Вы находитесь на странице: 1из 17

62238 Federal Register / Vol. 70, No.

209 / Monday, October 31, 2005 / Rules and Regulations

collections of information, including November 4, 2004, 69 FR 64637, 3 CFR, 2004 DATES: Effective Date: This temporary
suggestions for reducing the burden, to Comp., p. 303; Notice of August 2, 2005, 70 rule is effective as of July 1, 2005.
David Rostker, Office of Management FR 45273 (August 5, 2005).
FOR FURTHER INFORMATION CONTACT:
and Budget (OMB), by email to SUPPLEMENT NO. 2 TO PART 736— Steve Simon, Alcohol and Tobacco Tax
David_Rostker@omb.eop.gov, or by fax [CORRECTED] and Trade Bureau, Regulations and
to (202) 395–7285; and to the Office of Rulings Division, Suite 200E, 1310 G
Administration, Bureau of Industry and ■ 2. Supplement No. 2 to part 736, is
amended in ‘‘Administrative Order Street, NW., Washington, DC 20220;
Security, Department of Commerce, telephone (202) 927–8210.
14th and Pennsylvania Avenue, NW., Two’’ by:
■ a. Redesignating paragraphs (a)(2)(A) SUPPLEMENTARY INFORMATION:
Room 6883, Washington, DC 20230.
3. This rule does not contain policies through (E) as paragraphs (a)(2)(i) Background
with Federalism implications as that through (v), respectively; and
Various provisions within subtitle E
■ b. Redesignating paragraphs (a)(3)(A)
term is defined under E.O. 13132. of the Internal Revenue Code of 1986
4. The Department finds that there is through (D) as paragraphs (a)(3)(i)
(IRC) impose an annual tax on certain
good cause under 5 U.S.C. 553 (b)(3) to through (iv), respectively.
business occupations. This tax is
waive the provisions of the Dated: October 20, 2005. referred to as the ‘‘special (occupational)
Administrative Procedure Act requiring Eileen Albanese, tax’’ or more briefly as the ‘‘special tax.’’
prior notice and the opportunity for Director, Office of Exporter Services. In general, payment of this tax is a
public comment because it is [FR Doc. 05–21351 Filed 10–28–05; 8:45 am] prerequisite for engaging in any of the
unnecessary. This regulation deletes a BILLING CODE 3510–33–P covered occupations. The current
redundant paragraph and redesignates annual rates of special (occupational)
the remaining paragraphs in one section tax are as follows:
for clarity; inserts material inadvertently DEPARTMENT OF THE TREASURY Manufacturer of Nonbeverage Prod-
omitted from previous rules in three ucts ............................................... $ 500
places in the EAR; clarifies instructions Alcohol and Tobacco Tax and Trade Proprietor of Distilled Spirits Plant 1,000
for applying for authorization to transfer Bureau Proprietor of Alcohol Fuel Plant .... 1,000
items subject to the EAR in-country; Proprietor of Bonded Wine Cellar .. 1,000
adds an alias for a listed entity on the Proprietor of Bonded Wine Ware-
27 CFR Parts 17, 19, 24, 25, 26, 27, and house ............................................ 1,000
Entity List; and removes references to 31 Proprietor of Taxpaid Wine Bot-
two ECCNs that do not exist. The tling House ................................... 1,000
revisions made by this rule are [T.D. TTB–36]
Brewer .............................................. 1,000
administrative in nature and do not RIN 1513–AB04 Wholesale Liquor Dealer or Beer
affect the rights and obligations of the Dealer ............................................ 500
public. Because these revisions are not Suspension of Special (Occupational) Retail Liquor Dealer or Beer Dealer 250
substantive changes to the EAR, it is Tax (2004R–778P) User of, or Dealer in, Specially De-
unnecessary to provide notice and natured Alcohol ........................... 250
AGENCY: Alcohol and Tobacco Tax and User of Tax-Free Alcohol ................ 250
opportunity for public comment. In
Trade Bureau, Treasury. Manufacturer of Tobacco Products 1,000
addition, the 30-day delay in Manufacturer of Cigarette Papers
effectiveness required by U.S.C. 553(d) ACTION: Temporary rule; Treasury
decision. and Tubes ..................................... 1,000
is not applicable because this rule is not Export Warehouse Proprietor ......... 1,000
a substantive rule. No other law requires SUMMARY: In this temporary rule, the Each tax year for payment of special
that a notice of proposed rulemaking Alcohol and Tobacco Tax and Trade (occupational) tax runs from July 1
and an opportunity for public comment Bureau amends its regulations relating through the following June 30. In
be given for this rule. to special (occupational) tax, to reflect a
Because notice of proposed addition, special tax returns, with
3-year tax suspension effected by payment of the appropriate tax, must be
rulemaking and opportunity for public section 246 of the American Jobs
comment are not required to be given submitted before beginning a new
Creation Act of 2004. Section 246 business, and each year thereafter on or
for this rule under the Administrative amends the Internal Revenue Code of
Procedure Act or by any other law, the before July 1.
1986 to provide that, during the period Some of the covered occupations are
analytical requirements of the from July 1, 2005, through June 30, subject to a reduced rate for small
Regulatory Flexibility Act (5 U.S.C. 601 2008, the rate of special (occupational) entities. A small entity, engaging in an
et. seq.) are not applicable. tax on certain occupations will be zero. occupation subject to a basic rate of
List of Subjects in 15 CFR Part 736 The occupations affected by the 3-year $1,000 per year, is subject to a reduced
Exports. tax suspension are: Manufacturers of rate of just $500 per year. However, a
nonbeverage products who claim tax small alcohol fuel plant is exempt from
■ Accordingly, for the reasons set out in drawback; proprietors of distilled spirits special tax. Educational institutions
the preamble, 15 CFR part 736 is plants, alcohol fuel plants, bonded and using small quantities of tax-free or
amended as follows: taxpaid wine premises, and breweries; specially denatured alcohol are also
■ 1. The authority citation for part 736
and wholesale and retail dealers in exempt from special tax.
continues to read as follows: distilled spirits, wine, and beer. The Besides requiring payment of the
Authority: 50 U.S.C. app. 2401 et seq.; 50 requirements to register annually and annual tax, the IRC requires an annual
U.S.C. 1701 et seq.; 22 U.S.C. 2151 (note), keep prescribed records remain in registration of persons subject to special
Pub. L. 108–175; E.O. 12938, 59 FR 59099, effect. The text of these temporary tax and imposes certain recordkeeping
3 CFR, 1994 Comp., p. 950; E.O. 13020, 61
FR 54079, 3 CFR, 1996 Comp., p. 219; E.O.
regulations serves as the text of the requirements. Further, liquor (distilled
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. proposed regulations set forth in the spirits, wine, and beer) dealers must
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 notice of proposed rulemaking on this purchase distilled spirits from (1) a
Comp., p. 783; E.O. 13338, 69 FR 26751, 3 subject in the Proposed Rules section of wholesale liquor dealer who has paid
CFR, 2004 Comp., p. 168; Notice of this issue of the Federal Register. special tax for the location where the

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 62239

sale is consummated, (2) a wholesale smokeless tobacco, pipe tobacco, and in this document to refer as well to an
dealer in liquors who is exempt, at the roll-your-own tobacco), manufacturer of obligation to register during the 3-year
place where such purchase is made, cigarette papers or tubes, and export tax suspension period. Similarly, if a
from the payment of the tax, or (3) a warehouse proprietor (for the export of regulation prescribes the time for
person who is not subject to wholesale tobacco products, cigarette papers, or payment of a special tax, the regulation
liquor dealer’s special tax where the sale cigarette tubes). is amended to prescribe the same time
is consummated. Although the tax rate for the for registration during the suspension
Current regulations relating to special occupations affected by the suspension period. Regulations affording
(occupational) tax are contained in title will be zero during the suspension exemptions from payment of special tax
27 of the Code of Federal Regulations period, new section 5148 further (such as the exemptions from liquor
(27 CFR) and are administered by the provides that persons engaging in those dealer tax on sales, by alcohol beverage
Alcohol and Tobacco Tax and Trade occupations must still register annually manufacturers, of products stored on
Bureau (TTB). These regulations and comply with applicable their manufacturing premises) are
provide for a single form to be used both recordkeeping requirements. Finally, amended to add similar exemptions
as a tax return and a registration. The section 246 of the Act amended section from registration during the tax
form is TTB Form 5630.5, ‘‘Special Tax 5117 of the IRC (26 U.S.C. 5117) by suspension period.
Registration and Return.’’ Persons who adding a new subsection (d) to provide Regulations providing a penalty for
complete this form and pay the that during the suspension period a failure to file a special tax return or to
appropriate tax are issued a ‘‘Special dealer may purchase distilled spirits, for pay special tax cannot simply be
Tax Stamp,’’ which functions as a resale, only from persons required to amended to provide the same penalties
receipt for payment of the tax and also keep records as a wholesale liquor for failure to register during the tax
provides evidence of registration. This dealer, except as otherwise specifically suspension period, because the
tax stamp is not a license and does not provided by law or regulations. penalties described in those regulations
authorize any activity that would be are based on the amount of tax, which
Regulations Changes in General
illegal under any other Federal or State will become zero in the suspension
law. In order to reflect the changes made period. This does not mean that no
by section 246 of the Act, this document penalty exists for failure to register
American Jobs Creation Act of 2004 generally amends the TTB regulations during the suspension period. Section
On October 22, 2004, President Bush by adding the requirements that are 5603(b) of the IRC (26 U.S.C. 5603(b))
signed into law the American Jobs applicable during the suspension period provides criminal penalties applicable
Creation Act of 2004 (the Act), Pub. L. to the current regulatory provisions, to persons who are ‘‘required by this
108–357, 118 Stat. 1418. Section 246 of which remain applicable at all times chapter * * * or regulations issued
the Act, entitled ‘‘Suspension of outside the suspension period. The pursuant thereto to keep or file any
Occupational Taxes Relating to Distilled regulatory amendments therefore refer record, return, report, summary,
Spirits, Wine, and Beer,’’ amended to the fact that the suspension is for a transcript, or other document’’ and who
subpart G of part II of subchapter A of fixed period with a beginning and neglect to do so. A penalty of ‘‘not more
chapter 54 of the IRC by redesignating ending date. Accordingly, provided that than $1,000’’ or imprisonment for ‘‘not
section 5148 as section 5149 and adding no further changes are made to the more than 1 year’’ or both may be
a new section 5148 (26 U.S.C. 5148) special (occupational) tax statutory imposed for each offense. Therefore,
entitled ‘‘Suspension of Occupational provisions, the regulatory provisions except in the case of part 17 of the TTB
Tax.’’ New section 5148 provides that, that were in effect prior to the adoption regulations as discussed below,
during the 3-year period from July 1, of the changes made by section 246 of regulations referring to a penalty for
2005, through June 30, 2008, the rate of the Act will operate without the need failure to file a special tax return are
special (occupational) tax imposed for further regulatory changes upon amended to refer to the penalty
under sections 5081, 5091, 5111, 5121, termination of the suspension period. prescribed in section 5603(b), with
and 5131 will be zero. TTB Form 5630.5, ‘‘Special Tax respect to a failure to register during the
The effect of new section 5148 is that Registration and Return,’’ will continue tax suspension period.
the following occupations are not in use for registration purposes during While the regulations are not being
subject to payment of special the suspension period. All persons amended to reflect other enforcement
(occupational) tax during the engaged in occupations currently actions available to TTB in the event the
suspension period: Manufacturer of subject to special tax must continue to required records are not maintained,
nonbeverage products, proprietor of register by completing and submitting TTB reminds holders of basic permits
distilled spirits plant, (including an this form annually during the that these permits are conditioned on
alcohol fuel plant), proprietor of bonded suspension period. Persons in compliance with all Federal law relating
wine cellar, proprietor of bonded wine occupations not affected by the to alcohol. The conditions include
warehouse, proprietor of taxpaid wine suspension must continue to pay the compliance with the internal revenue
bottling house, brewer, wholesale liquor current rate of tax as well. laws relating to alcohol, which include
dealer or beer dealer, and retail liquor Because the primary purpose of the the requirement to register and/or
dealer or beer dealer. ‘‘Special Tax Stamp’’ is to serve as a maintain the required records.
On the other hand, the following receipt for payment of the tax, TTB has The TTB regulations in 27 CFR part
occupations, which are not covered by decided not to issue these stamps 17, which deal with manufacturers of
the IRC sections listed in new section during the suspension period, except for nonbeverage products, require special
5148, are not affected by the suspension those occupations that will remain treatment in several respects. For such
and remain subject to the special subject to payment of a special manufacturers, payment of special tax is
(occupational) tax during the (occupational) tax. not a prerequisite for engaging in
suspension period: User of or dealer in business, but is a prerequisite for
specially denatured alcohol, user of tax- Specific Types of Regulatory Changes claiming drawback of excise tax on
free alcohol, manufacturer of tobacco Each regulation referring to an distilled spirits used in their
products (that is, cigars, cigarettes, affected special tax liability is amended manufacturing processes. Accordingly,

