Rev. Rul. 54-336

Advice is requested whether alcohol may be transferred under the provisions of section 171.195 of Treasury Decision 5864, C.B. 1951-2, 248, from an industrial alcohol plant or bonded warehouse to an internal revenue bonded warehouse for storage therein in bond pending taxpayment and removal for beverage use such as the production of Vodka.

Section 171.195 of Treasury Decision 5864, supra , provides in part that alcohol may be transferred from an industrial alcohol plant or industrial alcohol bonded warehouse to an internal revenue bonded warehouse for storage therein and later withdrawn therefrom if the spirits are of a proof of 160 degrees or more, for any tax-free purpose authorized by section 3100 to section 3126 of the Internal Revenue Code, or for any purpose authorized in the case of like spirits produced at a distillery.

Accordingly, alcohol may be transferred from an industrial alcohol plant or industrial alcohol bonded warehouse to an internal revenue bonded warehouse for storage in bond pending taxpayment and removal for beverage use.