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 Rev. Rul. 61-31

1961-1 C.B. 807

Section 6011 -- Return Filing Requirement

Full Text

Rev. Rul. 61-31

Section 5215 of the Internal Revenue Code of 1954 provides, in part, that under such regulations as the Secretary of the Treasury or his delegate may prescribe, distilled spirits withdrawn from bond in bulk containers on determination of tax may be returned to the bonded premises of a distilled spirits plant if such spirits have been found to be unsuitable for the purpose intended before any processing of the spirits and before removal from the original container. Section 5008(d) of the Code provides, in part, that the tax imposed on spirits returned under section 5215 of the Code may be credited or refunded on the filing of a claim within six months of the date of return, under such regulations as the Secretary or his delegate may prescribe, by the proprietor of the distilled spirits plant to which the spirits are returned.

Held , for a rectifier to obtain credit of the tax determined on such returned spirits, a timely claim must be filed by and in the name of the proprietor of the distilled spirits plant to which the spirits were returned, containing the information required by section 5008(d) of the Code and section 201.44 of the Distilled Spirits Plants Regulations. In addition, the claim must be accompanied by attachments submitted by both the rectifier and the proprietor, and the body of the claim should make reference to such attachments.

The attachment by the proprietor must state (1) that the spirits referred to in the claim were withdrawn by the rectifier on determination of tax and must give the form number, the serial number of the form, and the date of the form; (2) that the tax is chargeable against the bond of the rectifier; and (3) that the proprietor waives all rights to credit or refund of any amount allowable under the claim. Also, the proprietor must request that any amount so allowed be credited to the rectifier.

The rectifier must state in the attachment submitted by him (1) that the spirits referred to in the claim were withdrawn by the rectifier on determination of tax; (2) that the tax on the spirits involved is charged against the bond of the rectifier; (3) that the spirits were not suitable for the purpose intended and were returned to the proprietor pursuant to section 5215 of the Code; (4) that the rectifier joins in the claim and declares under the penalties of perjury that the claim, including any supporting documents or statements, has been examined by the rectifier, and to the best knowledge and belief of the rectifier is true and correct; (5) that the proprietor has agreed that any amount allowable under the claim be credited to the rectifier; and (6) that the rectifier requests to be permitted to take credit for the amount allowable.

However, in the alternative the matter may be settled by the proprietor paying over to the rectifier the amount of tax due on the tax determined spirits returned, filing a claim for refund, in contrast to a claim for credit, and attaching to the claim a statement from the rectifier under penalties of perjury acknowledging receipt of the tax payment, and stating that the rectifier will not file a claim for refund or credit of tax on the same lot of spirits.