Rev. Proc. 59-41

SECTION 1. PURPOSE.

The purpose of this revenue Procedure is to prescribe instructions concerning permits to use or deal in specially denatured alcohol or rum or to use tax-free alcohol to be issued to persons not qualified on July 1, 1959, and concerning the issuance on and after that date of amended permits.

SEC. 2. BACKGROUND.

.01 Subpart M of the Miscellaneous Regulations Relating to Liquor provides interim procedures under sections 5271 and 5272 of the Internal Revenue Code of 1954, as amended by the Excise Tax Technical Changes Act of 1958, C.B. 1958-3, 92, to permit persons to procure, deal in, or use specially denatured spirits or recover denatured spirits or articles on and after July 1, 1959.

.02 Subpart N of the regulations provides interim procedures under sections 5271 and 5272 of the Code, as amended by the Excise Tax Technical Changes Act of 1958, supra , to permit persons to procure or use tax-free spirits on and after July 1, 1959, and to provide additional uses of tax-free spirits authorized by section 5214(a)(3) of the Code, as amended by such act.

SEC. 3. APPLICATIONS FOR AMENDED PERMITS AND NONPERMITTEE ORIGINAL APPLICATIONS.

.01 Where permits are to be issued effective on or after July 1, 1959, pursuant to revised applications filed before, on, or after such date under the provisions of subparts M and N of 26 CFR Part 170, the applications should be filed and the permits should be issued on the most-recently revised forms. A copy of the approved application will be transmitted to the permittee together with the industrial use permit. Bonds will be filed on present forms and no consent of surety is required where the effective date of the bond is July 1, 1959, or later.

.02 Industrial use permits issued on the revised forms have no expiration date. The expiration date of withdrawal permits issued effective July 1, 1959, or later, will be October 31, 1960 for specially denatured alcohol and denatured rum, and April 30, 1961 for tax-free alcohol.

.03 Permittees who file revised applications for July 1 qualification which reflect changes affecting the terms of the existing permits will be issued permits on the revised forms, effective on or after July 1, 1959, on approval of the application by the assistant regional commissioner.

.04 Permittees operating under permits extended beyond June 30, 1959, who, after such date, file an application for an amended industrial use permit which meets with the approval of the assistant regional commissioner, will be issued a permit on a revised form. Also, where applications for changes in withdrawal permits are filed after July 1, 1959, by permittees holding withdrawal permits extended beyond June 30, the withdrawal permits will be issued on the revised forms and a copy of the withdrawal permit application submitted for July 1 qualification will be sent to the permittee together with the permit.

.05 Permittees will retain their permit numbers and the present series will be continued when permits are issued to new applicants. The symbols for permits issued on or after July 1, 1959, will be the same as those used prior to that date notwithstanding the symbols `SDS' which is printed in the upper right hand corner of revised Forms 1474, 1477, 1479, 1485, and 1486. Separate permits will be issued for specially denatured alcohol and specially denatured rum, respectively.

SEC. 4. APPLICATIONS FOR REQUALIFICATION.

The procedures for the requalification of permittees who were qualified on June 30, 1959, are contained in Revenue Procedure 59-17, C.B. 1959-1, 826, Revenue Procedure 59-18, C.B. 1959-1, 828, and Revenue Procedure 59-19, C.B. 1959-1, 830.

SEC. 5. INQUIRIES.

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