Rev. Rul. 58-123

The purpose of this Revenue Ruling is to restate Revenue Ruling 56-337, C.B. 1956-2, 1025, relative to the filing of formulas by a successor proprietor in the case of a change in proprietorship of a nonbeverage manufacturer, in order to clarify the intent of the Internal Revenue Service with respect to the disposition to be made of affidavits filed for the purpose of adopting formulas of the predecessor proprietor.

Where there is a change in the proprietorship of a nonbeverage manufacturer and the successor desires to use the formulas filed by the predecessor, he must (1) submit new formulas in his name on Form 1678, Formula and Process for Nonbeverage Product, to replace those submitted by the predecessor, or (2) adopt the formulas already on file by the submission of an affidavit to the Assistant Regional Commissioner, Alcohol and Tobacco Tax, stating that the preparations covered by formulas submitted by the prior ownership, and on file with the Internal Revenue Service, will be manufactured in accordance with such approved formulas and processes. The affidavit should be prepared in quadruplicate and should identify the formulas by serial numbers and names of products. One copy of the affidavit will be retained by the nonbeverage product manufacturer. The Assistant Regional Commissioner will retain the original affidavit and one copy and will forward one copy to the Director, Alcohol and Tobacco Tax Division.

This Revenue Ruling supersedes Revenue Ruling 56-337, supra .