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
62240 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations

their time limit for filing a tax return recodified as part 31 (27 CFR part 31); Paperwork Reduction Act
and paying special tax is set by the see T.D. TTB–25, 70 FR 19880.) Under the Paperwork Reduction Act
regulations as no later than completion The current law restricting purchases of 1995, no persons are required to
of final action on the first claim for any of distilled spirits by dealers is in 26 respond to a collection of information
tax year. Failure to comply with this U.S.C. 5117, and the implementing unless it displays a valid Office of
time limit is a violation subject to a regulations are contained in 27 CFR Management and Budget (OMB) control
$1,000 civil penalty prescribed by 26 31.211. Under the amendments made by number. The collections of information
U.S.C. 5134(c)(2). The same time limit section 246 of the Act, as described contained in the regulations amended
and civil penalty will apply to by this temporary rule have been
above, during the tax suspension period,
registration during the suspension previously reviewed and approved by
section 5117 only authorizes such
period. However, for changes of OMB in accordance with the Paperwork
purchases from persons required to keep
business location, and succession to Reduction Act of 1995 (44 U.S.C.
records as wholesale liquor dealers—
business ownership by any of the 3504(h)) under control numbers 1513–
except that limited retail dealers as
statutorily privileged successors (such 0005, 1513–0088, 1513–0112, and 1513–
as children succeeding deceased defined in 26 U.S.C. 5122(c) will be
permitted, as currently, to purchase 0113. There is no new or revised
parents, etc.), current regulations in 27 collection of information imposed by
CFR 17.61 and 17.71 require payment of distilled spirits from retail liquor
dealers. In addition, amended section this Treasury decision, and there is no
a new special tax if notice of the change change in the reporting or
is not submitted within 90 days. During 5117 allows the Secretary of the
Treasury to expand, by regulation, the recordkeeping burden so no new control
the suspension period, when the rate of numbers are necessary and the previous
special tax is zero, the requirement for categories of persons from whom such
distilled spirits purchases may be made. control numbers will continue to be
a new special tax is not applicable. used.
Therefore, manufacturers changing Accordingly, this Treasury decision
location and successors assuming amends § 31.211 to provide that, during Inapplicability of Prior Notice and
ownership may submit notice of the the suspension period, a dealer must Comment and Delayed Effective Date
change, without penalty under 26 U.S.C. purchase distilled spirits from (a) a Procedures
5134(c)(2), at any time prior to wholesale dealer (including a State, a
It has been determined that prior
completion of final action on the first political subdivision of a State, the
notice and comment procedures are not
claim after the change, or within 90 District of Columbia, and a distilled
required pursuant to 5 U.S.C. 553(b)(A),
days of the change, whichever is later. spirits plant) required to keep records as
and a delayed effective date is not
such under part 31, (b) a retail liquor
Certain changes are needed to reflect required pursuant to 5 U.S.C. 553(d)(2).
store operated by a State, a political
the fact that TTB will not issue special
subdivision thereof, or the District of Drafting Information
tax stamps for occupations whose tax
Columbia, or (c) a person not required The principal drafter of this document
rate is zero during the suspension
period. Specifically, regulations to register as a wholesale liquor dealer is Steve Simon of the Regulations and
promising issuance of special tax under part 31. The current provision Rulings Division, Alcohol and Tobacco
stamps or requiring persons to obtain allowing limited retail dealers to Tax and Trade Bureau.
such stamps are amended to indicate purchase distilled spirits from retail
liquor dealers is retained. List of Subjects
that no stamps will be issued during the
suspension period. Regulations referring Finally, in sections or paragraphs 27 CFR Part 17
to the holding of a special tax stamp at where the full regulatory text is set forth Administrative practice and
a location are amended to refer, for in this document, the amendments procedure, Claims, Cosmetics, Customs
purposes of the suspension period, to made by this document include a few duties and inspection, Drugs, Excise
registration for that location. minor, nonsubstantive editorial taxes, Exports, Imports, Liquors,
Regulations on changes of address, changes, such as the correction of Packaging and containers, Puerto Rico,
which refer to the address stated on the typographical errors. Reporting and recordkeeping
special tax stamp, are amended to refer, requirements, Spices and flavorings,
during the suspension period, to the Public Participation
Surety bonds, Virgin Islands.
same address as stated on the special tax For submitting comments, please refer
return (TTB Form 5630.5). Regulations 27 CFR Part 19
to the notice of proposed rulemaking on
requiring submission of special tax this subject published in the Proposed Administrative practice and
stamps for endorsement of changes in Rules section of this issue of the Federal procedure, Alcohol and alcoholic
name or address are amended to waive Register. beverages, Authority delegations
this requirement during the suspension (Government agencies), Chemicals,
period (nevertheless, such changes still Regulatory Flexibility Act Claims, Customs duties and inspection,
must be registered by submission of a Electronic fund transfers, Excise taxes,
new special tax return). Lastly, the Because no notice of proposed
Exports, Gasohol, Imports, Labeling,
regulation in 27 CFR 31.125, which rulemaking is required for temporary
Liquors, Packaging and containers,
indirectly prohibits an activity (retailing rules, the provisions of the Regulatory
Puerto Rico, Reporting and
of alcohol beverages on board a non- Flexibility Act (5 U.S.C. 601 et seq.) do
recordkeeping requirements, Research,
passenger train, vessel, or aircraft) by not apply.
Security measures, Spices and
stating that no special tax stamp will be Executive Order 12866 flavorings, Stills, Surety bonds,
issued is amended to express the Transportation, Vinegar, Virgin Islands,
prohibition directly, so that it will be as It has been determined that this Warehouses, Wine.
meaningful during the suspension temporary rule is not a significant
period as at other times. (Note: On April regulatory action as defined in E.O. 27 CFR Part 24
15, 2005, part 194 of the TTB 12866. Therefore, a regulatory Administrative practice and
regulations (27 CFR part 194) was assessment is not necessary. procedure, Claims, Electronic funds

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 62241

transfers, Excise taxes, Exports, Food § 17.21 Payment of special tax. described in § 17.21(b), for the same
additives, Fruit juices, Labeling, * * * * * period at more than one location or for
Liquors, Packaging and containers, (b) Suspension of tax. During the more than one class of tax shall—
Reporting and recordkeeping period from July 1, 2005, through June (1) File one special tax return, Form
requirements, Research, Scientific 30, 2008, the rate of the tax described 5630.5, with payment of applicable tax,
equipment, Spices and flavorings, in paragraph (a) of this section is zero. to cover all such locations and classes
Surety bonds, Vinegar, Warehouses, Accordingly, payment of the tax is not of tax; and
Wine. a prerequisite for claiming drawback on (2) Prepare, in duplicate, a list
spirits used during that period. identified with the taxpayer’s name,
27 CFR Part 25
However, the drawback claimant still address (as shown on the Form 5630.5),
Beer, Claims, Electronic fund must register by filing the special tax employer identification number, and
transfers, Excise taxes, Exports, return on Form 5630.5 during the period covered by the return. The list
Labeling, Liquors, Packaging and suspension period even though the shall show, by States, the name,
containers, Reporting and recordkeeping amount of tax due is zero. address, and tax class of each location
requirements, Research, Surety bonds. for which special tax is being paid, or
§ 17.22 [Amended] for which registration is being made
27 CFR Part 26
■ 3. Section 17.22 is amended by adding during the suspension period described
Alcohol and alcoholic beverages, at the end before the period the words in § 17.21(b). The original of the list
Caribbean Basin initiative, Claims, ‘‘, except that the tax rate is zero during shall be filed in accordance with
Customs duties and inspection, the suspension period described in instructions on the return, and the copy
Electronic funds transfers, Excise taxes, § 17.21(b)’’. shall be retained at the taxpayer’s
Packaging and containers, Puerto Rico, principal place of business (or principal
Reporting and recordkeeping § 17.23 [Amended]
office, in the case of a corporate
requirements, Surety bonds, Virgin ■ 4. Section 17.23 is amended at the taxpayer) for the period specified in
Islands, Warehouses. beginning by removing the word ‘‘A’’ § 17.170.
27 CFR Part 27 and adding, in its place, the words * * * * *
‘‘Subject to § 17.21(b), a’’.
Alcohol and alcoholic beverages, ■ 8. Section 17.51 is amended:
■ 5. Section 17.24 is amended by
Beer, Cosmetics, Customs duties and ■ a. By designating the existing text as
designating the existing text as
inspection, Electronic funds transfers, paragraph (a);
paragraph (a), adding the heading
Excise taxes, Imports, Labeling, Liquors, ■ b. In the first sentence of newly
‘‘General.’’ to newly designated
Packaging and containers, Reporting designated paragraph (a), by removing
paragraph (a), and adding a new
and recordkeeping requirements, Wine. the word ‘‘Each’’ and adding, in its
paragraph (b) to read as follows:
place, the words ‘‘Except as otherwise
27 CFR Part 31 provided in paragraph (b) of this
§ 17.24 Time for payment of special tax.
Alcohol and alcoholic beverages, * * * * * section, each’’;
Beer, Claims, Excise taxes, Exports, (b) Suspension of tax. The rate of ■ c. Also in the first sentence of newly
Labeling, Liquors, Packaging and special tax is zero during the period designated paragraph (a), by adding
containers, Reporting and recordkeeping from July 1, 2005, through June 30, 2008 after the words ‘‘payment in the’’ the
requirements, Wine. (see § 17.21(b)). During this period, the word ‘‘applicable’’; and
registration requirement continues. The ■ d. By adding a new paragraph (b) to
Amendments to the Regulations
drawback claimant must register by read as follows:
■ For the reasons discussed in the filing a special tax return, Form 5630.5.
preamble TTB amends 27 CFR parts 17, § 17.51 Issuance of stamps.
The claimant may register without
19, 24, 25, 26, 27, and 31 as follows: penalty under 26 U.S.C. 5134(c) at any * * * * *
time prior to completion of final action (b) During the suspension period
PART 17—DRAWBACK ON TAXPAID described in § 17.21(b) when
on the first claim submitted for each tax
DISTILLED SPIRITS USED IN registration is required but no tax is due,
year.
MANUFACTURING NONBEVERAGE a special tax stamp will not be issued.
PRODUCTS § 17.31 [Amended] ■ 9. Section § 17.61 is revised to read as
■ 1. The authority citation for part 17 is ■ 6. Section 17.31 is amended by adding follows:
revised to read as follows: at the end of the first sentence before the § 17.61 General.
Authority: 26 U.S.C. 5010, 5131–5134,
period the words ‘‘, and the filing of a
return is required for registration A manufacturer who, during a tax
5143, 5146, 5148, 5206, 5273, 6011, 6065, year for which a special tax return has
6091, 6109, 6151, 6402, 6511, 7011, 7213, purposes even though no tax is due
during the suspension period described been filed with payment of any tax due,
7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.
in § 17.21(b)’’. moves its place of manufacture to a
■ 2. Section 17.21 is amended by ■ 7. Section 17.32 is amended by adding place other than that specified on the
designating the existing text as at the end of paragraph (a)(5) before the return, shall register the change, by
paragraph (a), adding the heading period the words ‘‘or to which the executing a new return on Form 5630.5,
‘‘General.’’ to newly designated return relates during the suspension designated as ‘‘Amended Return.’’ This
paragraph (a), removing the word period described in § 17.21(b)’’ and Amended Return shall set forth the time
‘‘Each’’ at the beginning of the first revising paragraph (b) to read as follows: of the move and the address of the new
sentence of newly designated paragraph location. If a special tax stamp was
(a) and adding, in its place, the words § 17.32 Completion of ATF Form 5630.5. issued for the former location, the
‘‘Except as otherwise provided in * * * * * taxpayer shall also submit the special
paragraph (b) of this section, each’’, and (b) Multiple locations. A taxpayer tax stamp for endorsement of the change
adding a new paragraph (b) to read as subject to special tax, or required to in location. In general, the taxpayer
follows: register during the suspension period must submit the new return and the

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
62242 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations

special tax stamp within 90 days after corporation shall file a new special tax PART 19—DISTILLED SPIRITS
the move to the new premises. However, return and pay a new special tax in PLANTS
if the move occurs during the order to be eligible to receive drawback.
suspension period described in In the case of claims covering spirits ■ 19. The authority citation for part 19
§ 17.21(b) when no tax was due and no used during the suspension period is revised to read as follows:
special tax stamp was issued, the described in § 17.21(b), the rate of Authority: 19 U.S.C. 81c, 1311; 26 U.S.C.
taxpayer may submit the new return special tax is zero. 5001, 5002, 5004–5006, 5008, 5010, 5041,
alone without penalty at any time prior ■ 14. Section 17.76 is revised to read as 5061, 5062, 5066, 5081, 5101, 5111–5113,
to completion of final action on the first follows: 5142, 5143, 5146, 5148, 5171–5173, 5175,
claim covering use of spirits at the new 5176, 5178–5181, 5201–5204, 5206, 5207,
premises, or within 90 days of the move, § 17.76 Addition or withdrawal of partners. 5211–5215, 5221–5223, 5231, 5232, 5235,
(a) General partners. When a business 5236, 5241–5243, 5271, 5273, 5301, 5311–
whichever is later.
formed as a partnership, subject to the 5313, 5362, 5370, 5373, 5501–5505, 5551–
(Title II, sec. 201, Pub. L. 85–859, 72 filing of a special tax return, admits one 5555, 5559, 5561, 5562, 5601, 5612, 5682,
Stat. 1374 (26 U.S.C. 5143)) 6001, 6065, 6109, 6302, 6311, 6676, 6806,
or more new general partners, the new 7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304,
§ 17.62 [Amended] partnership shall file a new special tax 9306.
return and pay a new special tax in
■ 10. Section 17.62 is amended at the order to be eligible to receive drawback ■ 20. Section 19.49 is amended by
beginning by removing the word ‘‘A’’ (in the case of claims covering spirits adding a new paragraph (a)(3) and
and adding, in its place, the words used during the suspension period revising paragraphs (b)(2) and (c) to read
‘‘Except in the case of claims covering described in § 17.21(b), the rate of as follows:
spirits used during the suspension special tax is zero). Withdrawal of
period described in § 17.21(b) when the § 19.49 Liability for special tax.
general partners is covered by
special tax rate is zero, a’’. § 17.72(d). (a) * * *
■ 11. Section 17.71 is amended by (b) Limited partners. Changes in the (3) Suspension of tax. During the
designating the existing text as membership of a limited partnership period from July 1, 2005, through June
paragraph (a) and revising the first requiring amendment of the certificate 30, 2008, the rate of the tax described
sentence of newly designated paragraph but not dissolution of the partnership in paragraph (a)(1) of this section is
(a) and adding a new paragraph (b) to are not changes that incur liability to zero. However, each proprietor still
read as follows: additional special tax or that require the must register by filing the special tax
filing of a new special tax return. return on Form 5630.5 during this
§ 17.71 General. suspension period even though the
■ 15. Section 17.77 is revised to read as
(a) Subject to paragraph (b) of this amount of tax due is zero. During the
section, certain persons may qualify for follows:
suspension period, as at other times, the
succession to the same privileges § 17.77 Reincorporation. special tax return is due on or before
granted by law to the taxpayer, to cover When a new corporation is formed to commencement of business and on or
the remainder of the tax year for which take over and conduct the business of before July 1 of each year thereafter.
the special tax was paid, or for which one or more corporations that have filed (b) * * *
registration was made during the a special tax return and paid any tax (2) Exemption for sales by a proprietor
suspension period described in due, the new corporation must file a of a distilled spirits plant. A proprietor
§ 17.21(b). * * * new special tax return, pay special tax, of a distilled spirits plant is not required
* * * * * and obtain a special tax stamp in its to pay special tax, or to register during
(b) With respect to spirits used during own name. However, in the case of the suspension period described in
the suspension period described in spirits used during the suspension paragraph (a)(3) of this section, as a
§ 17.21(b), the successor or successors period described in § 17.21(b) when no wholesale or retail dealer in liquor
must file the return prior to completion tax is due and no stamp is issued, only because of sales, at the principal place
of final action on the claim(s) covering the filing of a new special tax return is of business or at the distilled spirits
such spirits, or within 90 days of the required. plant, of liquor which at the time of sale
change in control, whichever is later. is stored at the distilled spirits plant or
§ 17.81 [Amended] which had been removed and stored in
§ 17.73 [Amended] a taxpaid storeroom operated in
■ 16. Section 17.81 is amended by
■ 12. Section 17.73 is amended at the removing the words ‘‘paid special tax’’ connection with the distilled spirits
beginning by removing the word ‘‘A’’ and adding, in their place, the words plant. Each proprietor of a distilled
and adding, in its place, the words ‘‘filed a special tax return and paid any spirits plant shall have only one
‘‘Except in the case of claims covering tax due’’ and by adding, after the words exemption from dealer’s special tax, or
spirits used during the suspension ‘‘required to’’, the words ‘‘file a new from dealer’s registration, for each
period described in § 17.21(b) when the special tax return or’’. distilled spirits plant. The distiller may
special tax rate is zero, a’’. designate, in writing to the regional
§ 17.82 [Amended] director (compliance), that the principal
■ 13. Section 17.75 is revised to read as
follows: ■ 17. Section 17.82 is amended by place of business will be exempt from
removing the word ‘‘is’’ and adding, in dealer’s special tax or registration;
§ 17.75 Formation of partnership or its place, the words ‘‘return and tax otherwise, the exemption will apply to
corporation. payment are’’. the distilled spirits plant.
If one or more persons who have filed (c) Each place of business taxable—
a special tax return and paid any tax § 17.83 [Amended] (1) General. A proprietor of a distilled
due form a partnership or corporation, ■ 18. Section 17.83 is amended by spirits plant incurs special tax liability,
as a separate legal entity, to take over removing the word ‘‘is’’ and adding, in or an obligation to register during the
the business of manufacturing its place, the words ‘‘return and tax suspension period described in
nonbeverage products, the new firm or payment are’’. paragraph (a)(3) of this section, at each

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 62243

place of business in which an § 19.49(a)(3), for the same period at plant, the successor shall file a new
occupation subject to special tax is more than one location or for more than special tax return, pay a new special tax,
conducted. A place of business means one class of tax shall— and obtain the required special tax
the entire office, plant or area of the (1) File one special tax return, Form stamps. However, if the change in
business in any one location under the 5630.5, with payment of applicable tax, proprietorship occurs during the
same proprietorship. Passageways, to cover all such locations and classes suspension period described in
streets, highways, rail crossings, of tax; and § 19.49(a)(3) when no tax is due and no
waterways, or partitions dividing the (2) Prepare, in duplicate, a list stamp is issued, only the filing of a new
premises are not sufficient separation to identified with the taxpayer’s name, special tax return is required.
require additional special tax, if the address (as shown on Form 5630.5), (2) Exemption for certain successors.
divisions of the premises are otherwise employer identification number, and Persons having the right of succession
contiguous. period covered by the return. The list provided for in paragraph (c) of this
(2) Exception for contiguous areas. A shall show, by States, the name, section may carry on the business for
proprietor of a distilled spirits plant address, and tax class of each location the remainder of the period for which
does not incur additional special tax for which special tax is being paid, or the special tax was paid (or for which
liability, or an obligation to register for which registration is being made registration was made during the
during the suspension period described during the suspension period described suspension period described in
in paragraph (a)(3) of this section, for in § 19.49(a)(3). The original of the list § 19.49(a)(3)), without paying a new
sales of liquor made at a location other shall be filed in accordance with special tax, if within 30 days after the
than on distilled spirits plant premises instructions on the return, and the copy date on which the successor begins to
described on the notice of registration, shall be retained at the taxpayer’s carry on the business, the successor files
Form 5110.41, if the location where principal place of business (or principal a special tax return on Form 5630.5,
such sales are made is contiguous to the office, in the case of a corporate which shows the basis of succession.
distilled spirits plant premises in the taxpayer) for the period specified in Except during the suspension period
manner described in paragraph (c)(1) of § 19.723(c). described in § 19.49(a)(3), a person who
this section. * * * * * is a successor to a business for which
* * * * * ■ 23. Section 19.53 is amended by
special tax has been paid and who fails
revising paragraph (a) to read as follows: to register the succession is liable for
§ 19.50 [Amended] special tax computed from the first day
■ 21. Section 19.50 is amended: § 19.53 Issuance, distribution, and of the calendar month in which he or
■ a. In paragraph (a), by adding at the examination of special tax stamps. she began to carry on the business.
end the following new sentence: (a) Issuance of special tax stamps—(1) During the suspension period, a failure
‘‘However, under 26 U.S.C. 5148(a) the General. Except as otherwise provided to register the succession may result in
tax rate is zero during the suspension in paragraph (a)(2) of this section, upon a penalty under 26 U.S.C. 5603(b).
period described in § 19.49(a)(3).’’; and filing a properly executed return on * * * * *
■ b. At the beginning of paragraph (b), Form 5630.5, together with the (d) Change in location. (1) Subject to
by removing the word ‘‘Title’’ and applicable full remittance, the taxpayer paragraph (d)(2) of this section, if there
adding, in its place, the words ‘‘Except will be issued an appropriately is a change in location of a taxable place
during the suspension period described designated special tax stamp. If the of business, the proprietor shall, within
in § 19.49(a)(3) when the tax rate is zero, return covers multiple locations, the 30 days after the change, file an
title’’. taxpayer will be issued one amended special tax return covering the
■ 22. Section 19.51 is amended by appropriately designated stamp for each new location. The proprietor shall
revising paragraphs (a), (b)(5), and (c) to location listed on the attachment attach the special tax stamp or stamps,
read as follows: required by § 19.51(c), but showing, as for endorsement of the change in
to name and address, only the name of location. No new special tax is required
§ 19.51 Special tax returns. the taxpayer and the address of the to be paid. However, if the proprietor
(a) General. Special tax shall be paid taxpayer’s principal place of business does not file the amended return within
by return, and the filing of a return is (or principal office in the case of a 30 days, the proprietor is required to file
required for registration purposes even corporate taxpayer). a new special tax return, pay a new
though no tax is due during the (2) Exception for suspension period. special tax, and obtain a new special tax
suspension period described in During the suspension period described stamp.
§ 19.49(a)(3). The prescribed return is in § 19.49(a)(3) when registration is (2) If the change in location occurs
Form 5630.5, Special Tax Registration required but no tax is due, a special tax during the suspension period described
and Return. Special tax returns, with stamp will not be issued. in § 19.49(a)(3) when no tax is due and
payment of applicable tax, shall be filed * * * * * no special tax stamp is issued, the
in accordance with instructions on the ■ 24. Section 19.54 is amended by
requirements of paragraph (d)(1) of this
form. adding at the end of the third sentence section still apply, except with regard to
(b) * * * of paragraph (a) before the period the attachment of a special tax stamp and
(5) The class(es) of special tax to words, ‘‘except if the change occurs payment of a new special tax. During
which the taxpayer is subject or to during the suspension period described the suspension period, a failure to
which the return relates during the in § 19.49(a)(3)’’ and revising paragraphs comply with paragraph (d)(1) of this
suspension period described in (b) and (d) to read as follows: section may result in a penalty under 26
§ 19.49(a)(3). U.S.C. 5603(b).
* * * * * § 19.54 Changes in special tax stamps. * * * * *
(c) Multiple locations and/or classes * * * * *
of tax. A taxpayer subject to special tax, (b) Change in proprietorship—(1) § 19.906 [Amended]
or required to register during the General. If there is a change in the ■ 25. Section 19.906 is amended by
suspension period described in proprietorship of a distilled spirits adding at the end of paragraph (a) before

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
62244 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations

the period the words ‘‘except during the words ‘‘Except during the suspension suspension period described in
suspension period described in period described in § 24.50(c) when the § 24.50(c)’’.
§ 19.49(a)(3) when special tax stamps tax rate is zero, title’’. ■ 31. Section 24.54 is amended by
are not issued’’. revising paragraph (a) to read as follows:
§ 24.52 [Amended]
PART 24—WINE ■ 29. Section 24.52 is amended: § 24.54 Special (occupational) tax stamps.
■ a. In the first sentence of paragraph (a) Issuance of special (occupational)
■ 26. The authority citation for part 24 tax stamps—(1) General. Except as
(a), by adding after the words ‘‘special
is revised to read as follows: otherwise provided in paragraph (a)(2)
(occupational) tax’’, the words ’’, or to
Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, register during the suspension period of this section, upon filing a properly
5008, 5041, 5042, 5044, 5061, 5062, 5081, described in § 24.50(c),’’; executed return on Form 5630.5,
5111–5113, 5121, 5122, 5142, 5143, 5148, together with the applicable full
■ b. In the second sentence of paragraph
5173, 5206, 5214, 5215, 5351, 5353, 5354, remittance, the taxpayer will be issued
5356, 5357, 5361, 5362, 5364–5373, 5381–
(a), by adding after the words ‘‘special
(occupational) tax’’ the words ‘‘or an appropriately designated special
5388, 5391, 5392, 5511, 5551, 5552, 5661, (occupational) tax stamp. If the return
5662, 5684, 6065, 6091, 6109, 6301, 6302, registration’’;
■ c. In the second sentence of paragraph
covers multiple locations, the taxpayer
6311, 6651, 6676, 7011, 7302, 7342, 7502,
7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, (b), by adding after the words ‘‘special will be issued one appropriately
9304, 9306. (occupational) tax’’ the words ‘‘or from designated stamp for each location
registration’’; listed on the attachment required by
■ 27. In § 24.50: § 24.53(c), but showing, as to name and
■ d. In the third sentence of paragraph
■ a. The first sentence of paragraph (a) address, only the name of the taxpayer
is amended by removing the word (b), by adding after the words ‘‘tax will
be paid’’ the words, ‘‘or registration will and the address of the taxpayer’s
‘‘Every’’ and adding, in its place, the principal place of business (or principal
words ‘‘Except as otherwise provided in be made during the suspension period
office in case of a corporate taxpayer).
paragraph (c) of this section, every’’; described in § 24.50(c),’’;
(2) Exception for suspension period.
■ b. The first sentence of paragraph (b) ■ e. In paragraph (c), by adding after the
During the suspension period described
is amended by removing the word words ‘‘has not paid special in § 24.50(c) when registration is
‘‘Proprietors’’ and adding, in its place, (occupational) tax’’ the words, ‘‘or has required but no tax is due, a special tax
the words ‘‘Subject to paragraph (c) of not registered during the suspension stamp will not be issued.
this section, proprietors’’; period described in § 24.50(c),’’;
■ f. Also in paragraph (c), by adding
* * * * *
■ c. A new paragraph (c) is added to
after the words ‘‘required to pay special ■ 32. Section 24.55 is amended by
read as follows; adding at the end of the last sentence of
■ d. An authority citation is added (occupational) tax’’ the words, ‘‘or to
register during that suspension period,’’; paragraph (a) before the period the
following new paragraph (c); and words, ‘‘, except if the change occurs
■ e. The OMB control numbers at the ■ g. In paragraph (d), by adding after the
words ‘‘the appropriate special during the suspension period described
end of the section are revised to read as in § 24.50(c)’’ and revising paragraphs
follows: (occupational) tax’’ the words, ‘‘or who
has registered during the suspension (b) and (d) and the OMB control
§ 24.50 Payment of special (occupational) period described in § 24.50(c),’’; and numbers at the end of the section, and
tax. ■ h. Also in paragraph (d), by adding
adding an authority citation for the
* * * * * after the words ‘‘to pay special section before the OMB control numbers
(c) Suspension of tax. During the (occupational) tax’’ the words ‘‘or to read as follows:
period from July 1, 2005, through June register’’. § 24.55 Changes in special (occupational)
30, 2008, the rate of the tax described tax stamps.
in paragraph (a) of this section is zero. § 24.53 [Amended]
* * * * *
However, the proprietor must register by ■ 30. Section 24.53 is amended: (b) Change in proprietorship—(1)
filing the special tax return on Form ■ a. In paragraph (a), by adding at the General. If there is a change in the
5630.5 during the suspension period end the following new sentence: proprietorship of a bonded wine
even though the amount of tax due is ‘‘During the suspension period premises or taxpaid wine bottling
zero. During the suspension period, as described in § 24.50(c), an annual return house, the successor shall file a new
at other times, the special tax return is is required even though no tax is due.’’; special tax return, pay a new special
due on or before commencement of ■ b. In paragraph (b)(5), by adding at the (occupational) tax, and obtain the
business and on or before July 1 of each end before the period the words ‘‘or to required special (occupational) tax
year thereafter. which the return relates during the stamps. However, if the change in
(26 U.S.C. 5081, 5142, 5143) suspension period described in proprietorship occurs during the
§ 24.50(c)’’; suspension period described in
(Approved by the Office of Management and
■ c. In the introductory text of § 24.50(c) when no tax is due and no
Budget under control numbers 1513–0088
and 1513–0113) paragraph (c), by adding after the words stamp is issued, only the filing of a new
‘‘special (occupational) tax’’ the words special tax return is required.
§ 24.51 [Amended] ‘‘(or required to register during the (2) Exemption for certain successors.
■ 28. In § 24.51: suspension period described in Persons having the right of succession
■ a. Paragraph (a) is amended by adding § 24.50(c))’’; provided for in paragraph (c) of this
at the end the following new sentence: ■ d. In paragraph (c)(1), by adding after section may carry on the business for
‘‘However, under 26 U.S.C. 5148(a), the the words ‘‘payment of’’ the word the remainder of the period for which
tax rate is zero during the suspension ‘‘applicable’’; and the special (occupational) tax was paid
period described in § 24.50(c).’’; and ■ e. In paragraph (c)(2), by adding at the (or for which registration was made
■ b. The first sentence of paragraph (b) end of the second sentence before the during the suspension period described
is amended by removing the word period the words ‘‘or for which in § 24.50(c)), without paying a new
‘‘Title’’ and adding, in its place, the registration is being made during the special (occupational) tax, if within 30

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 62245

days after the date on which the ■ a. At the beginning of paragraph (a), ‘‘dealer’s special tax’’ the words ‘‘or
successor begins to carry on the by removing the word ‘‘Every’’ and registration’’;
business, the successor files a special adding, in its place, the words ‘‘Except ■ d. Paragraph (b) is amended by adding
(occupational) tax return on Form as otherwise provided in paragraph (c) after the words ‘‘appropriate special
5630.5, which shows the basis of of this section, every’’; and tax’’ the words ‘‘, or who has registered
succession. Except during the ■ b. By adding a new paragraph (c) during the suspension period described
suspension period described in before the authority citation to read as in § 25.111(c),’’; and
§ 24.50(c), a person who is a successor follows: ■ e. Paragraph (b) is further amended by
to a business for which special adding after the words ‘‘pay special tax’’
(occupational) tax has been paid and § 25.111 Brewer’s special tax. the words ‘‘or register’’.
who fails to register the succession is * * * * *
liable for special (occupational) tax (c) Suspension of tax. During the § 25.117 [Amended]
computed from the first day of the period from July 1, 2005, through June ■ 39. Section 25.117 is amended by
calendar month in which he or she 30, 2008, the rate of the tax described adding at the end of the first sentence
began to carry on the business. During in paragraph (a) of this section is zero. before the period the words ‘‘, and a
the suspension period, a failure to However, the proprietor must register by return is required during the suspension
register the succession may result in a filing the special tax return on Form period described in § 25.111(c) even
penalty under 26 U.S.C. 5603(b). 5630.5 during the suspension period though no tax is due’’ and adding in the
* * * * * even though the amount of tax due is third sentence after the words ‘‘payment
(d) Change in location. (1) Subject to zero. During the suspension period, as of’’ the word ‘‘applicable’’.
paragraph (d)(2) of this section, if there at other times, the special tax return is
due on or before commencement of § 25.118 [Amended]
is a change in location of a taxable place
of business, the proprietor shall, within business and on or before July 1 of each ■ 40. Section 25.118 is amended by
30 days after the change, file an year thereafter. adding at the end of paragraph (e) before
amended special (occupational) tax * * * * * the period the words ‘‘or to which the
return covering the new location. The return relates during the suspension
§ 25.111a [Amended] period described in § 25.111(c)’’.
proprietor shall attach the special
(occupational) tax stamp or stamps for ■ 35. Section 25.111a is amended by
§ 25.119 [Amended]
endorsement of the change in location. adding at the end of paragraph (b) before
No new special (occupational) tax is the period the words ‘‘, except that the ■ 41. In § 25.119:
required to be paid. However, if the tax rate is zero during the suspension ■ a. The introductory text is amended
proprietor does not file the amended period described in § 25.111(c).’’ by adding after the words ‘‘subject to
return within 30 days, the proprietor is special tax’’ the words ‘‘(or required to
§ 25.111b [Amended] register during the suspension period
required to file a new special
(occupational) tax return, pay a new ■ 36. Section 25.111b is amended by described in § 25.111(c))’’
special (occupational) tax, and obtain a adding at the end of the second sentence ■ b. Paragraph (a) is amended by adding
new special (occupational) tax stamp. of paragraph (a) before the period the after the words ‘‘payment of’’ the word
(2) If the change in location occurs words ‘‘, except that the tax rate is zero ‘‘applicable’’; and
during the suspension period described during the suspension period described ■ c. The second sentence of paragraph
in § 24.50(c) when no tax is due and no in § 25.111(c)’’. (b) is amended by adding after the
special (occupational) tax stamp is words ‘‘special tax is being paid’’ the
issued, the requirements of paragraph § 25.113 [Amended] words ‘‘or for which registration is being
(d)(1) of this section still apply, except ■ 37. In § 25.113: made during the suspension period
with regard to attachment of a special ■ a. The first sentence of paragraph (a) described in § 25.111(c)’’.
(occupational) tax stamp and payment is amended by removing the word ‘‘at’’ ■ 42. Section 25.125 is amended:
of a new special (occupational) tax. and adding, in its place, the words ‘‘, or ■ a. By designating the existing text as
During the suspension period, a failure must register by filing the special tax paragraph (a);
to comply with paragraph (d)(1) of this return during the suspension period ■ b. In the first sentence of newly
section may result in a penalty under 26 described in § 25.111(c), for’’; and designated paragraph (a), by removing
U.S.C. 5603(b). ■ b. Paragraph (b) is amended by adding the word ‘‘Upon’’ and adding, in its
(26 U.S.C. 5143, 7011) after the word ‘‘liability’’ the words ‘‘(or place, the words ‘‘Except as otherwise
will not have to register during the provided in paragraph (b) of this
(Approved by the Office of Management and
suspension period described in section, upon’’;
Budget under control numbers 1513–0088
and 1513–0113) § 25.111(c))’’. ■ c. Also in the first sentence of newly
designated paragraph (a), by adding
§ 25.114 [Amended]
PART 25—BEER after the words ‘‘together with the’’ the
■ 38. In § 25.114: word ‘‘applicable’’; and
■ 33. The authority citation for part 25 ■ a. The first sentence of paragraph (a) ■ d. By adding a new paragraph (b)
is revised to read as follows: is amended by adding after the words before the section authority citation to
Authority: 19 U.S.C. 81c; 26 U.S.C. 5002, ‘‘special tax’’ the words ‘‘or to register read as follows:
5051–5054, 5056, 5061, 5091, 5111, 5113, during the suspension period described
5142, 5143, 5146, 5148, 5222, 5401–5403, in § 25.111(c),’’; § 25.125 Issuance of special tax stamps.
5411–5417, 5551, 5552, 5555, 5556, 5671, ■ b. The second sentence of paragraph * * * * *
5673, 5684, 6011, 6061, 6065, 6091, 6109, (a) is amended by adding after the (b) During the suspension period
6151, 6301, 6302, 6311, 6313, 6402, 6651, words ‘‘dealer’s special tax’’ the words described in § 25.111(c) when
6656, 6676, 6806, 7011, 7342, 7606, 7805; 31 registration is required but no tax is due,
‘‘or registration’’;
U.S.C. 9301, 9303–9308. a special tax stamp will not be issued.
■ c. The last sentence of paragraph (a)
■ 34. Section 25.111 is amended: is amended by adding after the words * * * * *

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
62246 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations

§ 25.131 [Amended] (b) If the change in location occurs as a dealer in liquors at the place where
■ 43. Section 25.131 is amended by during the suspension period described such warehouse receipts are sold, or
adding at the end of the last sentence in § 25.111(c) when no tax is due and offered for sale, and must file return and
before the period the words ‘‘, except if no special tax stamp is issued, the pay occupational tax as provided in
the change occurs during the requirements of paragraph (a) of this § 26.44(a). During the suspension
suspension period described in section still apply, except with regard to period, every such person must register
§ 25.111(c)’’. attachment of a special tax stamp and as provided in § 26.44(b).
■ 44. Section 25.132 is revised to read payment of a new special tax. During (68A Stat. 618, 620, 621; 26 U.S.C. 5111,
as follows: the suspension period, a failure to 5112, 5121, 5122)
comply with paragraph (a) of this ■ 49. Section 26.46 is amended by
§ 25.132 Change in proprietorship. section may result in a penalty under 26 designating the existing text as
(a) General. If there is a change in the U.S.C. 5603(b). (26 U.S.C. 5143, 7011) paragraph (a), adding the heading
proprietorship of a brewery, the
PART 26—LIQUORS AND ARTICLES ‘‘General.’’ to newly designated
successor shall file a new special tax
FROM PUERTO RICO AND THE VIRGIN paragraph (a), removing the word
return, pay a new special tax, and obtain
ISLANDS ‘‘Every’’ at the beginning of the first
the required special tax stamps.
sentence of newly designated paragraph
However, if the change in
■ 46. The authority citation for part 26 (a) and adding, in its place, the words
proprietorship occurs during the
is revised to read as follows: ‘‘Except as otherwise provided in
suspension period described in
Authority: 19 U.S.C. 81c; 26 U.S.C. 5001,
paragraph (b) of this section, every’’,
§ 25.111(c) when no tax is due and no
5007, 5008, 5010, 5041, 5051, 5061, 5081, and adding a new paragraph (b) before
stamp is issued, only the filing of a new
5111, 5112, 5114, 5121, 5122, 5124, 5131– the section authority citation to read as
special tax return is required.
(b) Exemption for certain successors. 5134, 5141, 5146, 5148, 5207, 5232, 5271, follows:
Persons having the right of succession 5276, 5301, 5314, 5555, 6001, 6301, 6302,
6804, 7101, 7102, 7651, 7652, 7805; 27 U.S.C. § 26.46 Distilled spirits plant proprietor’s
provided for in § 25.133 may carry on 203, 205; 31 U.S.C. 9301, 9303, 9304, 9306. special (occupational) tax.
the business for the remainder of the * * * * *
period for which the special tax was ■ 47. Section 26.44 is amended by
designating the existing text as (b) Suspension of tax. During the
paid (or for which registration was made period from July 1, 2005, through June
during the suspension period described paragraph (a), adding the heading
‘‘General.’’ to newly designated 30, 2008, the rate of the tax described
in § 25.111(c)), if within 30 days after in paragraph (a) of this section is zero.
the date on which the successor begins paragraph (a), removing the word
‘‘Every’’ at the beginning of the first However, every person described in
to carry on the business, the successor paragraph (a) of this section must
files a return on Form 5630.5, which sentence of newly designated paragraph
(a) and adding, in its place, the words register by filing the special tax return
shows the basis of succession. Except on Form 5630.5, in accordance with part
during the suspension period described ‘‘Except as otherwise provided in
paragraph (b) of this section, every’’, 19 of this chapter, during the
in § 25.111(c), a person who is a suspension period even though the
successor to a business for which and adding a new paragraph (b) before
the section authority citation to read as amount of tax due is zero.
special tax has been paid and who fails * * * * *
to register the succession is liable for follows:
■ 50. Section 26.171 is amended by
special tax computed from the first day § 26.44 Liquor dealer’s special taxes. designating the existing text as
of the calendar month in which he or * * * * * paragraph (a), adding the heading
she began to carry on the business. (b) Suspension of tax. During the ‘‘General.’’ to newly designated
During the suspension period, a failure period from July 1, 2005, through June paragraph (a), removing the word ‘‘Any’’
to register the succession may result in 30, 2008, the rate of the tax described at the beginning of the first sentence of
a penalty under 26 U.S.C. 5603(b). in paragraph (a) of this section is zero. newly designated paragraph (a) and
(Act of August 16, 1954, 68A Stat. 845, However, every person described in adding, in its place, the words ‘‘Except
as amended (26 U.S.C. 7011); sec. 201, paragraph (a) of this section must as otherwise provided in paragraph (b)
Pub. L. 85–859, 72 Stat. 1347, as register by filing the special tax return of this section, any’’, and adding a new
amended (26 U.S.C. 5143)) on Form 5630.5, in accordance with part paragraph (b) to read as follows:
■ 45. Section 25.134 is revised to read 31 of this chapter, during the
suspension period even though the § 26.171 Special tax.
as follows:
amount of tax due is zero. * * * * *
§ 25.134 Change in location. * * * * * (b) Suspension of tax. During the
(a) Subject to paragraph (b) of this period from July 1, 2005, through June
■ 48. Section 26.45 is revised to read as
section, if there is a change in location 30, 2008, the rate of the tax described
follows:
of a taxable place of business, the in paragraph (a) of this section is zero.
brewer shall, within 30 days after the § 26.45 Warehouse receipts covering However, any person described in
change, file an amended special tax distilled spirits. paragraph (a) of this section must
return covering the new location. The The sale of warehouse receipts for register by filing the special tax return
brewer shall attach the special tax stamp distilled spirits is equivalent to the sale on Form 5630.5, in accordance with part
or stamps, for endorsement of the of distilled spirits. Accordingly, except 17 of this chapter, during the
change in location. No new special tax during the suspension period described suspension period even though the
is required to be paid. However, if the in § 26.44(b), every person bringing amount of tax due is zero.
brewer does not file the amended return distilled spirits into the United States ■ 51. Section 26.210 is amended by
within 30 days, the brewer is required from Puerto Rico, who sells, or offers for designating the existing text as
to file a new special tax return, pay a sale, warehouse receipts for distilled paragraph (a), adding the heading
new special tax, and obtain a new spirits stored in warehouses, or ‘‘General.’’ to newly designated
special tax stamp. elsewhere, incurs liability to special tax paragraph (a), removing the word

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 62247

‘‘Every’’ at the beginning of the first on Form 5630.5, in accordance with part PART 31—ALCOHOL BEVERAGE
sentence of newly designated paragraph 17 of this chapter, during the DEALERS
(a) and adding, in its place, the words suspension period even though the
‘‘Except as otherwise provided in amount of tax due is zero. ■ 57. The authority citation for part 31
paragraph (b) of this section, every’’, is revised to read as follows:
and adding a new paragraph (b) before PART 27—IMPORTATION OF Authority: 26 U.S.C. 5001, 5002,
the section authority citation to read as DISTILLED SPIRITS, WINES, AND 5111’5114, 5116, 5117, 5121–5124, 5142,
follows: BEER 5143, 5145, 5146, 5148, 5206, 5207, 5301,
5352, 5555, 5613, 5681, 5691, 6001, 6011,
§ 26.210 Liquor dealer’s special taxes. ■ 54. The authority citation for part 27 6061, 6065, 6071, 6091, 6109, 6151, 6311,
* * * * * is revised to read as follows: 6314, 6402, 6511, 6601, 6621, 6651, 6657,
(b) Suspension of tax. During the 7011, 7805.
Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c,
period from July 1, 2005, through June 1202; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, ■ 58. Section 31.21 is amended by
30, 2008, the rate of the tax described 5051, 5054, 5061, 5148, 5111, 5112, 5114, designating the existing text as
in paragraph (a) of this section is zero. 5121, 5122, 5124, 5201, 5205, 5207, 5232, paragraph (a), adding the heading
However, every person described in 5273, 5301, 5313, 5555, 6302, 7805. ‘‘General.’’ to newly designated
paragraph (a) of this section must paragraph (a), removing the word
■ 55. Section 27.30 is amended by
register by filing the special tax return ‘‘Special’’ at the beginning of the first
designating the existing text as
on Form 5630.5, in accordance with part sentence of newly designated paragraph
paragraph (a), adding the heading
31 of this chapter, during the (a) and adding, in its place, the words
‘‘General.’’ to newly designated
suspension period even though the ‘‘Except as otherwise provided in
paragraph (a), removing the word
amount of tax due is zero. paragraph (b) of this section, special’’,
‘‘Importers’’ at the beginning of the first
* * * * * sentence of newly designated paragraph and adding a new paragraph (b) before
■ 52. Section 26.211 is revised to read (a) and adding, in its place, the words the section authority citation to read as
as follows: ‘‘Except as otherwise provided in follows:
§ 26.211 Warehouse receipts covering
paragraph (b) of this section, importers’’, § 31.21 Basis of tax.
distilled spirits. and adding a new paragraph (b) before
* * * * *
the section authority citation to read as
The sale of warehouse receipts for (b) Suspension of tax. During the
follows:
distilled spirits is equivalent to the sale period from July 1, 2005, through June
of distilled spirits. Accordingly, except § 27.30 Special (occupational) tax. 30, 2008, the rate of the tax described
during the suspension period described * * * * * in paragraph (a) of this section is zero.
in § 26.210(b), every person bringing (b) Suspension of tax. During the However, liquor dealers must register by
distilled spirits into the United States period from July 1, 2005, through June filing the special tax return on Form
from the Virgin Islands, who sells, or 30, 2008, the rate of the tax described 5630.5 during the suspension period
offers for sale, warehouse receipts for in paragraph (a) of this section is zero. even though the amount of tax due is
distilled spirits stored in warehouses, or However, the persons described in zero. During the suspension period, as
elsewhere, incurs liability to special tax paragraph (a) of this section must at other times, the special tax return is
as a dealer in liquors at the place where register by filing the special tax return due on or before commencement of
such warehouse receipts are sold, or on Form 5630.5, in accordance with part business and on or before July 1 of each
offered for sale, and must file return and 31 of this chapter, during the year thereafter.
pay occupational tax as provided in suspension period even though the * * * * *
§ 26.210(a). During the suspension amount of tax due is zero. ■ 59. Section 31.23 is revised to read as
period, every such person must register * * * * * follows:
as provided in § 26.210(b).
■ 56. Section 27.31 is revised to read as
(68A Stat. 618, 620, 621; 26 U.S.C. 5111, follows: § 31.23 Retail dealer in liquors.
5112, 5121, 5122) (a) General. Every person who sells or
§ 27.31 Warehouse receipts covering offers for sale distilled spirits, wines, or
■ 53. Section 26.307 is amended by distilled spirits.
designating the existing text as beer to any person other than a dealer
The sale of warehouse receipts for is, except as provided in paragraph (b)
paragraph (a), adding the heading distilled spirits is equivalent to the sale
‘‘General.’’ to newly designated of this section, a retail dealer in liquors.
of distilled spirits. Accordingly, except Except during the suspension period
paragraph (a), removing the word ‘‘Any’’ during the suspension period described
at the beginning of the first sentence of described in § 31.21(b), every retail
in § 27.30(b), every person engaged in dealer in liquors shall pay special tax at
newly designated paragraph (a) and business as an importer of distilled
adding, in its place, the words ‘‘Except the rate specified in § 31.101 for such
spirits, who sells, or offers for sale, dealer, unless such dealer is exempt
as otherwise provided in paragraph (b) warehouse receipts for distilled spirits
of this section, any’’, and adding a new from such special tax as provided in
stored in customs bonded warehouses, paragraph (c) of this section. During the
paragraph (b) to read as follows: or elsewhere, incurs liability to special suspension period described in
§ 26.307 Special tax. tax as a dealer in liquors at the place § 31.21(b) when no tax is due, the dealer
* * * * * where the warehouse receipts are sold must register by filing the special tax
(b) Suspension of tax. During the or offered for sale, and must file return return, Form 5630.5.
period from July 1, 2005, through June and pay occupational tax as provided in (b) Persons not deemed to be retail
30, 2008, the rate of the tax described § 27.30(a). During the suspension dealers in liquors. The following
in paragraph (a) of this section is zero. period, every such person must register persons are not deemed to be retail
However, any person described in as provided in § 27.30(b). dealers in liquors within the meaning of
paragraph (a) of this section must (68A Stat. 618, 620, 621; 26 U.S.C. 5111, 26 U.S.C. chapter 51, and are not
register by filing the special tax return 5112, 5121, 5122) required to pay special tax (or to register

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
62248 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations

during the suspension period described (2) A person who only sells or offers Form 5630.5, in accordance with
in § 31.21(b)) as such dealer: for sale distilled spirits, wines, or beer § 31.21(b).
(1) A retail dealer in beer as defined as provided in §§ 31.188 through 31.190 (b) Persons not deemed to be retail
in § 31.25, or § 31.192, or dealers in beer. The following persons
(2) A limited retail dealer as specified (3) A person returning liquors for are not deemed to be retail dealers in
in § 31.27, or credit, refund, or exchange as provided beer within the meaning of 26 U.S.C.
(3) A person who only sells or offers in § 31.193. chapter 51, and are not required to pay
for sale distilled spirits, wines, or beer (c) Persons exempt from special tax. a special tax (or to register during the
as provided in § 31.188 through § 31.190 (1) The following persons are exempt suspension period described in
or § 31.191(a). from special tax (and from registration § 31.21(b)) as such dealer:
(c) Persons exempt from special tax. during the suspension period described (1) A limited retail dealer as specified
The following persons are exempt from in § 31.21(b)) as wholesale dealers in in § 31.27, or
special tax (and from registration during liquors: (2) A person who only sells or offers
the suspension period described in (i) A retail dealer in liquors who for sale beer, but not distilled spirits or
§ 31.21(b)) as retail dealers in liquors: consummates sales of distilled spirits, wines, as provided in § 31.188 through
(1) A wholesale dealer in liquors beer or wine, or any combination § 31.189 or § 31.191(a).
selling or offering for sale distilled thereof, to a limited retail dealer at the (c) Persons exempt from special tax.
spirits, wines, or beer, whether to place where such retail dealer in liquors The following persons are exempt from
dealers or persons other than dealers, at has paid the special tax (or has special tax (and from registration during
any place where such wholesale dealer registered during the suspension period the suspension period described in
in liquors is required to pay special tax described in § 31.21(b)) as such dealer § 31.21(b)) as retail dealers in beer:
(or to register during the suspension for the current tax year, (1) A wholesale dealer in beer selling
period described in § 31.21(b)) as such
(ii) A retail dealer in beer who, having or offering for sale beer, but not distilled
dealer.
paid the special tax (or having registered spirits or wines, whether to dealers or
(2) A wholesale dealer in beer selling
during the suspension period described persons other than dealers, at any place
or offering for sale beer only, whether to
in § 31.21(b)) as such dealer for the where such wholesale dealer in beer is
dealers or persons other than dealers, at
current tax year, consummates sales at required to pay special tax (or to register
any place where such wholesale dealer
his place of business of beer to a limited during the suspension period described
in beer is required to pay special tax (or
retail dealer, or in § 31.21(b)) as such dealer.
to register during the suspension period
described in § 31.21(b)) as such dealer, (iii) A person who is exempt from (2) A person who is exempt from
or such tax under the provisions of special tax under the provisions of
(3) A person who is exempt from §§ 31.181 through 31.184. §§ 31.181, 31.184, 31,187, or 31.187a.
special tax under the provisions of (2) A wholesale dealer in liquors who (72 Stat. 1340, 1343, 1344; 26 U.S.C.
§§ 31.181–31.184, 31.187, or 31.187a. has paid the special tax (or has 5113, 5121, 5122)
registered during the suspension period
(72 Stat. 1340, 1343, 1344; 26 U.S.C. described in § 31.21(b)) as such dealer at ■ 62. Section 31.26 is revised to read as
5113, 5121, 5122) the place or places from which he follows:
■ 60. Section 31.24 is revised to read as conducts his selling operations is § 31.26 Wholesale dealer in beer.
follows: exempt from additional special tax (or
from additional registration during the (a) General. Every person who sells or
§ 31.24 Wholesale dealer in liquors. suspension period described in offers for sale beer, but not distilled
(a) General. Every person who sells or § 31.21(b)) on account of his sales of spirits or wines, to another dealer is,
offers for sale distilled spirits, wines, or beer or wines to other dealers at the except as provided in paragraph (b) of
beer to another dealer is, except as places of business of such dealers. this section, a wholesale dealer in beer.
provided in paragraph (b) of this Except during the suspension period
section, a wholesale dealer in liquors. (Sec. 201, Pub. L. 85–859, 72 Stat. 1340, described in § 31.21(b), every wholesale
Except during the suspension period as amended, 1344, as amended; sec. dealer in beer is required to pay special
described in § 31.21(b), every wholesale 1905, Pub. L. 94–455, 90 Stat. 1819 (26 tax at the rate specified in § 31.101 for
dealer in liquors is required to pay U.S.C. 5111, 5112, 5113, 5123)) such dealer, unless such dealer is
special tax at the rate specified in ■ 61. Section 31.25 is revised to read as exempt from such special tax as
§ 31.101 for such dealer, unless such follows: provided in paragraph (c) of this
dealer is exempt from such special tax section. During the suspension period
as provided in paragraph (c) of this § 31.25 Retail dealer in beer. when no tax is due, the dealer must
section. During the suspension period (a) General. Every person who sells or register by filing the special tax return,
when no tax is due, the dealer must offers for sale beer, but not distilled Form 5630.5, in accordance with
register by filing the special tax return, spirits or wines, to any person other § 31.21(b).
Form 5630.5, in accordance with than a dealer is, except as provided in (b) Persons not deemed to be
§ 31.21(b). paragraph (b) of this section, a retail wholesale dealers in beer. The following
(b) Persons not deemed to be dealer in beer. Except during the persons are not deemed to be wholesale
wholesale dealers in liquors. The suspension period described in dealers in beer within the meaning of 26
following persons are not deemed to be § 31.21(b), every retail dealer in beer U.S.C. chapter 51, and are not required
wholesale dealers in liquors within the shall pay special tax at the rate specified to pay special tax (or to register during
meaning of 26 U.S.C. chapter 51, and in § 31.101 for such dealer, unless such the suspension period described in
are not required to pay special tax (or dealer is exempt from such special tax § 31.21(b)) as such dealer:
to register during the suspension period as provided in paragraph (c) of this (1) A person who only sells or offers
described in § 31.21(b)) as such dealer: section. During the suspension period for sale beer, but not distilled spirits or
(1) A wholesale dealer in beer as when no tax is due, the dealer must wines, as provided in § 31.188 through
defined in § 31.26, register by filing the special tax return, § 31.189 or § 31.192, or

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 62249

(2) A person returning beer for credit, (3) Purchases liquors for members § 31.35 Warehouse receipts covering
refund or exchange as provided in without prior agreement concerning spirits.
§ 31.193. payment therefor and such organization The sale of warehouse receipts for
(c) Persons exempt from special tax. subsequently recoups. distilled spirits is equivalent to the sale
(1) The following persons are exempt (b) Special tax payment or registration of distilled spirits. Accordingly, except
from special tax (and from registration is not required if money is collected in during the suspension period described
during the suspension period described advance from members for the purchase in § 31.21(b), every person who sells or
in § 31.21(b)) as wholesale dealers in of liquors, or money is advanced for offers for sale warehouse receipts for
beer: purchase of liquors on agreement with spirits held or stored in a distilled
(i) A retail dealer in liquors who the members for reimbursement. spirits plant, customs bonded
consummates sales of distilled spirits, (72 Stat. 1340, 1343, 1344; 26 U.S.C. warehouse, or elsewhere, is required to
beer or wine, or any combination 5111, 5121, 5122) file a special tax return and pay special
thereof, to a limited retail dealer at the tax as a wholesale dealer in liquors, or
place where such retail dealer in liquors § 31.30 [Amended] as a retail dealer in liquors, as the case
has paid the special tax (or has ■ 64. Section 31.30 is amended by may be, at the place where such
registered during the suspension period adding at the end before the period the warehouse receipts are sold, or offered
described in § 31.21(b)) as such dealer words ‘‘or shall register during the for sale, unless exempt by the
for the current tax year, suspension period as provided in provisions of subpart L of this part.
(ii) A retail dealer in beer who § 31.21(b)’’. During the suspension period, such
consummates sales of beer to a limited persons must register as provided in
■ 65. Section 31.31 is amended by
dealer at the place where such retail § 31.21(b).
designating the existing text as
dealer in beer has paid the special tax (72 Stat. 1340, 1343; 26 U.S.C. 5111,
paragraph (a), adding the heading
(or has registered during the suspension 5121)
‘‘General.’’ to newly designated
period described in § 31.21(b)) as such
paragraph (a), and adding a new ■ 70. Section 31.51 is revised to read as
dealer for the current tax year, or
(iii) A person who is exempt from paragraph (b) before the section follows:
such tax under the provisions of authority citation to read as follows:
§ 31.51 Special tax liability incurred at
§§ 31.181 and 31.184. § 31.31 States, political subdivisions each place of business.
(2) A wholesale dealer in beer who thereof, or the District of Columbia. Except as provided in §§ 31.31 and
has paid the special tax (or has * * * * * 31.181 through 31.193, payment of
registered during the suspension period (b) Suspension of tax. During the special tax (or registration during the
described in § 31.21(b)) as such dealer at suspension period described in suspension period as provided in
the place, or places, from which he § 31.21(b) when no tax is due, the § 31.21(b)) is required for each and
conducts his selling operations is States, their political subdivisions, and every place where distilled spirits,
exempt from additional special tax (or the District of Columbia must register wines, or beer are sold or offered for
from additional registration during the only once per tax year by filing a special sale: Provided, That the term ‘‘place’’ as
suspension period described in tax return, Form 5630.5, in accordance used in this section means the entire
§ 31.21(b)) on account of his sales of with § 31.21(b). office, plant or area of the business in
beer to other dealers at the places of any one location under the same
* * * * *
business of such dealers. proprietorship; and passageways,
(Sec. 201, Pub. L. 85–859, 72 Stat. 1340, § 31.32 [Amended] streets, highways, rail crossings,
as amended, 1344, as amended; sec. ■ 66. Section 31.32 is amended by waterways, or partitions dividing the
1905, Pub. L. 94–455, 90 Stat. 1819 (26 adding at the end before the period the premises shall not be deemed sufficient
U.S.C. 5111, 5112, 5113, 5123)) words ‘‘or shall register during the separation to require the payment of
suspension period as provided in additional special tax (or to require
■ 63. Section 31.29 is revised to read as
§ 31.21(b)’’. additional registration), if the various
follows:
divisions are otherwise contiguous.
§ 31.29 Clubs or similar organizations. § 31.33 [Amended]
(72 Stat. 1347; 26 U.S.C. 5143)
(a) Subject to paragraph (b) of this ■ 67. In § 31.33:
section, a club or similar organization ■ a. Amend the heading of paragraph (a) § 31.53 [Amended]
shall pay special tax (or register during by removing the word ‘‘liability’; and ■ 71. The second sentence of § 31.53 is
the suspension period as provided in ■ b. Amend the text of paragraph (a) by
amended by adding after the words
§ 31.21(b)) if such club or organization: removing the word ‘‘liability’’ and ‘‘special tax stamp’’ the words ‘‘(or for
(1) Furnishes liquors to members adding, in its place, the words which he has registered during the
under conditions constituting sale ‘‘payment (or registration during the suspension period described in
(including the acceptance of orders suspension period as provided in § 31.21(b) when no tax is due and no
therefor, furnishing the liquors ordered § 31.21(b))’’, and by removing the word special tax stamp is issued)’’ and adding
and collecting the price thereof); or ‘‘incurred’’ and adding, in its place, the after the words ‘‘exempt from special
(2) Conducts a bar for the sale of word ‘‘required’’. tax,’’ the words ‘‘or registration’’.
liquors on the occasion of an outing, ■ 72. Section 31.54 is revised to read as
§ 31.34 [Amended]
picnic, or other entertainment, unless follows:
the club is a ‘‘limited retail dealer’’ ■ 68. Section 31.34 is amended by
under § 31.27 (the special tax stamp or adding after the words ‘‘pay special § 31.54 Places of storage; deliveries
registration of the proprietor of the tax,’’ the words ‘‘(or register during the therefrom.
premises where the bar is located will suspension period as provided in Special tax is not required to be paid
not relieve the club or organization from § 31.21(b))’’. (and registration under § 31.21(b) is not
its own special tax payment or ■ 69. Section 31.35 is revised to read as required) for warehouses and similar
registration); or follows: places which are used by dealers merely

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
62250 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations

for the storage of liquors and are not occurred. These commercial records ■ 79. Section 31.72 is amended by
places where orders for liquors are must be available to TTB officers upon revising paragraph (b) to read as follows:
accepted. Where orders for liquors are request.
received and duly accepted at a place § 31.72 Dealer in beer and dealer in liquors
(26 U.S.C. 5121, 5122, 5143, 5555, 6806, at the same location.
where the dealer holds the required 7011)
special tax stamp (or for which the * * * * *
dealer has registered during the § 31.56 [Amended]
(b) Rule in effect on January 1, 1988,
suspension period described in and thereafter. Any person who pays
■ 74. In § 31.56, the second sentence is special tax (or who registers during the
§ 31.21(b) when no special tax stamp is amended by adding after the words
issued), the subsequent actual delivery suspension period as provided in
‘‘pay special tax’’ the words ‘‘(or to § 31.21(b)) as a retail dealer in beer for
of the liquors from a place of storage register during the suspension period as
does not require the payment of special a period beginning on or after January
provided in § 31.21(b))’’. 1, 1988, (including one who pays such
tax (or registration) at such place of
storage. Except as provided in §§ 31.185 § 31.57 [Amended] tax under the transition rule of
and 31.186, a dealer holding a special ■ 75. In § 31.57: § 31.103(b)) is exempt from additional
tax stamp (or having registered during ■ a. The first sentence is amended by special tax (or from additional
the suspension period) at a given place, adding after the word ‘‘stamp’’ the registration during the suspension
who makes actual delivery of liquors words ‘‘(or one registration during the period) as a retail dealer in liquors with
from a warehouse at another place, suspension period described in respect to sales of distilled spirits or
without prior constructive delivery by § 31.21(b) when no tax is due and no wine at the place and during the period
the acceptance of an order therefor at special tax stamp is issued)’’; and for which the tax was paid (or
the place covered by the special tax ■ b. The second sentence is amended by registration was completed) as a retail
stamp (or by registration during the adding at the end before the period the dealer in beer. Similarly, any person
suspension period), shall pay special tax words ‘‘, or shall register only once per who pays special tax (or who registers
(or shall register during the suspension tax year during the suspension period in during the suspension period as
period as provided in § 31.21(b)) at the accordance with § 31.21(b)’’. provided in § 31.21(b)) as a wholesale
place where ownership of the liquors is dealer in beer for a period beginning on
§ 31.58 [Amended] or after January 1, 1988, (including one
transferred.
■ 76. In § 31.58: who pays such tax under the transition
(72 Stat. 1340, 1347; 26 U.S.C. 5113, ■ a. The first sentence is amended by rule of § 31.103(b)) is exempt from
5143) adding at the end before the period the additional special tax (or from
■ 73. Section 31.55 is revised to read as words ‘‘, or shall register only once per additional registration during the
follows: tax year during the suspension period suspension period) as a wholesale
described in § 31.21(b)’’; dealer in liquors with respect to sales of
§ 31.55 Caterers.
■ b. The third sentence is amended by distilled spirits or wine at the place and
(a) General. Where a contract to adding at the end before the period the during the period for which the tax was
furnish liquors is made by a caterer at words ‘‘, or shall register only once per paid (or registration was completed) as
his place of business where he holds a tax year during the suspension period in a wholesale dealer in beer.
special tax stamp (or for which he has accordance with § 31.21(b)’’.
registered during the suspension period * * * * *
described in § 31.21(b)), no payment of § 31.59 [Amended] ■ 80. Section 31.91 is revised to read as
special tax (or registration during the follows:
■ 77. In § 31.59:
suspension period) is required by the ■ a. The first sentence is amended by § 31.91 Liability of partners.
serving of the liquors at a different adding after the words ‘‘special tax’’ the Any number of persons carrying on
location. words ‘‘(or shall register only once per
(b) Additional liability. Where the one business in partnership at any one
tax year during the suspension period place during any tax year shall be
contract of a caterer provides for the sale described in § 31.21(b))’’; and
of liquors by the drink at a place, or required to pay but one special tax (or
■ b. The second sentence is amended by
simultaneously at different places, other to register but once during the
adding after the words ‘‘special tax’’ the
than his place of business where he suspension period as provided in
words ‘‘(or shall register only once per
holds a special tax stamp (or for which § 31.21(b)) for such business.
tax year during the suspension period in
he has registered during the suspension accordance with § 31.21(b))’’. (72 Stat. 1347; 26 U.S.C. 5143)
period described in § 31.21(b)), a ■ 78. Section 31.71 is amended by ■ 81. Section 31.92 is revised to read as
separate payment of special tax (or designating the existing text as follows:
registration during the suspension paragraph (a), adding the heading
period) is required for each such place. ‘‘General.’’ to newly designated § 31.92 Addition of partners or
(c) Records. Caterers must maintain incorporation of partnership.
paragraph (a), and adding a new
sufficient commercial records to verify paragraph (b) before the section Except during the suspension period
that their special (occupational) tax authority citation to read as follows: described in § 31.21(b), where a number
liabilities (or registration obligations of persons who have paid special tax as
during the suspension period described § 31.71 Different businesses of same partners admit one or more new
in § 31.21(b)) have been satisfied for all ownership and location. members to the firm or form a
locations at which activities subject to * * * * * corporation (a separate legal entity) to
special (occupational) tax or registration (b) Suspension of tax. The person take over the business, the new firm or
occur. These commercial records should must register for each business during corporation shall pay special tax before
indicate the names and addresses of the suspension period as provided in commencing business. During the
locations at which alcoholic beverages § 31.21(b) when no tax is due, except as suspension period described in
have been sold or offered for sale and provided in §§ 31.24 and 31.26. § 31.21(b), the new firm or corporation
the dates and times that such activities * * * * * must register as a new dealer.

