Rev. Ruling 58-207

Tax-free Alcohol Storerooms

Users of tax-free alcohol must provide a storeroom or compartment for the storage of tax-free alcohol possessed by authority of permits issued in accordance with the Industrial Alcohol Regulations. The storerooms or compartments must be of sufficient capacity to hold the maximum quantity of alcohol which may be possessed at any one time and shall be securely constructed of substantial materials, and all doors, windows, and other openings shall be equipped so that they may be securely locked. See section 182.61 of the regulations . Held, the regulations do not require that hospital storerooms, compartments or vaults, set aside for the storage of tax-free alcohol, be used exclusively for such purpose. These storerooms, compartments or vaults, may also be used for the storage of drugs, flammable liquids and other hospital supplies requiring security. However, the tax-free alcohol must be properly segregated from the other supplies and such storage of other supplies should not interfere with the proper accounting and safety of the tax-free alcohol as contemplated by the regulations, to be determined in any case by the Assistant Regional Commissioner.

26 U.S.C. 5310; 26 CFR 182.61 (27 CFR 213.92)