PART 179-TRANSFER OF OR SUCCESSION TO SPECIAL TAX STAMPS UNDER THE INTERNAL REVENUE LAWS PERTAINING TO ALCOHOLIC LIQUORS Miscellaneous regulations relating to liquor: See Part 171. Section 179.1 Statutory authority. Pursuant to sections 1411, 1691, and 1821, title 26, U.S.C., 1934 ed., the regulations in this part are prescribed."t *88 179.1 to 179.10, inclusive, issued under the authority contained in R.S. 3241, 321, 251; 26 U.S.C. 1411, 1691, 1821. +In §§ 179.1 to 179.10, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in T.D. 4767, Bureau of Internal Revenue, Oct. 9, 1937, 2 F.R. 2178. 179.2 Registration of removal. A special taxpayer may, during the taxable period for which special tax was paid, remove his business to a place other than that specified in his original return on Form 11, "Special Tax Return", and stated on his special tax stamp, without incurring additional special tax liability, provided the change is registered with the collector of internal revenue from whom the special tax stamp was purchased, within 30 days after such removal occurs, by executing a new return on Form 11, designated as "Amended Return", setting forth the time when and the place to which such removal was made, and surrender of the special tax stamp.*t 179.3 Record. When a special taxpayer removes his business to another address within the same collection district, the collector of internal revenue will enter on his record 10 the new address and the date of removal, and will note the change on the face of the special tax stamp, stating clearly thereon the new location where said business is to be carried on, and will return the special tax stamp to the taxpayer.*+ 179.4 Removal to another district. When a taxpayer removes his business to a location within a collection district other than that in which the special tax stamp was issued, the collector of internal revenue who issued the special tax stamp will enter on his record 10 the new address and date of removal, stating clearly the new location where said business is to be carried on, and will transmit the stamp to the collector of internal revenue in charge of the district to which the taxpayer removed. The collector of that district will make entry on his record 10, as in the case of a new registrant, and note the taxpayer's new address and the collector's name, title and district, and the date on the special tax stamp, which will be returned to the taxpayer.** **For statutory and source citations, see note to § 179.1. Page 1395 179.5 Rights of succession. Certain persons other than the special taxpayer may, without incurring additional special tax liability, carry on the same business at the same address and for the remainder of the taxable period for which the special tax was paid. To secure such right, the person or persons continuing the business must file with the collector of internal revenue from whom the special tax stamp was purchased, within 30 days after the time of succession, a return on Form 11, "Special Tax Return", showing the basis of the succession.*t 179.6 Persons entitled. Under the conditions indicated in § 179.5, the persons having such right of succession are as follows: (a) Death. The widow, child, or other legal representatives of the taxpayer. (b) Husband and wife. A husband or wife succeeding to the business of his or her spouse (living). (c) Insolvency. A receiver or trustee in bankruptcy, or an assignee for benefit of creditors. (d) Withdrawal from firm. The partner or partners remaining after death or withdrawal of a member.*t 179.7 Additional special tax. A special taxpayer who relocates his business, or a person referred to in § 179.4, so succeeding to a business for which special tax has been paid, and who fails to register such removal or succession with the collector of internal revenue within thirty days from the date of such removal or succession, will become liable to additional special tax computed from the first day of the calendar month in which such removal or succession occurred, as provided by section 1403, title 26, U.S.C., 1934 ed., Sup. II.** 179.8 Waiver of penalty. The ad valorem penalty provided by section 1525, title 26, U.S.C., 1934 ed., Sup. II, may be waived in such instances where the taxpayer removing his place of business or a person succeeding to a special tax stamp shows reasonable cause in accordance with existing regulations.** 179.9 Form 785. The regulations in this part shall apply to certificates on Form 785 issued in lieu of special tax stamps lost or destroyed.*+ 179.10 Prior regulations. All regulations inconsistent herewith are revoked to the extent of their inconsistencies.*t PART 180-COLLECTION OF INTERNAL REVENUE TAX ON INTOXICATING LIQUORS, DENATURED ALCOHOL, AND ARTICLES CONTAINING DENATURED ALCOHOL, COMING INTO THE UNITED STATES FROM THE PHILIPPINE ISLANDS, THE VIRGIN ISLANDS, AND PUERTO RICO Sec. 180.1 Statutory authority. 180.2 Virgin Islands and Puerto Rico. 180.3 Philippine Islands. Sec. Procedure for establishing taxable classification of the liquor or article Page 1396 **For statutory and source citations, see note to § 179.1. Sec. 180.4 Tax classification procedure. (a) Formula. (b) Detention of shipments. (c) Certificate. (d) Shipments arriving before 4 Sec. By whom the internal-revenue taxes are to be collected 180.5 Collection of tax. To which government the internal-revenue taxes shall be credited 180.6 Credit for taxes collected. CROSS REFERENCE Customs relations with insular possessions: See Customs Duties, 19 CFR Part 5. Section 180.1 Statutory authority. Pursuant to the above provisions of law and section 251 of the Revised Statutes (U.S.C., 1934 ed., title 26, sec. 1821), and section 5 of the Liquor Enforcement Act of 1936 (U.S.C., 1934 ed., Sup. II, title 27, sec. 225), liquor and articles, i. e., intoxicating liquors (alcohol and other distilled spirits, liqueurs, cordials and similar compounds, wines and fermented malt liquors), denatured alcohol, and articles containing denatured alcohol (except as hereinafter provided), and articles containing pure alcohol such as bay rum, extracts, perfumes, etc., arriving in the United States from any of the posessions to which reference is made, are subject to taxes at the rates imposed upon domestic products of the same kind by the internal-revenue laws. The Liquor Taxing Act of 1934, approved January 11, 1934 (U.S.C., 1934 ed., title 26, sections 1150 et seq., 1300 et seq., and 1330 et seq.), as amended by the Liquor Tax Administration Act of June 26, 1936 (U.S.C., 1934 ed., Sup. II, title 26, sec. 1300 (a) (1) and (2)), imposes taxes at various rates upon distilled spirits, wines, liqueurs and cordials, and fermented malt liquors. Rectification tax on rectified distilled spirits or wines at the rate of 30 cents per proof gallon is also collectible because of the provisions of the third subsection of section 3244, Revised Statutes, as amended (U.S.C., 1934 ed., title 26, sec. 1398 (f)), and the provisions of section 605 of the Revenue Act of 1918, as amended (U.S.C., 1934 ed., title 26, sec. 1150 (a) (6)), if the product so rectified would be subject to that tax if manufactured in the United States.t †In §§ 180.1 to 180.6, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in T.D. 4770, Bureau of Internal Revenue, Oct. 25, 1937, 2 F.R. 2386. 180.2 Virgin Islands and Puerto Rico. Title III of the National Prohibition Act, as amended, and all provisions of the internalrevenue laws relating to the enforcement thereof, were extended to and made applicable in the Virgin Islands and Puerto Rico on and after August 27, 1935, by section 329 (c) of the Liquor Tax Administration Act approved June 26, 1936 (U.S.C., 1934 ed., Supp. II, title 27, sec. 90). Therefore, alcohol denatured in accordance with approved formulae, and articles made therewith in accordance with authorized formulae may be shipped to the United States from such "The provisions of law indicated by the following citations are quoted in the original document: Sec. 301, 46 Stat. 685, 686; 26 U.S.C. 1460, 1463. Sec. 1304, 40 Stat. 1142; 26 U.S.C. 1470 (a). Sec. 3, 31 Stat. 77, 47 Stat. 158, sec. 9, 39 Stat. 954; 26 U.S.C. 1480 (a), (b), (c) Page 1397 possessions, without incurring liability to internal-revenue taxes. Unless the alcohol is denatured in accordance with a prescribed formula and the articles are made therewith in accordance with prescribed formulae, the denatured alcohol and such articles when shipped to the United States will be subject to tax at the rate of $2 per proof gallon, or wine gallon if below proof, on the alcohol therein.† (Sec. 10, 41 Stat. 320; 27 U.S.C. 80. Sec. 329 (c), 49 Stat. 1957; 27 U.S.C., Sup., 90. Sec. 900, 44 Stat. 104, sec. 2, 48 Stat. 313; 26 U.S.C. 1150 (a) (1), (f)) 180.3 Philippine Islands. Title III of the National Prohibition Act is not in effect in the Philippine Islands. Liquor and articles containing alcohol, whether denatured or not, arriving in the United States from such Islands, will be subject to tax on the alcohol therein at rates provided by law, including tax at the rate of 30 cents per proof gallon on spirits and wines if they are rectified in such a manner that they would be subject to such tax if manufactured in the United States.† (Sec. 301, 46 Stat. 685; 26 U.S.C. 1460 (a)) PROCEDURE FOR ESTABLISHING TAXABLE CLASSIFICATION OF THE LIQUOR OR ARTICLE 180.4 Tax classification procedure-(a) Formula. Effective December 1, 1937, every person intending to bring in from the insular possessions named the liquor or articles to which reference is made except fermented malt líquors, and except denatured alcohol and articles made therewith produced in Puerto Rico or the Virgin Islands pursuant to title III of the National Prohibition Act and regulations) shall submit, in advance, to the Commissioner of Internal Revenue in quintuplicate (and if the liquor or article is to arrive at more than one port, an additional copy as to each such port), through the district supervisor of the Alcohol Tax Unit of the district in which such person is located, a serially numbered (commencing with the number 1 for the first and continuing in series thereafter) and dated formula, stating the name and address of the manufacturer and the brand of the liquor or article, and showing the names of the ingredients of which it is composed and the process by which it is made, each step being set forth in sequence. Unless exemption from the rectification tax at the rate of 30 cents per proof gallon is claimed, the quantities or percentages of each ingredient need not be given. Where the ingredients or processes are subsequently changed, a new formula must be submitted. The Commissioner of Internal Revenue or the district supervisor of the Alcohol Tax Unit may, at any time, require the submission of a formula or formulae notwithstanding a formula or formulae have already been submitted. In submitting such formula, the importer shall indicate thereon in each instance the port, or ports, through which he intends to bring in the merchandise. (b) Detention of shipments. When a numbered and dated formula has been filed, the Commissioner of Internal Revenue shall transmit a copy thereof, with the classification for tax purposes indicated thereon, to the collector of customs at each port named therein. Page 1398 +For source citation, see note to § 180.1. Any shipment of liquor or articles arriving in the United States prior to the receipt of notice by the collector of customs that the formula therefor has been filed and acted upon shall be detained by the collector of customs until the tax found to be due thereon, if any, has been paid. (c) Certificate. There shall be filed with the collector of customs in connection with each shipment a certificate, in the English language, signed by the shipper and addressed to the collector of customs, which shall show: (1) the name and address of the consignee, (2) the designation of the liquor or article, (3) the quantity thereof, (4) the number and date of the formula covering the liquor or article, (5) a declaration that it has been manufactured in accordance with such formula, and (6) the name and address of the person who filed the formula. In the case of shipments arriving from Puerto Rico, the certificate shall state whether the United States internal-revenue taxes have been paid and, if paid, the amount thereof. Where the formula and certificate have been received by the collector of customs, shipments of the liquor or article covered thereby may be released upon payment of the tax, if any, due as shown by such formula. Samples need not be taken for examination unless there is reason to believe that the liquor or article is not in accordance with the formula. (d) Shipments arriving before December 1, 1937. In the interim between the date of approval of this part and December 1, 1937, the importer and the shipper may conform with the above requirements, or the shipper may attach to the shipping documents a certificate, in the English language, addressed to the collector of customs, stating the brand of the liquor or article and showing the names of the ingredients and the processes by which made, each step being set forth in sequence. In such event, internal-revenue taxes found to be due will be collected without detaining the shipment, unless there is reason to believe that the liquor or article is not as represented. Shipments arriving during this period of time, as to which the importer or shipper has not conformed with either of the above alternatives, and shipments arriving on and after December 1, 1937, as to which a certificate based upon a formula that has been acted upon has not been filed, will be detained by the collector of customs pending the payment of taxes, if any, found to be due. Shipments shall also be detained by the collector of customs in any case in which there is reason to believe that all internal-revenue taxes due on the liquor or articles shipped have not been paid.t (Sec. 301, 46 Stat. 685; 26 U.S.C. 1460 (a). R.S. 3447; 26 U.S.C. 1534. Sec. 3, 31 Stat. 77; 26 U.S.C. 1480. Sec. 1304, 40 Stat. 1142; 26 U.S.C. 1470 (a)) BY WHOM THE INTERNAL-REVENUE TAXES ARE TO BE COLLECTED 180.5 Collection of tax. Internal-revenue taxes on liquors or articles arriving from Puerto Rico, unless paid before shipment, and on those from the Philippine Islands, will be collected by the collector of internal revenue for the district in which the liquors or articles are brought in on notice to him by the collector of customs of the arrival thereof. Internal-revenue taxes on liquors or articles *For source citation, see note to § 180.1. Page 1399 |