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 62251

(72 Stat. 1340, 1343; 26 U.S.C. 5111, § 31.104 [Amended] paid or for which registration is being
5121) ■ 86. In § 31.104: made during the suspension period
■ a. The first sentence is amended by described in § 31.21(b). The original of
■ 82. Section 31.93 is revised to read as the list shall be filed with TTB in
follows: adding after the words ‘‘payment of’’ the
word ‘‘applicable’’; accordance with instructions on the
§ 31.93 Formation of a partnership by two ■ b. The first sentence is further return, and the copy shall be retained at
dealers. amended by adding after the words the taxpayer’s principal place of
Except during the suspension period ‘‘shall file a Form 5630.5 with’’ the business (or principal office, in the case
described in § 31.21(b), where two word ‘‘applicable’’; of a corporate taxpayer) for the period
persons, each holding a special tax ■ c. The second sentence is amended by specified in § 31.237.
stamp for a business carried on by adding after the words ‘‘subject to * * * * *
himself, form a partnership, the firm special tax’’ the words ‘‘(or required to
register during the suspension period § 31.109 [Amended]
shall pay special tax to cover the
business conducted by the partnership. described in § 31.21(b))’’; ■ 89. In § 31.109, paragraph (a) is
During the suspension period described ■ d. The second sentence is further amended:
in § 31.21(b), if two registered dealers amended by adding after the words ■ a. At the beginning of the first
form a partnership, the firm must ‘‘payment of’’ the word ‘‘applicable’’; sentence, by removing the word ‘‘Any’’
register as a new dealer. and and adding, in its place, the words
■ e. The third sentence is amended by ‘‘Except during the suspension period
(72 Stat. 1340, 1343; 26 U.S.C. 5111, adding after the words ‘‘return and’’ the described in § 31.21(b), any’’; and
5121) word ‘‘applicable’’. ■ b. By adding the following new
§ 31.94 [Amended] sentence to the end of the paragraph:
§ 31.104a [Amended] ‘‘During the suspension period, a failure
■ 83. Section 31.94 is amended: ■ 87. Section 31.104a is amended by to file a return may result in a penalty
■ a. In the second sentence, by adding adding after the words ‘‘remittance of’’ under 26 U.S.C. 5603(b).’’
after the word ‘‘However,’’ the words the word ‘‘applicable’’. ■ 90. Section 31.121 is amended by
‘‘except during the suspension period ■ 88. Section 31.106 is amended by revising paragraph (a) to read as follows:
described in § 31.21(b),’’; and revising paragraphs (a), (b)(5), and (c) to
■ b. By adding the following new read as follows: § 31.121 Issuance of stamps.
sentence to the end of the paragraph: (a) Issuance—(1) General. Except as
‘‘During the suspension period, the § 31.106 Special tax returns. otherwise provided in paragraph (a)(2)
remaining partner or partners must file (a) General. Special tax shall be paid of this section, upon filing a return
a new registration on Form 5630.5 by return, and the filing of a return is properly executed on Form 5630.5,
within 30 days after the change in required for registration purposes even together with a remittance in the
control.’’ though no tax is due during the applicable full amount due, the taxpayer
■ 84. In § 31.101, paragraph (b) is suspension period described in will be issued an appropriately
amended by designating the existing § 31.21(b). The prescribed return is TTB designated stamp. Special tax stamps
text as paragraph (b)(1), adding the Form 5630.5, Special Tax Registration will not be issued in the case of a return
heading ‘‘General.’’ to newly designated and Return. Special tax returns, with covering liability for a past period.
paragraph (b)(1), and adding a new payment of tax, shall be filed with TTB (2) Exception for suspension period.
paragraph (b)(2) before the section in accordance with instructions on the During the suspension period described
authority citation to read as follows: form. in § 31.21(b) when registration is
(b) * * * required but no tax is due, a special tax
§ 31.101 Special tax rates. (5) The class(es) of special tax to stamp will not be issued.
* * * * * which the taxpayer is subject or to * * * * *
(b) * * * which the return relates during the
■ 91. The heading and text of § 31.124
(2) Rate during suspension period. suspension period described in
are revised to read as follows:
During the suspension period described § 31.21(b).
in § 31.21(b), the special (occupational) * * * * * § 31.124 Passenger trains, aircraft, and
tax rate for all dealers in liquor or beer (c) Multiple locations and/or classes vessels.
is zero. of tax. A taxpayer subject to special tax, (a) Issuance of stamps—(1) Except as
* * * * * or required to register during the otherwise provided in paragraph (a)(2)
suspension period described in of this section, special tax stamps may
■ 85. Section 31.102 is revised to read
§ 31.21(b), for the same period at more be issued in general terms ‘‘in the
as follows: than one location or for more than one United States’’ to persons who will
§ 31.102 Date special tax is due. class of tax shall— carry on the business of retail dealers in
(1) File one special tax return, TTB liquors or retail dealers in beer, on
Except during the suspension period
Form 5630.5, with payment of trains, aircraft, boats or other vessels,
described in § 31.21(b), special taxes
applicable tax, to cover all such engaged in the business of carrying
shall be paid on or before July 1 of each
locations and classes of tax; and passengers. If sales of liquors are made
year, or before engaging in business.
(2) Prepare, in duplicate, a list at the same time on two or more
During the suspension period when no
identified with the taxpayer’s name, passenger carriers, a special tax stamp
tax is due, dealers must register by filing
address (as shown on TTB Form shall be obtained for each such carrier.
the special tax return, Form 5630.5,
5630.5), employer identification However, a dealer may transfer any such
before commencement of business and
number, and period covered by the stamp from one passenger carrier to
on or before July 1 of each year
return. The list shall show, by States, another on which he conducts his
thereafter.
the name, address, and tax class of each business, without registering the
(72 Stat. 1346; 26 U.S.C. 5142) location for which special tax is being transfer with TTB, and he may conduct

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
62252 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations

such business throughout the passenger special tax stamp for each such boat or § 31.127 Retail dealers ‘‘At Large.’’
carrying train, aircraft, boat or other vessel, and shall, in addition to the * * * * *
vessel, to which the stamp is information required above to be (b) Suspension of tax. During the
transferred. specified on the Form 5630.5 or suspension period described in
(2) During the suspension period attachment, specify on the Form 5630.5 § 31.21(b), the requirements of
described in § 31.21(b) when no tax is the number of supply boats or vessels paragraph (a) of this section will apply
due, dealers operating on trains, aircraft, for which special tax is being paid (or except with regard to the payment of
and vessels must register as provided in for which registration is being made special (occupational) tax and the
paragraph (b) of this section, but no during the suspension period described issuance of special tax stamps.
special tax stamps will be issued. in § 31.21(b)). A dealer may transfer any * * * * *
(b) Filing of Form 5630.5 and such stamp from any boat or vessel on
payment of tax. A person subject to which he discontinues such sales to any § 31.131 [Amended]
special tax (or to registration during the other boat or vessel on which he
suspension period described in ■ 95. Section 31.131 is amended at the
proposes to conduct such business, beginning by removing the word ‘‘A’’
§ 31.21(b)) on one or more passenger without registering the transfer with
carriers shall file one Form 5630.5, and adding, in its place, the words
TTB. If the taxpayer operates from two ‘‘Except during the suspension period
prepared in the manner prescribed in or more fixed addresses, he shall
§ 31.106(b), with payment of applicable described in § 31.21(b) when no special
prepare, as required by § 31.106(c), one tax stamps are issued, a’’.
tax in accordance with § 31.101, to tax return, Form 5630.5, to cover all
cover all such carriers and shall specify such addresses and shall, in addition, § 31.136 [Amended]
on the Form 5630.5 the number of show on the attachment to the Form
passenger carriers for which special tax ■ 96. Section 31.136 is amended:
5630.5 the number of stamps to be ■ a. In the first sentence, by adding after
is being paid (or for which registration procured for supply boats or vessels
is being completed). the words ‘‘paid special tax’’ the words
operating from each address. On receipt ‘‘(or filed a return as a registration
(Sec. 201, Pub. L. 85–859, 72 Stat. 1344 of the special tax stamps, the taxpayer during the suspension period described
as amended, 1347 as amended (26 shall designate an appropriate number in § 31.21(b))’’;
U.S.C. 5123, 5143)) of stamps for each location and shall ■ b. Also in the first sentence, by
■ 92. Section 31.125 is revised to read type thereon the trade name, if different removing the word ‘‘taxable’’ and
as follows: from the name in which the stamp was adding, in its place, the word ‘‘tax’’; and
issued, and the fixed address of the ■ c. Also in the first sentence, by adding
§ 31.125 Carriers not engaged in
passenger service.
business conducted at the location for after the words ‘‘for the total’’ the word
which the stamps are designated. He ‘‘applicable’’.
Except as provided in § 31.126, the
shall then forward the stamps to the ■ 97. In § 31.151, paragraph (a) is
retailing of liquor on any railroad train,
place of business designated on the amended:
aircraft, or boat that is not engaged in
stamps. The taxpayer shall enter on ■ a. By designating the existing text as
the business of carrying passengers is
each stamp received for retailing liquors paragraph (a)(1);
prohibited.
on supply boats or vessels, immediately ■ b. In the first sentence of newly
(72 Stat. 1344, 1347; 26 U.S.C. 5123, after the occupational tax classification, designated paragraph (a)(1), by
5143) the phrase ‘‘on supply boats’’ and in the removing the word ‘‘A’’ and adding, in
■ 93. The heading and text of § 31.126 lower margin the notation, ‘‘Covers its place, the words ‘‘Subject to
are revised to read as follows: supplying exclusively of boats or paragraph (a)(2) of this section, a’’;
vessels, or persons thereon, at the Port ■ c. Also in the first sentence of newly
§ 31.126 Supply boats or vessels. (or Harbor) of’’ followed by the name of designated paragraph (a)(1), by
(a) General. Subject to paragraph (b) such port or harbor. removing the words ‘‘taxable period’’
of this section, special tax stamps may and adding, in their place, the words
(b) Suspension of tax. During the
be issued to persons carrying on the ‘‘tax year’’;
business of a retail dealer in liquor or suspension period described in
§ 31.21(b), the requirements of ■ d. Also in the first sentence of newly
a retail dealer in beer on supply boats designated paragraph (a)(1), by adding
or vessels operated by them, when such paragraph (a) of this section will apply
except with regard to the payment of after the words ‘‘for which special tax
persons operate from a fixed address in was paid’’ the words ‘‘(or for which
a port or harbor and supply exclusively special (occupational) tax and the
issuance of special tax stamps. registration was completed during the
boats or other vessels, or persons suspension period described in
thereon, at such port or harbor. Any (72 Stat. 1344, 1347; 26 U.S.C. 5123, § 31.21(b))’’;
person desiring to obtain a special tax 5143) ■ e. Also in the first sentence of newly
stamp for such business shall file Form designated paragraph (a)(1), by
5630.5, prepared in the manner ■ 94. Section 31.127 is amended by removing the words ‘‘and stated on the
prescribed in § 31.106(b), with any revising the section heading, special tax stamp,’’; and
required remittance, and shall specify designating the existing text as ■ f. By adding a new paragraph (a)(2) to
on the Form 5630.5, or on an attachment paragraph (a), adding the heading read as follows:
thereto: that the business will consist of ‘‘General.’’ to newly designated
supplying exclusively boats, vessels, or paragraph (a), removing the word ‘‘A’’ at § 31.151 Amended return, Form 5630.5;
persons thereon; the name of the port or the beginning of the first sentence of endorsement on stamp.
harbor at which the business is to be newly designated paragraph (a) and (a) * * *
carried on; and the fixed address from adding, in its place, the words ‘‘Subject (2) If the change of location occurs
which operations are to be conducted— to paragraph (b) of this section, a’’, and during the suspension period described
Provided, That where such sales are to adding a new paragraph (b) before the in § 31.21(b) when no tax is due and no
be made from two or more supply boats section authority citation to read as special tax stamp is issued, the
or vessels, the dealer shall obtain a follows: requirements of paragraph (a)(1) of this

