[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: 27CFR24.51]

[Page 538-539]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 24--WINE--Table of Contents
 
         Subpart C--Administrative and Miscellaneous Provisions
 
Sec. 24.51  Rates of special (occupational) tax.

    (a) General. Title 26 U.S.C. 5081(a) (2), (3), and (4) impose a 
special (occupational) tax of $1,000 per year on every proprietor of a 
bonded wine premises or a taxpaid wine bottling house.
    (b) Reduced rate for small proprietors. Title 26 U.S.C. 5081(b) 
provides for a reduced rate of $500 per year with respect to any 
proprietor of a bonded wine premises or a taxpaid wine bottling house 
whose gross receipts (for the most recent taxable year ending before the 
first day of the taxable period to which the special (occupational) tax 
imposed by Sec. 24.50 relates) are less than $500,000. The ``taxable 
year'' to be used for determining gross receipts is the taxpayer's 
income tax year. All gross receipts of the taxpayer will be included, 
not just the gross receipts of the business subject to special 
(occupational) tax. Proprietors of new businesses that have not yet 
begun a taxable year, as well as proprietors of existing businesses that 
have not yet ended a taxable year, who commence a new activity subject 
to special (occupational) tax, qualify for the reduced special 
(occupational) tax rate, unless the business is a member of a 
``controlled group''; in that case, the rules of paragraph (c) of this 
section apply.
    (c) Controlled group. All persons treated as one taxpayer under 26 
U.S.C. 5061(e)(3) shall be treated as one taxpayer for the purpose of 
determining gross receipts under paragraph (b) of this section. 
``Controlled group'' means a controlled group of corporations, as 
defined in 26 U.S.C. 1563 and implementing regulations in 26 CFR 1.1563-
1 through 1.1563-4, except that the words ``at least 80 percent'' is 
replaced by the words ``more than 50 percent'' in each place they appear 
in subsection (a) of 26 U.S.C. 1563, as well as in the implementing 
regulations. Also, the rules for a ``controlled group of corporations'' 
apply in similar fashion to groups which include partnerships and/or 
sole proprietorships. If one entity maintains more than 50% control over 
a group consisting of corporations and one, or more, partnerships and/or 
sole proprietorships, all of the members of the controlled group are one 
taxpayer for the purpose of this section.

[[Page 539]]

    (d) Short taxable year. Gross receipts for any taxable year of less 
than 12 months will be annualized by multiplying the gross receipts for 
the short period by 12 and dividing the result by the number of months 
in the short period, as required by 26 U.S.C. 448(c)(3).
    (e) Returns and allowances. Gross receipts for any taxable year will 
be reduced by returns and allowances made during such year under 26 
U.S.C. 448(c)(3). (26 U.S.C. 448, 5061, 5081)

(Approved by the Office of Management and Budget under control numbers 
1512-0472 and 1512-0492)