Rev. Ruling 57-323

Trading or Bartering

The trading or bartering of alcoholic beverages for cash or in exchange for different alcoholic beverages by and between retail liquor dealers, in order that they may take advantage of special deals involving quantity discounts or free goods offered by wholesale liquor dealers, is not a bona fide loan of liquors described in Revenue Ruling 54-509 which outlines transactions constituting bona fide loans. Such trading or bartering constitutes sales for purpose of resale and engaging in this practice would subject the retail dealers to liability for special tax as wholesale liquor dealers and would necessitate the acquiring of basic permits as wholesale liquor dealers. This ruling relates only to the trading or bartering of merchandise between retailers after purchase thereof by one or more retailers individually, and not to the cooperative purchasing of alcoholic beverages by several retailers, dealt with in Revenue Ruling 56-204.

26 U.S.C. 5111; 27 CFR 194.28