Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 60-82

1960-1 C.B. 711

Caution: Modified by Rev. Rul. 60-296

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Rev. Rul. 60-82

Section 5056(a) of the Internal Revenue Code of 1954, as amended, provides that any tax paid by any brewer on beer produced in the United States may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, if such beer is removed from the market and is returned to the brewery or is destroyed under the supervision required by subpart T of the Federal Beer Regulations. Revenue Ruling 59-363, C.B. 1959-2, 524, holds that the application of the provisions of section 5056(a) of the Code should not be restricted to situations involving taxpayment of beer on or after July 1, 1959. Revenue Ruling 59-367, C.B. 1959-2, 525, further holds that beer returned to a brewery after removal from the market, and which is to be removed again for consumption or sale may be returned to the racker room or bottling house without supervision unless the brewer has been notified that supervision is required to substantiate claims. Held , a brewer may remove tapped kegs and leaking kegs of beer from the market, but may only claim credit or refund of the tax on the quantity of beer which he can prove was, in fact, returned to the brewery or, if not so returned, was destroyed under supervision as required by regulations. If such kegs contain less than the original contents, and the brewer intends to claim credit or refund of the tax, the kegs must be weighed at the time of receipt at the brewery, or place of storage. In addition, the brewer must determine the balling and alcoholic content of the beer remaining in a returned tapped keg. The brewer must put a label on each returned tapped or leaking keg showing the name of the person from whom received, the date of receipt, the weight, and in the case of tapped beer the balling and alcoholic content. If the brewer desires a refund or credit of the tax thereon, he must assume the burden of determining the amount of beer actually in the keg at the time of its return to the brewery and may be required to authenticate the information placed on the label.