Rev. Rul. 55-510

The Internal Revenue Service has been requested to advise whether liability for the special tax as a wholesale and/or retail liquor dealer would be incurred by a widow who sells wine produced by her deceased husband if (1) she operates the bonded wine cellar as the executrix of her husband's estate, and (2) she later operates the bonded wine cellar as an individual owner.

A winemaker, the sole owner of a bonded wine cellar, sold wine only of his own production and therefore was exempt from special tax as a wholesale and retail liquor dealer under section 5113(c) of the Internal Revenue Code of 1954 and section 240.341 of the Wine Regulations. Upon the death of the winemaker, his widow, as executrix (or administratrix) of his estate engaged in the sale of wine produced by her deceased husband. After the estate was closed, the widow operated the wine cellar as an individual owner.

Upon the death of a winemaker who sold wine only of his own production, his widow, who is appointed executrix (or administratrix) of his estate and engages in the sale of wine produced by her deceased husband only, incurs no special tax liability as a wholesale or retail liquor dealer by reason of the sale of such wine. The widow in her official capacity as the executrix is recognized as the personal representative of the deceased and, as such, is not liable for the special tax because of the sale of wine produced by the deceased.

After the estate is closed, the widow, operating the bonded wine cellar as an individual owner, is liable for the special tax for the sale of the wine unless it has been so blended or treated as to be considered wine of her own production within the purview of section 240.341 of the Wine Regulations