times the volume of the graduated neck portion. The graduations are from the top line marked 0 to the bottom line marked 100.) 2. Flask or graduate-300 to 500 ml. capacity. 3. Three graduates-25 ml. capacity. 4. Saturated salt solution (sodium chloride). 5. Sulfuric acid, concentrated, specific gravity 1.84 6. Two percent sulfuric acid solution (2 ml. concentrated sulfuric acid diluted with distilled water to 100 ml.). 7. Sodium sulfate, anhydrous (Na2SO4). 8. Ceric ammonium nitrate reagent. (Triturate 10 g. of ceric ammonium nitrate ((NH4)2Ce(NO3)6)) with 3.5 ml. concentrated nitric acid (HNO3) and dilute with distilled water to 125 ml. Filter if cloudy.) 9. Standard acetone-alcohol solution. (To 90 ml. of acetone (C.P.) add 10 ml. of ethyl alcohol (C.P.).) 10. Standard alcohol solution (2 percent ethyl alcohol (C.P.) 98 percent saturated salt solution). 11. Chloroform (CHCI3) 12. Nitric acid, concentrated (HN03). SEC. 4. APPROVED METHODS FOR TESTING. Samples meeting test requirements contain no more than 10 percent ethyl alcohol by volume and, thus, the tests serve as a rapid screening procedure. Failure to meet test requirements is not conclusive proof of the presence of more than 10 percent ethyl alcohol by volume since other chemicals may be present which affect solubilities or oxidation rate as in the case of acetone. Where samples fail to meet the approved method for testing and other laboratory analyses indicate that the sample contains less than 10 percent ethyl alcohol by volume, additional samples should be taken and forwarded to the regional laboratory for analyses by other methods. Approved methods for testing acetone, butyl alcohol, ethyl ether, ethyl oil, and fusel oil are listed below. 1. Acetone. - Put 5 ml. of ceric ammonium nitrate reagent in a 25 ml. graduate, add 5 ml. of acetone sample, close the graduate, and shake several times to mix. Immediately compare the color with that produced when 5 ml. of standard acetone-alcohol solution is similarly treated. If the color of the acetone sample being tested is not greater than the color of the standard (made with 5 ml. of standard solution), the acetone sample contains no more than 10 percent ethyl alcohol by volume. If desired, both the acetone sample and the standard may be diluted with equal quantities of distilled water. The difference in color is more apparent at 5 percent alcohol since at 10 percent alcohol the color is quite dark. 2. Butyl alcohol. - Put 20 ml. of saturated salt solution in the fusel oil tube and add 2 percent sulfuric acid solution until the 100 mark on the fusel oil tube is reached. Add butyl alcohol sample until the 0 mark on the fusel oil tube is reached, close the fusel oil tube, shake for about 5 minutes, and place in an upright position to allow the two layers to separate (30 minutes may be required to get a good separation). A reading of 90 or less at a temperature of 60 degrees to 80 degrees F. indicates more than 10 percent ethyl alcohol by volume.* *(Note: The ethyl alcohol in the sample is dissolved in saturated salt solution and remains in the lower layer. The decrease in the upper layer gives a measure of the amount of ethyl alcohol contained in the sample. 3. Ethyl ether. - Put saturated salt solution in the fusel oil tube until the 100 mark on the fusel oil tube is reached. Add ethyl ether sample until the 0 mark on the fusel oil tube is reached, close the fusel oil tube, shake, and place in an upright position to allow the two layers to separate (about 2 or 3 minutes). A reading of 90 or less at a temperature of 60 degrees to 80 degrees F. indicates more than 10 percent ethyl alcohol by volume.* 4. Ethyl oil. - Either of the following methods may be used: (1) Put saturated salt solution in the fusel oil tube until the 100 mark on the fusel oil tube is reached. Add ethyl oil sample until the 0 mark on the fusel oil tube is reached, close the fusel oil tube, shake and place in an upright position to allow the two layers to separate. A reading below 90 at a temperature of 60 degrees to 80 degrees F. indicates more than 10 percent ethyl alcohol by volume.* (2) Put 19 ml. of chloroform in a 25 ml. graduate, add 1 ml. of ethyl oil sample, close the graduate, shake several times to mix, and then add 5 ml. of saturated salt solution. Into another 25 ml. graduate put 20 ml. of chloroform, add 5 ml. of standard alcohol solution, close the graduate, shake for 3 minutes, and place in an upright position to allow the two layers to separate. Into each of these two graduates add 5 ml. of ceric ammonium nitrate reagent and stir several times to mix reagent with the upper layer in the graduate. If the color in the graduate containing the ethyl oil sample is not greater than the color in the graduate containing the standard alcohol solution, the ethyl alcohol is not more than 10 percent by volume. 5. Fusel oil. - Put saturated slat solution in the fusel oil tube until the 100 mark on the fusel oil tube is reached. Add fusel oil sample until the 0 mark on the fusel oil tube is reached, close the fusel oil tube, shake, and place in an upright position to allow the two layers to separate. A reading below 90 at a temperature of 60 degrees to 80 degrees F. indicates more than 10 percent ethyl alcohol by volume.* *(Note: The ethyl alcohol in the sample is dissolved in saturated salt solution and remains in the lower layer. The decrease in the upper layer gives a measure of the amount of ethyl alcohol contained in the sample. SEC. 5. TEMPERATURE EFFECTS ON SAMPLE. Oxidation rate of acetone is increased by elevated temperatures and decreased by lower temperatures. An increase in temperature increases the solubility of the solvents in the saturated salt solution. SEC. 6. MOISTURE EFFECTS ON SAMPLE. Except for acetone, appreciable quantities of water have a decided effect on the test results. The water is completely dissolved in the saturated salt solution and, thus, would be read in the fusel oil tube as alcohol. When the solvents meet the requirements of the test, there is no need to make a correction for water; but, if the test indicates the presence of more than 10 percent ethyl alcohol by volume, then the following procedure may be used to dry the sample before making the test: Dehydration of sample - Put 200 ml. of sample in the 300 to 500 ml. flask or graduate and add approximately 80 grams of anhydrous sodium sulfate. Shake, let stand for 1 hour (butyl alcohol requires 36 hours contact), and decant the supernatant liquid which is used as the test sample in the preceding tests. The anhydrous sodium sulfate is a fairly effective drying agent and as such it removes most of the water. SEC. 7. INQUIRIES. Inquiries
regarding this Revenue Procedure should refer to its
number and be addressed to the office of the appropriate
Assistant Regional Commissioner, Alcohol and Tobacco
Tax.
