Rev. Rul. 56-459

Advice has been requested whether a holder of a wholesale liquor dealer's special tax stamp, who desires to engage in the business of purchasing malt beverages for resale in quantities of five gallons or more only to consumers, is eligible to obtain a wholesaler's basic permit.

Section 3(c) of the Federal Alcohol Administration Act and section 1.22 of the Regulations relating to Basic Permit Requirements make it unlawful, except pursuant to a basic permit issued under the Act, to engage in the business of purchasing distilled spirits, wine, or malt beverages for resale at wholesale, or for any person so engaged to receive or to sell, offer or deliver for sale, contract to sell, or ship, in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits, wine, or malt beverages so purchased.

Section 1.16 of the regulaitons defines `resale at wholesale' as a sale to any trade buyer. Section 1.17 thereof defines a `trade buyer' as `any person who is a wholesaler or retailer of distilled spirits, wine, or malt beverages.'

A dealer who has the necessary wholesale liquor dealer's special tax stamp and who intends to limit his operations to the purchase of distilled spirits, wine, or malt beverages for resale in quantities of five gallons or more at any one time only to individuals for home consumption, is not subject to the permit provisions of the Act since such operations do not involve sales to trade buyers. Accordingly, it is held that such dealer is not required to obtain a wholesaler's basic permit regardless of the quantity involved in each sale.

For basic permit requirements where a wholesaler has a direct line or extension telephone connecting his home and his business premises, see Rev. Rul. 56-534, page 1026.