Rev. Rul. 56-96

Advice has been requested whether finished spirits may be accumulated in the same receiving cistern in a registered distillery for more than one day before reporting the production thereof on prescribed forms.

Section 5193 of the Internal Revenue Code of 1954 and section 220.535 of the Regulations relating to the Production of Distilled Spirits, require that distilled spirits deposited into receiving cisterns be withdrawn therefrom on or before the third working day after such deposit. Section 220.389 of the regulations, with respect to the deposit of spirits in a receiving cistern, requires that spirits so deposited be of the same class, type, and proof of production.

It is held that finished spirits of the same class, type, and proof of production may be deposited in the same receiving cistern at a registered distillery on consecutive working days. However, in such case, the accumulated spirits must be withdrawn on or before the third working day following the initial deposit therein. $The quantities of spirits deposited in the receiving cistern should be determined by volumetric gauge and recorded daily, as memorandum entries only, on Form 1598, Proprietor's Report of Operations at Registered Distillery, and Form 1686, U.S. Storekeeper-gauger's Record of Operations at Registered Distillery or Industrial Alcohol Plant. The production should be recorded on Forms 1598 and 1686 in the applicable columns at the time of gauge and removal from the receiving cistern, in accordance with the instructions on such forms.