Rev. Rul. 60-187

Section 5008(c) of the Internal Revenue Code of 1954 provides for the abatement, remission, or, without interest, credit or refund of the tax imposed under section 5000(a)(1) of the Code, on spirits withdrawn from bond on payment or determination of tax for rectification or bottling and which are lost, within certain limitations and under certain conditions, before completion of the bottling and casing or other packaging operations. Section 5008(c) applies to spirits withdrawn from bond on determination of tax on or after July 1, 1959. Such section also applies to losses of spirits withdrawn from bond prior to July 1, 1959, where such losses occur on and after July 1, 1959, and after dumping for rectification or bottling. Under this section, once the bottling and casing or other packaging of spirits is completed, eligibility for further loss allowance ends. Held , spirits taxpaid and bottled before July 1, 1959, and dumped for rectification or bottling on or after that date are not eligible for the loss allowance under section 5008(c) of the Code. See also Revenue Procedure 60-8, page 885, this Bulletin, which sets forth the procedure that proprietors of distilled spirits plants must follow in order to support their claims for the allowance of losses at the bottling premises.