Suspension of Special (Occupational) Tax (2004R-778P), 62238-62254 [05-21563]

Agencies

• Alcohol and Tobacco Tax and Trade Bureau
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 70, Number 209 (Monday, October 31, 2005)]
[Rules and Regulations]
[Pages 62238-62254]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-21563]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 17, 19, 24, 25, 26, 27, and 31

[T.D. TTB-36]
RIN 1513-AB04


Suspension of Special (Occupational) Tax (2004R-778P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Temporary rule; Treasury decision.

-----------------------------------------------------------------------

SUMMARY: In this temporary rule, the Alcohol and Tobacco Tax and Trade 
Bureau amends its regulations relating to special (occupational) tax, 
to reflect a 3-year tax suspension effected by section 246 of the 
American Jobs Creation Act of 2004. Section 246 amends the Internal 
Revenue Code of 1986 to provide that, during the period from July 1, 
2005, through June 30, 2008, the rate of special (occupational) tax on 
certain occupations will be zero. The occupations affected by the 3-
year tax suspension are: Manufacturers of nonbeverage products who 
claim tax drawback; proprietors of distilled spirits plants, alcohol 
fuel plants, bonded and taxpaid wine premises, and breweries; and 
wholesale and retail dealers in distilled spirits, wine, and beer. The 
requirements to register annually and keep prescribed records remain in 
effect. The text of these temporary regulations serves as the text of 
the proposed regulations set forth in the notice of proposed rulemaking 
on this subject in the Proposed Rules section of this issue of the 
Federal Register.

DATES: Effective Date: This temporary rule is effective as of July 1, 
2005.

FOR FURTHER INFORMATION CONTACT: Steve Simon, Alcohol and Tobacco Tax 
and Trade Bureau, Regulations and Rulings Division, Suite 200E, 1310 G 
Street, NW., Washington, DC 20220; telephone (202) 927-8210.

SUPPLEMENTARY INFORMATION:

Background

    Various provisions within subtitle E of the Internal Revenue Code 
of 1986 (IRC) impose an annual tax on certain business occupations. 
This tax is referred to as the ``special (occupational) tax'' or more 
briefly as the ``special tax.'' In general, payment of this tax is a 
prerequisite for engaging in any of the covered occupations. The 
current annual rates of special (occupational) tax are as follows:

Manufacturer of Nonbeverage Products...........................    $ 500
Proprietor of Distilled Spirits Plant..........................    1,000
Proprietor of Alcohol Fuel Plant...............................    1,000
Proprietor of Bonded Wine Cellar...............................    1,000
Proprietor of Bonded Wine Warehouse............................    1,000
Proprietor of Taxpaid Wine Bottling House......................    1,000
Brewer.........................................................    1,000
Wholesale Liquor Dealer or Beer Dealer.........................      500
Retail Liquor Dealer or Beer Dealer............................      250
User of, or Dealer in, Specially Denatured Alcohol.............      250
User of Tax-Free Alcohol.......................................      250
Manufacturer of Tobacco Products...............................    1,000
Manufacturer of Cigarette Papers and Tubes.....................    1,000
Export Warehouse Proprietor....................................    1,000
 

    Each tax year for payment of special (occupational) tax runs from 
July 1 through the following June 30. In addition, special tax returns, 
with payment of the appropriate tax, must be submitted before beginning 
a new business, and each year thereafter on or before July 1.
    Some of the covered occupations are subject to a reduced rate for 
small entities. A small entity, engaging in an occupation subject to a 
basic rate of $1,000 per year, is subject to a reduced rate of just 
$500 per year. However, a small alcohol fuel plant is exempt from 
special tax. Educational institutions using small quantities of tax-
free or specially denatured alcohol are also exempt from special tax.
    Besides requiring payment of the annual tax, the IRC requires an 
annual registration of persons subject to special tax and imposes 
certain recordkeeping requirements. Further, liquor (distilled spirits, 
wine, and beer) dealers must purchase distilled spirits from (1) a 
wholesale liquor dealer who has paid special tax for the location where 
the

[[Page 62239]]

sale is consummated, (2) a wholesale dealer in liquors who is exempt, 
at the place where such purchase is made, from the payment of the tax, 
or (3) a person who is not subject to wholesale liquor dealer's special 
tax where the sale is consummated.
    Current regulations relating to special (occupational) tax are 
contained in title 27 of the Code of Federal Regulations (27 CFR) and 
are administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB). 
These regulations provide for a single form to be used both as a tax 
return and a registration. The form is TTB Form 5630.5, ``Special Tax 
Registration and Return.'' Persons who complete this form and pay the 
appropriate tax are issued a ``Special Tax Stamp,'' which functions as 
a receipt for payment of the tax and also provides evidence of 
registration. This tax stamp is not a license and does not authorize 
any activity that would be illegal under any other Federal or State 
law.

