[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR19.38]

[Page 308-309]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 19--DISTILLED SPIRITS PLANTS--Table of Contents
 
                            Subpart C--Taxes
 
Sec. 19.38  Inventory reserve account.

    (a) The proprietor may establish an inventory reserve account for 
any eligible distilled spirits product by maintaining an inventory 
reserve record as prescribed by 19.764. The effective tax

[[Page 309]]

rate applied to each removal or other disposition will be the effective 
tax rate recorded on the inventory reserve record from which the removal 
or other disposition is depleted.
    (b) If the regional director (compliance) finds that the use of this 
procedure jeopardizes the revenue or causes administrative difficulty, 
the proprietor shall discontinue the use of this procedure.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207); Sec. 201, Pub. 
L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201); Sec. 6, Pub. L. 
96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))

                                 Claims