Rev. Proc. 59-21

SECTION 1. PURPOSE.

Proprietors of industrial alcohol plants, bonded warehouses, and denaturing plants, and dealers in specially denatured alcohol must be familiar with the withdrawal permits they may accept as valid on and after July 1, 1959. After this date, the withdrawal of spirits free of tax and specially denatured spirits may be made from distilled spirits plants or bonded dealer premises only by persons holding valid permits to secure such spirits.

SEC. 2. BACKGROUND.

Section 5271 of the Internal Revenue Code of 1954, as amended by the Excise Tax Technical Changes Act of 1958, Public Law 85-859, C.B. 1958-3, 92, provides that no person shall procure spirits free of tax or specially renatured spirits on and after July 1, 1959, until he has filed an application and received a permit to do so. The shortage of time will not permit Assistant Regional Commissioners, Alcohol and Tobacco Tax, to process these applications and issue new withdrawal permits between the date the applications are received and July 1, 1959.

SEC. 3. VALID WITHDRAWAL PERMITS ON AND AFTER JULY 1, 1959.

.01 Proposed regulations to be issued provide that where a person holds a permit as a user or dealer and also holds a valid withdrawal permit on June 30, 1959, and files prior to July 1, 1959, the required applications for the continuance of such activities on and after July 1, 1959, he may continue to withdraw tax-free or specially denatured spirits under the withdrawal permit in effect on June 30, 1959. Accordingly, unless proprietors of industrial alcohol plants, bonded warehouses, and denaturing plants, and dealers in specially denatured alcohol are notified by the Assistant Regional Commissioner that withdrawals may not be made under the provisions of a particular withdrawal permit because the person to whom the permit was issued has not filed the necessary applications, they may on and after July 1, 1959, and until further notification ship tax-free or specially denatured spirits under the provisions of any withdrawal permit in effect on June 30, 1959, that names them as the vendor. The same rule will hold true for any valid permit to procure tax-free or specially denatured alcohol held by an agency of the United States Government on June 30, 1959, unless there is notification by the Director, Alcohol and Tobacco Tax Division, that withdrawals may not be made under a particular permit.

.02 After July 1, 1959, proprietors and dealers may receive withdrawal permits bearing the revision date of April 1959, and having a format somewhat different from those in use on June 30, 1959. If this permit is properly authenticated by the signature of the appropriate Assistant Regional Commissioner, shipments may also be made under such withdrawal permits. Storekeeper-gaugers assigned to individual plants should be consulted if questions arise regarding the revised permits.

SEC. 4. INQUIRIES.

Inquiries regarding this Revenue Procedure not answered by consultation with storekeeper-gaugers should refer to its number and be addressed to the office of the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax.