Rev. Proc. 60-3

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to set forth the procedure relating to the continued use of existing withdrawal permits on and after January 1, 1960, and until new withdrawal permits are issued. This procedure is to be followed by dealers and users of specially denatured alcohol and rum and users of tax-free alcohol.

SEC. 2. BACKGROUND.

Subparts M and N of the Miscellaneous Regulations Relating to Liquor issued qursuant to the Internal Revenue Code of 1954, as amended by the Excise Tax Technical Changes Act of 1958, C.B. 1958-3, 92, required all permittees holding permits to deal in or use specially denatured spirits or to use tax-free spirits on June 30, 1959, to file applications for industrial use and withdrawal permits, Form 1450, Application and Withdrawal Permit to Procure Spirits Free of Tax Form 1485, Application and Withdrawal Permit of User to Procure Specially Denatured Spirits, and Form 1477, Application and Withdrawal Permit of Bonded Dealer to Procure Specially Denatured Spirits, prior to July 1, 1959, if they intended to continue operations on and after July 1. In most instances new withdrawal permits were not issued pursuant to such applications. Except in the case of permittees desiring changes in the terms of their existing permits, it is intended that the existing permits remain in effect and use until new regulations become effective sometime in 1960.

SEC. 3. CONTINUED USE OF EXISTING WITHDRAWAL PERMITS.

A user or dealer holding a withdrawal permit on June 30, 1959, and filing an application for a new withdrawal permit bebore July 1, 1959, will continue to withdraw specially denatured spirits or taxfree alcohol, as the case may be, under the permit in force on June 30, 1959, until the Assistant Regional Commissioner, Alcohol and Tobacco Tax, takes action on his application. This holds true even though such permit would ordinarily expire as of December 31, 1-959. The quantity of tax-free or specially denatured alcohol or rum which may be withdrawn, beginning with January 1, 1960, and continuing until the new withdrawal permit is issued and effective, will be the same as that which could have been withdrawn during the same period which began in January of 1959.

SEC. 4. ENTRIES ON WITHDRAWAL PERMITS.

Entries covering withdrawals on and after January 1, 1960, will be made by the supplier on the back of the withdrawal permit in the same manner as entries prior thereto. If available space for such entries becomes exhausted, additional space should be provided by attaching a letter-size sheet of paper to the bottom of the permit (reverse side), with scotch tape or other suitable adhesive. The lines between the various columns should be extended down the additional sheet and the entries should be continued on such sheet in regular sequence.

SEC. 5. INQUIRES.

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.