PART II RULINGS AND DECISIONS UNDER THE INTERNAL REVENUE CODE OF 1939 AND OTHER PUBLIC LAWS, EXCEPT THOSE PERTAINING TO ALCOHOL, TOBACCO, AND FIREARMS TAXES SUBTITLE A.-TAXES SUBJECT TO THE JURISDICTION OF THE BOARD OF TAX APPEALS CHAPTER 1.-INCOME TAX SUBCHAPTER B.-GENERAL PROVISIONS PART IV.-ACCOUNTING PERIODS AND METHODS OF ACCOUNTING SECTION 45.-ALLOCATION OF INCOME AND Regulations 118, Section 39.45-1: Determina tion of the taxable net income of a con trolled taxpayer. Allocation of income and deductions among the members of a group of business entities owned or controlled by the same interests. See Rev. Rul. 67-79, page 117. PART V.-RETURNS AND PAYMENT OF TAX SECTION 55.-PUBLICITY OF RETURNS 26 CFR 458.324: Inspection of returns by committees of Congress other than those enumerated in section 55 (d) of the Internal Revenue Code of 1939. Inspection of certain returns for the years 1947 to 1968, inclusive, by the Committee on Government Operations, House of Representatives. See E.O. 11332, page 341. Inspection of certain returns for the years 1948 to 1966 inclusive, by the Senate Committee on Government Operations. See E.O. 11337, Page 541. PART III ALCOHOL AND TOBACCO TAX MATTERS SUBPART A.-ALCOHOL TAX RULINGS AND DECISIONS UNDER CHAPTER 51 OF THE INTERNAL REVENUE CODE OF 1954 AND THE FEDERAL ALCOHOL ADMINISTRATION ACT SUBTITLE E.-ALCOHOL, TOBACCO, AND CERTAIN OTHER EXCISE TAXES CHAPTER 51.-DISTILLED SPIRITS, WINES, AND BEER SUBCHAPTER C.-OPERATION OF DISTILLED SPIRITS PLANTS PART II-OPERATIONS ON BONDED PREMISES Subpart D.-Denaturation SECTION 5242.-DENATURING MATERIALS 26 CFR 212.16: Formula No. 1. Use of wood alcohol having a minimum specific gravity of 0.8072. See Rev. Rul. 67-82, below. 26 CFR 212.65: General. Use of wood alcohol having a minimum specific gravity of 0.8072. See Rev. Rul. 67-82, below. 26 CFR 212.96: Wood alcohol. (Also 212.16, 212.65.) Rev. Rul. 67-82 The Director, Alcohol and Tobacco Tax Division, has been requested to determine whether wood alcohol having a specific gravity lower than the minimum provided for in 26 CFR 212.96 may be used in production of specially denatured alcohol formula No. 1. The re quest was made in an effort to gain an increase in the yield of wood alcohol from production materials. Accordingly, samples of wood alcohol having a minimum specific gravity of 0.8072 were examined, and it has been determined that use of such alcohol would provide a degree of protection consistent with existing requirements. In view thereof, under the authority of 26 CFR 212.65 wood alcohol having the minimum specific gravity of 0.8072 at 15.56°/15.56° C. meeting all the other requirements of 26 CFR 212.96 may be used as provided by 26 CFR 212.16 in the production of SDA formula No. 1 and where the use of wood alcohol is otherwise required by internal revenue regulations. SUBCHAPTER F.-BONDED AND TAXPAID WINE PREMISES SECTION 5357.-PREMISES 26 CFR 240.163: Markings on fermenting and storage tanks. Rev. Rul. 67–83 The requirements of 26 CFR 240.163 would be satisfied by the use of signs made of cardboard to identify fermenting and storage tanks in a bonded wine cellar. The Internal Revenue Service has been asked whether the use of cardboard signs to identify fermenting and storage tanks on bonded wine cellar premises would satisfy the requirements of 26 CFR 240.163. The use of cardboard signs to identify fermenting and storage tanks on bonded wine cellar premises would satisfy the requirements of 26 CFR 240.163, provided the cardboard is of sufficient durability to withstand continued use and such signs are coated with a waterproofing material so that they will be protected from the elements and the accidental spillage of wine. A formula is not required for the addition of wine spirits to concentrated or unconcentrated juice. The Internal Revenue Service has been asked whether a formula is required under 26 CFR 240.482 for the addition of wine spirits to concentrated or unconcentrated juice. Under 26 CFR 240.482, a formula is required for the production of wine other than standard wine. However, 26 CFR 240.382 provides that concentrated or unconcentrated juice to which wine spirits have been added is not wine. Therefore, a formula is not required for the addition of wine spirits to concentrated or unconcentrated juice. 26 CFR 240.411: Addition of wine spirits. Requirements for the addition of wine spirits to concentrated or unconcentrated juice. See Rev. Rul. 67-84, page 410. 26 CFR 240.482: Formula required. Requirements for the addition of wine spirits to concentrated or unconcentrated juice. See Rev. Rul. 67-84, page 410. 26 CFR 240.524: Finishing of wine. (Also 240.1051, 240.1052.) Rev. Rul. 67-133 Copper sulfate may be used to clarify and stabilize grape wine and a clarifying agent composed of Bentonite, activated carbon, and copper sulfate may be used to clarify and stabilize grape wine, upon giving notice to and obtaining approval of the Assistant Regional Commissioner. Revenue Ruling 65-278, C.B. 1965-2, 513, and Revenue Ruling 66-229, C.B. 1966–2, 539, superseded. The Internal Revenue Service has been asked whether the limitations stated in Revenue Rulings 65-278 and 66-229 are intended to restrict the amount of copper sulfate or copper. Since the limitations are intended to apply to the amount of copper which may be added to the wine, the authorizations are restated. The use of copper sulfate as a clarifying agent to clarify and stabilize grape wine and a clarifying agent composed of Bentonite, activated carbon, and copper sulfate to clarify and stabilize grape wine are considered as being consistent with good commercial practice. However, the Bentonite and activated carbon must be used within the limitations of 26 CFR 240.1051 and the addition of copper, in the form of copper sulfate, may not exceed 0.5 ppm. of copper with a residual level not in excess of 0.2 ppm. of copper. Winemakers desiring to use these clarifying agents in the treatment of wine may obtain approval of the Assistant Regional Commissioner, Alcohol and Tobacco Tax, by filing a notice pursuant to the provisions of 26 CFR 240.1052. Revenue Ruling 65-278, C.B. 1965-2, 513, and Revenue Ruling 66229, C.B. 1966–2, 539, are hereby superseded. 26 CFR 240.1051: Materials authorized for treatment of wine. Use of clarifying agents to clarify and stabilize grape wine. See Rev. Rul. 67-133, above. |