Rev. Proc. 60-34

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to set forth the procedures for making certain entries on Form 2731, Monthly Report of Bonded Storage Operations, and Form 2636, Daily Report of Transactions.

SEC. 2. BACKGROUND.

.01 Form 2731 is a balanced report, but it does not include internal transactions. When bonded storage operations include internal transactions, such as bottling of spirits or mingling or blending of spirits, and losses are sustained in the bottling of spirits or in the packaging of mingled or blended spirits, such losses should be reported on Form 2731 in order that the report will balance.

.02 The quantity of spirits `used for bottling' is reported at line 32 on Form 2636. This quantity is derived from Form 1515, Distilled Spirits Bottled in Bond. The quantity of spirits determined by gauge and entered for bottling is entered in column (d), Section II, of Form 1515, and the quantity of spirits determined by gauge after reduction in proof for bottling is entered in column (e), Section III of Form 1515.

SEC. 3. PROCEDURE.

.01 Footnote six on Form 2731 states that line 20 covers only storage losses. Accordingly, where losses are sustained in bottling spirits or in packaging mingled or blended spirits, proprietors should enter and appropriately identify such losses in an unused line on Form 2731.

.02 The quantity of spirits reported at line 32 on Form 2636 should be the quantity determined by gauge at the time of dumping the spirits for bottling in bond and entered in column (d), Section II of Form 1515. This quantity would then represent the quantity of spirits used for bottling. The difference between the quantity used and the quantity bottled would represent the loss in bottling which would then be entered in Section IV of Form 1515 and on Form 2731 as provided in section 3.01, above.

.03 The quantity of spirits reported at line 33, used for blending, and at line 34, used for mingling, of Form 2636 should be the quantity determined by gauge at the time of dumping for blending or mingling and entered on Form 1685, Blending of Rums or Brandies in Bond, and Form 2323, Mingling of Distilled Spirits, respectively. Also, the loss in packaging such blended or mingled spirits and entered in item 14b of Form 1685 or in item 18G of Form 2323, as the case may be, should be entered on Form 2731 as provided in section 3.01, above.

SEC. 4. INQUIRIES.

Inquiries regarding this Revenue Procedure should refer to its number and be addressed to the office of the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax.