[Federal Register: October 31, 2005 (Volume 70, Number 209)]
[Rules and Regulations]
[Page 62238-62254]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31oc05-9]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Parts 17, 19, 24, 25, 26, 27, and 31
[T.D. TTB-36]
RIN 1513-AB04
Suspension of Special (Occupational) Tax (2004R-778P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Temporary rule; Treasury decision.
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SUMMARY: In this temporary rule, the Alcohol and Tobacco Tax and Trade
Bureau amends its regulations relating to special (occupational) tax,
to reflect a 3-year tax suspension effected by section 246 of the
American Jobs Creation Act of 2004. Section 246 amends the Internal
Revenue Code of 1986 to provide that, during the period from July 1,
2005, through June 30, 2008, the rate of special (occupational) tax on
certain occupations will be zero. The occupations affected by the 3-
year tax suspension are: Manufacturers of nonbeverage products who
claim tax drawback; proprietors of distilled spirits plants, alcohol
fuel plants, bonded and taxpaid wine premises, and breweries; and
wholesale and retail dealers in distilled spirits, wine, and beer. The
requirements to register annually and keep prescribed records remain in
effect. The text of these temporary regulations serves as the text of
the proposed regulations set forth in the notice of proposed rulemaking
on this subject in the Proposed Rules section of this issue of the
Federal Register.
DATES: Effective Date: This temporary rule is effective as of July 1,
2005.
FOR FURTHER INFORMATION CONTACT: Steve Simon, Alcohol and Tobacco Tax
and Trade Bureau, Regulations and Rulings Division, Suite 200E, 1310 G
Street, NW., Washington, DC 20220; telephone (202) 927-8210.
SUPPLEMENTARY INFORMATION:
Background
Various provisions within subtitle E of the Internal Revenue Code
of 1986 (IRC) impose an annual tax on certain business occupations.
This tax is referred to as the ``special (occupational) tax'' or more
briefly as the ``special tax.'' In general, payment of this tax is a
prerequisite for engaging in any of the covered occupations. The
current annual rates of special (occupational) tax are as follows:
Manufacturer of Nonbeverage Products........................... $ 500
Proprietor of Distilled Spirits Plant.......................... 1,000
Proprietor of Alcohol Fuel Plant............................... 1,000
Proprietor of Bonded Wine Cellar............................... 1,000
Proprietor of Bonded Wine Warehouse............................ 1,000
Proprietor of Taxpaid Wine Bottling House...................... 1,000
Brewer......................................................... 1,000
Wholesale Liquor Dealer or Beer Dealer......................... 500
Retail Liquor Dealer or Beer Dealer............................ 250
User of, or Dealer in, Specially Denatured Alcohol............. 250
User of Tax-Free Alcohol....................................... 250
Manufacturer of Tobacco Products............................... 1,000
Manufacturer of Cigarette Papers and Tubes..................... 1,000
Export Warehouse Proprietor.................................... 1,000
Each tax year for payment of special (occupational) tax runs from
July 1 through the following June 30. In addition, special tax returns,
with payment of the appropriate tax, must be submitted before beginning
a new business, and each year thereafter on or before July 1.
Some of the covered occupations are subject to a reduced rate for
small entities. A small entity, engaging in an occupation subject to a
basic rate of $1,000 per year, is subject to a reduced rate of just
$500 per year. However, a small alcohol fuel plant is exempt from
special tax. Educational institutions using small quantities of tax-
free or specially denatured alcohol are also exempt from special tax.
Besides requiring payment of the annual tax, the IRC requires an
annual registration of persons subject to special tax and imposes
certain recordkeeping requirements. Further, liquor (distilled spirits,
wine, and beer) dealers must purchase distilled spirits from (1) a
wholesale liquor dealer who has paid special tax for the location where
the
[[Page 62239]]
sale is consummated, (2) a wholesale dealer in liquors who is exempt,
at the place where such purchase is made, from the payment of the tax,
or (3) a person who is not subject to wholesale liquor dealer's special
tax where the sale is consummated.
Current regulations relating to special (occupational) tax are
contained in title 27 of the Code of Federal Regulations (27 CFR) and
are administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB).
These regulations provide for a single form to be used both as a tax
return and a registration. The form is TTB Form 5630.5, ``Special Tax
Registration and Return.'' Persons who complete this form and pay the
appropriate tax are issued a ``Special Tax Stamp,'' which functions as
a receipt for payment of the tax and also provides evidence of
registration. This tax stamp is not a license and does not authorize
any activity that would be illegal under any other Federal or State
law.
American Jobs Creation Act of 2004
On October 22, 2004, President Bush signed into law the American
Jobs Creation Act of 2004 (the Act), Pub. L. 108-357, 118 Stat. 1418.
Section 246 of the Act, entitled ``Suspension of Occupational Taxes
Relating to Distilled Spirits, Wine, and Beer,'' amended subpart G of
part II of subchapter A of chapter 54 of the IRC by redesignating
section 5148 as section 5149 and adding a new section 5148 (26 U.S.C.
5148) entitled ``Suspension of Occupational Tax.'' New section 5148
provides that, during the 3-year period from July 1, 2005, through June
30, 2008, the rate of special (occupational) tax imposed under sections
5081, 5091, 5111, 5121, and 5131 will be zero.
The effect of new section 5148 is that the following occupations
are not subject to payment of special (occupational) tax during the
suspension period: Manufacturer of nonbeverage products, proprietor of
distilled spirits plant, (including an alcohol fuel plant), proprietor
of bonded wine cellar, proprietor of bonded wine warehouse, proprietor
of taxpaid wine bottling house, brewer, wholesale liquor dealer or beer
dealer, and retail liquor dealer or beer dealer.
On the other hand, the following occupations, which are not covered
by the IRC sections listed in new section 5148, are not affected by the
suspension and remain subject to the special (occupational) tax during
the suspension period: User of or dealer in specially denatured
alcohol, user of tax-free alcohol, manufacturer of tobacco products
(that is, cigars, cigarettes, smokeless tobacco, pipe tobacco, and
roll-your-own tobacco), manufacturer of cigarette papers or tubes, and
export warehouse proprietor (for the export of tobacco products,
cigarette papers, or cigarette tubes).
Although the tax rate for the occupations affected by the
suspension will be zero during the suspension period, new section 5148
further provides that persons engaging in those occupations must still
register annually and comply with applicable recordkeeping
requirements. Finally, section 246 of the Act amended section 5117 of
the IRC (26 U.S.C. 5117) by adding a new subsection (d) to provide that
during the suspension period a dealer may purchase distilled spirits,
for resale, only from persons required to keep records as a wholesale
liquor dealer, except as otherwise specifically provided by law or
regulations.
Regulations Changes in General
In order to reflect the changes made by section 246 of the Act,
this document generally amends the TTB regulations by adding the
requirements that are applicable during the suspension period to the
current regulatory provisions, which remain applicable at all times
outside the suspension period. The regulatory amendments therefore
refer to the fact that the suspension is for a fixed period with a
beginning and ending date. Accordingly, provided that no further
changes are made to the special (occupational) tax statutory
provisions, the regulatory provisions that were in effect prior to the
adoption of the changes made by section 246 of the Act will operate
without the need for further regulatory changes upon termination of the
suspension period.
TTB Form 5630.5, ``Special Tax Registration and Return,'' will
continue in use for registration purposes during the suspension period.
All persons engaged in occupations currently subject to special tax
must continue to register by completing and submitting this form
annually during the suspension period. Persons in occupations not
affected by the suspension must continue to pay the current rate of tax
as well.
Because the primary purpose of the ``Special Tax Stamp'' is to
serve as a receipt for payment of the tax, TTB has decided not to issue
these stamps during the suspension period, except for those occupations
that will remain subject to payment of a special (occupational) tax.
Specific Types of Regulatory Changes
Each regulation referring to an affected special tax liability is
amended in this document to refer as well to an obligation to register
during the 3-year tax suspension period. Similarly, if a regulation
prescribes the time for payment of a special tax, the regulation is
amended to prescribe the same time for registration during the
suspension period. Regulations affording exemptions from payment of
special tax (such as the exemptions from liquor dealer tax on sales, by
alcohol beverage manufacturers, of products stored on their
manufacturing premises) are amended to add similar exemptions from
registration during the tax suspension period.
Regulations providing a penalty for failure to file a special tax
return or to pay special tax cannot simply be amended to provide the
same penalties for failure to register during the tax suspension
period, because the penalties described in those regulations are based
on the amount of tax, which will become zero in the suspension period.
This does not mean that no penalty exists for failure to register
during the suspension period. Section 5603(b) of the IRC (26 U.S.C.
5603(b)) provides criminal penalties applicable to persons who are
``required by this chapter * * * or regulations issued pursuant thereto
to keep or file any record, return, report, summary, transcript, or
other document'' and who neglect to do so. A penalty of ``not more than
$1,000'' or imprisonment for ``not more than 1 year'' or both may be
imposed for each offense. Therefore, except in the case of part 17 of
the TTB regulations as discussed below, regulations referring to a
penalty for failure to file a special tax return are amended to refer
to the penalty prescribed in section 5603(b), with respect to a failure
to register during the tax suspension period.
While the regulations are not being amended to reflect other
enforcement actions available to TTB in the event the required records
are not maintained, TTB reminds holders of basic permits that these
permits are conditioned on compliance with all Federal law relating to
alcohol. The conditions include compliance with the internal revenue
laws relating to alcohol, which include the requirement to register
and/or maintain the required records.
The TTB regulations in 27 CFR part 17, which deal with
manufacturers of nonbeverage products, require special treatment in
several respects. For such manufacturers, payment of special tax is not
a prerequisite for engaging in business, but is a prerequisite for
claiming drawback of excise tax on distilled spirits used in their
manufacturing processes. Accordingly,
[[Page 62240]]
their time limit for filing a tax return and paying special tax is set
by the regulations as no later than completion of final action on the
first claim for any tax year. Failure to comply with this time limit is
a violation subject to a $1,000 civil penalty prescribed by 26 U.S.C.
5134(c)(2). The same time limit and civil penalty will apply to
registration during the suspension period. However, for changes of
business location, and succession to business ownership by any of the
statutorily privileged successors (such as children succeeding deceased
parents, etc.), current regulations in 27 CFR 17.61 and 17.71 require
payment of a new special tax if notice of the change is not submitted
within 90 days. During the suspension period, when the rate of special
tax is zero, the requirement for a new special tax is not applicable.
Therefore, manufacturers changing location and successors assuming
ownership may submit notice of the change, without penalty under 26
U.S.C. 5134(c)(2), at any time prior to completion of final action on
the first claim after the change, or within 90 days of the change,
whichever is later.
Certain changes are needed to reflect the fact that TTB will not
issue special tax stamps for occupations whose tax rate is zero during
the suspension period. Specifically, regulations promising issuance of
special tax stamps or requiring persons to obtain such stamps are
amended to indicate that no stamps will be issued during the suspension
period. Regulations referring to the holding of a special tax stamp at
a location are amended to refer, for purposes of the suspension period,
to registration for that location. Regulations on changes of address,
which refer to the address stated on the special tax stamp, are amended
to refer, during the suspension period, to the same address as stated
on the special tax return (TTB Form 5630.5). Regulations requiring
submission of special tax stamps for endorsement of changes in name or
address are amended to waive this requirement during the suspension
period (nevertheless, such changes still must be registered by
submission of a new special tax return). Lastly, the regulation in 27
CFR 31.125, which indirectly prohibits an activity (retailing of
alcohol beverages on board a non-passenger train, vessel, or aircraft)
by stating that no special tax stamp will be issued is amended to
express the prohibition directly, so that it will be as meaningful
during the suspension period as at other times. (Note: On April 15,
2005, part 194 of the TTB regulations (27 CFR part 194) was recodified
as part 31 (27 CFR part 31); see T.D. TTB-25, 70 FR 19880.)
The current law restricting purchases of distilled spirits by
dealers is in 26 U.S.C. 5117, and the implementing regulations are
contained in 27 CFR 31.211. Under the amendments made by section 246 of
the Act, as described above, during the tax suspension period, section
5117 only authorizes such purchases from persons required to keep
records as wholesale liquor dealers--except that limited retail dealers
as defined in 26 U.S.C. 5122(c) will be permitted, as currently, to
purchase distilled spirits from retail liquor dealers. In addition,
amended section 5117 allows the Secretary of the Treasury to expand, by
regulation, the categories of persons from whom such distilled spirits
purchases may be made. Accordingly, this Treasury decision amends Sec.
31.211 to provide that, during the suspension period, a dealer must
purchase distilled spirits from (a) a wholesale dealer (including a
State, a political subdivision of a State, the District of Columbia,
and a distilled spirits plant) required to keep records as such under
part 31, (b) a retail liquor store operated by a State, a political
subdivision thereof, or the District of Columbia, or (c) a person not
required to register as a wholesale liquor dealer under part 31. The
current provision allowing limited retail dealers to purchase distilled
spirits from retail liquor dealers is retained.
Finally, in sections or paragraphs where the full regulatory text
is set forth in this document, the amendments made by this document
include a few minor, nonsubstantive editorial changes, such as the
correction of typographical errors.
Public Participation
For submitting comments, please refer to the notice of proposed
rulemaking on this subject published in the Proposed Rules section of
this issue of the Federal Register.
Regulatory Flexibility Act
Because no notice of proposed rulemaking is required for temporary
rules, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601
et seq.) do not apply.
Executive Order 12866
It has been determined that this temporary rule is not a
significant regulatory action as defined in E.O. 12866. Therefore, a
regulatory assessment is not necessary.
Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995, no persons are required
to respond to a collection of information unless it displays a valid
Office of Management and Budget (OMB) control number. The collections
of information contained in the regulations amended by this temporary
rule have been previously reviewed and approved by OMB in accordance
with the Paperwork Reduction Act of 1995 (44 U.S.C. 3504(h)) under
control numbers 1513-0005, 1513-0088, 1513-0112, and 1513-0113. There
is no new or revised collection of information imposed by this Treasury
decision, and there is no change in the reporting or recordkeeping
burden so no new control numbers are necessary and the previous control
numbers will continue to be used.
Inapplicability of Prior Notice and Comment and Delayed Effective Date
Procedures
It has been determined that prior notice and comment procedures are
not required pursuant to 5 U.S.C. 553(b)(A), and a delayed effective
date is not required pursuant to 5 U.S.C. 553(d)(2).
Drafting Information
The principal drafter of this document is Steve Simon of the
Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade
Bureau.
List of Subjects
27 CFR Part 17
Administrative practice and procedure, Claims, Cosmetics, Customs
duties and inspection, Drugs, Excise taxes, Exports, Imports, Liquors,
Packaging and containers, Puerto Rico, Reporting and recordkeeping
requirements, Spices and flavorings, Surety bonds, Virgin Islands.
27 CFR Part 19
Administrative practice and procedure, Alcohol and alcoholic
beverages, Authority delegations (Government agencies), Chemicals,
Claims, Customs duties and inspection, Electronic fund transfers,
Excise taxes, Exports, Gasohol, Imports, Labeling, Liquors, Packaging
and containers, Puerto Rico, Reporting and recordkeeping requirements,
Research, Security measures, Spices and flavorings, Stills, Surety
bonds, Transportation, Vinegar, Virgin Islands, Warehouses, Wine.
27 CFR Part 24
Administrative practice and procedure, Claims, Electronic funds
[[Page 62241]]
transfers, Excise taxes, Exports, Food additives, Fruit juices,
Labeling, Liquors, Packaging and containers, Reporting and
recordkeeping requirements, Research, Scientific equipment, Spices and
flavorings, Surety bonds, Vinegar, Warehouses, Wine.
27 CFR Part 25
Beer, Claims, Electronic fund transfers, Excise taxes, Exports,
Labeling, Liquors, Packaging and containers, Reporting and
recordkeeping requirements, Research, Surety bonds.
27 CFR Part 26
Alcohol and alcoholic beverages, Caribbean Basin initiative,
Claims, Customs duties and inspection, Electronic funds transfers,
Excise taxes, Packaging and containers, Puerto Rico, Reporting and
recordkeeping requirements, Surety bonds, Virgin Islands, Warehouses.
27 CFR Part 27
Alcohol and alcoholic beverages, Beer, Cosmetics, Customs duties
and inspection, Electronic funds transfers, Excise taxes, Imports,
Labeling, Liquors, Packaging and containers, Reporting and
recordkeeping requirements, Wine.
27 CFR Part 31
Alcohol and alcoholic beverages, Beer, Claims, Excise taxes,
Exports, Labeling, Liquors, Packaging and containers, Reporting and
recordkeeping requirements, Wine.
Amendments to the Regulations
0
For the reasons discussed in the preamble TTB amends 27 CFR parts 17,
19, 24, 25, 26, 27, and 31 as follows:
PART 17--DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN
MANUFACTURING NONBEVERAGE PRODUCTS
0
1. The authority citation for part 17 is revised to read as follows:
Authority: 26 U.S.C. 5010, 5131-5134, 5143, 5146, 5148, 5206,
5273, 6011, 6065, 6091, 6109, 6151, 6402, 6511, 7011, 7213, 7652,
7805; 31 U.S.C. 9301, 9303, 9304, 9306.
0
2. Section 17.21 is amended by designating the existing text as
paragraph (a), adding the heading ``General.'' to newly designated
paragraph (a), removing the word ``Each'' at the beginning of the first
sentence of newly designated paragraph (a) and adding, in its place,
the words ``Except as otherwise provided in paragraph (b) of this
section, each'', and adding a new paragraph (b) to read as follows:
Sec. 17.21 Payment of special tax.
* * * * *
(b) Suspension of tax. During the period from July 1, 2005, through
June 30, 2008, the rate of the tax described in paragraph (a) of this
section is zero. Accordingly, payment of the tax is not a prerequisite
for claiming drawback on spirits used during that period. However, the
drawback claimant still must register by filing the special tax return
on Form 5630.5 during the suspension period even though the amount of
tax due is zero.
Sec. 17.22 [Amended]
0
3. Section 17.22 is amended by adding at the end before the period the
words ``, except that the tax rate is zero during the suspension period
described in Sec. 17.21(b)''.
Sec. 17.23 [Amended]
0
4. Section 17.23 is amended at the beginning by removing the word ``A''
and adding, in its place, the words ``Subject to Sec. 17.21(b), a''.
0
5. Section 17.24 is amended by designating the existing text as
paragraph (a), adding the heading ``General.'' to newly designated
paragraph (a), and adding a new paragraph (b) to read as follows:
Sec. 17.24 Time for payment of special tax.
* * * * *
(b) Suspension of tax. The rate of special tax is zero during the
period from July 1, 2005, through June 30, 2008 (see Sec. 17.21(b)).
During this period, the registration requirement continues. The
drawback claimant must register by filing a special tax return, Form
5630.5. The claimant may register without penalty under 26 U.S.C.
5134(c) at any time prior to completion of final action on the first
claim submitted for each tax year.
Sec. 17.31 [Amended]
0
6. Section 17.31 is amended by adding at the end of the first sentence
before the period the words ``, and the filing of a return is required
for registration purposes even though no tax is due during the
suspension period described in Sec. 17.21(b)''.
0
7. Section 17.32 is amended by adding at the end of paragraph (a)(5)
before the period the words ``or to which the return relates during the
suspension period described in Sec. 17.21(b)'' and revising paragraph
(b) to read as follows:
Sec. 17.32 Completion of ATF Form 5630.5.
* * * * *
(b) Multiple locations. A taxpayer subject to special tax, or
required to register during the suspension period described in Sec.
17.21(b), for the same period at more than one location or for more
than one class of tax shall--
(1) File one special tax return, Form 5630.5, with payment of
applicable tax, to cover all such locations and classes of tax; and
(2) Prepare, in duplicate, a list identified with the taxpayer's
name, address (as shown on the Form 5630.5), employer identification
number, and period covered by the return. The list shall show, by
States, the name, address, and tax class of each location for which
special tax is being paid, or for which registration is being made
during the suspension period described in Sec. 17.21(b). The original
of the list shall be filed in accordance with instructions on the
return, and the copy shall be retained at the taxpayer's principal
place of business (or principal office, in the case of a corporate
taxpayer) for the period specified in Sec. 17.170.
* * * * *
0
8. Section 17.51 is amended:
0
a. By designating the existing text as paragraph (a);
0
b. In the first sentence of newly designated paragraph (a), by removing
the word ``Each'' and adding, in its place, the words ``Except as
otherwise provided in paragraph (b) of this section, each'';
0
c. Also in the first sentence of newly designated paragraph (a), by
adding after the words ``payment in the'' the word ``applicable''; and
0
d. By adding a new paragraph (b) to read as follows:
Sec. 17.51 Issuance of stamps.
* * * * *
(b) During the suspension period described in Sec. 17.21(b) when
registration is required but no tax is due, a special tax stamp will
not be issued.
0
9. Section Sec. 17.61 is revised to read as follows:
Sec. 17.61 General.
A manufacturer who, during a tax year for which a special tax
return has been filed with payment of any tax due, moves its place of
manufacture to a place other than that specified on the return, shall
register the change, by executing a new return on Form 5630.5,
designated as ``Amended Return.'' This Amended Return shall set forth
the time of the move and the address of the new location. If a special
tax stamp was issued for the former location, the taxpayer shall also
submit the special tax stamp for endorsement of the change in location.
In general, the taxpayer must submit the new return and the
[[Page 62242]]
special tax stamp within 90 days after the move to the new premises.
However, if the move occurs during the suspension period described in
Sec. 17.21(b) when no tax was due and no special tax stamp was issued,
the taxpayer may submit the new return alone without penalty at any
time prior to completion of final action on the first claim covering
use of spirits at the new premises, or within 90 days of the move,
whichever is later.
(Title II, sec. 201, Pub. L. 85-859, 72 Stat. 1374 (26 U.S.C. 5143))
Sec. 17.62 [Amended]
0
10. Section 17.62 is amended at the beginning by removing the word
``A'' and adding, in its place, the words ``Except in the case of
claims covering spirits used during the suspension period described in
Sec. 17.21(b) when the special tax rate is zero, a''.
0
11. Section 17.71 is amended by designating the existing text as
paragraph (a) and revising the first sentence of newly designated
paragraph (a) and adding a new paragraph (b) to read as follows:
Sec. 17.71 General.
(a) Subject to paragraph (b) of this section, certain persons may
qualify for succession to the same privileges granted by law to the
taxpayer, to cover the remainder of the tax year for which the special
tax was paid, or for which registration was made during the suspension
period described in Sec. 17.21(b). * * *
* * * * *
(b) With respect to spirits used during the suspension period
described in Sec. 17.21(b), the successor or successors must file the
return prior to completion of final action on the claim(s) covering
such spirits, or within 90 days of the change in control, whichever is
later.
Sec. 17.73 [Amended]
0
12. Section 17.73 is amended at the beginning by removing the word
``A'' and adding, in its place, the words ``Except in the case of
claims covering spirits used during the suspension period described in
Sec. 17.21(b) when the special tax rate is zero, a''.
0
13. Section 17.75 is revised to read as follows:
Sec. 17.75 Formation of partnership or corporation.
If one or more persons who have filed a special tax return and paid
any tax due form a partnership or corporation, as a separate legal
entity, to take over the business of manufacturing nonbeverage
products, the new firm or corporation shall file a new special tax
return and pay a new special tax in order to be eligible to receive
drawback. In the case of claims covering spirits used during the
suspension period described in Sec. 17.21(b), the rate of special tax
is zero.
0
14. Section 17.76 is revised to read as follows:
Sec. 17.76 Addition or withdrawal of partners.
(a) General partners. When a business formed as a partnership,
subject to the filing of a special tax return, admits one or more new
general partners, the new partnership shall file a new special tax
return and pay a new special tax in order to be eligible to receive
drawback (in the case of claims covering spirits used during the
suspension period described in Sec. 17.21(b), the rate of special tax
is zero). Withdrawal of general partners is covered by Sec. 17.72(d).
(b) Limited partners. Changes in the membership of a limited
partnership requiring amendment of the certificate but not dissolution
of the partnership are not changes that incur liability to additional
special tax or that require the filing of a new special tax return.
0
15. Section 17.77 is revised to read as follows:
Sec. 17.77 Reincorporation.
When a new corporation is formed to take over and conduct the
business of one or more corporations that have filed a special tax
return and paid any tax due, the new corporation must file a new
special tax return, pay special tax, and obtain a special tax stamp in
its own name. However, in the case of spirits used during the
suspension period described in Sec. 17.21(b) when no tax is due and no
stamp is issued, only the filing of a new special tax return is
required.
Sec. 17.81 [Amended]
0
16. Section 17.81 is amended by removing the words ``paid special tax''
and adding, in their place, the words ``filed a special tax return and
paid any tax due'' and by adding, after the words ``required to'', the
words ``file a new special tax return or''.
Sec. 17.82 [Amended]
0
17. Section 17.82 is amended by removing the word ``is'' and adding, in
its place, the words ``return and tax payment are''.
Sec. 17.83 [Amended]
0
18. Section 17.83 is amended by removing the word ``is'' and adding, in
its place, the words ``return and tax payment are''.
PART 19--DISTILLED SPIRITS PLANTS
0
19. The authority citation for part 19 is revised to read as follows:
Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-5006,
5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5113, 5142,
5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181, 5201-5204, 5206,
5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 5241-5243, 5271,
5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 5551-5555, 5559,
5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676,
6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.
0
20. Section 19.49 is amended by adding a new paragraph (a)(3) and
revising paragraphs (b)(2) and (c) to read as follows:
Sec. 19.49 Liability for special tax.
(a) * * *
(3) Suspension of tax. During the period from July 1, 2005, through
June 30, 2008, the rate of the tax described in paragraph (a)(1) of
this section is zero. However, each proprietor still must register by
filing the special tax return on Form 5630.5 during this suspension
period even though the amount of tax due is zero. During the suspension
period, as at other times, the special tax return is due on or before
commencement of business and on or before July 1 of each year
thereafter.
(b) * * *
(2) Exemption for sales by a proprietor of a distilled spirits
plant. A proprietor of a distilled spirits plant is not required to pay
special tax, or to register during the suspension period described in
paragraph (a)(3) of this section, as a wholesale or retail dealer in
liquor because of sales, at the principal place of business or at the
distilled spirits plant, of liquor which at the time of sale is stored
at the distilled spirits plant or which had been removed and stored in
a taxpaid storeroom operated in connection with the distilled spirits
plant. Each proprietor of a distilled spirits plant shall have only one
exemption from dealer's special tax, or from dealer's registration, for
each distilled spirits plant. The distiller may designate, in writing
to the regional director (compliance), that the principal place of
business will be exempt from dealer's special tax or registration;
otherwise, the exemption will apply to the distilled spirits plant.
(c) Each place of business taxable--(1) General. A proprietor of a
distilled spirits plant incurs special tax liability, or an obligation
to register during the suspension period described in paragraph (a)(3)
of this section, at each
[[Page 62243]]
place of business in which an occupation subject to special tax is
conducted. A place of business means the entire office, plant or area
of the business in any one location under the same proprietorship.
Passageways, streets, highways, rail crossings, waterways, or
partitions dividing the premises are not sufficient separation to
require additional special tax, if the divisions of the premises are
otherwise contiguous.
(2) Exception for contiguous areas. A proprietor of a distilled
spirits plant does not incur additional special tax liability, or an
obligation to register during the suspension period described in
paragraph (a)(3) of this section, for sales of liquor made at a
location other than on distilled spirits plant premises described on
the notice of registration, Form 5110.41, if the location where such
sales are made is contiguous to the distilled spirits plant premises in
the manner described in paragraph (c)(1) of this section.
* * * * *
Sec. 19.50 [Amended]
0
21. Section 19.50 is amended:
0
a. In paragraph (a), by adding at the end the following new sentence:
``However, under 26 U.S.C. 5148(a) the tax rate is zero during the
suspension period described in Sec. 19.49(a)(3).''; and
0
b. At the beginning of paragraph (b), by removing the word ``Title''
and adding, in its place, the words ``Except during the suspension
period described in Sec. 19.49(a)(3) when the tax rate is zero,
title''.
0
22. Section 19.51 is amended by revising paragraphs (a), (b)(5), and
(c) to read as follows:
Sec. 19.51 Special tax returns.
(a) General. Special tax shall be paid by return, and the filing of
a return is required for registration purposes even though no tax is
due during the suspension period described in Sec. 19.49(a)(3). The
prescribed return is Form 5630.5, Special Tax Registration and Return.
Special tax returns, with payment of applicable tax, shall be filed in
accordance with instructions on the form.
(b) * * *
(5) The class(es) of special tax to which the taxpayer is subject
or to which the return relates during the suspension period described
in Sec. 19.49(a)(3).
* * * * *
(c) Multiple locations and/or classes of tax. A taxpayer subject to
special tax, or required to register during the suspension period
described in Sec. 19.49(a)(3), for the same period at more than one
location or for more than one class of tax shall--
(1) File one special tax return, Form 5630.5, with payment of
applicable tax, to cover all such locations and classes of tax; and
(2) Prepare, in duplicate, a list identified with the taxpayer's
name, address (as shown on Form 5630.5), employer identification
number, and period covered by the return. The list shall show, by
States, the name, address, and tax class of each location for which
special tax is being paid, or for which registration is being made
during the suspension period described in Sec. 19.49(a)(3). The
original of the list shall be filed in accordance with instructions on
the return, and the copy shall be retained at the taxpayer's principal
place of business (or principal office, in the case of a corporate
taxpayer) for the period specified in Sec. 19.723(c).
* * * * *
0
23. Section 19.53 is amended by revising paragraph (a) to read as
follows:
Sec. 19.53 Issuance, distribution, and examination of special tax
stamps.
(a) Issuance of special tax stamps--(1) General. Except as
otherwise provided in paragraph (a)(2) of this section, upon filing a
properly executed return on Form 5630.5, together with the applicable
full remittance, the taxpayer will be issued an appropriately
designated special tax stamp. If the return covers multiple locations,
the taxpayer will be issued one appropriately designated stamp for each
location listed on the attachment required by Sec. 19.51(c), but
showing, as to name and address, only the name of the taxpayer and the
address of the taxpayer's principal place of business (or principal
office in the case of a corporate taxpayer).
(2) Exception for suspension period. During the suspension period
described in Sec. 19.49(a)(3) when registration is required but no tax
is due, a special tax stamp will not be issued.
* * * * *
0
24. Section 19.54 is amended by adding at the end of the third sentence
of paragraph (a) before the period the words, ``except if the change
occurs during the suspension period described in Sec. 19.49(a)(3)''
and revising paragraphs (b) and (d) to read as follows:
Sec. 19.54 Changes in special tax stamps.
* * * * *
(b) Change in proprietorship--(1) General. If there is a change in
the proprietorship of a distilled spirits plant, the successor shall
file a new special tax return, pay a new special tax, and obtain the
required special tax stamps. However, if the change in proprietorship
occurs during the suspension period described in Sec. 19.49(a)(3) when
no tax is due and no stamp is issued, only the filing of a new special
tax return is required.
(2) Exemption for certain successors. Persons having the right of
succession provided for in paragraph (c) of this section may carry on
the business for the remainder of the period for which the special tax
was paid (or for which registration was made during the suspension
period described in Sec. 19.49(a)(3)), without paying a new special
tax, if within 30 days after the date on which the successor begins to
carry on the business, the successor files a special tax return on Form
5630.5, which shows the basis of succession. Except during the
suspension period described in Sec. 19.49(a)(3), a person who is a
successor to a business for which special tax has been paid and who
fails to register the succession is liable for special tax computed
from the first day of the calendar month in which he or she began to
carry on the business. During the suspension period, a failure to
register the succession may result in a penalty under 26 U.S.C.
5603(b).
* * * * *
(d) Change in location. (1) Subject to paragraph (d)(2) of this
section, if there is a change in location of a taxable place of
business, the proprietor shall, within 30 days after the change, file
an amended special tax return covering the new location. The proprietor
shall attach the special tax stamp or stamps, for endorsement of the
change in location. No new special tax is required to be paid. However,
if the proprietor does not file the amended return within 30 days, the
proprietor is required to file a new special tax return, pay a new
special tax, and obtain a new special tax stamp.
(2) If the change in location occurs during the suspension period
described in Sec. 19.49(a)(3) when no tax is due and no special tax
stamp is issued, the requirements of paragraph (d)(1) of this section
still apply, except with regard to attachment of a special tax stamp
and payment of a new special tax. During the suspension period, a
failure to comply with paragraph (d)(1) of this section may result in a
penalty under 26 U.S.C. 5603(b).
* * * * *
Sec. 19.906 [Amended]
0
25. Section 19.906 is amended by adding at the end of paragraph (a)
before
[[Page 62244]]
the period the words ``except during the suspension period described in
Sec. 19.49(a)(3) when special tax stamps are not issued''.
PART 24--WINE
0
26. The authority citation for part 24 is revised to read as follows:
Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042,
5044, 5061, 5062, 5081, 5111-5113, 5121, 5122, 5142, 5143, 5148,
5173, 5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362,
5364-5373, 5381-5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662,
5684, 6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7011, 7302,
7342, 7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304,
9306.
0
27. In Sec. 24.50:
0
a. The first sentence of paragraph (a) is amended by removing the word
``Every'' and adding, in its place, the words ``Except as otherwise
provided in paragraph (c) of this section, every'';
0
b. The first sentence of paragraph (b) is amended by removing the word
``Proprietors'' and adding, in its place, the words ``Subject to
paragraph (c) of this section, proprietors'';
0
c. A new paragraph (c) is added to read as follows;
0
d. An authority citation is added following new paragraph (c); and
0
e. The OMB control numbers at the end of the section are revised to
read as follows:
Sec. 24.50 Payment of special (occupational) tax.
* * * * *
(c) Suspension of tax. During the period from July 1, 2005, through
June 30, 2008, the rate of the tax described in paragraph (a) of this
section is zero. However, the proprietor must register by filing the
special tax return on Form 5630.5 during the suspension period even
though the amount of tax due is zero. During the suspension period, as
at other times, the special tax return is due on or before commencement
of business and on or before July 1 of each year thereafter.
(26 U.S.C. 5081, 5142, 5143)
(Approved by the Office of Management and Budget under control
numbers 1513-0088 and 1513-0113)
Sec. 24.51 [Amended]
0
28. In Sec. 24.51:
0
a. Paragraph (a) is amended by adding at the end the following new
sentence: ``However, under 26 U.S.C. 5148(a), the tax rate is zero
during the suspension period described in Sec. 24.50(c).''; and
0
b. The first sentence of paragraph (b) is amended by removing the word
``Title'' and adding, in its place, the words ``Except during the
suspension period described in Sec. 24.50(c) when the tax rate is
zero, title''.
Sec. 24.52 [Amended]
0
29. Section 24.52 is amended:
0
a. In the first sentence of paragraph (a), by adding after the words
``special (occupational) tax'', the words '', or to register during the
suspension period described in Sec. 24.50(c),'';
0
b. In the second sentence of paragraph (a), by adding after the words
``special (occupational) tax'' the words ``or registration'';
0
c. In the second sentence of paragraph (b), by adding after the words
``special (occupational) tax'' the words ``or from registration'';
0
d. In the third sentence of paragraph (b), by adding after the words
``tax will be paid'' the words, ``or registration will be made during
the suspension period described in Sec. 24.50(c),'';
0
e. In paragraph (c), by adding after the words ``has not paid special
(occupational) tax'' the words, ``or has not registered during the
suspension period described in Sec. 24.50(c),'';
0
f. Also in paragraph (c), by adding after the words ``required to pay
special (occupational) tax'' the words, ``or to register during that
suspension period,'';
0
g. In paragraph (d), by adding after the words ``the appropriate
special (occupational) tax'' the words, ``or who has registered during
the suspension period described in Sec. 24.50(c),''; and
0
h. Also in paragraph (d), by adding after the words ``to pay special
(occupational) tax'' the words ``or register''.
Sec. 24.53 [Amended]
0
30. Section 24.53 is amended:
0
a. In paragraph (a), by adding at the end the following new sentence:
``During the suspension period described in Sec. 24.50(c), an annual
return is required even though no tax is due.'';
0
b. In paragraph (b)(5), by adding at the end before the period the
words ``or to which the return relates during the suspension period
described in Sec. 24.50(c)'';
0
c. In the introductory text of paragraph (c), by adding after the words
``special (occupational) tax'' the words ``(or required to register
during the suspension period described in Sec. 24.50(c))'';
0
d. In paragraph (c)(1), by adding after the words ``payment of'' the
word ``applicable''; and
0
e. In paragraph (c)(2), by adding at the end of the second sentence
before the period the words ``or for which registration is being made
during the suspension period described in Sec. 24.50(c)''.
0
31. Section 24.54 is amended by revising paragraph (a) to read as
follows:
Sec. 24.54 Special (occupational) tax stamps.
(a) Issuance of special (occupational) tax stamps--(1) General.
Except as otherwise provided in paragraph (a)(2) of this section, upon
filing a properly executed return on Form 5630.5, together with the
applicable full remittance, the taxpayer will be issued an
appropriately designated special (occupational) tax stamp. If the
return covers multiple locations, the taxpayer will be issued one
appropriately designated stamp for each location listed on the
attachment required by Sec. 24.53(c), but showing, as to name and
address, only the name of the taxpayer and the address of the
taxpayer's principal place of business (or principal office in case of
a corporate taxpayer).
(2) Exception for suspension period. During the suspension period
described in Sec. 24.50(c) when registration is required but no tax is
due, a special tax stamp will not be issued.
* * * * *
0
32. Section 24.55 is amended by adding at the end of the last sentence
of paragraph (a) before the period the words, ``, except if the change
occurs during the suspension period described in Sec. 24.50(c)'' and
revising paragraphs (b) and (d) and the OMB control numbers at the end
of the section, and adding an authority citation for the section before
the OMB control numbers to read as follows:
Sec. 24.55 Changes in special (occupational) tax stamps.
* * * * *
(b) Change in proprietorship--(1) General. If there is a change in
the proprietorship of a bonded wine premises or taxpaid wine bottling
house, the successor shall file a new special tax return, pay a new
special (occupational) tax, and obtain the required special
(occupational) tax stamps. However, if the change in proprietorship
occurs during the suspension period described in Sec. 24.50(c) when no
tax is due and no stamp is issued, only the filing of a new special tax
return is required.
(2) Exemption for certain successors. Persons having the right of
succession provided for in paragraph (c) of this section may carry on
the business for the remainder of the period for which the special
(occupational) tax was paid (or for which registration was made during
the suspension period described in Sec. 24.50(c)), without paying a
new special (occupational) tax, if within 30
[[Page 62245]]
days after the date on which the successor begins to carry on the
business, the successor files a special (occupational) tax return on
Form 5630.5, which shows the basis of succession. Except during the
suspension period described in Sec. 24.50(c), a person who is a
successor to a business for which special (occupational) tax has been
paid and who fails to register the succession is liable for special
(occupational) tax computed from the first day of the calendar month in
which he or she began to carry on the business. During the suspension
period, a failure to register the succession may result in a penalty
under 26 U.S.C. 5603(b).
* * * * *
(d) Change in location. (1) Subject to paragraph (d)(2) of this
section, if there is a change in location of a taxable place of
business, the proprietor shall, within 30 days after the change, file
an amended special (occupational) tax return covering the new location.
The proprietor shall attach the special (occupational) tax stamp or
stamps for endorsement of the change in location. No new special
(occupational) tax is required to be paid. However, if the proprietor
does not file the amended return within 30 days, the proprietor is
required to file a new special (occupational) tax return, pay a new
special (occupational) tax, and obtain a new special (occupational) tax
stamp.
(2) If the change in location occurs during the suspension period
described in Sec. 24.50(c) when no tax is due and no special
(occupational) tax stamp is issued, the requirements of paragraph
(d)(1) of this section still apply, except with regard to attachment of
a special (occupational) tax stamp and payment of a new special
(occupational) tax. During the suspension period, a failure to comply
with paragraph (d)(1) of this section may result in a penalty under 26
U.S.C. 5603(b).
(26 U.S.C. 5143, 7011)
(Approved by the Office of Management and Budget under control
numbers 1513-0088 and 1513-0113)
PART 25--BEER
0
33. The authority citation for part 25 is revised to read as follows:
Authority: 19 U.S.C. 81c; 26 U.S.C. 5002, 5051-5054, 5056, 5061,
5091, 5111, 5113, 5142, 5143, 5146, 5148, 5222, 5401-5403, 5411-
5417, 5551, 5552, 5555, 5556, 5671, 5673, 5684, 6011, 6061, 6065,
6091, 6109, 6151, 6301, 6302, 6311, 6313, 6402, 6651, 6656, 6676,
6806, 7011, 7342, 7606, 7805; 31 U.S.C. 9301, 9303-9308.
0
34. Section 25.111 is amended:
0
a. At the beginning of paragraph (a), by removing the word ``Every''
and adding, in its place, the words ``Except as otherwise provided in
paragraph (c) of this section, every''; and
0
b. By adding a new paragraph (c) before the authority citation to read
as follows:
Sec. 25.111 Brewer's special tax.
* * * * *
(c) Suspension of tax. During the period from July 1, 2005, through
June 30, 2008, the rate of the tax described in paragraph (a) of this
section is zero. However, the proprietor must register by filing the
special tax return on Form 5630.5 during the suspension period even
though the amount of tax due is zero. During the suspension period, as
at other times, the special tax return is due on or before commencement
of business and on or before July 1 of each year thereafter.
* * * * *
Sec. 25.111a [Amended]
0
35. Section 25.111a is amended by adding at the end of paragraph (b)
before the period the words ``, except that the tax rate is zero during
the suspension period described in Sec. 25.111(c).''
Sec. 25.111b [Amended]
0
36. Section 25.111b is amended by adding at the end of the second
sentence of paragraph (a) before the period the words ``, except that
the tax rate is zero during the suspension period described in Sec.
25.111(c)''.
Sec. 25.113 [Amended]
0
37. In Sec. 25.113:
0
a. The first sentence of paragraph (a) is amended by removing the word
``at'' and adding, in its place, the words ``, or must register by
filing the special tax return during the suspension period described in
Sec. 25.111(c), for''; and
0
b. Paragraph (b) is amended by adding after the word ``liability'' the
words ``(or will not have to register during the suspension period
described in Sec. 25.111(c))''.
Sec. 25.114 [Amended]
0
38. In Sec. 25.114:
0
a. The first sentence of paragraph (a) is amended by adding after the
words ``special tax'' the words ``or to register during the suspension
period described in Sec. 25.111(c),'';
0
b. The second sentence of paragraph (a) is amended by adding after the
words ``dealer's special tax'' the words ``or registration'';
0
c. The last sentence of paragraph (a) is amended by adding after the
words ``dealer's special tax'' the words ``or registration'';
0
d. Paragraph (b) is amended by adding after the words ``appropriate
special tax'' the words ``, or who has registered during the suspension
period described in Sec. 25.111(c),''; and
0
e. Paragraph (b) is further amended by adding after the words ``pay
special tax'' the words ``or register''.
Sec. 25.117 [Amended]
0
39. Section 25.117 is amended by adding at the end of the first
sentence before the period the words ``, and a return is required
during the suspension period described in Sec. 25.111(c) even though
no tax is due'' and adding in the third sentence after the words
``payment of'' the word ``applicable''.
Sec. 25.118 [Amended]
0
40. Section 25.118 is amended by adding at the end of paragraph (e)
before the period the words ``or to which the return relates during the
suspension period described in Sec. 25.111(c)''.
Sec. 25.119 [Amended]
0
41. In Sec. 25.119:
0
a. The introductory text is amended by adding after the words ``subject
to special tax'' the words ``(or required to register during the
suspension period described in Sec. 25.111(c))''
0
b. Paragraph (a) is amended by adding after the words ``payment of''
the word ``applicable''; and
0
c. The second sentence of paragraph (b) is amended by adding after the
words ``special tax is being paid'' the words ``or for which
registration is being made during the suspension period described in
Sec. 25.111(c)''.
0
42. Section 25.125 is amended:
0
a. By designating the existing text as paragraph (a);
0
b. In the first sentence of newly designated paragraph (a), by removing
the word ``Upon'' and adding, in its place, the words ``Except as
otherwise provided in paragraph (b) of this section, upon'';
0
c. Also in the first sentence of newly designated paragraph (a), by
adding after the words ``together with the'' the word ``applicable'';
and
0
d. By adding a new paragraph (b) before the section authority citation
to read as follows:
Sec. 25.125 Issuance of special tax stamps.
* * * * *
(b) During the suspension period described in Sec. 25.111(c) when
registration is required but no tax is due, a special tax stamp will
not be issued.
* * * * *
[[Page 62246]]
Sec. 25.131 [Amended]
0
43. Section 25.131 is amended by adding at the end of the last sentence
before the period the words ``, except if the change occurs during the
suspension period described in Sec. 25.111(c)''.
0
44. Section 25.132 is revised to read as follows:
Sec. 25.132 Change in proprietorship.
(a) General. If there is a change in the proprietorship of a
brewery, the successor shall file a new special tax return, pay a new
special tax, and obtain the required special tax stamps. However, if
the change in proprietorship occurs during the suspension period
described in Sec. 25.111(c) when no tax is due and no stamp is issued,
only the filing of a new special tax return is required.
(b) Exemption for certain successors. Persons having the right of
succession provided for in Sec. 25.133 may carry on the business for
the remainder of the period for which the special tax was paid (or for
which registration was made during the suspension period described in
Sec. 25.111(c)), if within 30 days after the date on which the
successor begins to carry on the business, the successor files a return
on Form 5630.5, which shows the basis of succession. Except during the
suspension period described in Sec. 25.111(c), a person who is a
successor to a business for which special tax has been paid and who
fails to register the succession is liable for special tax computed
from the first day of the calendar month in which he or she began to
carry on the business. During the suspension period, a failure to
register the succession may result in a penalty under 26 U.S.C.
5603(b).
(Act of August 16, 1954, 68A Stat. 845, as amended (26 U.S.C. 7011);
sec. 201, Pub. L. 85-859, 72 Stat. 1347, as amended (26 U.S.C. 5143))
0
45. Section 25.134 is revised to read as follows:
Sec. 25.134 Change in location.
(a) Subject to paragraph (b) of this section, if there is a change
in location of a taxable place of business, the brewer shall, within 30
days after the change, file an amended special tax return covering the
new location. The brewer shall attach the special tax stamp or stamps,
for endorsement of the change in location. No new special tax is
required to be paid. However, if the brewer does not file the amended
return within 30 days, the brewer is required to file a new special tax
return, pay a new special tax, and obtain a new special tax stamp.
(b) If the change in location occurs during the suspension period
described in Sec. 25.111(c) when no tax is due and no special tax
stamp is issued, the requirements of paragraph (a) of this section
still apply, except with regard to attachment of a special tax stamp
and payment of a new special tax. During the suspension period, a
failure to comply with paragraph (a) of this section may result in a
penalty under 26 U.S.C. 5603(b). (26 U.S.C. 5143, 7011)
PART 26--LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN
ISLANDS
0
46. The authority citation for part 26 is revised to read as follows:
Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010,
5041, 5051, 5061, 5081, 5111, 5112, 5114, 5121, 5122, 5124, 5131-
5134, 5141, 5146, 5148, 5207, 5232, 5271, 5276, 5301, 5314, 5555,
6001, 6301, 6302, 6804, 7101, 7102, 7651, 7652, 7805; 27 U.S.C. 203,
205; 31 U.S.C. 9301, 9303, 9304, 9306.
0
47. Section 26.44 is amended by designating the existing text as
paragraph (a), adding the heading ``General.'' to newly designated
paragraph (a), removing the word ``Every'' at the beginning of the
first sentence of newly designated paragraph (a) and adding, in its
place, the words ``Except as otherwise provided in paragraph (b) of
this section, every'', and adding a new paragraph (b) before the
section authority citation to read as follows:
Sec. 26.44 Liquor dealer's special taxes.
* * * * *
(b) Suspension of tax. During the period from July 1, 2005, through
June 30, 2008, the rate of the tax described in paragraph (a) of this
section is zero. However, every person described in paragraph (a) of
this section must register by filing the special tax return on Form
5630.5, in accordance with part 31 of this chapter, during the
suspension period even though the amount of tax due is zero.
* * * * *
0
48. Section 26.45 is revised to read as follows:
Sec. 26.45 Warehouse receipts covering distilled spirits.
The sale of warehouse receipts for distilled spirits is equivalent
to the sale of distilled spirits. Accordingly, except during the
suspension period described in Sec. 26.44(b), every person bringing
distilled spirits into the United States from Puerto Rico, who sells,
or offers for sale, warehouse receipts for distilled spirits stored in
warehouses, or elsewhere, incurs liability to special tax as a dealer
in liquors at the place where such warehouse receipts are sold, or
offered for sale, and must file return and pay occupational tax as
provided in Sec. 26.44(a). During the suspension period, every such
person must register as provided in Sec. 26.44(b).
(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 5112, 5121, 5122)
0
49. Section 26.46 is amended by designating the existing text as
paragraph (a), adding the heading ``General.'' to newly designated
paragraph (a), removing the word ``Every'' at the beginning of the
first sentence of newly designated paragraph (a) and adding, in its
place, the words ``Except as otherwise provided in paragraph (b) of
this section, every'', and adding a new paragraph (b) before the
section authority citation to read as follows:
Sec. 26.46 Distilled spirits plant proprietor's special
(occupational) tax.
* * * * *
(b) Suspension of tax. During the period from July 1, 2005, through
June 30, 2008, the rate of the tax described in paragraph (a) of this
section is zero. However, every person described in paragraph (a) of
this section must register by filing the special tax return on Form
5630.5, in accordance with part 19 of this chapter, during the
suspension period even though the amount of tax due is zero.
* * * * *
0
50. Section 26.171 is amended by designating the existing text as
paragraph (a), adding the heading ``General.'' to newly designated
paragraph (a), removing the word ``Any'' at the beginning of the first
sentence of newly designated paragraph (a) and adding, in its place,
the words ``Except as otherwise provided in paragraph (b) of this
section, any'', and adding a new paragraph (b) to read as follows:
Sec. 26.171 Special tax.
* * * * *
(b) Suspension of tax. During the period from July 1, 2005, through
June 30, 2008, the rate of the tax described in paragraph (a) of this
section is zero. However, any person described in paragraph (a) of this
section must register by filing the special tax return on Form 5630.5,
in accordance with part 17 of this chapter, during the suspension
period even though the amount of tax due is zero.
0
51. Section 26.210 is amended by designating the existing text as
paragraph (a), adding the heading ``General.'' to newly designated
paragraph (a), removing the word
[[Page 62247]]
``Every'' at the beginning of the first sentence of newly designated
paragraph (a) and adding, in its place, the words ``Except as otherwise
provided in paragraph (b) of this section, every'', and adding a new
paragraph (b) before the section authority citation to read as follows:
Sec. 26.210 Liquor dealer's special taxes.
* * * * *
(b) Suspension of tax. During the period from July 1, 2005, through
June 30, 2008, the rate of the tax described in paragraph (a) of this
section is zero. However, every person described in paragraph (a) of
this section must register by filing the special tax return on Form
5630.5, in accordance with part 31 of this chapter, during the
suspension period even though the amount of tax due is zero.
* * * * *
0
52. Section 26.211 is revised to read as follows:
Sec. 26.211 Warehouse receipts covering distilled spirits.
The sale of warehouse receipts for distilled spirits is equivalent
to the sale of distilled spirits. Accordingly, except during the
suspension period described in Sec. 26.210(b), every person bringing
distilled spirits into the United States from the Virgin Islands, who
sells, or offers for sale, warehouse receipts for distilled spirits
stored in warehouses, or elsewhere, incurs liability to special tax as
a dealer in liquors at the place where such warehouse receipts are
sold, or offered for sale, and must file return and pay occupational
tax as provided in Sec. 26.210(a). During the suspension period, every
such person must register as provided in Sec. 26.210(b).
(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 5112, 5121, 5122)
0
53. Section 26.307 is amended by designating the existing text as
paragraph (a), adding the heading ``General.'' to newly designated
paragraph (a), removing the word ``Any'' at the beginning of the first
sentence of newly designated paragraph (a) and adding, in its place,
the words ``Except as otherwise provided in paragraph (b) of this
section, any'', and adding a new paragraph (b) to read as follows:
Sec. 26.307 Special tax.
* * * * *
(b) Suspension of tax. During the period from July 1, 2005, through
June 30, 2008, the rate of the tax described in paragraph (a) of this
section is zero. However, any person described in paragraph (a) of this
section must register by filing the special tax return on Form 5630.5,
in accordance with part 17 of this chapter, during the suspension
period even though the amount of tax due is zero.
PART 27--IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER
0
54. The authority citation for part 27 is revised to read as follows:
Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 5001,
5007, 5008, 5010, 5041, 5051, 5054, 5061, 5148, 5111, 5112, 5114,
5121, 5122, 5124, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555,
6302, 7805.
0
55. Section 27.30 is amended by designating the existing text as
paragraph (a), adding the heading ``General.'' to newly designated
paragraph (a), removing the word ``Importers'' at the beginning of the
first sentence of newly designated paragraph (a) and adding, in its
place, the words ``Except as otherwise provided in paragraph (b) of
this section, importers'', and adding a new paragraph (b) before the
section authority citation to read as follows:
Sec. 27.30 Special (occupational) tax.
* * * * *
(b) Suspension of tax. During the period from July 1, 2005, through
June 30, 2008, the rate of the tax described in paragraph (a) of this
section is zero. However, the persons described in paragraph (a) of
this section must register by filing the special tax return on Form
5630.5, in accordance with part 31 of this chapter, during the
suspension period even though the amount of tax due is zero.
* * * * *
0
56. Section 27.31 is revised to read as follows:
Sec. 27.31 Warehouse receipts covering distilled spirits.
The sale of warehouse receipts for distilled spirits is equivalent
to the sale of distilled spirits. Accordingly, except during the
suspension period described in Sec. 27.30(b), every person engaged in
business as an importer of distilled spirits, who sells, or offers for
sale, warehouse receipts for distilled spirits stored in customs bonded
warehouses, or elsewhere, incurs liability to special tax as a dealer
in liquors at the place where the warehouse receipts are sold or
offered for sale, and must file return and pay occupational tax as
provided in Sec. 27.30(a). During the suspension period, every such
person must register as provided in Sec. 27.30(b).
(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 5112, 5121, 5122)
PART 31--ALCOHOL BEVERAGE DEALERS
0
57. The authority citation for part 31 is revised to read as follows:
Authority: 26 U.S.C. 5001, 5002, 5111'5114, 5116, 5117, 5121-
5124, 5142, 5143, 5145, 5146, 5148, 5206, 5207, 5301, 5352, 5555,
5613, 5681, 5691, 6001, 6011, 6061, 6065, 6071, 6091, 6109, 6151,
6311, 6314, 6402, 6511, 6601, 6621, 6651, 6657, 7011, 7805.
0
58. Section 31.21 is amended by designating the existing text as
paragraph (a), adding the heading ``General.'' to newly designated
paragraph (a), removing the word ``Special'' at the beginning of the
first sentence of newly designated paragraph (a) and adding, in its
place, the words ``Except as otherwise provided in paragraph (b) of
this section, special'', and adding a new paragraph (b) before the
section authority citation to read as follows:
Sec. 31.21 Basis of tax.
* * * * *
(b) Suspension of tax. During the period from July 1, 2005, through
June 30, 2008, the rate of the tax described in paragraph (a) of this
section is zero. However, liquor dealers must register by filing the
special tax return on Form 5630.5 during the suspension period even
though the amount of tax due is zero. During the suspension period, as
at other times, the special tax return is due on or before commencement
of business and on or before July 1 of each year thereafter.
* * * * *
0
59. Section 31.23 is revised to read as follows:
Sec. 31.23 Retail dealer in liquors.
(a) General. Every person who sells or offers for sale distilled
spirits, wines, or beer to any person other than a dealer is, except as
provided in paragraph (b) of this section, a retail dealer in liquors.
Except during the suspension period described in Sec. 31.21(b), every
retail dealer in liquors shall pay special tax at the rate specified in
Sec. 31.101 for such dealer, unless such dealer is exempt from such
special tax as provided in paragraph (c) of this section. During the
suspension period described in Sec. 31.21(b) when no tax is due, the
dealer must register by filing the special tax return, Form 5630.5.
(b) Persons not deemed to be retail dealers in liquors. The
following persons are not deemed to be retail dealers in liquors within
the meaning of 26 U.S.C. chapter 51, and are not required to pay
special tax (or to register
[[Page 62248]]
during the suspension period described in Sec. 31.21(b)) as such
dealer:
(1) A retail dealer in beer as defined in Sec. 31.25,
(2) A limited retail dealer as specified in Sec. 31.27, or
(3) A person who only sells or offers for sale distilled spirits,
wines, or beer as provided in Sec. 31.188 through Sec. 31.190 or
Sec. 31.191(a).
(c) Persons exempt from special tax. The following persons are
exempt from special tax (and from registration during the suspension
period described in Sec. 31.21(b)) as retail dealers in liquors:
(1) A wholesale dealer in liquors selling or offering for sale
distilled spirits, wines, or beer, whether to dealers or persons other
than dealers, at any place where such wholesale dealer in liquors is
required to pay special tax (or to register during the suspension
period described in Sec. 31.21(b)) as such dealer.
(2) A wholesale dealer in beer selling or offering for sale beer
only, whether to dealers or persons other than dealers, at any place
where such wholesale dealer in beer is required to pay special tax (or
to register during the suspension period described in Sec. 31.21(b))
as such dealer, or
(3) A person who is exempt from special tax under the provisions of
Sec. Sec. 31.181-31.184, 31.187, or 31.187a.
(72 Stat. 1340, 1343, 1344; 26 U.S.C. 5113, 5121, 5122)
0
60. Section 31.24 is revised to read as follows:
Sec. 31.24 Wholesale dealer in liquors.
(a) General. Every person who sells or offers for sale distilled
spirits, wines, or beer to another dealer is, except as provided in
paragraph (b) of this section, a wholesale dealer in liquors. Except
during the suspension period described in Sec. 31.21(b), every
wholesale dealer in liquors is required to pay special tax at the rate
specified in Sec. 31.101 for such dealer, unless such dealer is exempt
from such special tax as provided in paragraph (c) of this section.
During the suspension period when no tax is due, the dealer must
register by filing the special tax return, Form 5630.5, in accordance
with Sec. 31.21(b).
(b) Persons not deemed to be wholesale dealers in liquors. The
following persons are not deemed to be wholesale dealers in liquors
within the meaning of 26 U.S.C. chapter 51, and are not required to pay
special tax (or to register during the suspension period described in
Sec. 31.21(b)) as such dealer:
(1) A wholesale dealer in beer as defined in Sec. 31.26,
(2) A person who only sells or offers for sale distilled spirits,
wines, or beer as provided in Sec. Sec. 31.188 through 31.190 or Sec.
31.192, or
(3) A person returning liquors for credit, refund, or exchange as
provided in Sec. 31.193.
(c) Persons exempt from special tax. (1) The following persons are
exempt from special tax (and from registration during the suspension
period described in Sec. 31.21(b)) as wholesale dealers in liquors:
(i) A retail dealer in liquors who consummates sales of distilled
spirits, beer or wine, or any combination thereof, to a limited retail
dealer at the place where such retail dealer in liquors has paid the
special tax (or has registered during the suspension period described
in Sec. 31.21(b)) as such dealer for the current tax year,
(ii) A retail dealer in beer who, having paid the special tax (or
having registered during the suspension period described in Sec.
31.21(b)) as such dealer for the current tax year, consummates sales at
his place of business of beer to a limited retail dealer, or
(iii) A person who is exempt from such tax under the provisions of
Sec. Sec. 31.181 through 31.184.
(2) A wholesale dealer in liquors who has paid the special tax (or
has registered during the suspension period described in Sec.
31.21(b)) as such dealer at the place or places from which he conducts
his selling operations is exempt from additional special tax (or from
additional registration during the suspension period described in Sec.
31.21(b)) on account of his sales of beer or wines to other dealers at
the places of business of such dealers.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1340, as amended, 1344, as amended;
sec. 1905, Pub. L. 94-455, 90 Stat. 1819 (26 U.S.C. 5111, 5112, 5113,
5123))
0
61. Section 31.25 is revised to read as follows:
Sec. 31.25 Retail dealer in beer.
(a) General. Every person who sells or offers for sale beer, but
not distilled spirits or wines, to any person other than a dealer is,
except as provided in paragraph (b) of this section, a retail dealer in
beer. Except during the suspension period described in Sec. 31.21(b),
every retail dealer in beer shall pay special tax at the rate specified
in Sec. 31.101 for such dealer, unless such dealer is exempt from such
special tax as provided in paragraph (c) of this section. During the
suspension period when no tax is due, the dealer must register by
filing the special tax return, Form 5630.5, in accordance with Sec.
31.21(b).
(b) Persons not deemed to be retail dealers in beer. The following
persons are not deemed to be retail dealers in beer within the meaning
of 26 U.S.C. chapter 51, and are not required to pay a special tax (or
to register during the suspension period described in Sec. 31.21(b))
as such dealer:
(1) A limited retail dealer as specified in Sec. 31.27, or
(2) A person who only sells or offers for sale beer, but not
distilled spirits or wines, as provided in Sec. 31.188 through Sec.
31.189 or Sec. 31.191(a).
(c) Persons exempt from special tax. The following persons are
exempt from special tax (and from registration during the suspension
period described in Sec. 31.21(b)) as retail dealers in beer:
(1) A wholesale dealer in beer selling or offering for sale beer,
but not distilled spirits or wines, whether to dealers or persons other
than dealers, at any place where such wholesale dealer in beer is
required to pay special tax (or to register during the suspension
period described in Sec. 31.21(b)) as such dealer.
(2) A person who is exempt from special tax under the provisions of
Sec. Sec. 31.181, 31.184, 31,187, or 31.187a.
(72 Stat. 1340, 1343, 1344; 26 U.S.C. 5113, 5121, 5122)
0
62. Section 31.26 is revised to read as follows:
Sec. 31.26 Wholesale dealer in beer.
(a) General. Every person who sells or offers for sale beer, but
not distilled spirits or wines, to another dealer is, except as
provided in paragraph (b) of this section, a wholesale dealer in beer.
Except during the suspension period described in Sec. 31.21(b), every
wholesale dealer in beer is required to pay special tax at the rate
specified in Sec. 31.101 for such dealer, unless such dealer is exempt
from such special tax as provided in paragraph (c) of this section.
During the suspension period when no tax is due, the dealer must
register by filing the special tax return, Form 5630.5, in accordance
with Sec. 31.21(b).
(b) Persons not deemed to be wholesale dealers in beer. The
following persons are not deemed to be wholesale dealers in beer within
the meaning of 26 U.S.C. chapter 51, and are not required to pay
special tax (or to register during the suspension period described in
Sec. 31.21(b)) as such dealer:
(1) A person who only sells or offers for sale beer, but not
distilled spirits or wines, as provided in Sec. 31.188 through Sec.
31.189 or Sec. 31.192, or
[[Page 62249]]
(2) A person returning beer for credit, refund or exchange as
provided in Sec. 31.193.
(c) Persons exempt from special tax. (1) The following persons are
exempt from special tax (and from registration during the suspension
period described in Sec. 31.21(b)) as wholesale dealers in beer:
(i) A retail dealer in liquors who consummates sales of distilled
spirits, beer or wine, or any combination thereof, to a limited retail
dealer at the place where such retail dealer in liquors has paid the
special tax (or has registered during the suspension period described
in Sec. 31.21(b)) as such dealer for the current tax year,
(ii) A retail dealer in beer who consummates sales of beer to a
limited dealer at the place where such retail dealer in beer has paid
the special tax (or has registered during the suspension period
described in Sec. 31.21(b)) as such dealer for the current tax year,
or
(iii) A person who is exempt from such tax under the provisions of
Sec. Sec. 31.181 and 31.184.
(2) A wholesale dealer in beer who has paid the special tax (or has
registered during the suspension period described in Sec. 31.21(b)) as
such dealer at the place, or places, from which he conducts his selling
operations is exempt from additional special tax (or from additional
registration during the suspension period described in Sec. 31.21(b))
on account of his sales of beer to other dealers at the places of
business of such dealers.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1340, as amended, 1344, as amended;
sec. 1905, Pub. L. 94-455, 90 Stat. 1819 (26 U.S.C. 5111, 5112, 5113,
5123))
0
63. Section 31.29 is revised to read as follows:
Sec. 31.29 Clubs or similar organizations.
(a) Subject to paragraph (b) of this section, a club or similar
organization shall pay special tax (or register during the suspension
period as provided in Sec. 31.21(b)) if such club or organization:
(1) Furnishes liquors to members under conditions constituting sale
(including the acceptance of orders therefor, furnishing the liquors
ordered and collecting the price thereof); or
(2) Conducts a bar for the sale of liquors on the occasion of an
outing, picnic, or other entertainment, unless the club is a ``limited
retail dealer'' under Sec. 31.27 (the special tax stamp or
registration of the proprietor of the premises where the bar is located
will not relieve the club or organization from its own special tax
payment or registration); or
(3) Purchases liquors for members without prior agreement
concerning payment therefor and such organization subsequently recoups.
(b) Special tax payment or registration is not required if money is
collected in advance from members for the purchase of liquors, or money
is advanced for purchase of liquors on agreement with the members for
reimbursement.
(72 Stat. 1340, 1343, 1344; 26 U.S.C. 5111, 5121, 5122)
Sec. 31.30 [Amended]
0
64. Section 31.30 is amended by adding at the end before the period the
words ``or shall register during the suspension period as provided in
Sec. 31.21(b)''.
0
65. Section 31.31 is amended by designating the existing text as
paragraph (a), adding the heading ``General.'' to newly designated
paragraph (a), and adding a new paragraph (b) before the section
authority citation to read as follows:
Sec. 31.31 States, political subdivisions thereof, or the District of
Columbia.
* * * * *
(b) Suspension of tax. During the suspension period described in
Sec. 31.21(b) when no tax is due, the States, their political
subdivisions, and the District of Columbia must register only once per
tax year by filing a special tax return, Form 5630.5, in accordance
with Sec. 31.21(b).
* * * * *
Sec. 31.32 [Amended]
0
66. Section 31.32 is amended by adding at the end before the period the
words ``or shall register during the suspension period as provided in
Sec. 31.21(b)''.
Sec. 31.33 [Amended]
0
67. In Sec. 31.33:
0
a. Amend the heading of paragraph (a) by removing the word
``liability'; and
0
b. Amend the text of paragraph (a) by removing the word ``liability''
and adding, in its place, the words ``payment (or registration during
the suspension period as provided in Sec. 31.21(b))'', and by removing
the word ``incurred'' and adding, in its place, the word ``required''.
Sec. 31.34 [Amended]
0
68. Section 31.34 is amended by adding after the words ``pay special
tax,'' the words ``(or register during the suspension period as
provided in Sec. 31.21(b))''.
0
69. Section 31.35 is revised to read as follows:
Sec. 31.35 Warehouse receipts covering spirits.
The sale of warehouse receipts for distilled spirits is equivalent
to the sale of distilled spirits. Accordingly, except during the
suspension period described in Sec. 31.21(b), every person who sells
or offers for sale warehouse receipts for spirits held or stored in a
distilled spirits plant, customs bonded warehouse, or elsewhere, is
required to file a special tax return and pay special tax as a
wholesale dealer in liquors, or as a retail dealer in liquors, as the
case may be, at the place where such warehouse receipts are sold, or
offered for sale, unless exempt by the provisions of subpart L of this
part. During the suspension period, such persons must register as
provided in Sec. 31.21(b).
(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)
0
70. Section 31.51 is revised to read as follows:
Sec. 31.51 Special tax liability incurred at each place of business.
Except as provided in Sec. Sec. 31.31 and 31.181 through 31.193,
payment of special tax (or registration during the suspension period as
provided in Sec. 31.21(b)) is required for each and every place where
distilled spirits, wines, or beer are sold or offered for sale:
Provided, That the term ``place'' as used in this section means the
entire office, plant or area of the business in any one location under
the same proprietorship; and passageways, streets, highways, rail
crossings, waterways, or partitions dividing the premises shall not be
deemed sufficient separation to require the payment of additional
special tax (or to require additional registration), if the various
divisions are otherwise contiguous.
(72 Stat. 1347; 26 U.S.C. 5143)
Sec. 31.53 [Amended]
0
71. The second sentence of Sec. 31.53 is amended by adding after the
words ``special tax stamp'' the words ``(or for which he has registered
during the suspension period described in Sec. 31.21(b) when no tax is
due and no special tax stamp is issued)'' and adding after the words
``exempt from special tax,'' the words ``or registration''.
0
72. Section 31.54 is revised to read as follows:
Sec. 31.54 Places of storage; deliveries therefrom.
Special tax is not required to be paid (and registration under
Sec. 31.21(b) is not required) for warehouses and similar places which
are used by dealers merely
[[Page 62250]]
for the storage of liquors and are not places where orders for liquors
are accepted. Where orders for liquors are received and duly accepted
at a place where the dealer holds the required special tax stamp (or
for which the dealer has registered during the suspension period
described in Sec. 31.21(b) when no special tax stamp is issued), the
subsequent actual delivery of the liquors from a place of storage does
not require the payment of special tax (or registration) at such place
of storage. Except as provided in Sec. Sec. 31.185 and 31.186, a
dealer holding a special tax stamp (or having registered during the
suspension period) at a given place, who makes actual delivery of
liquors from a warehouse at another place, without prior constructive
delivery by the acceptance of an order therefor at the place covered by
the special tax stamp (or by registration during the suspension
period), shall pay special tax (or shall register during the suspension
period as provided in Sec. 31.21(b)) at the place where ownership of
the liquors is transferred.
(72 Stat. 1340, 1347; 26 U.S.C. 5113, 5143)
0
73. Section 31.55 is revised to read as follows:
Sec. 31.55 Caterers.
(a) General. Where a contract to furnish liquors is made by a
caterer at his place of business where he holds a special tax stamp (or
for which he has registered during the suspension period described in
Sec. 31.21(b)), no payment of special tax (or registration during the
suspension period) is required by the serving of the liquors at a
different location.
(b) Additional liability. Where the contract of a caterer provides
for the sale of liquors by the drink at a place, or simultaneously at
different places, other than his place of business where he holds a
special tax stamp (or for which he has registered during the suspension
period described in Sec. 31.21(b)), a separate payment of special tax
(or registration during the suspension period) is required for each
such place.
(c) Records. Caterers must maintain sufficient commercial records
to verify that their special (occupational) tax liabilities (or
registration obligations during the suspension period described in
Sec. 31.21(b)) have been satisfied for all locations at which
activities subject to special (occupational) tax or registration occur.
These commercial records should indicate the names and addresses of
locations at which alcoholic beverages have been sold or offered for
sale and the dates and times that such activities occurred. These
commercial records must be available to TTB officers upon request.
(26 U.S.C. 5121, 5122, 5143, 5555, 6806, 7011)
Sec. 31.56 [Amended]
0
74. In Sec. 31.56, the second sentence is amended by adding after the
words ``pay special tax'' the words ``(or to register during the
suspension period as provided in Sec. 31.21(b))''.
Sec. 31.57 [Amended]
0
75. In Sec. 31.57:
0
a. The first sentence is amended by adding after the word ``stamp'' the
words ``(or one registration during the suspension period described in
Sec. 31.21(b) when no tax is due and no special tax stamp is
issued)''; and
0
b. The second sentence is amended by adding at the end before the
period the words ``, or shall register only once per tax year during
the suspension period in accordance with Sec. 31.21(b)''.
Sec. 31.58 [Amended]
0
76. In Sec. 31.58:
0
a. The first sentence is amended by adding at the end before the period
the words ``, or shall register only once per tax year during the
suspension period described in Sec. 31.21(b)'';
0
b. The third sentence is amended by adding at the end before the period
the words ``, or shall register only once per tax year during the
suspension period in accordance with Sec. 31.21(b)''.
Sec. 31.59 [Amended]
0
77. In Sec. 31.59:
0
a. The first sentence is amended by adding after the words ``special
tax'' the words ``(or shall register only once per tax year during the
suspension period described in Sec. 31.21(b))''; and
0
b. The second sentence is amended by adding after the words ``special
tax'' the words ``(or shall register only once per tax year during the
suspension period in accordance with Sec. 31.21(b))''.
0
78. Section 31.71 is amended by designating the existing text as
paragraph (a), adding the heading ``General.'' to newly designated
paragraph (a), and adding a new paragraph (b) before the section
authority citation to read as follows:
Sec. 31.71 Different businesses of same ownership and location.
* * * * *
(b) Suspension of tax. The person must register for each business
during the suspension period as provided in Sec. 31.21(b) when no tax
is due, except as provided in Sec. Sec. 31.24 and 31.26.
* * * * *
0
79. Section 31.72 is amended by revising paragraph (b) to read as
follows:
Sec. 31.72 Dealer in beer and dealer in liquors at the same location.
* * * * *
(b) Rule in effect on January 1, 1988, and thereafter. Any person
who pays special tax (or who registers during the suspension period as
provided in Sec. 31.21(b)) as a retail dealer in beer for a period
beginning on or after January 1, 1988, (including one who pays such tax
under the transition rule of Sec. 31.103(b)) is exempt from additional
special tax (or from additional registration during the suspension
period) as a retail dealer in liquors with respect to sales of
distilled spirits or wine at the place and during the period for which
the tax was paid (or registration was completed) as a retail dealer in
beer. Similarly, any person who pays special tax (or who registers
during the suspension period as provided in Sec. 31.21(b)) as a
wholesale dealer in beer for a period beginning on or after January 1,
1988, (including one who pays such tax under the transition rule of
Sec. 31.103(b)) is exempt from additional special tax (or from
additional registration during the suspension period) as a wholesale
dealer in liquors with respect to sales of distilled spirits or wine at
the place and during the period for which the tax was paid (or
registration was completed) as a wholesale dealer in beer.
* * * * *
0
80. Section 31.91 is revised to read as follows:
Sec. 31.91 Liability of partners.
Any number of persons carrying on one business in partnership at
any one place during any tax year shall be required to pay but one
special tax (or to register but once during the suspension period as
provided in Sec. 31.21(b)) for such business.
(72 Stat. 1347; 26 U.S.C. 5143)
0
81. Section 31.92 is revised to read as follows:
Sec. 31.92 Addition of partners or incorporation of partnership.
Except during the suspension period described in Sec. 31.21(b),
where a number of persons who have paid special tax as partners admit
one or more new members to the firm or form a corporation (a separate
legal entity) to take over the business, the new firm or corporation
shall pay special tax before commencing business. During the suspension
period described in Sec. 31.21(b), the new firm or corporation must
register as a new dealer.
[[Page 62251]]
(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)
0
82. Section 31.93 is revised to read as follows:
Sec. 31.93 Formation of a partnership by two dealers.
Except during the suspension period described in Sec. 31.21(b),
where two persons, each holding a special tax stamp for a business
carried on by himself, form a partnership, the firm shall pay special
tax to cover the business conducted by the partnership. During the
suspension period described in Sec. 31.21(b), if two registered
dealers form a partnership, the firm must register as a new dealer.
(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)
Sec. 31.94 [Amended]
0
83. Section 31.94 is amended:
0
a. In the second sentence, by adding after the word ``However,'' the
words ``except during the suspension period described in Sec.
31.21(b),''; and
0
b. By adding the following new sentence to the end of the paragraph:
``During the suspension period, the remaining partner or partners must
file a new registration on Form 5630.5 within 30 days after the change
in control.''
0
84. In Sec. 31.101, paragraph (b) is amended by designating the
existing text as paragraph (b)(1), adding the heading ``General.'' to
newly designated paragraph (b)(1), and adding a new paragraph (b)(2)
before the section authority citation to read as follows:
Sec. 31.101 Special tax rates.
* * * * *
(b) * * *
(2) Rate during suspension period. During the suspension period
described in Sec. 31.21(b), the special (occupational) tax rate for
all dealers in liquor or beer is zero.
* * * * *
0
85. Section 31.102 is revised to read as follows:
Sec. 31.102 Date special tax is due.
Except during the suspension period described in Sec. 31.21(b),
special taxes shall be paid on or before July 1 of each year, or before
engaging in business. During the suspension period when no tax is due,
dealers must register by filing the special tax return, Form 5630.5,
before commencement of business and on or before July 1 of each year
thereafter.
(72 Stat. 1346; 26 U.S.C. 5142)
Sec. 31.104 [Amended]
0
86. In Sec. 31.104:
0
a. The first sentence is amended by adding after the words ``payment
of'' the word ``applicable'';
0
b. The first sentence is further amended by adding after the words
``shall file a Form 5630.5 with'' the word ``applicable'';
0
c. The second sentence is amended by adding after the words ``subject
to special tax'' the words ``(or required to register during the
suspension period described in Sec. 31.21(b))'';
0
d. The second sentence is further amended by adding after the words
``payment of'' the word ``applicable''; and
0
e. The third sentence is amended by adding after the words ``return
and'' the word ``applicable''.
Sec. 31.104a [Amended]
0
87. Section 31.104a is amended by adding after the words ``remittance
of'' the word ``applicable''.
0
88. Section 31.106 is amended by revising paragraphs (a), (b)(5), and
(c) to read as follows:
Sec. 31.106 Special tax returns.
(a) General. Special tax shall be paid by return, and the filing of
a return is required for registration purposes even though no tax is
due during the suspension period described in Sec. 31.21(b). The
prescribed return is TTB Form 5630.5, Special Tax Registration and
Return. Special tax returns, with payment of tax, shall be filed with
TTB in accordance with instructions on the form.
(b) * * *
(5) The class(es) of special tax to which the taxpayer is subject
or to which the return relates during the suspension period described
in Sec. 31.21(b).
* * * * *
(c) Multiple locations and/or classes of tax. A taxpayer subject to
special tax, or required to register during the suspension period
described in Sec. 31.21(b), for the same period at more than one
location or for more than one class of tax shall--
(1) File one special tax return, TTB Form 5630.5, with payment of
applicable tax, to cover all such locations and classes of tax; and
(2) Prepare, in duplicate, a list identified with the taxpayer's
name, address (as shown on TTB Form 5630.5), employer identification
number, and period covered by the return. The list shall show, by
States, the name, address, and tax class of each location for which
special tax is being paid or for which registration is being made
during the suspension period described in Sec. 31.21(b). The original
of the list shall be filed with TTB in accordance with instructions on
the return, and the copy shall be retained at the taxpayer's principal
place of business (or principal office, in the case of a corporate
taxpayer) for the period specified in Sec. 31.237.
* * * * *
Sec. 31.109 [Amended]
0
89. In Sec. 31.109, paragraph (a) is amended:
0
a. At the beginning of the first sentence, by removing the word ``Any''
and adding, in its place, the words ``Except during the suspension
period described in Sec. 31.21(b), any''; and
0
b. By adding the following new sentence to the end of the paragraph:
``During the suspension period, a failure to file a return may result
in a penalty under 26 U.S.C. 5603(b).''
0
90. Section 31.121 is amended by revising paragraph (a) to read as
follows:
Sec. 31.121 Issuance of stamps.
(a) Issuance--(1) General. Except as otherwise provided in
paragraph (a)(2) of this section, upon filing a return properly
executed on Form 5630.5, together with a remittance in the applicable
full amount due, the taxpayer will be issued an appropriately
designated stamp. Special tax stamps will not be issued in the case of
a return covering liability for a past period.
(2) Exception for suspension period. During the suspension period
described in Sec. 31.21(b) when registration is required but no tax is
due, a special tax stamp will not be issued.
* * * * *
0
91. The heading and text of Sec. 31.124 are revised to read as
follows:
Sec. 31.124 Passenger trains, aircraft, and vessels.
(a) Issuance of stamps--(1) Except as otherwise provided in
paragraph (a)(2) of this section, special tax stamps may be issued in
general terms ``in the United States'' to persons who will carry on the
business of retail dealers in liquors or retail dealers in beer, on
trains, aircraft, boats or other vessels, engaged in the business of
carrying passengers. If sales of liquors are made at the same time on
two or more passenger carriers, a special tax stamp shall be obtained
for each such carrier. However, a dealer may transfer any such stamp
from one passenger carrier to another on which he conducts his
business, without registering the transfer with TTB, and he may conduct
[[Page 62252]]
such business throughout the passenger carrying train, aircraft, boat
or other vessel, to which the stamp is transferred.
(2) During the suspension period described in Sec. 31.21(b) when
no tax is due, dealers operating on trains, aircraft, and vessels must
register as provided in paragraph (b) of this section, but no special
tax stamps will be issued.
(b) Filing of Form 5630.5 and payment of tax. A person subject to
special tax (or to registration during the suspension period described
in Sec. 31.21(b)) on one or more passenger carriers shall file one
Form 5630.5, prepared in the manner prescribed in Sec. 31.106(b), with
payment of applicable tax in accordance with Sec. 31.101, to cover all
such carriers and shall specify on the Form 5630.5 the number of
passenger carriers for which special tax is being paid (or for which
registration is being completed).
(Sec. 201, Pub. L. 85-859, 72 Stat. 1344 as amended, 1347 as amended
(26 U.S.C. 5123, 5143))
0
92. Section 31.125 is revised to read as follows:
Sec. 31.125 Carriers not engaged in passenger service.
Except as provided in Sec. 31.126, the retailing of liquor on any
railroad train, aircraft, or boat that is not engaged in the business
of carrying passengers is prohibited.
(72 Stat. 1344, 1347; 26 U.S.C. 5123, 5143)
0
93. The heading and text of Sec. 31.126 are revised to read as
follows:
Sec. 31.126 Supply boats or vessels.
(a) General. Subject to paragraph (b) of this section, special tax
stamps may be issued to persons carrying on the business of a retail
dealer in liquor or a retail dealer in beer on supply boats or vessels
operated by them, when such persons operate from a fixed address in a
port or harbor and supply exclusively boats or other vessels, or
persons thereon, at such port or harbor. Any person desiring to obtain
a special tax stamp for such business shall file Form 5630.5, prepared
in the manner prescribed in Sec. 31.106(b), with any required
remittance, and shall specify on the Form 5630.5, or on an attachment
thereto: that the business will consist of supplying exclusively boats,
vessels, or persons thereon; the name of the port or harbor at which
the business is to be carried on; and the fixed address from which
operations are to be conducted--Provided, That where such sales are to
be made from two or more supply boats or vessels, the dealer shall
obtain a special tax stamp for each such boat or vessel, and shall, in
addition to the information required above to be specified on the Form
5630.5 or attachment, specify on the Form 5630.5 the number of supply
boats or vessels for which special tax is being paid (or for which
registration is being made during the suspension period described in
Sec. 31.21(b)). A dealer may transfer any such stamp from any boat or
vessel on which he discontinues such sales to any other boat or vessel
on which he proposes to conduct such business, without registering the
transfer with TTB. If the taxpayer operates from two or more fixed
addresses, he shall prepare, as required by Sec. 31.106(c), one tax
return, Form 5630.5, to cover all such addresses and shall, in
addition, show on the attachment to the Form 5630.5 the number of
stamps to be procured for supply boats or vessels operating from each
address. On receipt of the special tax stamps, the taxpayer shall
designate an appropriate number of stamps for each location and shall
type thereon the trade name, if different from the name in which the
stamp was issued, and the fixed address of the business conducted at
the location for which the stamps are designated. He shall then forward
the stamps to the place of business designated on the stamps. The
taxpayer shall enter on each stamp received for retailing liquors on
supply boats or vessels, immediately after the occupational tax
classification, the phrase ``on supply boats'' and in the lower margin
the notation, ``Covers supplying exclusively of boats or vessels, or
persons thereon, at the Port (or Harbor) of'' followed by the name of
such port or harbor.
(b) Suspension of tax. During the suspension period described in
Sec. 31.21(b), the requirements of paragraph (a) of this section will
apply except with regard to the payment of special (occupational) tax
and the issuance of special tax stamps.
(72 Stat. 1344, 1347; 26 U.S.C. 5123, 5143)
0
94. Section 31.127 is amended by revising the section heading,
designating the existing text as paragraph (a), adding the heading
``General.'' to newly designated paragraph (a), removing the word ``A''
at the beginning of the first sentence of newly designated paragraph
(a) and adding, in its place, the words ``Subject to paragraph (b) of
this section, a'', and adding a new paragraph (b) before the section
authority citation to read as follows:
Sec. 31.127 Retail dealers ``At Large.''
* * * * *
(b) Suspension of tax. During the suspension period described in
Sec. 31.21(b), the requirements of paragraph (a) of this section will
apply except with regard to the payment of special (occupational) tax
and the issuance of special tax stamps.
* * * * *
Sec. 31.131 [Amended]
0
95. Section 31.131 is amended at the beginning by removing the word
``A'' and adding, in its place, the words ``Except during the
suspension period described in Sec. 31.21(b) when no special tax
stamps are issued, a''.
Sec. 31.136 [Amended]
0
96. Section 31.136 is amended:
0
a. In the first sentence, by adding after the words ``paid special
tax'' the words ``(or filed a return as a registration during the
suspension period described in Sec. 31.21(b))'';
0
b. Also in the first sentence, by removing the word ``taxable'' and
adding, in its place, the word ``tax''; and
0
c. Also in the first sentence, by adding after the words ``for the
total'' the word ``applicable''.