SECTION 1. PURPOSE. .01 The purpose of this Revenue Procedure is to set forth guidelines specifying the basic record requirements which the Internal Revenue Service considers to be essential where a proprietor or permittee operating under chapter 51 (Distilled Spirits, Wines and Beer) or chapter 52 (Tobacco, Cigars, Cigarettes, and Cigarette Papers and Tubes) of the Internal Revenue Code of 1954 maintains records within an automatic data processing (ADP) system. For the purpose of this Revenue Procedure, ADP systems include all accounting systems which process all or a part of the records, transactions, or other applicable data of a proprietor or permittee by other than manual methods. .02 Because the technology of ADP is evolving rapidly, these guidelines are not intended to restrict the uses made by proprietors and permittees except where such uses would result in noncompliance with record keeping requirements of the regulations. SEC. 2. BACKGROUND The inherent nature of ADP is such that it may not be possible to trace transactions from source documents to end results, or to reconstruct a given account, unless the system is designed to provide audit trails. Under regulations issued under chapter 51 of the Code, it is necessary that records of transactions be such as will enable any Internal Revenue Service officer to verify and trace the production, receipt, storage, and disposition of distilled spirits, wine, and beer and certain other products made with or containing wine or distilled spirits and certain other products made with or containing wine or distilled spirits, and to ascertain whether there has been compliance with the law and regulations. Similarly, under regulations issued under chapter 52 of the Code, it is necessary that records of specified operations and transactions, and the auxiliary and supplemental records from which such records are compiled, be maintained by the proprietor or permittee and be made available for inspection by any Internal Revenue Service officer upon his request. SEC. 3. OBJECTIVES. Modern machine accounting systems are capable of recording business transactions much more rapidly and with greater accuracy than manual systems, and they are capable of retaining and producing vast amounts of data. The ability to produce in legible form, when needed, the data necessary to meet the requirements of law and regulations must be carefully considered in designing and programming a machine system. This factor may add to the complexity or the systems and require additional cost, but this cost may be negligible when compared to the expense that may later be incurred if the systems cannot practically and readily provide the required information. SEC. 4. ADP RECORD GUIDELINES. .01 ADP accounting systems will vary, just as manual systems vary, to meet the needs of a particular proprietor or permittee. However, the procedures built into a computer's accounting program must include a method of producing from the punched cards or tapes visible and legible records which will provide the necessary details required by the regulations covering the respective operations, or such details must be available in supplemental records. .02 In determining the adequacy of records required by regulations issued under chapter 51 and chapter 52, of the Code, maintained within an automatic data processing system, the Service will consider as acceptable those systems which comply with guidelines for records requirements as follows: (1) The records maintained by ADP must be supplemented by such other records as are necessary, so that the entire records systems will fully comply with the requirements of the applicable regulations. (2) The records must provide the opportunity to trace any transaction back to the original source or forward to a final total. If printouts are not made of transactions at the time they are processed, the system must have the ability to reconstruct these transactions. (3) The system must be such that the information required by the regulations can be readily furnished without delay. (4) Adequate record retention facilities must be available for storing tapes and printouts as well as all applicable supporting documents. These records must be retained in accordance with the provisions of the Code and the regulations prescribed thereunder. (5) A description of the ADP portion of the accounting system should be available. The statements and illustrations as to the scope of operations should be sufficiently detailed to indicate (a) the application being performed, (b) the procedures employed in each application (which, for example, might be supported by flow charts, block diagrams, or other descriptions of input or output procedures), and (c) the controls used to insure accurate and reliable processing. Once an ADP system is installed, important changes, together with their effective dates, should be noted in order to preserve an accurate chronological record. SEC. 5. NOTIFICATION TO ASSISTANT REGIONAL COMMISSIONER. As indicated in section 3, inadequate coverage at the time an ADP system is installed can prove costly. Therefore, proprietors and permittees are encouraged to notify the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax, in advance of installation of ADP, giving him the details of the records involved and the proposed method of preparation and retention so that he can, to the extent possible, determine in advance the adequacy of the records. SEC. 6. INQUIRIES Comments or inquiries relating to this Revenue Procedure should be addressed to the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax. 26 U.S.C. 5555, 5741; 26 CFR 601.301
SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to provide information as to the date to be shown in claims for credit of tax, Form 2635, Claim-Alcohol and Tobacco Taxes, or claims for refund of tax, Form 843, Claim, filed under section 5705 of the Internal Revenue Code of 1954, on cigars and cigarettes withdrawn from the market. SEC. 2. BACKGROUND. The period of limitation for filing claims for credit or refund of tax, as set forth in section 5705(c) of the Code, is 6 months after the date of withdrawal from the market, loss (otherwise than by theft), or destruction of the cigars and cigarettes to which the claim relates. SEC. 3. ACCEPTABLE DATES ON CLAIM. It will be acceptable for claimants to show on either Form 2635 or Form 843 as the date of withdrawal from the market, the date that cigars and cigarettes were received on the factory premises (as described in the manufacturer's application for permit), or were voluntarily destroyed or reduced to tobacco, at a place other than such premises. In lieu of a listing of such specific date or dates, the claimant may certify (under penalties of perjury) that the products covered by the claim were received on the factory premises, or voluntarily destroyed or reduced to tobacco, at a place other than such premises, within 6 months prior to the date that the claim is filed. SEC. 4. INQUIRIES. Inquiries in regard to this Revenue Procedure should refer to the number thereof and should be addressed to the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax. Revenue Procedure 59-2, C.B. 1959-1, 800, is hereby superseded. 26 U.S.C. 5705; 26 CFR 601.315
SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to explain the requirement concerning the "notice" to appear on packages of large cigars and to furnish suggestions for compliance with the regulations. SEC. 2. BACKGROUND. The Internal Revenue Service has received inquiries whether the appearance of the word "cigars" in the class designation on a package of large cigars would fulfill the requirements of 26 CFR 270.214 and 275.73 or if the word "cigars" must be separately stated on the package. SEC. 3. REQUIREMENT OF REGULATIONS. Under the return system it is necessary that packages of cigars and cigarettes have positive expressions of the quantity, kind, and class of the cigars and cigarettes contained in the packages. Therefore, for large cigars 26 CFR 270.214 and 275.73 specifically require that packages of such products shall, before removal subject to tax, have adequately imprinted thereon, or on a label securely affixed thereto, the designation "cigars" and the appropriate class designation. This means that the appearance on the package of the word "cigars" in the class designation for large cigars does not fulfill the requirement of 26 CFR 270.214 or 275.73 and that the word "cigars" must be separately and adequately stated. While such descriptive words as "cigarillos," "cheroots," "blunts," "panatelas," etc., may be used on packages of cigars, they will not be considered as a substitute for the word "cigars." SEC. 4. SUGGESTIONS FOR COMPLIANCE. .01 The Internal Revenue Service suggests to manufacturers and importers the following ways in which the word "cigars" may appear on the package. The word "cigars" may be imprinted directly on the package or on a label securely affixed to the package. For example, it may appear in connection with (1) a brand name, such as "Perfect Cigars," (2) the quantity statement, such as "25 cigars," or (3) a slogan, such as "finest quality cigars." .02 Manufacturers and importers are urged to submit packages to their Assistant Regional Commissioner, Alcohol and Tobacco Tax, for advice where there is any doubt about compliance with the requirement of the regulations. SEC. 5. INQUIRIES. Inquiries in regard to this Revenue Procedure should refer to its number and be addressed to the office of the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax. Revenue Procedure 62-5, C.B. 1962-1, 426, is hereby superseded. 26 U.S.C., 5723; 26 CFR 601.311
SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to outline the procedure for the preparation and distribution by manufacturers of tobacco products of Form 2149, Notice of Removal of Cigars, Cigarettes, Cigarette Papers, or Cigarette Tubes, from Factory for Export, covering shipments of tax-exempt cigars and cigarettes replacing products lost, damaged, or destroyed in transit for exportation. SEC. 2. BACKGROUND. .01 26 CFR 290.198 and 290.199 provide for the preparation and distribution of the several copies of Form 2149, and 26 CFR 290.203 provides for the filing of two copies of the form with the District Director of Customs at the port of exportation, for each shipment removed for exportation. .02 Where cigars and cigarettes are lost, damaged, or destroyed in transit for exportation (either the total shipment of a part of the shipment) and the manufacturer of tobacco products makes a replacement shipment, the two sets of Form 2149 will, in the aggregate, indicate the removal for exportation of more products than are entered on the export declaration and ship's manifest. Since the District Director of Customs certifies to only the actual quantity exported, the additional Form 2149 covering a replacement shipment often creates confusing and additional work in his office. Therefore, the following procedure should be used when replacement shipments are made. SEC. 3. PROCEDURE. .01 Preparation and Disposition of Forms 2149 Covering Replacement Shipments. - When tax-exempt cigars and cigarettes are removed from the factory to replace cigars and cigarettes lost, damaged, or destroyed in transit for exportation, Form 2149 should contain a statement to the effect that the cigars and cigarettes listed thereon were removed from the factory to replace cigars and cigarettes removed under Form 2149, serial number, which were lost, damaged, or destroyed, as applicable. It should also contain an explanation of the loss, damage, or destruction. Only two copies of the form need be prepared, one copy to be retained by the manufacturer as a part of his records and one copy to be forwarded to the Assistant Regional Commissioner, Alcohol and Tobacco Tax. No copy should be sent to the District Director of Customs for the reason stated in section 2.02 above. .02 Accounting for Lost, Damaged, or Destroyed Cigars and Cigarettes. - Manufacturers are reminded that lost, damaged, or destroyed cigars and cigarettes must be accounted for by tax-payment, by return to the factory, or by the filing of a claim for remission of the tax liability with the Assistance Regional Commissioner, Alcohol and Tobacco Tax. SEC. 4. INQUIRIES. Inquiries in regard to this Revenue Procedure should refer to its number and be addressed to the office of the Assistant Regional Commissioner, Alcohol and Tobacco Tax. Revenue Procedure 62-22, C.B. 1962-2, 486, is hereby superseded. 26 U.S.C. 5704; 26 CFR 601.311
SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to set forth the procedure to be followed by manufacturers of tobacco products for recording and reporting cigars and cigarettes removed subject to tax and the treatment of tax determined (including taxpaid) cigars and cigarettes received into the factory. SEC. 2. BACKGROUND. Recent inspections disclosed that some manufacturers of tobacco products were not fully reporting the quantities of cigars and cigarettes removed subject to tax because they were reducing the quantity of products actually removed to the extent of tax determined products returned to the factory. The manufacturers based their action on the consideration that (1) no claim for allowance or refund of tax would be made on the returned products, and (2) when such products were again removed subject to tax, the tax would be redetermined and paid. However, there is no basis for this practice in the applicable laws and regulations. SEC. 3. RECORDING AND REPORTING REMOVALS SUBJECT TO TAX. A manufacturer of tobacco products must enter in his records and reports the total quantity of cigars and cigarettes removed subject to tax, reflect such quantity in the tax return for the period in which the removals occurred, and pay the full amount of tax (except for authorized adjustments). In no case may the manufacturer, in his reports and tax returns, reduce the quantity of products actually removed subject to tax by the quantity of tax determined products returned to the factory. SEC. 4. TREATMENT OF TAX DETERMINED PRODUCTS RECEIVED INTO FACTORY. .01 All tax determined (including taxpaid) cigars and cigarettes (those which have not been returned to an "in bond" status) received into the factory must be segregated and identified as tax determined products and their receipt and disposition entered in the records in the account of taxpaid or tax determined products received. If reshipped, supporting records (such as copies of invoices, bills of lading, shipping tickets, etc.) must clearly identify the products as reshipped tax determined products. Lack of such identifications may result in the assessment of tax on the reshipped products. Tax determined cigars and cigarettes so handled would not be included in monthly reports. .02 If tax determined cigars and cigarettes received into the factory are later to be returned to an "in bond" status, such disposition must be recorded in the taxpaid or tax determined account and the products concurrently picked up in the "received by return to bond" account. Thus, when the cigars and cigarettes are picked up as received by return to bond, they will be included in the monthly reports. When such cigars and cigarettes are then removed subject to tax, they will be so reported and fully covered in the tax return for the period in which they were removed. If the manufacturer wishes to obtain allowance, credit, or refund of tax which has been previously determined or paid on the products returned to bond, he may file claim on Form 2635, Claim-Alcohol and Tobacco Taxes, or Form 843, Claim, as applicable, and follow the procedures prescribed in 26 CFR 270.282, 270.283, 270.311, and 270.313 which involve notifying the Assistant Regional Commissioner, Alcohol and Tobacco Tax, before returning the products to an "in bond" status. SEC. 5. INQUIRIES. Inquiries in regard to this Revenue Procedure should refer to its number and be addressed to the office of the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax. Revenue Procedure 63-13, C.B. 1963-1, 501, is hereby superseded. 26 U.S.C. 5703, 5705, 5741; 26 CFR 601.311
SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to furnish instructions as to which manufacturer's name and location, or permit number (to be shown in the mark as required by 26 CFR 270.212), should appear on packages of cigars or cigarettes produced and packaged by one manufacturer and transferred in bond to another such manufacturer. SEC. 2. BACKGROUND. Under the provisions of section 5704(b) of the Internal Revenue Code of 1954 and 26 CFR 270.233, a manufacturer of tobacco products may transfer cigars and cigarettes under his bond, without payment of tax, to the factory of any manufacturer of tobacco products. When so transferred, the cigars and cigarettes are exempt from the packaging requirements of 26 CFR 270.211. However, the regulations contemplate that the cigars or cigarettes may be shipped in bulk or in packages, as desired. When the cigars or cigarettes are transferred in packages, the question has been raised as to which manufacturer the mark on the package should identify. SEC. 3. IDENTIFICATION OF MANUFACTURER LIABLE FOR TAX Packages containing cigars or cigarettes 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 by name and location (by city and State), or by permit number, the manufacturer who will remove the cigars and cigarettes subject to tax. He becomes liable for the tax on such products upon their receipt and will usually be the proper claimant in respect to credit, 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. Revenue Procedure 64-6, C.B. 1964-1, (Part 1), 664, is hereby superseded. 26 U.S.C. 5704, 5723; 26 CFR 601.311
SECTION 1. PURPOSE. Revenue Procedure 66-24, C.B. 1966-1, 652, established procedures to be followed by a manufacturer of tobacco products (or by his authorized representative) in executing Form 3069, Schedule of Cigars, Cigarettes, or Cigarette Papers or Tubes Withdrawn from the Market. In order to make such procedures applicable to Form 3069 without regard to revision date, they are restated herein to omit reference, in sections 3 and 4, to specific item numbers appearing on the form. SEC. 2. BACKGROUND. .01 Damaged cigars and cigarettes were destroyed at the premises of a wholesale tobacco dealer under the supervision of an alcohol and tobacco tax inspector. The dealer prepared Form 3069 with the intention of transmitting the schedule to the manufacturer who would file claim for credit or refund of tax under section 5705 of the Internal Revenue Code of 1954. However, the manufacturer was not aware of the destruction of such products. The matter did not come to his attention until after the destruction of the cigars and cigarettes. Therefore, the manufacturer could not properly claim that he had withdrawn them from the market. Accordingly, a claim for credit or refund of tax on such products is not allowable. .02 One condition to the credit or refund of tax on domestic cigars and cigarettes under section 5705 of the Code is the withdrawal of the products from the market by the manufacturerwho paid the tax. However, the law and regulations do not preclude the allowance of a claim where the cigars and cigarettes are destroyed or reduced to tobacco at a location other than the factory premises if the manufacturer takes possession or acquires ownership of the cigars and cigarettes prior to destruction or reduction to tobacco. SEC. 3. SIGNATURE REQUIRED ON FORM 3069. The action of the manufacturer in withdrawing cigars and cigarettes from the market must be evidenced by the signature of the manufacturer (or by the signature of the manufacturer's authorized representative) on the schedule, Form 3069. SEC. 4. EXECUTION OF SCHEDULE FOR THE MANUFACTURER BY HIS REPRESENTATIVE. Whenever a manufacturer withdraws cigars and cigarettes from the market and the schedule, Form 3069, is to be executed in his behalf by an employee such as a district manager, distribution manager, etc., not otherwise authorized to sign documents filed with the