Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 57-98

1957-1 C.B. 564

Full Text

Rev. Rul. 57-98

A manufacturer of stills intended for distilling failed to pay the special (commodity) tax on a still and condenser removed from the place of manufacture. Section 5104 of the Internal Revenue Code of 1954 provides that the tax on stills or worms shall be paid by stamp, denoting the tax, under such regulations as the Secretary of the Treasury or his delegate may prescribe. Section 196.34 of the Regulations relating to Stills provides that the tax shall be paid by the manufacturer pursuant to the filing of Form 11, Special Tax Return. Section 196.38 of the regulations contains a specific requirement that the special (commodity) tax be paid before the still, worm, or condenser is removed from the place of manufacture. Section 6651 of the Code provides for the assertion of a delinquency penalty for failure to file a return unless such failure is due to reasonable cause. Held , because of the failure of a manufacturer to file a return and make payment of the tax before removal of the still and condenser, the delinquency penalty is due, computed from the time the still and condenser were removed from the place of manufacture, unless reasonable cause for the delinquency exists.