0
97. In Sec. 31.151, paragraph (a) is amended:
0
a. By designating the existing text as paragraph (a)(1);
0
b. In the first sentence of newly designated paragraph (a)(1), by
removing the word ``A'' and adding, in its place, the words ``Subject
to paragraph (a)(2) of this section, a'';
0
c. Also in the first sentence of newly designated paragraph (a)(1), by
removing the words ``taxable period'' and adding, in their place, the
words ``tax year'';
0
d. Also in the first sentence of newly designated paragraph (a)(1), by
adding after the words ``for which special tax was paid'' the words
``(or for which registration was completed during the suspension period
described in Sec. 31.21(b))'';
0
e. Also in the first sentence of newly designated paragraph (a)(1), by
removing the words ``and stated on the special tax stamp,''; and
0
f. By adding a new paragraph (a)(2) to read as follows:
Sec. 31.151 Amended return, Form 5630.5; endorsement on stamp.
(a) * * *
(2) If the change of location occurs during the suspension period
described in Sec. 31.21(b) when no tax is due and no special tax stamp
is issued, the requirements of paragraph (a)(1) of this
[[Page 62253]]
section still apply, except with regard to surrendering the special tax
stamp.
* * * * *
0
98. Section 31.152 is amended by designating the existing text as
paragraph (a), removing the word ``A'' at the beginning of the first
sentence of newly designated paragraph (a) and adding, in its place,
the words, ``Except as otherwise provided in paragraph (b) of this
section, a'', removing the words ``special tax stamp'' in the first
sentence of newly designated paragraph (a) and adding, in their place,
the words ``Form 5630.5, Special Tax Registration and Return,'' and
adding a new paragraph (b) before the section authority citation to
read as follows:
Sec. 31.152 Failure to register change of address within 30 days.
* * * * *
(b) During the suspension period described in Sec. 31.21(b) when
no tax is due and no special tax stamp is issued, a failure to register
the change of address may result in a penalty under 26 U.S.C. 5603(b).
* * * * *
0
99. Section 31.161 is amended by revising the second sentence to read
as follows:
Sec. 31.161 Sale of business.
* * * Where a change occurs in the proprietorship of a business for
which special tax has been paid or for which registration has been
completed during the suspension period described in Sec. 31.21(b), the
successor shall pay special tax (or shall register during the
suspension period) for such business, except as provided in Sec.
31.169.
* * * * *
0
100. Section 31.162 is revised to read as follows:
Sec. 31.162 Incorporation of business.
Where an individual or a firm engaged in business requiring payment
of special tax (or requiring registration during the suspension period
described in Sec. 31.21(b)) forms a corporation to take over and
conduct the business, the corporation (a separate legal entity) shall
pay special tax (or shall register during the suspension period) in its
own name.
(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)
0
101. Section 31.163 is revised to read as follows:
Sec. 31.163 New corporation.
Where a new corporation is formed to take over and conduct the
business of one or more corporations which have paid special tax (or
which have registered during the suspension period described in Sec.
31.21(b)), the new corporation shall pay special tax (or shall register
during the suspension period) in its own name.
(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)
Sec. 31.164 [Amended]
0
102. Section 31.164 is amended by adding after the words ``tax stamp
held'' the words ``(or a registration completed during the suspension
period described in Sec. 31.21(b))''.
Sec. 31.165 [Amended]
0
103. Section 31.165 is amended by adding after the words ``paid the
special tax'' the words ``(or who has registered during the suspension
period described in Sec. 31.21(b))'', and adding after the words
``additional special tax'' the words ``(or to complete a new
registration)''.
Sec. 31.166 [Amended]
0
104. Section 31.166 is amended by adding after the words ``Additional
special tax'' the words ``(or additional registration during the
suspension period described in Sec. 31.21(b))''.
Sec. 31.167 [Amended]
0
105. Section 31.167 is amended by adding after the words ``Additional
special tax'' the words ``(or additional registration during the
suspension period described in Sec. 31.21(b))''.
Sec. 31.168 [Amended]
0
106. Section 31.168 is amended by adding after the words ``Additional
special tax'' the words ``(or additional registration during the
suspension period described in Sec. 31.21(b))''.
Sec. 31.169 [Amended]
0
107. Section 31.169 is amended:
0
a. In the introductory text, by removing the words ``other than the
special taxpayer'';
0
b. Also in the introductory text, by removing the words ``taxable
period'' and adding, in their place, the words ``tax year'';
0
c. Also in the introductory text, by adding after the words ``tax was
paid'' the words ``, or for which registration was made during the
suspension period described in Sec. 31.21(b)''; and
0
d. In the concluding text, by adding after the words ``the succession,
and'' the words ``(except if the change of control occurs during the
suspension period described in Sec. 31.21(b) when a special tax stamp
is not issued)''.
0
108. Section 31.170 is amended by designating the existing text as
paragraph (a), removing the word ``A'' at the beginning of the first
sentence of newly designated paragraph (a) and adding, in its place,
the words ``Except as otherwise provided in paragraph (b) of this
section, a'', and adding a new paragraph (b) before the section
authority citation to read as follows:
Sec. 31.170 Failure to perfect right of succession within 30 days.
* * * * *
(b) During the suspension period described in Sec. 31.21(b) when
no tax is due and no special tax stamp is issued, a failure to register
the succession may result in a penalty under 26 U.S.C. 5603(b).
* * * * *
Sec. 31.181 [Amended]
0
109. Section 31.181 is amended by adding at the end before the period
the words ``, or to the registration requirement during the suspension
period described in Sec. 31.21(b)''.
Sec. 31.182 [Amended]
0
110. Section 31.182 is amended:
0
a. In the first sentence of paragraph (a), by adding after the words
``pay special tax'' the words ``(or to register during the suspension
period described in Sec. 31.21(b))'';
0
b. In the second sentence of paragraph (a), by adding after the words
``exempt from special tax'' the words ``or registration'';
0
c. In the second sentence of paragraph (b), by adding after the words
``payment of special tax'' the words ``(or from registration during the
suspension period described in Sec. 31.21(b))''; and
0
d. In the last sentence of paragraph (b), by adding after the words
``tax shall be paid'' the words ``(or registration shall be completed
during the suspension period described in Sec. 31.21(b))''.
Sec. 31.183 [Amended]
0
111. Section 31.183 is amended:
0
a. In the first sentence of paragraph (a), by adding after the words
``pay special tax'' the words ``(or to register during the suspension
period described in Sec. 31.21(b))'';
0
b. In the second sentence of paragraph (a), by adding after the words
``exempt from special tax'' the words ``or registration'';
0
c. In the second sentence of paragraph (b), by adding after the words
``exempt from special tax'' the words ``(or from registration during
the suspension period described in Sec. 31.21(b))'';
0
d. In the last sentence of paragraph (b), by adding after the words
``tax shall be paid'' the words ``(or registration
[[Page 62254]]
shall be made during the suspension period described in Sec.
31.21(b))''; and
0
e. In paragraph (c), by adding after the words ``pay special tax'' the
words ``(or to register during the suspension period described in Sec.
31.21(b))''.
Sec. 31.183a [Amended]
0
112. Section 31.183a is amended:
0
a. In the first sentence of paragraph (a), by adding after the words
``(including such tax under the transition rule of Sec. 31.103(b))''
the words ``, and no such proprietor shall be required to register
during the suspension period described in Sec. 31.21(b),'';
0
b. In the last sentence of paragraph (a), by adding after the words
``exempt from special tax'' the words ``or registration'';
0
c. In the second sentence of paragraph (b), by adding after the words
``exempt from special tax'' the words ``(or from registration during
the suspension period described in Sec. 31.21(b))'';
0
d. In the last sentence of paragraph (b), by adding after the words
``tax shall be paid'' the words ``(or registration shall be completed
during the suspension period described in Sec. 31.21(b))''; and
0
e. In paragraph (c), by adding after the words ``pay special tax'' the
words ``(or to register during the suspension period described in Sec.
31.21(b))''.
Sec. 31.184 [Amended]
0
113. Section 31.184 is amended:
0
a. In the first sentence of paragraph (a), by adding after the words
``pay special tax'' the words ``(or to register during the suspension
period described in Sec. 31.21(b))'';
0
b. In the last sentence of paragraph (a), by adding after the words
``exempt from special tax'' the words ``or registration'';
0
c. In the second sentence of paragraph (b), by adding after the words
``exempt from special tax'' the words ``(or from registration during
the suspension period described in Sec. 31.21(b))'';
0
d. In the last sentence of paragraph (b), by adding after the words
``tax shall be paid'' the words ``(or registration shall be completed
during the suspension period described in Sec. 31.21(b))''; and
0
e. In paragraph (c), by adding after the words ``pay special tax'' the
words ``(or to register during the suspension period described in Sec.
31.21(b))''.
Sec. 31.185 [Amended]
0
114. Section 31.185 is amended:
0
a. In paragraph (a), by adding after the words ``paid special tax'' the
words ``(or who has registered during the suspension period described
in Sec. 31.21(b))'';
0
b. Also in paragraph (a), by adding after the words ``additional
special tax'' the words ``or register'';
0
c. In paragraph (b), by adding after the words ``paid the tax'' the
words ``(or who has registered during the suspension period described
in Sec. 31.21(b))''; and
0
d. Also in paragraph (b), by adding after the words ``additional
special tax'' the words ``or register''.
Sec. 31.186 [Amended]
0
115. Section 31.186 is amended by adding after the words ``paid special
tax'' the words ``(or who has registered during the suspension period
described in Sec. 31.21(b))'', and adding after the words ``additional
special tax'' the words ``or register''.
Sec. 31.187 [Amended]
0
116. Section 31.187 is amended by adding after the words ``pay special
tax,'' the words ``or to register during the suspension period
described in Sec. 31.21(b),''.
Sec. 31.187a [Amended]
0
117. Section 31.187a is amended by adding at the end before the period
the words ``, or to register during the suspension period described in
Sec. 31.21(b)''.
Sec. 31.188 [Amended]
0
118. In Sec. 31.188, the concluding text is amended by removing the
comma after the words ``pay special tax'' and adding, in its place, the
words ``(or to register during the suspension period described in Sec.
31.21(b))''.
Sec. 31.189 [Amended]
0
119. Section 31.189 is amended:
0
a. In the first sentence of the concluding text, by adding at the end
before the period the words ``or to register during the suspension
period described in Sec. 31.21(b)''; and
0
b. In the second sentence of the concluding text, by adding after the
words ``pay special tax'' the words ``(or to register during the
suspension period described in Sec. 31.21(b))''.
Sec. 31.190 [Amended]
0
120. Section 31.190 is amended by adding after the words ``pay special
tax'' the words ``(or to register during the suspension period
described in Sec. 31.21(b))''.
Sec. 31.191 [Amended]
0
121. In Sec. 31.191, paragraph (b) is amended by adding after the
words ``pay special tax'' the words ``(or shall register during the
suspension period described in Sec. 31.21(b))''.
0
122. In Sec. 31.211:
0
a. The introductory text of paragraph (a) is amended at the beginning
by removing the word ``It'' and adding, in its place, the words
``Except as otherwise provided in paragraphs (b) and (c) of this
section, it'';
0
b. Paragraph (b) is redesignated as paragraph (c); and
0
c. A new paragraph (b) is added to read as follows:
Sec. 31.211 Unlawful purchases of distilled spirits.
* * * * *
(b) Suspension of tax. During the period of suspension of special
(occupational) tax described in Sec. 31.21(b), it is unlawful for any
dealer to purchase distilled spirits for resale from any person other
than:
(1) A wholesale dealer (including a State, a political subdivision
thereof, the District of Columbia, and a distilled spirits plant) who
is required to keep records under Sec. Sec. 31.221 through 31.233 at
the place where the distilled spirits are purchased;
(2) A retail liquor store operated by a State, a political
subdivision thereof, or the District of Columbia; or
(3) A person not required to register as a wholesale liquor dealer,
as provided in Sec. Sec. 31.188 through 31.190, Sec. 31.192, and
Sec. 31.193.
* * * * *
Dated: July 6, 2005.
John J. Manfreda,
Administrator.
Approved: September 14, 2005.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 05-21563 Filed 10-28-05; 8:45 am]
BILLING CODE 4810-31-P