Assistant Regional Commissioner, Alcohol and Tobacco Tax, the manufacturer is responsible for timely filing Form 1534, Power of Attorney, as provided for in 26 CFR 270.68 authorizing such person to so act. It is the responsibility of the manufacturer to have on file with the Assistant Regional Commissioner, Alcohol and Tobacco Tax, for the region where the claim will be filed a Form 1534 prior to the execution of any schedule for the manufacturer by the person named in the power of attorney. Execution of Form 3069 by a person not authorized to do so may result in the disallowance of the claim. After cigars and cigarettes have been disposed of and a claim for credit or refund filed, the determination will be made in alcohol and tobacco tax offices as to whether the person who executed Form 3069 was duly authorized to act in behalf of the manufacturer. Manufacturers should fully instruct their representatives in the proper preparation of Form 3069. SEC. 5. INQUIRIES. Inquiries in regard to this Revenue Procedure should refer to its number and be addressed to the office of the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax. SEC. 6. EFFECT ON OTHER DOCUMENTS. Revenue Procedure 66-24, C.B. 1966-1, 652, is hereby superseded. 26 U.S.C. 5705; 26 CFR 601.315
SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to modify the provisions of Revenue Procedure 68-18, C.B. 1968-1, 808, to allow for soakage in determining losses from tampered packages of distilled spirits in bonded storage. (See paragraphs 3.01 (a) and (d).) For convenience, the provisions of the Revenue Procedure, as modified, are restated. SEC. 2. BACKGROUND. Section 5006(b)(1) of the Internal Revenue Code of 1954 and 26 CFR 201.310(a) provide that when it is found that a package of distilled spirits in bond has sustained a loss due to theft or unauthorized voluntary destruction, immediate taxpayment of the original quantity of spirits entered for deposit in storage in the package may be required. An exception is made that where losses from any cause other than theft or unauthorized voluntary destruction can be established by the proprietor to the satisfaction of the Assistant Regional Commissioner, Alcohol and Tobacco Tax, the tax on the loss so established may be credited against the tax on the original quantity. Acceptable procedures for determining normal storage losses for packages filled by individual gauge and by average fill methods are prescribed below. SEC. 3. METHODS FOR DETERMINING LOSSES. .01 Packages filled by the individual gauge method. - In order to credit the tax on normal storage losses against the tax on the original quantity of spirits entered for deposit in a package filled by the individual gauge method, when such package has sustained a loss due to theft or unauthorized voluntary destruction, the proprietor should: (a) Determine the loss from the tampered package by actual gauge or by using the present gross weight, present proof, and original tare of the package, and subtracting the tax gallons so obtained from the original tax gallons entered into the package. (b) Weigh ten similar packages containing the same kind of spirits produced on the same day as the spirits in the tampered package and stored under similar conditions. (c) Select, from the ten packages weighed, the package which, on the basis of original and present gross weights, appears to have sustained the least loss. (d) Determine the loss from the comparison package by the same method used to determine the loss from the tampered package. The tax gallon loss so determined will be considered the normal storage loss from the tampered package. (e) Subtract the tax gallons considered to be the normal storage loss from the total tax gallon loss from the tampered package. The quantity determined in (e) above will be considered as a loss due to theft or unauthorized voluntary destruction and must be taxpaid in accordance with the provisions of 26 CFR Part 201. .02 Packages filled by average fill methods. - In order to credit the tax on normal storage losses against the tax on the original quantity of spirits entered for deposit in a package filled by an average fill method, when such package has sustained a loss due to theft or unauthorized voluntary destruction, the proprietor should: (a) Gauge the tampered package by weight and proof. (b) Weigh ten similar packages containing the same kind of spirits produced on the same day as the spirits in the tampered package and stored under similar conditions. (c) Select from the ten packages weighed the package with the heaviest gross weight. (d) Subtract the gross weight of the tampered package from the gross weight of the comparison package. (e) Convert the difference between the gross weights of the two packages to tax gallons, using the proof of the spirits in the tampered package. The quantity determined in (e) above will be considered as a loss due to theft or unauthorized voluntary destruction and must be taxpaid in accordance with the provisions of 26 CFR Part 201. SEC. 4. EFFECT ON OTHER DOCUMENTS. This Revenue Procedure supersedes Revenue Procedure 68-18, C.B. 1968-1, 808. SEC. 5. INQUIRIES. Inquiries concerning this Revenue Procedure should refer to its number and be addressed to the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax. 26 U.S.C. 5006, 5204; 26 CFR 601.301
SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to establish procedures for the qualification and certification of chemists and laboratories desiring to analyze distilled spirits that are to be exported to foreign countries. SEC. 2. BACKGROUND. Many countries require that imported distilled spirits be chemically analyzed before their customs authorities may release them into commercial channels. Some of these countries provide that such spirits must be analyzed by their own government laboratories or by laboratories certified by their government. Others permit the analysis to be made in the exporting country, as long as such analysis is made by a chemist or laboratory certified as qualified to perform such analysis by the government of the exporting country. Italy is one such country in the latter category, and Revenue Procedure 65-9, C.B. 1965-1, 735, as amended by Revenue Procedure 65-24, C.B. 1965-2, 1006, established procedures whereby the Director, Alcohol, Tobacco and Firearms Division, could certify that chemists or laboratories were qualified to analyze distilled spirits to be exported to that country. The Service has been requested to provide similar procedures with respect to distilled spirits to be exported to countries other than Italy. SEC. 3. APPLICATION FOR CERTIFICATION. Applications for certification that a chemist or laboratory