American Jobs Creation Act of 2004

    On October 22, 2004, President Bush signed into law the American 
Jobs Creation Act of 2004 (the Act), Pub. L. 108-357, 118 Stat. 1418. 
Section 246 of the Act, entitled ``Suspension of Occupational Taxes 
Relating to Distilled Spirits, Wine, and Beer,'' amended subpart G of 
part II of subchapter A of chapter 54 of the IRC by redesignating 
section 5148 as section 5149 and adding a new section 5148 (26 U.S.C. 
5148) entitled ``Suspension of Occupational Tax.'' New section 5148 
provides that, during the 3-year period from July 1, 2005, through June 
30, 2008, the rate of special (occupational) tax imposed under sections 
5081, 5091, 5111, 5121, and 5131 will be zero.
    The effect of new section 5148 is that the following occupations 
are not subject to payment of special (occupational) tax during the 
suspension period: Manufacturer of nonbeverage products, proprietor of 
distilled spirits plant, (including an alcohol fuel plant), proprietor 
of bonded wine cellar, proprietor of bonded wine warehouse, proprietor 
of taxpaid wine bottling house, brewer, wholesale liquor dealer or beer 
dealer, and retail liquor dealer or beer dealer.
    On the other hand, the following occupations, which are not covered 
by the IRC sections listed in new section 5148, are not affected by the 
suspension and remain subject to the special (occupational) tax during 
the suspension period: User of or dealer in specially denatured 
alcohol, user of tax-free alcohol, manufacturer of tobacco products 
(that is, cigars, cigarettes, smokeless tobacco, pipe tobacco, and 
roll-your-own tobacco), manufacturer of cigarette papers or tubes, and 
export warehouse proprietor (for the export of tobacco products, 
cigarette papers, or cigarette tubes).
    Although the tax rate for the occupations affected by the 
suspension will be zero during the suspension period, new section 5148 
further provides that persons engaging in those occupations must still 
register annually and comply with applicable recordkeeping 
requirements. Finally, section 246 of the Act amended section 5117 of 
the IRC (26 U.S.C. 5117) by adding a new subsection (d) to provide that 
during the suspension period a dealer may purchase distilled spirits, 
for resale, only from persons required to keep records as a wholesale 
liquor dealer, except as otherwise specifically provided by law or 
regulations.

Regulations Changes in General

    In order to reflect the changes made by section 246 of the Act, 
this document generally amends the TTB regulations by adding the 
requirements that are applicable during the suspension period to the 
current regulatory provisions, which remain applicable at all times 
outside the suspension period. The regulatory amendments therefore 
refer to the fact that the suspension is for a fixed period with a 
beginning and ending date. Accordingly, provided that no further 
changes are made to the special (occupational) tax statutory 
provisions, the regulatory provisions that were in effect prior to the 
adoption of the changes made by section 246 of the Act will operate 
without the need for further regulatory changes upon termination of the 
suspension period.
    TTB Form 5630.5, ``Special Tax Registration and Return,'' will 
continue in use for registration purposes during the suspension period. 
All persons engaged in occupations currently subject to special tax 
must continue to register by completing and submitting this form 
annually during the suspension period. Persons in occupations not 
affected by the suspension must continue to pay the current rate of tax 
as well.
    Because the primary purpose of the ``Special Tax Stamp'' is to 
serve as a receipt for payment of the tax, TTB has decided not to issue 
these stamps during the suspension period, except for those occupations 
that will remain subject to payment of a special (occupational) tax.

Specific Types of Regulatory Changes

    Each regulation referring to an affected special tax liability is 
amended in this document to refer as well to an obligation to register 
during the 3-year tax suspension period. Similarly, if a regulation 
prescribes the time for payment of a special tax, the regulation is 
amended to prescribe the same time for registration during the 
suspension period. Regulations affording exemptions from payment of 
special tax (such as the exemptions from liquor dealer tax on sales, by 
alcohol beverage manufacturers, of products stored on their 
manufacturing premises) are amended to add similar exemptions from 
registration during the tax suspension period.
    Regulations providing a penalty for failure to file a special tax 
return or to pay special tax cannot simply be amended to provide the 
same penalties for failure to register during the tax suspension 
period, because the penalties described in those regulations are based 
on the amount of tax, which will become zero in the suspension period. 
This does not mean that no penalty exists for failure to register 
during the suspension period. Section 5603(b) of the IRC (26 U.S.C. 
5603(b)) provides criminal penalties applicable to persons who are 
``required by this chapter * * * or regulations issued pursuant thereto 
to keep or file any record, return, report, summary, transcript, or 
other document'' and who neglect to do so. A penalty of ``not more than 
$1,000'' or imprisonment for ``not more than 1 year'' or both may be 
imposed for each offense. Therefore, except in the case of part 17 of 
the TTB regulations as discussed below, regulations referring to a 
penalty for failure to file a special tax return are amended to refer 
to the penalty prescribed in section 5603(b), with respect to a failure 
to register during the tax suspension period.
    While the regulations are not being amended to reflect other 
enforcement actions available to TTB in the event the required records 
are not maintained, TTB reminds holders of basic permits that these 
permits are conditioned on compliance with all Federal law relating to 
alcohol. The conditions include compliance with the internal revenue 
laws relating to alcohol, which include the requirement to register 
and/or maintain the required records.
    The TTB regulations in 27 CFR part 17, which deal with 
manufacturers of nonbeverage products, require special treatment in 
several respects. For such manufacturers, payment of special tax is not 
a prerequisite for engaging in business, but is a prerequisite for 
claiming drawback of excise tax on distilled spirits used in their 
manufacturing processes. Accordingly,

[[Page 62240]]

their time limit for filing a tax return and paying special tax is set 
by the regulations as no later than completion of final action on the 
first claim for any tax year. Failure to comply with this time limit is 
a violation subject to a $1,000 civil penalty prescribed by 26 U.S.C. 
5134(c)(2). The same time limit and civil penalty will apply to 
registration during the suspension period. However, for changes of 
business location, and succession to business ownership by any of the 
statutorily privileged successors (such as children succeeding deceased 
parents, etc.), current regulations in 27 CFR 17.61 and 17.71 require 
payment of a new special tax if notice of the change is not submitted 
within 90 days. During the suspension period, when the rate of special 
tax is zero, the requirement for a new special tax is not applicable. 
Therefore, manufacturers changing location and successors assuming 
ownership may submit notice of the change, without penalty under 26 
U.S.C. 5134(c)(2), at any time prior to completion of final action on 
the first claim after the change, or within 90 days of the change, 
whichever is later.
    Certain changes are needed to reflect the fact that TTB will not 
issue special tax stamps for occupations whose tax rate is zero during 
the suspension period. Specifically, regulations promising issuance of 
special tax stamps or requiring persons to obtain such stamps are 
amended to indicate that no stamps will be issued during the suspension 
period. Regulations referring to the holding of a special tax stamp at 
a location are amended to refer, for purposes of the suspension period, 
to registration for that location. Regulations on changes of address, 
which refer to the address stated on the special tax stamp, are amended 
to refer, during the suspension period, to the same address as stated 
on the special tax return (TTB Form 5630.5). Regulations requiring 
submission of special tax stamps for endorsement of changes in name or 
address are amended to waive this requirement during the suspension 
period (nevertheless, such changes still must be registered by 
submission of a new special tax return). Lastly, the regulation in 27 
CFR 31.125, which indirectly prohibits an activity (retailing of 
alcohol beverages on board a non-passenger train, vessel, or aircraft) 
by stating that no special tax stamp will be issued is amended to 
express the prohibition directly, so that it will be as meaningful 
during the suspension period as at other times. (Note: On April 15, 
2005, part 194 of the TTB regulations (27 CFR part 194) was recodified 
as part 31 (27 CFR part 31); see T.D. TTB-25, 70 FR 19880.)
    The current law restricting purchases of distilled spirits by 
dealers is in 26 U.S.C. 5117, and the implementing regulations are 
contained in 27 CFR 31.211. Under the amendments made by section 246 of 
the Act, as described above, during the tax suspension period, section 
5117 only authorizes such purchases from persons required to keep 
records as wholesale liquor dealers--except that limited retail dealers 
as defined in 26 U.S.C. 5122(c) will be permitted, as currently, to 
purchase distilled spirits from retail liquor dealers. In addition, 
amended section 5117 allows the Secretary of the Treasury to expand, by 
regulation, the categories of persons from whom such distilled spirits 
purchases may be made. Accordingly, this Treasury decision amends Sec.  
31.211 to provide that, during the suspension period, a dealer must 
purchase distilled spirits from (a) a wholesale dealer (including a 
State, a political subdivision of a State, the District of Columbia, 
and a distilled spirits plant) required to keep records as such under 
part 31, (b) a retail liquor store operated by a State, a political 
subdivision thereof, or the District of Columbia, or (c) a person not 
required to register as a wholesale liquor dealer under part 31. The 
current provision allowing limited retail dealers to purchase distilled 
spirits from retail liquor dealers is retained.
    Finally, in sections or paragraphs where the full regulatory text 
is set forth in this document, the amendments made by this document 
include a few minor, nonsubstantive editorial changes, such as the 
correction of typographical errors.

Public Participation

    For submitting comments, please refer to the notice of proposed 
rulemaking on this subject published in the Proposed Rules section of 
this issue of the Federal Register.

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required for temporary 
rules, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 
et seq.) do not apply.

Executive Order 12866

    It has been determined that this temporary rule is not a 
significant regulatory action as defined in E.O. 12866. Therefore, a 
regulatory assessment is not necessary.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995, no persons are required 
to respond to a collection of information unless it displays a valid 
Office of Management and Budget (OMB) control number. The collections 
of information contained in the regulations amended by this temporary 
rule have been previously reviewed and approved by OMB in accordance 
with the Paperwork Reduction Act of 1995 (44 U.S.C. 3504(h)) under 
control numbers 1513-0005, 1513-0088, 1513-0112, and 1513-0113. There 
is no new or revised collection of information imposed by this Treasury 
decision, and there is no change in the reporting or recordkeeping 
burden so no new control numbers are necessary and the previous control 
numbers will continue to be used.

Inapplicability of Prior Notice and Comment and Delayed Effective Date 
Procedures

    It has been determined that prior notice and comment procedures are 
not required pursuant to 5 U.S.C. 553(b)(A), and a delayed effective 
date is not required pursuant to 5 U.S.C. 553(d)(2).

Drafting Information

    The principal drafter of this document is Steve Simon of the 
Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade 
Bureau.

List of Subjects

27 CFR Part 17

    Administrative practice and procedure, Claims, Cosmetics, Customs 
duties and inspection, Drugs, Excise taxes, Exports, Imports, Liquors, 
Packaging and containers, Puerto Rico, Reporting and recordkeeping 
requirements, Spices and flavorings, Surety bonds, Virgin Islands.

27 CFR Part 19

    Administrative practice and procedure, Alcohol and alcoholic 
beverages, Authority delegations (Government agencies), Chemicals, 
Claims, Customs duties and inspection, Electronic fund transfers, 
Excise taxes, Exports, Gasohol, Imports, Labeling, Liquors, Packaging 
and containers, Puerto Rico, Reporting and recordkeeping requirements, 
Research, Security measures, Spices and flavorings, Stills, Surety 
bonds, Transportation, Vinegar, Virgin Islands, Warehouses, Wine.

27 CFR Part 24

    Administrative practice and procedure, Claims, Electronic funds

[[Page 62241]]

transfers, Excise taxes, Exports, Food additives, Fruit juices, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Research, Scientific equipment, Spices and 
flavorings, Surety bonds, Vinegar, Warehouses, Wine.

27 CFR Part 25

    Beer, Claims, Electronic fund transfers, Excise taxes, Exports, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Research, Surety bonds.

27 CFR Part 26

    Alcohol and alcoholic beverages, Caribbean Basin initiative, 
Claims, Customs duties and inspection, Electronic funds transfers, 
Excise taxes, Packaging and containers, Puerto Rico, Reporting and 
recordkeeping requirements, Surety bonds, Virgin Islands, Warehouses.

27 CFR Part 27

    Alcohol and alcoholic beverages, Beer, Cosmetics, Customs duties 
and inspection, Electronic funds transfers, Excise taxes, Imports, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Wine.

27 CFR Part 31

    Alcohol and alcoholic beverages, Beer, Claims, Excise taxes, 
Exports, Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Wine.

Amendments to the Regulations

0
For the reasons discussed in the preamble TTB amends 27 CFR parts 17, 
19, 24, 25, 26, 27, and 31 as follows:

PART 17--DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN 
MANUFACTURING NONBEVERAGE PRODUCTS

0
1. The authority citation for part 17 is revised to read as follows:

    Authority: 26 U.S.C. 5010, 5131-5134, 5143, 5146, 5148, 5206, 
5273, 6011, 6065, 6091, 6109, 6151, 6402, 6511, 7011, 7213, 7652, 
7805; 31 U.S.C. 9301, 9303, 9304, 9306.


0
2. Section 17.21 is amended by designating the existing text as 
paragraph (a), adding the heading ``General.'' to newly designated 
paragraph (a), removing the word ``Each'' at the beginning of the first 
sentence of newly designated paragraph (a) and adding, in its place, 
the words ``Except as otherwise provided in paragraph (b) of this 
section, each'', and adding a new paragraph (b) to read as follows:


Sec.  17.21  Payment of special tax.

* * * * *
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. Accordingly, payment of the tax is not a prerequisite 
for claiming drawback on spirits used during that period. However, the 
drawback claimant still must register by filing the special tax return 
on Form 5630.5 during the suspension period even though the amount of 
tax due is zero.


Sec.  17.22  [Amended]

0
3. Section 17.22 is amended by adding at the end before the period the 
words ``, except that the tax rate is zero during the suspension period 
described in Sec.  17.21(b)''.


Sec.  17.23  [Amended]

0
4. Section 17.23 is amended at the beginning by removing the word ``A'' 
and adding, in its place, the words ``Subject to Sec.  17.21(b), a''.

0
5. Section 17.24 is amended by designating the existing text as 
paragraph (a), adding the heading ``General.'' to newly designated 
paragraph (a), and adding a new paragraph (b) to read as follows:


Sec.  17.24  Time for payment of special tax.

* * * * *
    (b) Suspension of tax. The rate of special tax is zero during the 
period from July 1, 2005, through June 30, 2008 (see Sec.  17.21(b)). 
During this period, the registration requirement continues. The 
drawback claimant must register by filing a special tax return, Form 
5630.5. The claimant may register without penalty under 26 U.S.C. 
5134(c) at any time prior to completion of final action on the first 
claim submitted for each tax year.


Sec.  17.31  [Amended]

0
6. Section 17.31 is amended by adding at the end of the first sentence 
before the period the words ``, and the filing of a return is required 
for registration purposes even though no tax is due during the 
suspension period described in Sec.  17.21(b)''.
0
7. Section 17.32 is amended by adding at the end of paragraph (a)(5) 
before the period the words ``or to which the return relates during the 
suspension period described in Sec.  17.21(b)'' and revising paragraph 
(b) to read as follows:


Sec.  17.32  Completion of ATF Form 5630.5.

* * * * *
    (b) Multiple locations. A taxpayer subject to special tax, or 
required to register during the suspension period described in Sec.  
17.21(b), for the same period at more than one location or for more 
than one class of tax shall--
    (1) File one special tax return, Form 5630.5, with payment of 
applicable tax, to cover all such locations and classes of tax; and
    (2) Prepare, in duplicate, a list identified with the taxpayer's 
name, address (as shown on the Form 5630.5), employer identification 
number, and period covered by the return. The list shall show, by 
States, the name, address, and tax class of each location for which 
special tax is being paid, or for which registration is being made 
during the suspension period described in Sec.  17.21(b). The original 
of the list shall be filed in accordance with instructions on the 
return, and the copy shall be retained at the taxpayer's principal 
place of business (or principal office, in the case of a corporate 
taxpayer) for the period specified in Sec.  17.170.
* * * * *

0
8. Section 17.51 is amended:
0
a. By designating the existing text as paragraph (a);
0
b. In the first sentence of newly designated paragraph (a), by removing 
the word ``Each'' and adding, in its place, the words ``Except as 
otherwise provided in paragraph (b) of this section, each'';
0
c. Also in the first sentence of newly designated paragraph (a), by 
adding after the words ``payment in the'' the word ``applicable''; and
0
d. By adding a new paragraph (b) to read as follows:


Sec.  17.51  Issuance of stamps.

* * * * *
    (b) During the suspension period described in Sec.  17.21(b) when 
registration is required but no tax is due, a special tax stamp will 
not be issued.

0
9. Section Sec.  17.61 is revised to read as follows:


Sec.  17.61  General.

    A manufacturer who, during a tax year for which a special tax 
return has been filed with payment of any tax due, moves its place of 
manufacture to a place other than that specified on the return, shall 
register the change, by executing a new return on Form 5630.5, 
designated as ``Amended Return.'' This Amended Return shall set forth 
the time of the move and the address of the new location. If a special 
tax stamp was issued for the former location, the taxpayer shall also 
submit the special tax stamp for endorsement of the change in location. 
In general, the taxpayer must submit the new return and the

[[Page 62242]]

special tax stamp within 90 days after the move to the new premises. 
However, if the move occurs during the suspension period described in 
Sec.  17.21(b) when no tax was due and no special tax stamp was issued, 
the taxpayer may submit the new return alone without penalty at any 
time prior to completion of final action on the first claim covering 
use of spirits at the new premises, or within 90 days of the move, 
whichever is later.


(Title II, sec. 201, Pub. L. 85-859, 72 Stat. 1374 (26 U.S.C. 5143))


Sec.  17.62  [Amended]

0
10. Section 17.62 is amended at the beginning by removing the word 
``A'' and adding, in its place, the words ``Except in the case of 
claims covering spirits used during the suspension period described in 
Sec.  17.21(b) when the special tax rate is zero, a''.

0
11. Section 17.71 is amended by designating the existing text as 
paragraph (a) and revising the first sentence of newly designated 
paragraph (a) and adding a new paragraph (b) to read as follows:


Sec.  17.71  General.

    (a) Subject to paragraph (b) of this section, certain persons may 
qualify for succession to the same privileges granted by law to the 
taxpayer, to cover the remainder of the tax year for which the special 
tax was paid, or for which registration was made during the suspension 
period described in Sec.  17.21(b). * * *
* * * * *
    (b) With respect to spirits used during the suspension period 
described in Sec.  17.21(b), the successor or successors must file the 
return prior to completion of final action on the claim(s) covering 
such spirits, or within 90 days of the change in control, whichever is 
later.


Sec.  17.73  [Amended]

0
12. Section 17.73 is amended at the beginning by removing the word 
``A'' and adding, in its place, the words ``Except in the case of 
claims covering spirits used during the suspension period described in 
Sec.  17.21(b) when the special tax rate is zero, a''.

0
13. Section 17.75 is revised to read as follows:


Sec.  17.75  Formation of partnership or corporation.

    If one or more persons who have filed a special tax return and paid 
any tax due form a partnership or corporation, as a separate legal 
entity, to take over the business of manufacturing nonbeverage 
products, the new firm or corporation shall file a new special tax 
return and pay a new special tax in order to be eligible to receive 
drawback. In the case of claims covering spirits used during the 
suspension period described in Sec.  17.21(b), the rate of special tax 
is zero.

0
14. Section 17.76 is revised to read as follows:


Sec.  17.76  Addition or withdrawal of partners.

    (a) General partners. When a business formed as a partnership, 
subject to the filing of a special tax return, admits one or more new 
general partners, the new partnership shall file a new special tax 
return and pay a new special tax in order to be eligible to receive 
drawback (in the case of claims covering spirits used during the 
suspension period described in Sec.  17.21(b), the rate of special tax 
is zero). Withdrawal of general partners is covered by Sec.  17.72(d).
    (b) Limited partners. Changes in the membership of a limited 
partnership requiring amendment of the certificate but not dissolution 
of the partnership are not changes that incur liability to additional 
special tax or that require the filing of a new special tax return.

0
15. Section 17.77 is revised to read as follows:


Sec.  17.77  Reincorporation.

    When a new corporation is formed to take over and conduct the 
business of one or more corporations that have filed a special tax 
return and paid any tax due, the new corporation must file a new 
special tax return, pay special tax, and obtain a special tax stamp in 
its own name. However, in the case of spirits used during the 
suspension period described in Sec.  17.21(b) when no tax is due and no 
stamp is issued, only the filing of a new special tax return is 
required.


Sec.  17.81  [Amended]

0
16. Section 17.81 is amended by removing the words ``paid special tax'' 
and adding, in their place, the words ``filed a special tax return and 
paid any tax due'' and by adding, after the words ``required to'', the 
words ``file a new special tax return or''.


Sec.  17.82  [Amended]

0
17. Section 17.82 is amended by removing the word ``is'' and adding, in 
its place, the words ``return and tax payment are''.


Sec.  17.83  [Amended]

0
18. Section 17.83 is amended by removing the word ``is'' and adding, in 
its place, the words ``return and tax payment are''.

PART 19--DISTILLED SPIRITS PLANTS

0
19. The authority citation for part 19 is revised to read as follows:

    Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-5006, 
5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5113, 5142, 
5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181, 5201-5204, 5206, 
5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 5241-5243, 5271, 
5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 5551-5555, 5559, 
5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676, 
6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.


0
20. Section 19.49 is amended by adding a new paragraph (a)(3) and 
revising paragraphs (b)(2) and (c) to read as follows:


Sec.  19.49  Liability for special tax.

    (a) * * *
    (3) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a)(1) of 
this section is zero. However, each proprietor still must register by 
filing the special tax return on Form 5630.5 during this suspension 
period even though the amount of tax due is zero. During the suspension 
period, as at other times, the special tax return is due on or before 
commencement of business and on or before July 1 of each year 
thereafter.
    (b) * * *
    (2) Exemption for sales by a proprietor of a distilled spirits 
plant. A proprietor of a distilled spirits plant is not required to pay 
special tax, or to register during the suspension period described in 
paragraph (a)(3) of this section, as a wholesale or retail dealer in 
liquor because of sales, at the principal place of business or at the 
distilled spirits plant, of liquor which at the time of sale is stored 
at the distilled spirits plant or which had been removed and stored in 
a taxpaid storeroom operated in connection with the distilled spirits 
plant. Each proprietor of a distilled spirits plant shall have only one 
exemption from dealer's special tax, or from dealer's registration, for 
each distilled spirits plant. The distiller may designate, in writing 
to the regional director (compliance), that the principal place of 
business will be exempt from dealer's special tax or registration; 
otherwise, the exemption will apply to the distilled spirits plant.
    (c) Each place of business taxable--(1) General. A proprietor of a 
distilled spirits plant incurs special tax liability, or an obligation 
to register during the suspension period described in paragraph (a)(3) 
of this section, at each

[[Page 62243]]

place of business in which an occupation subject to special tax is 
conducted. A place of business means the entire office, plant or area 
of the business in any one location under the same proprietorship. 
Passageways, streets, highways, rail crossings, waterways, or 
partitions dividing the premises are not sufficient separation to 
require additional special tax, if the divisions of the premises are 
otherwise contiguous.
    (2) Exception for contiguous areas. A proprietor of a distilled 
spirits plant does not incur additional special tax liability, or an 
obligation to register during the suspension period described in 
paragraph (a)(3) of this section, for sales of liquor made at a 
location other than on distilled spirits plant premises described on 
the notice of registration, Form 5110.41, if the location where such 
sales are made is contiguous to the distilled spirits plant premises in 
the manner described in paragraph (c)(1) of this section.
* * * * *


Sec.  19.50  [Amended]

0
21. Section 19.50 is amended:
0
a. In paragraph (a), by adding at the end the following new sentence: 
``However, under 26 U.S.C. 5148(a) the tax rate is zero during the 
suspension period described in Sec.  19.49(a)(3).''; and
0
b. At the beginning of paragraph (b), by removing the word ``Title'' 
and adding, in its place, the words ``Except during the suspension 
period described in Sec.  19.49(a)(3) when the tax rate is zero, 
title''.

0
22. Section 19.51 is amended by revising paragraphs (a), (b)(5), and 
(c) to read as follows:


Sec.  19.51  Special tax returns.

    (a) General. Special tax shall be paid by return, and the filing of 
a return is required for registration purposes even though no tax is 
due during the suspension period described in Sec.  19.49(a)(3). The 
prescribed return is Form 5630.5, Special Tax Registration and Return. 
Special tax returns, with payment of applicable tax, shall be filed in 
accordance with instructions on the form.
    (b) * * *
    (5) The class(es) of special tax to which the taxpayer is subject 
or to which the return relates during the suspension period described 
in Sec.  19.49(a)(3).
* * * * *
    (c) Multiple locations and/or classes of tax. A taxpayer subject to 
special tax, or required to register during the suspension period 
described in Sec.  19.49(a)(3), for the same period at more than one 
location or for more than one class of tax shall--
    (1) File one special tax return, Form 5630.5, with payment of 
applicable tax, to cover all such locations and classes of tax; and
    (2) Prepare, in duplicate, a list identified with the taxpayer's 
name, address (as shown on Form 5630.5), employer identification 
number, and period covered by the return. The list shall show, by 
States, the name, address, and tax class of each location for which 
special tax is being paid, or for which registration is being made 
during the suspension period described in Sec.  19.49(a)(3). The 
original of the list shall be filed in accordance with instructions on 
the return, and the copy shall be retained at the taxpayer's principal 
place of business (or principal office, in the case of a corporate 
taxpayer) for the period specified in Sec.  19.723(c).
* * * * *

0
23. Section 19.53 is amended by revising paragraph (a) to read as 
follows:


Sec.  19.53  Issuance, distribution, and examination of special tax 
stamps.

