LIMITATIONS ON OUTSTANDING POWERS OF ATTORNEY
Proprietors of distilleries, alcohol plants,
bonded warehouses, rectifying plants,
taxpaid bottling houses, denaturing
plants, and others concerned:
Purpose. The purpose of this industry circular is to call your attention to
certain limitations in authorizations and suggest that powers of attorney executed
on Forms 1534 be examined to determine whether they are sufficiently broad
to cover your anticipated needs under the new law and regulations.
Background. All qualifying documents, such as applications for permits or
for registration, and bonds, required by the regulations relating to alcohol
(including denatured alcohol), and distilled spirits, if signed by an attorney in
fact on behalf of the corporation, association, partnership, or individual required to file such documents, must be accompanied by a duly authenticated
copy of the power of attorney, Form 1534, authorizing such person to so sign
the documents, unless he is authorized to sign by the corporate documents.
Also, if claims, offers in compromise, certain reports, and other statements
submitted by industry members are to be signed by an attorney in fact not
authorized to sign by the corporate documents, a power of attorney must be
on file giving authorization to such person to sign those documents. Proprietors
of alcohol plants, denaturing plants, registered and fruit distilleries, bonded
warehouses, rectifying plants, and taxpaid bottling houses must qualify their
premises as distilled spirits plants under 26 CFR Part 201. Many existing
powers of attorney may be too restrictive to cover documents filed for such
qualification.
Limitations of powers of attorney. Although many existing powers of attorney filed on Form 1534 were executed so as to give general authorization for
the signing of all of the various documents, many bear restrictions, either as to
the documents the attorney in fact may sign or as to the premises to which the
authorization applies. Where Form 1534 was executed so as to convey limited
power, restricting such power to specified types of documents or designated
premises, the person named therein is without authority to sign any documents
other than those specified or which relate to any premises other than those
designated. In the case of powers of attorney now on file which limit the
authorizations conveyed, it may be necessary to execute new powers of attorney so that the attorney in fact may continue to sign on your behalf after
the regulations are issued or amended pursuant to Public Law 85-859.
Filing of new powers of attorney. In order that you will not be inconvenienced or delayed in the filing of any papers as a result of present limitations contained in powers of attorney now on file, it is suggested that you
inspect such powers of attorney to determine whether they will be adequate
for your needs under the new or amended regulations, i.e., whether they cover
all of the documents, claims, reports, and other papers, which you desire to
have signed by an attorney in fact and for which a power of attorney is required, and whether limitations as to the premises to which the authorization
applies will be too restrictive for operations in the light of the new regulations.
In reviewing current restrictive Forms 1534 and in the filing of new powers of
attorney, it will be helpful to keep in mind (1)the possible need for new powers
of attorney to accompany such qualifying documents as may be required under
the new or amended regulations, when issued, (2) that, although a person may
now be authorized to sign certain specified forms, reports, or other papers,
should a different form be prescribed or the proposed use of the form be changed,
the authorization would not accurately describe the particular documents as
revised under the new regulations, and (3) that if an existing power of attorney
is, for example, limited to a specific registered distillery, then that power of
attorney is without effect in respect of any other plant. In connection with item
(3), when regulations are issued requiring the requalification of presently
qualified premises as distilled spirits plants, a new power of attorney will be
necessary if the current power of attorney was executed so as to restrict the
type, location, or designation of the premises covered thereby (even though
the premises remain the same except as to the redesignation as a distilled
spirits plant).
Inquiries. Any inquiries regarding this industry circular should refer to
its number and be addressed to the office of your assistant regional commissioner (alcohol and tobacco tax).

Dwight E. Avis
Director, Alcohol and Tobacco Tax Division
IRS D. C. 48233
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