Rev. Proc. 60-26

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to (1) outline the procedure to be followed in blocking out, at the time of overprinting, the denomination on standard size denominational red strip stamps, and (2) to set forth the procedure to be used for reporting such stamps on Form 96, Strip Stamps Issued to and Used by Importers.

SEC. 2. BACKGROUND.

.01 Section 251.62 of the Importation of Distilled Spirits, Wines, and Beer Regulations provides, in part, that red strip stamps shall be affixed to imported containers of distilled spirits by the importer or owner under customs supervision. Section 251.63 of the regulations requires that red strip stamps be issued in a standard size , serially numbered, for bottles or containers of 1/2 pint capacity or more, and in a small size for bottles and containers of less than 1/2 pint capacity.

.02 Importers should, except as provided in section 3, continue to requisition stamps by denomination until further advised by the Alcohol and Tobacco Tax Division of the Internal Revenue Service and continue to use red strip stamps of a particular denomination as long as such denomination is furnished to them and until their stock is exhausted or until they are instructed to make other disposition of the strip stamps.

SEC. 3. PROCUREMENT AND OVERPRINTING OF STAMPS.

Section 250.242 of the Liquors and Articles from Puerto Rico and the Virgin Islands Regulations and section 251.68 of the Importation of Distilled Spirits, Wines, and Beer Regulations require red strip stamps to be overprinted with the name and address of the importer. In order to simplify operations involving denominational red strip stamps, importers may, at the time of overprinting the stamps as required by the regulations, block out the denomination on standard size denominational red strip stamps in their possession and use them in the same manner as the new nondenominational standard-size stamps. Importers who desire to so block out the denominations on such stamps should insert on the blank line in column (a) of Form 428, Requisition for Bottle Strip Stamps, the words `Any demonination' instead of specifying the denomination.

SEC. 4. REPORTING STAMPS ON FORM 96, STRIP STAMPS ISSUED TO AND USED BY IMPORTERS.

.01 Section 251.131 of the Importation of Distilled Spirits, Wine, and Beer Regulations provides that every importer shall prepare on Form 96, in triplicate, an annual report of all strip stamps procured, used, lost, mutilated, destroyed or otherwise disposed of during the fiscal year, a report of the balances on hand at the beginning and end of the fiscal year, and an accounting for any balances outstanding against each requisition at the end of the fiscal year.

.02 Importers are to consider denominational stamps, blocked out denominational stamps, and the new stamps not bearing denominations, as standard size stamps. These stamps should be reported in an unused column, preferably the `gallon' column, redesignated as `Standard Size.' In addition to reporting at line 5 the total number of stamps used during the period, importers will also report at line 5, under the appropriate denominational heading, the number of bottles by sizes to which stamps were affixed.

SEC. 5. INQUIRIES.

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