Rev. Rul. 56-427

Section 5121 of the Internal Revenue Code of 1954 and section 194.30 of the Regulations relating to Liquor Dealers provide that a qualified wholesale dealer in liquors may not sell distilled spirits, wines, or beer in quanities of less than five wine gallons without incurring liability for special tax as a retail dealer in liquors. Held, a wholesale dealer in liquors who sells to the same person at the same time alcoholic liquors of one classification in quantities of five gallons or more, and, as a part of the same transaction, sells alcoholic liquors of another classification in quantities of less than five gallons, incurs liability for special tax as a retail dealer in liquors or as a retail dealer in beer, as the case may be. To illustrate, if a wholesale dealer sold to a consumer distilled spirits (whether whisky, rum, gin, or other type of distilled spirits, or a combination thereof) totaling five gallons or more, and in the same transaction also sold a quantity of wine totaling less than five gallons, the wholesaler would incur liability for special tax as a retail dealer in liquors. There is no provision of law or regulations which limits liability as a retail dealer to those cases where the sale in retail quantities is made in one classification and is not accompanied by a sale in wholesale quantities in a different classification of alcoholic beverages.