is qualified to analyze distilled spirits to be exported, may be filed by a graduate chemist, by a laboratory under the direction of a graduate chemist, or by an exporter on behalf of such a chemist or laboratory. The application shall be filed in duplicate, on the applicant's letterhead, with the Director, Alcohol, Tobacco and Firearms Division, Internal Revenue Service, Washington, D.C. 20224. It will be supported by documentation of the graduate chemist's educational qualifications and professional experience (this information may be subject to verification). Chemists or laboratories already certified by the Director under the provisions of Revenue Procedure 65-9 need not again apply for certification. They will automatically be considered qualified to analyze distilled spirits under this Revenue Procedure, and their will be included on the lists of certified chemists and laboratories to be distributed by the Director. SEC. 4. QUALIFICATION FOR CERTIFICATION. .01 To qualify for certification by the Director, Alcohol, Tobacco and Firearms Division, the chemist or laboratory must: (a) Have access to such laboratory equipment and facilities as may, be necessary to analyze distilled spirits according to the techniques described in subdivisions (1)-(10) of the following subparagraph (b). The adequacy of such equipment and facilities may be subject to verification or inspection. (b) Submit to the Director, Alcohol, Tobacco and Firearms Division (Attention: National Office Laboratory), Internal Revenue Service, Washington, D.C. 20224, a report of the analysis of any sample of straight whisky and any sample of blended whisky, together with a one-pint sample of each of the whiskies analyzed. This report should show the following with respect to each sample: (1) Proof and Percent Alcohol by Volume, as determined using the techniques described in 26 CFR 186.31 and 186.32 (Gauging Manual of the U.S. Treasury Department, Internal Revenue Service, 1962 edition). Proof should be reported to the nearest 0. 1° proof; percent alcohol by volume to the nearest 0.05%. (2) Specific Gravity in air at 60° F., as calculated from the proof, table 6 of the Gauging Manual (1962 edition). Report to the nearest 0.00001. (3) Methvl Alcohol, as determined using the chromotropic acid colorimetric method described at sections 9.051-9.054 of the Official Methods of Analysis of the Association of Official Agricultural Chemists (OMA, 10th edition). The determination will be made on a straight distillate from the sample, without concentration of the methyl alcohol as provided for in the latter half of section 9.053. Report to the nearest 0. 1 cc per 100 cc anhydrous alcohol. (4) Total Solids, as determined using the techniques described at section 9.023 of the OMA, 10th edition. Report to the nearest 0.1 mg per 100 cc anhydrous alcohol. (5) Total Acidity (as acetic acid), as determined using the techniques described at section 9.030 of the OMA, 10th edition. Report to the nearest 0. 1 mg per 100 cc anhydrous alcohol. (6) Esters (as ethyl acetate), as determined using the techniques described at sections 9.034-9.035 of the OMA, 10th edition, or the gas liquid chromatographic method as described in 51 456-457 (1968) of the journal of the Association of Official Analytical Chemists. Report to the nearest 0. 1 mg per 100 cc anhydrous alcohol. (7) Aldehydes, as determined using the techniques described at sections 9.034 and 9.036 of the OMA, 10th edition. Report to the nearest 0. 1 mg per 100 cc anhydrous alcohol. (8) Furfural, as determined using the techniques described at sections 9.046 and 9.047 of the OMA, 10th edition. Report to the nearest 0. 1 mg per 100 cc anhydrous alcohol. (9) Higher Alcohol (fusel oil), as determined using the P-Dimethylaminobenzaldehyde method as described at sections 9.037-9.039 of the OMA, 10th edition, the 4- Hydroxybenzaldehyde-3-sulfonic acid method as described at sections 9.040- 9.045 of the OMA, 10th edition, or the gas liquid chromatographic method. as described in 51 456-457 (1968) of the journal of the Association of Official Analytical Chemists. Report to the nearest 0.1 mg per 100 cc anhydrous alcohol. (10) Total Secondary Products (volatile impurities) calculated as the sum total of items (5), (6), (7), (8), and (9). Report to the nearest 0. 1 mg per 100 cc anhydrous alcohol. (c) Submit to the Director, Alcohol, Tobacco and Firearms Division, a report of the analysis (performed in accordance with subdivision (3) above) of the methyl alcohol content of a sample that will be furnished by the Director. A sample is furnished in this instance because methyl alcohol will usually not be present in the straight and blended whiskies analyzed under subparagraph (b) above. SEC. 5. CERTIFICATION OF APPLICANTS. If U.S. Government chemists verify the reports of analysis submitted by the applicant, and other requirements have been met, the Director, Alcohol, Tobacco and Firearms Division, will certify the laboratory or chemist and so notify the applicant. Any person, agency of a foreign government, etc., desiring to obtain a list of the chemists and laboratories so certified, should submit a request for such list to the Director, Alcohol, Tobacco and Firearms Division. If the laboratory or chemist does not meet the requirements for certification, the applicant will be so notified. SEC. 6. ANALYSES BY CERTIFIED CHEMISTS OR LABORATORIES. Certified chemists or laboratories will perform their analyses of distilled spirits using the techniques described at subdivisions 4.01(b)(1)-4.01(b)(10) of this Revenue Procedure, Where tests other than those listed are required by a foreign government, the Director, Alcohol, Tobacco and Firearms Division, may, upon application in duplicate, authorize the reporting of data relating to such additional tests on the certificate of analysis. Approval of such applications may be conditioned upon compliance with any additional qualifying requirements the Director may prescribe. SEC. 7. CERTIFICATES OF ANALYSIS. .01 Certificates of analysis will be signed by the certified chemist, or, where a laboratory under the direction of a graduate chemist has been certified by the Director, by such graduate chemist. Directly under his signature, the chemist may enter the designation "Chemist certified by United States Internal Revenue Service under Revenue Procedure 69-22." .02 As an alternative, where the certificate of analysis is being prepared for a country that requires a statement by a governmental authority of the exporting country on the certificate of analysis, the following procedure may be followed. The signed certificate will be forwarded to the Internal Revenue Officer assigned to the distilled