Rev. Proc. 59-20

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to furnish instructions to distillers, warehousemen, denaturers, rectifiers, and bottlers of distilled spirits, with respect to what they must do in order to continue business operations on and after July 1, 1959.

SEC. 2. BACKGROUND.

Distillers, warehousemen, denaturers, rectifiers, and bottlers of distilled spirits now operating industrial alcohol plants, industrial alcohol bonded warehouses, industrial alcohol denaturing plants, registered distilleries, registered fruit distilleries, distillery, denaturing bonded warehouses, internal revenue bonded warehouses, taxpaid bottling houses, and rectifying plants are required by section 5171 of the Internal Revenue Code of 1954, as amended by the Excise Tax Technical Changes Act, public Law 85-859, C.B. 1958-3, 92, to apply for and receive notice of the registration of their plants before continuing business as such on and after July 1, 1959. Such persons are also required by the quoted statute to apply for a permit authorizing such of their operations as are not covered by a permit under the Federal Alcohol Administration Act.

SEC. 3. WHAT MUST BE DONE.

To qualify a premises as a distilled spirits plant, the above-named persons must complete the following acts:

.01 Apply for registration by filing Form 2607, Registration of Distilled Spirits Plant.

.02 File a bond on Form 2601, Distilled Spirits Bond. No bond is required if the only operation of the plant will be the bottling, without rectification, of taxpaid spirits.

.03 Apply for an `operating permit' by filing Form 2603, Application For Operating Permit, if the plant is to engage in distilling for industrial use, denaturing of spirits, bottling or packaging of spirits for industrial use, warehousing of spirits for industrial use, or warehousing of spirits (without bottling in bond) for nonindustrial use.

.04 File either Form 1602, Consent, or Form 3-A, Indemnity Bond, unless the person qualifying the premises as a distilled spirits plant is the owner of the property unencumbered (including buildings and equipment) to be so qualified.

SEC. 4. OPTIONAL PROCEDURE IN RESPECT OF PRIOR LIENS.

Proprietors may, subject to the approval of the Assistant Regional Commissioner, file Form 2602, Consent to Additional Conditions on Indemnity Bond Form 3-A, to extend the terms of Indemnity Bond, Form 3-A, so that it will stand in lieu of prior liens against the property of the distilled spirits plant, and will indemnify the United States for the payment of all taxes which could be asserted against the property by reason of such prior liens. This option does not affect the mandatory filing of Form 1602 or Form 3-A as discussed in Section 3.04.

SEC. 5. DATE FOR QUALIFICATION.

The application for registration should be filed well before July 1, 1959, since no person may commence or continue business as a distilled spirits plant on or after July 1, 1959, until his application for registration, Form 2607, has been approved and returned to him by the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax. The application for an operating permit should also be filed as early as possible, but in no case later than June 30, 1959. If a proprietor is to expand his operations to include functions not now covered by a permit, he may not commence such additional functions until he has received his operating permit, or a permit under the Federal Alcohol Administration Act, authorizing the additional functions.

SEC. 6. INQUIRIES.

Inquiries in regard to this Revenue Procedure should be addressed to the local officer in charge, branch office supervisor, or appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax.