Rev. Rul. 59-206

Section 182.672(b) of the Federal Industrial Alcohol Regulations provides that when the use of tax-free alcohol is discontinued, the permittee shall give notice thereof in writing, in triplicate, to the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax, and shall surrender to the Assistant Regional Commissioner his basic and withdrawal permits. Any tax-free alcohol remaining on hand at the time of such discontinuance may be returned to the industrial alcohol plant or bonded warehouse in accordance with section 182.664 of the Federal Industrial Alcohol Regulations; or, when authorized by the Assistant Regional Commissioner, the alcohol may be disposed of to another person holding a permit to use tax-free alcohol, upon the filing of a Consent of Surety, Form 1533, on the bond (if any) of the purchaser extending the terms of his bond to cover the transportation to, and use by him of the alcohol. Held, where small quantities of tax-free alcohol remain on hand at the tax-free users' premises at the time of discontinuance of operations and cannot be disposed of as provided in section 182.672(b) of the Federal Industrial Alcohol Regulations, the Assistant Regional Commissioner, may, at his discretion, authorize destruction thereof without Government supervision and without the addition of kerosene provided such destruction is effected by dumping the alcohol into a sewer or by other equally effective means. In such cases an affidavit or statement certifying to the destruction should be furnished by the permittee.