spirits plant at which the spirits were bottled or packaged, or, where no officer is assigned to such plant, to the Assistant Regional Commissioner, Alcohol, Tobacco and Firearms. The assigned officer or Assistant Regional Commissioner may, if the chemist or laboratory making the analysis has been duly certified by the Director, Alcohol, Tobacco and Firearms Division, attest as follows on the certificate of analysis: "I hereby attest that (name of certified chemist or laboratory) is duly certified to make analyses under Revenue Procedure 69-22 of the U.S. Treasury Department, Internal Revenue Service." One copy of the certificate of analysis will be retained by the assigned officer or Assistant Regional Commissioner, and the remaining copy or copies will be forwarded to the exporter. SEC. 8. EFFECT ON OTHER DOCUMENTS. Sections 1, 2, 3, and 5 of Revenue Procedure 65-9, C.B. 1965-1, 735, and Revenue Procedure 65-24, C.B. 1965-2, 1006, are hereby superseded. SEC. 9. INQUIRIES. Inquiries regarding this Revenue Procedure should refer to its number and be addressed to the office of the appropriate Assistant Regional Commissioner Alcohol, Tobacco and Firearms. 26
U.S.C. 7805; 26 CFR 601.301
SECTION 1. PURPOSE. This Revenue Procedure establishes the procedure to be followed when tobacco articles are transferred in bond to or between export warehouses or are returned to a factory from an export warehouse and part of the shipment is delayed and later delivered to the consignee. SEC. 2. BACKGROUND. Occasionally proprietors of export warehouses receive shipments of tobacco articles from factories or other export warehouses and find the shipment is incomplete in relation to the quantities shown on the covering Form 2149 or 2150. Manufacturers may also occasionally receive incomplete shipments of tobacco articles being returned to factories from export warehouses. The regulations in 26 CFR 290.200 and 290.201 require that immediately upon receipt of a shipment the person receiving the shipment (consignee) shall execute the certificate of receipt on each copy of the notice of removal, noting thereon any discrepancy, and return one copy of the notice to the person who made the shipment (consignor). In some instances the missing articles are later delivered to the consignee. SEC. 3. TRANSFER TO EXPORT WAREHOUSE. .01 When tobacco articles which have been delayed during a transfer in bond are delivered to an export warehouse after the proprietor has received part of the shipment and properly disposed of the covering Form 2149 or 2150, he will enter in his records and on his record copy of the covering Form 2149 or 2150 the quantities of articles so received and the actual date of receipt. He shall also prepare a letter, in original and three copies, to the consignor informing him of the receipt. All copies of the letter should be signed and it should identify, by serial number and date, the Form 2149 or 2150 covering the shipment from which the articles were delayed, specify the kind and quantity of articles belatedly received, and give the date of actual receipt. The original and one copy of the letter should be sent to the consignor, one copy should be submitted with the proprietor's monthly report for the month in which the delayed articles were received, and the remaining copy retained by the proprietor as part of his record. .02 When the consignor receives the two copies of the letter he should send the original to his assistant regional commissioner to obtain relief from the tax liability on the articles accounted for (or submit it with a claim if the tax has been paid or assessed), and associate the remaining copy of the letter with the related Form 2149 or 2150 and retain it as part of his records. SEC. 4. RETURN TO FACTORY. .01 When the delayed portion of a shipment of tobacco articles being returned from an export warehouse is delivered to a factory after the manufacturer has received part of the shipment and properly disposed of the covering Form 2150, he will enter in his records and on his record copy of the covering Form 2150 the quantities of articles so received and the actual date of receipt. He shall also prepare a letter, in original and two copies, to the export warehouse proprietor informing him of the receipt. All copies of the letter should be signed and it should identify, by serial number and date, the Form 2150 covering the shipment from which the articles were delayed, specify the kind and quantity of articles belatedly received, and give the date of actual receipt. The original and one copy of the letter should be sent to the export warehouse proprietor, and the remaining copy should be retained by the manufacturer as part of his records. .02 Upon receipt of the two copies of the letter the export warehouse proprietor should forward the original to his assistant regional commissioner to obtain relief from the tax liability on the tobacco articles accounted for (or submit it with a claim if the tax has been paid or assessed), and associate the remaining copy of the letter with the related Form 2150 and retain it as part of his records. SEC. 5. INQUIRIES. Inquiries regarding this Revenue Procedure should refer to its number and be addressed to the office of your Assistant Regional Commissioner, Alcohol, Tobacco and Firearms. 26 U.S.C. 5704; 26 CFR 601.311
SECTION 1. PURPOSE. This Revenue Procedure expresses procedures which may be followed by proprietors of export warehouses at international airports when tobacco articles are sold to passengers of aircraft departing for destinations outside the United States. SEC. 2. BACKGROUND. Section 5704 of the Internal Revenue Code of 1954 provides that an export warehouse proprietor may remove tobacco articles, without payment of tax, for consumption beyond the jurisdiction of the internal revenue laws of the United States. Regulations in 26 CFR 290.198 require that the export warehouse proprietor prepare a notice of removal, Form 2150, for each shipment removed from his warehouse. In connection with sales to airline passengers this requires that a separate Form 2150 be prepared for each shipment of tobacco articles sold to each passenger. It is reasonable that an alternate procedure should be established which would be in compliance with the intent of regulations and afford equivalent security to the revenue, but would not require a separate Form 2150 for each passenger. Therefore, after review and concurrence of his assistant regional commissioner (alcohol, tobacco and firearms), an export warehouse proprietor making such removals may follow the procedures in Section 3 below which the Director, Alcohol, Tobacco and Firearms Division, finds in compliance with the