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 62253

section still apply, except with regard to registered during the suspension period paragraph (a), removing the word ‘‘A’’ at
surrendering the special tax stamp. described in § 31.21(b)), the new the beginning of the first sentence of
* * * * * corporation shall pay special tax (or newly designated paragraph (a) and
■ 98. Section 31.152 is amended by shall register during the suspension adding, in its place, the words ‘‘Except
designating the existing text as period) in its own name. as otherwise provided in paragraph (b)
paragraph (a), removing the word ‘‘A’’ at (72 Stat. 1340, 1343; 26 U.S.C. 5111, of this section, a’’, and adding a new
the beginning of the first sentence of 5121) paragraph (b) before the section
newly designated paragraph (a) and authority citation to read as follows:
adding, in its place, the words, ‘‘Except § 31.164 [Amended]
§ 31.170 Failure to perfect right of
as otherwise provided in paragraph (b) ■ 102. Section 31.164 is amended by succession within 30 days.
of this section, a’’, removing the words adding after the words ‘‘tax stamp held’’ * * * * *
‘‘special tax stamp’’ in the first sentence the words ‘‘(or a registration completed (b) During the suspension period
of newly designated paragraph (a) and during the suspension period described described in § 31.21(b) when no tax is
adding, in their place, the words ‘‘Form in § 31.21(b))’’. due and no special tax stamp is issued,
5630.5, Special Tax Registration and a failure to register the succession may
Return,’’ and adding a new paragraph § 31.165 [Amended]
result in a penalty under 26 U.S.C.
(b) before the section authority citation ■ 103. Section 31.165 is amended by 5603(b).
to read as follows: adding after the words ‘‘paid the special * * * * *
§ 31.152 Failure to register change of
tax’’ the words ‘‘(or who has registered
address within 30 days. during the suspension period described § 31.181 [Amended]
in § 31.21(b))’’, and adding after the ■ 109. Section 31.181 is amended by
* * * * *
(b) During the suspension period words ‘‘additional special tax’’ the adding at the end before the period the
described in § 31.21(b) when no tax is words ‘‘(or to complete a new words ‘‘, or to the registration
due and no special tax stamp is issued, registration)’’. requirement during the suspension
a failure to register the change of § 31.166 [Amended] period described in § 31.21(b)’’.
address may result in a penalty under
■ 104. Section 31.166 is amended by § 31.182 [Amended]
26 U.S.C. 5603(b).
adding after the words ‘‘Additional ■ 110. Section 31.182 is amended:
* * * * * special tax’’ the words ‘‘(or additional ■ a. In the first sentence of paragraph
■ 99. Section 31.161 is amended by registration during the suspension (a), by adding after the words ‘‘pay
revising the second sentence to read as period described in § 31.21(b))’’. special tax’’ the words ‘‘(or to register
follows:
§ 31.167 [Amended] during the suspension period described
§ 31.161 Sale of business. in § 31.21(b))’’;
■ 105. Section 31.167 is amended by ■ b. In the second sentence of paragraph
* * * Where a change occurs in the
adding after the words ‘‘Additional (a), by adding after the words ‘‘exempt
proprietorship of a business for which
special tax’’ the words ‘‘(or additional from special tax’’ the words ‘‘or
special tax has been paid or for which
registration during the suspension registration’’;
registration has been completed during
period described in § 31.21(b))’’. ■ c. In the second sentence of paragraph
the suspension period described in
§ 31.21(b), the successor shall pay § 31.168 [Amended]
(b), by adding after the words ‘‘payment
special tax (or shall register during the of special tax’’ the words ‘‘(or from
■ 106. Section 31.168 is amended by registration during the suspension
suspension period) for such business, adding after the words ‘‘Additional
except as provided in § 31.169. period described in § 31.21(b))’’; and
special tax’’ the words ‘‘(or additional ■ d. In the last sentence of paragraph
* * * * * registration during the suspension (b), by adding after the words ‘‘tax shall
■ 100. Section 31.162 is revised to read period described in § 31.21(b))’’. be paid’’ the words ‘‘(or registration
as follows: shall be completed during the
§ 31.169 [Amended]
§ 31.162 Incorporation of business. suspension period described in
■ 107. Section 31.169 is amended: § 31.21(b))’’.
Where an individual or a firm ■ a. In the introductory text, by
engaged in business requiring payment removing the words ‘‘other than the § 31.183 [Amended]
of special tax (or requiring registration special taxpayer’’;
during the suspension period described ■ 111. Section 31.183 is amended:
■ b. Also in the introductory text, by ■ a. In the first sentence of paragraph
in § 31.21(b)) forms a corporation to take removing the words ‘‘taxable period’’ (a), by adding after the words ‘‘pay
over and conduct the business, the and adding, in their place, the words special tax’’ the words ‘‘(or to register
corporation (a separate legal entity) ‘‘tax year’’; during the suspension period described
shall pay special tax (or shall register ■ c. Also in the introductory text, by in § 31.21(b))’’;
during the suspension period) in its adding after the words ‘‘tax was paid’’ ■ b. In the second sentence of paragraph
own name. the words ‘‘, or for which registration (a), by adding after the words ‘‘exempt
(72 Stat. 1340, 1343; 26 U.S.C. 5111, was made during the suspension period from special tax’’ the words ‘‘or
5121) described in § 31.21(b)’’; and registration’’;
■ d. In the concluding text, by adding ■ c. In the second sentence of paragraph
■ 101. Section 31.163 is revised to read
as follows: after the words ‘‘the succession, and’’ (b), by adding after the words ‘‘exempt
the words ‘‘(except if the change of from special tax’’ the words ‘‘(or from
§ 31.163 New corporation. control occurs during the suspension registration during the suspension
Where a new corporation is formed to period described in § 31.21(b) when a period described in § 31.21(b))’’;
take over and conduct the business of special tax stamp is not issued)’’. ■ d. In the last sentence of paragraph
one or more corporations which have ■ 108. Section 31.170 is amended by (b), by adding after the words ‘‘tax shall
paid special tax (or which have designating the existing text as be paid’’ the words ‘‘(or registration

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1
62254 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations

shall be made during the suspension ■ b. Also in paragraph (a), by adding ■ 122. In § 31.211:
period described in § 31.21(b))’’; and after the words ‘‘additional special tax’’ ■ a. The introductory text of paragraph
■ e. In paragraph (c), by adding after the the words ‘‘or register’’; (a) is amended at the beginning by
words ‘‘pay special tax’’ the words ‘‘(or ■ c. In paragraph (b), by adding after the removing the word ‘‘It’’ and adding, in
to register during the suspension period words ‘‘paid the tax’’ the words ‘‘(or its place, the words ‘‘Except as
described in § 31.21(b))’’. who has registered during the otherwise provided in paragraphs (b)
suspension period described in and (c) of this section, it’’;
§ 31.183a [Amended] § 31.21(b))’’; and ■ b. Paragraph (b) is redesignated as
■ 112. Section 31.183a is amended: ■ d. Also in paragraph (b), by adding paragraph (c); and
■ a. In the first sentence of paragraph after the words ‘‘additional special tax’’ ■ c. A new paragraph (b) is added to
(a), by adding after the words the words ‘‘or register’’. read as follows:
‘‘(including such tax under the
transition rule of § 31.103(b))’’ the § 31.186 [Amended] § 31.211 Unlawful purchases of distilled
words ‘‘, and no such proprietor shall be ■ 115. Section 31.186 is amended by spirits.
required to register during the adding after the words ‘‘paid special * * * * *
suspension period described in tax’’ the words ‘‘(or who has registered (b) Suspension of tax. During the
§ 31.21(b),’’; during the suspension period described period of suspension of special
■ b. In the last sentence of paragraph (a), in § 31.21(b))’’, and adding after the (occupational) tax described in
by adding after the words ‘‘exempt from words ‘‘additional special tax’’ the § 31.21(b), it is unlawful for any dealer
special tax’’ the words ‘‘or registration’’; words ‘‘or register’’. to purchase distilled spirits for resale
■ c. In the second sentence of paragraph from any person other than:
(b), by adding after the words ‘‘exempt § 31.187 [Amended] (1) A wholesale dealer (including a
from special tax’’ the words ‘‘(or from ■ 116. Section 31.187 is amended by State, a political subdivision thereof, the
registration during the suspension adding after the words ‘‘pay special District of Columbia, and a distilled
period described in § 31.21(b))’’; tax,’’ the words ‘‘or to register during spirits plant) who is required to keep
■ d. In the last sentence of paragraph the suspension period described in records under §§ 31.221 through 31.233
(b), by adding after the words ‘‘tax shall § 31.21(b),’’. at the place where the distilled spirits
be paid’’ the words ‘‘(or registration are purchased;
shall be completed during the § 31.187a [Amended]
(2) A retail liquor store operated by a
suspension period described in ■ 117. Section 31.187a is amended by State, a political subdivision thereof, or
§ 31.21(b))’’; and adding at the end before the period the the District of Columbia; or
■ e. In paragraph (c), by adding after the words ‘‘, or to register during the (3) A person not required to register
words ‘‘pay special tax’’ the words ‘‘(or suspension period described in as a wholesale liquor dealer, as
to register during the suspension period § 31.21(b)’’. provided in §§ 31.188 through 31.190,
described in § 31.21(b))’’. § 31.192, and § 31.193.
§ 31.188 [Amended]
§ 31.184 [Amended] * * * * *
■ 118. In § 31.188, the concluding text is
■ 113. Section 31.184 is amended: amended by removing the comma after Dated: July 6, 2005.
■ a. In the first sentence of paragraph the words ‘‘pay special tax’’ and adding, John J. Manfreda,
(a), by adding after the words ‘‘pay in its place, the words ‘‘(or to register Administrator.
special tax’’ the words ‘‘(or to register during the suspension period described Approved: September 14, 2005.
during the suspension period described in § 31.21(b))’’. Timothy E. Skud,
in § 31.21(b))’’; Deputy Assistant Secretary (Tax, Trade, and
■ b. In the last sentence of paragraph (a), § 31.189 [Amended]
Tariff Policy).
by adding after the words ‘‘exempt from ■ 119. Section 31.189 is amended: [FR Doc. 05–21563 Filed 10–28–05; 8:45 am]
special tax’’ the words ‘‘or registration’’; ■ a. In the first sentence of the BILLING CODE 4810–31–P
■ c. In the second sentence of paragraph concluding text, by adding at the end
(b), by adding after the words ‘‘exempt before the period the words ‘‘or to
from special tax’’ the words ‘‘(or from register during the suspension period
registration during the suspension described in § 31.21(b)’’; and DEPARTMENT OF HOMELAND
period described in § 31.21(b))’’; ■ b. In the second sentence of the
SECURITY
■ d. In the last sentence of paragraph concluding text, by adding after the Coast Guard
(b), by adding after the words ‘‘tax shall words ‘‘pay special tax’’ the words ‘‘(or
be paid’’ the words ‘‘(or registration to register during the suspension period 33 CFR Part 117
shall be completed during the described in § 31.21(b))’’.
suspension period described in [CGD01–05–074]
§ 31.190 [Amended]
§ 31.21(b))’’; and
■ 120. Section 31.190 is amended by RIN 1625–AA09
■ e. In paragraph (c), by adding after the
words ‘‘pay special tax’’ the words ‘‘(or adding after the words ‘‘pay special tax’’ Drawbridge Operation Regulations:
to register during the suspension period the words ‘‘(or to register during the Saugus River, MA
described in § 31.21(b))’’. suspension period described in
§ 31.21(b))’’. AGENCY: Coast Guard, DHS.
§ 31.185 [Amended]
§ 31.191 [Amended] ACTION: Temporary final rule.
■ 114. Section 31.185 is amended:
■ a. In paragraph (a), by adding after the ■ 121. In § 31.191, paragraph (b) is SUMMARY: The Coast Guard has
words ‘‘paid special tax’’ the words ‘‘(or amended by adding after the words temporarily changed the drawbridge
who has registered during the ‘‘pay special tax’’ the words ‘‘(or shall operation regulations that govern the
suspension period described in register during the suspension period operation of the General Edwards SR1A
§ 31.21(b))’’; described in § 31.21(b))’’. Bridge, at mile 1.7, across the Saugus

VerDate Aug<31>2005 15:28 Oct 28, 2005 Jkt 208001 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 E:\FR\FM\31OCR1.SGM 31OCR1

Вам также может понравиться