Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 69-72

1969-1 C.B. 283

IRS Headnote

Computation of the manufacturers excise tax on articles of liquid measurement or weight where a portion of the shipment consists of a "bonus" or "free goods."

Full Text

Rev. Rul. 69-72

A manufacturer sells articles of the type that, on the basis of liquid measurement or weight, are subject to manufacturers excise taxes imposed by chapter 32 of the Internal Revenue Code of 1954. With the sale of these articles, the manufacturer gives the purchaser an additional quantity free of charge as a "bonus" or "free goods." Held, the tax on the sale of the articles is based upon the total volume or weight of the shipment, regardless of whether a portion of the shipment consists of a quantity described as a "bonus" or "free goods."