intent of law and regulations. SEC. 3. ACCEPTABLE PROCEDURES .01 Sales slips and lading receipts. The export warehouse proprietor will prepare a separate sales slip for each sale of tobacco articles. The minimum information which must be included on the sales slip is a pre-printed serial number; a list of the articles sold; the name of the passenger; and identity of the flight by airline name (or abbreviation), flight number, and date. A lading receipt on which all sales slips for a flight are itemized will be prepared by the proprietor and presented to the purser or other appropriate aircrew member, who will certify that the tobacco articles were received on board and that delivery to the passengers will not be made until the aircraft has left the territorial limits of the United States. The lading receipt may or may not be certified by a customs officer, depending on local Customs' requirements. The needs of Customs and the airline companies will be considered in determining the numbers of copies and disposition of sales tickets and lading receipts. .02 Other responsibilities of proprietor. The purchaser must be clearly informed that the tobacco articles are for consumption outside the United States and if returned to the United States must be declared to Customs and are subject to duty or tax. This may be accomplished by a conspicuous statement on a copy of the sales slip furnished the passenger, or by some other method acceptable to Customs and the assistant regional commissioner (alcohol, tobacco and firearms). If a flight does not depart or is diverted or returns without reaching a destination outside the United States the proprietor is responsible for recovering and returning the unexported tobacco articles to his warehouse. .03 Notice of removal, Form 2150. Notice of removal, Form 2150, may be prepared daily, weekly, or semi-monthly on the basis of the lading receipts executed during the removal period. The frequency of preparation of Forms 2150 will be dictated by the volume of operations and administrative convenience to all concerned. If the Form 2150 is prepared weekly and any week overlaps two months, a separate Form 2150 must be filed for removals during that portion of the week falling in each of the months. The Form 2150 will be prepared in triplicate and presented to Customs for execution of the certificate of export. The original completed form will be immediately submitted to the assistant regional commissioner (alcohol, tobacco and firearms), one copy will be furnished to Customs, and one copy will be retained by the proprietor. .04 Acceptance of procedures to Customs and assistant regional commissioner (alcohol, tobacco and firearms). Procedures which an export warehouse proprietor wishes to establish in accordance with the foregoing criteria must be acceptable to the appropriate local customs officer as evidenced by his written consent. Specifics of the proposed procedures must also be approved in all respects by the assistant regional commissioner (alcohol, tobacco and firearms) before the proprietor begins operating under the procedures. SEC. 4. ALTERNATE PROCEDURES. The export warehouse proprietor may not use procedures other than those specifically set forth in 26 CFR Part 290 or conforming to this Revenue Procedure unless they are approved by the Director, Alcohol, Tobacco and Firearms Division, as provided in 26 CFR 290.72 relating to authorizations for alternate methods or procedures. Those proprietors who already have such specific authorizations may continue to operate as approved therein. SEC. 5. INQUIRIES. Inquiries concerning this Revenue Procedure should refer to its number and be addressed to the office of the appropriate assistant regional commissioner (alcohol, tobacco and firearms). 26 U.S.C. 5704; 26 CFR 601.311
SECTION 1. PURPOSE. The purpose of this Revenue Procedure is to prescribe procedures for obtaining information relating to water quality consideration as a part of applications for licenses or permits issued by Assistant Regional Commissioners, Alcohol, Tobacco and Firearms. SEC. 2. BACKGROUND. .01 Section 21(b)(1) of the Federal Water Pollution Control Act, as amended (33 U.S.C. 1171(b)), provides in effect that any applicant for a Federal license or permit (or any type of authorization which "permits" an operation under Internal Revenue laws) to conduct any activity which may result in any discharge into the navigable waters of the United States shall obtain a certification from the State in which the discharge originates that there is reasonable assurance that such activity will be conducted in a manner which will not violate applicable water quality standards. .02 Regulations 18 CFR Part 615, State Certification of Activities Requiring A Federal License or Permit, (36 F.R. 8563) implementing section 21(b) of the Act provide that the licensing or permitting agency shall require that an applicant for a license or permit include in the form of the application, information relating to water quality considerations. .03 The Alcohol, Tobacco and Firearms Division of the Internal Revenue Service has developed Form 4805, Supplemental Information on Water Quality Considerations Under 33 U.S.C. 1171(b), which is to be completed by the applicant and submitted with and as a part of his application for license or permit. The information provided for on the form will meet the requirements of section 21(b) of the Act and the regulations issued thereunder as to water quality considerations. SEC. 3. OBTAINING FORMS 4805. Form 4805 will be furnished each applicant by the Assistant Regional Commissioner, Alcohol, Tobacco and Firearms, along with the license or permit application form requested. SEC. 4. FILING FORM 4805. .01 The applicant will prepare an original and four copies of Form 4805 and submit all of them as an attachment to and as part of his application for a license or permit. .02 Form 4805 will contain an authorization, to be signed by the applicant, that copies of the form may be furnished to the applicable State water quality agency and the Regional Administrator, EPA. SEC. 5. INQUIRIES. Inquiries regarding this Revenue Procedure should refer to its number and be addressed to the office of the appropriate Assistant Regional Commissioner, Alcohol, Tobacco and Firearms. 26 U.S.C. 5171, 5271, 5401, 5502, 5511; 26 CFR 601.301
SECTION 1. PURPOSE. This Revenue Procedure sets out procedures for furnishing environmental information concerning proposed activities for which applications, notices, bonds, and formulas (hereinafter referred to as applications) are filed with the Internal Revenue Service, Alcohol, Tobacco and Fir |
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