Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 61-37

1961-1 C.B. 799

Full Text

Rev. Rul. 61-37

Section 201.269 of the Distilled Spirits Plants Regulations provides, in part, that where spirits are drawn from the production system of a distilled spirits plant into barrels, drums, or similar portable containers and tax is not to be determined on the basis of the production gauge, such gauge may be made by weight in a tank, or by deducting the sum of the tares of the containers from the sum of their gross weights and converting the resultant net weight into proof gallons. This section further provides that where the production gauge is made by either of those methods and the spirits are to be drawn into packages having a factory-specified, rated capacity, the entry on Form 2630, Package Gauge Report, as to each such package filled to capacity may show average tax gallons. Where proprietors elect to show average tax gallons for packages on Form 2630, as discussed above, the sum of the averages for a given lot (computed to the first decimal) may differ slightly from the total tax gallons indicated by the weight of the spirits in a tank or by the differnce between the sum of the tares of the containers and the sum of their gross weight. Held , where average tax gallons are to be shown on Form 2630 for containers of spirits gauged for original entry, as authorized in section 201.269 of the regulations, and the total of the computed averages, plus the quantity of spirits contained in any remnant package, results in a sum which differs from that indicated by the bulk weight gauge or by the difference between the sum of the tares of the containers and the sum of their gross weight, the entry gauge shall be corrected to agree with such sum, and the recording of the elements of such gauge at item 7 of Form 2629, or at items 8 and 9 of Form 236, shall be as follows:

All information indicated by the column headings of the form shall be entered except that the total proof gallons (or tax gallons) determined by bulk gauge, or by deducting the sum of the tares of the containers from the sum of their gross weights, shall be entered in parentheses in the column headed `other' (on either from); such entries shall be followed by a notation (1) explaining that the spirits so gauged have been drawn into packages having a rated capacity, as authorized in section 201.269, and (2) indicating the number of such packages and their average fill. The total of the package averages, plus the quantity of spirits drawn into any remnant package, will then be entered in the appropriate column of either form as the official entry gauge.