Rev. Rul. 59-22

Advice has been requested concerning the procedure to be followed by registered distillers or registered fruit distillers, who are required to file notices and execute new bonds annually on the first day of May, where a Distiller's Bond, Form 30, is given without surety but which is supported by consent of surety on the distiller's Transportation and Warehousing Bond, Form 1571.

Section 5176 of the Internal Revenue Code of 1954 states, in effect, that every person intending to commence or to continue the business of a distiller shall, on filing his notice of such intention, before proceeding with such business, and on the first day of May of each succeeding year, execute a bond in the form prescribed by the Secretary of the Treasury or his delegate. Such bond shall be with such sureties, approved by the Secretary or his delegate, and for a penal sum not less than the amount of tax on the spirits that can be distilled in his distillery during a period of 15 days. Such bond shall not exceed the sum of $100,000.

Section 170.145 of the Miscellaneous Regulations Relating to Liquor provides as follows:

Consents of surety submitted under the provisions of this subpart must be executed on Form 1533, in duplicate, by the distiller and the surety, in accordance with the instructions in the notice on the form. The Form 1533 must properly identify the bond affected thereby and contain the following statement of purpose:

`To continue in effect the terms and conditions of said bond (including all extensions' or limitations of such terms and conditions previously consented to and approved) to cover operations from May 1, 1959, to June 30, 1959, both dates inclusive.'

Accordingly, it is held that where Form 30, Distiller's Bond, is given without surety but instead is supported by a consent of surety on Form 1571, Transportation and Warehousing Bond, the requirements of section 170.145 of the regulations may be satisfied by the filing of Form 1533, Consent of Surety, executed by the principal and the surety, reading as follows:

To extend the terms of the above-described bond, Form 1571, and distiller's bond, Form 30, dated _ _ effective _ _ in the penal sum of $100,000, written without surety, to cover operation of registered distillery No. _ _ , (address), to continue in effect the terms and conditions of said bond, Form 30, (including all extensions or limitations of such terms and conditions previously consented to and approved) to cover operations from May 1, 1959, to June 30, 1959, both dates inclusive.

This procedure is equally applicable to bonds on Form 30 1/2 , Fruit Distiller's Bond.