    (a) Issuance of special tax stamps--(1) General. Except as 
otherwise provided in paragraph (a)(2) of this section, upon filing a 
properly executed return on Form 5630.5, together with the applicable 
full remittance, the taxpayer will be issued an appropriately 
designated special tax stamp. If the return covers multiple locations, 
the taxpayer will be issued one appropriately designated stamp for each 
location listed on the attachment required by Sec.  19.51(c), but 
showing, as to name and address, only the name of the taxpayer and the 
address of the taxpayer's principal place of business (or principal 
office in the case of a corporate taxpayer).
    (2) Exception for suspension period. During the suspension period 
described in Sec.  19.49(a)(3) when registration is required but no tax 
is due, a special tax stamp will not be issued.
* * * * *

0
24. Section 19.54 is amended by adding at the end of the third sentence 
of paragraph (a) before the period the words, ``except if the change 
occurs during the suspension period described in Sec.  19.49(a)(3)'' 
and revising paragraphs (b) and (d) to read as follows:


Sec.  19.54  Changes in special tax stamps.

* * * * *
    (b) Change in proprietorship--(1) General. If there is a change in 
the proprietorship of a distilled spirits plant, the successor shall 
file a new special tax return, pay a new special tax, and obtain the 
required special tax stamps. However, if the change in proprietorship 
occurs during the suspension period described in Sec.  19.49(a)(3) when 
no tax is due and no stamp is issued, only the filing of a new special 
tax return is required.
    (2) Exemption for certain successors. Persons having the right of 
succession provided for in paragraph (c) of this section may carry on 
the business for the remainder of the period for which the special tax 
was paid (or for which registration was made during the suspension 
period described in Sec.  19.49(a)(3)), without paying a new special 
tax, if within 30 days after the date on which the successor begins to 
carry on the business, the successor files a special tax return on Form 
5630.5, which shows the basis of succession. Except during the 
suspension period described in Sec.  19.49(a)(3), a person who is a 
successor to a business for which special tax has been paid and who 
fails to register the succession is liable for special tax computed 
from the first day of the calendar month in which he or she began to 
carry on the business. During the suspension period, a failure to 
register the succession may result in a penalty under 26 U.S.C. 
5603(b).
* * * * *
    (d) Change in location. (1) Subject to paragraph (d)(2) of this 
section, if there is a change in location of a taxable place of 
business, the proprietor shall, within 30 days after the change, file 
an amended special tax return covering the new location. The proprietor 
shall attach the special tax stamp or stamps, for endorsement of the 
change in location. No new special tax is required to be paid. However, 
if the proprietor does not file the amended return within 30 days, the 
proprietor is required to file a new special tax return, pay a new 
special tax, and obtain a new special tax stamp.
    (2) If the change in location occurs during the suspension period 
described in Sec.  19.49(a)(3) when no tax is due and no special tax 
stamp is issued, the requirements of paragraph (d)(1) of this section 
still apply, except with regard to attachment of a special tax stamp 
and payment of a new special tax. During the suspension period, a 
failure to comply with paragraph (d)(1) of this section may result in a 
penalty under 26 U.S.C. 5603(b).
* * * * *


Sec.  19.906  [Amended]

0
25. Section 19.906 is amended by adding at the end of paragraph (a) 
before

[[Page 62244]]

the period the words ``except during the suspension period described in 
Sec.  19.49(a)(3) when special tax stamps are not issued''.

PART 24--WINE

0
26. The authority citation for part 24 is revised to read as follows:

    Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 
5044, 5061, 5062, 5081, 5111-5113, 5121, 5122, 5142, 5143, 5148, 
5173, 5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 
5364-5373, 5381-5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 
5684, 6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7011, 7302, 
7342, 7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304, 
9306.


0
27. In Sec.  24.50:
0
a. The first sentence of paragraph (a) is amended by removing the word 
``Every'' and adding, in its place, the words ``Except as otherwise 
provided in paragraph (c) of this section, every'';
0
b. The first sentence of paragraph (b) is amended by removing the word 
``Proprietors'' and adding, in its place, the words ``Subject to 
paragraph (c) of this section, proprietors'';
0
c. A new paragraph (c) is added to read as follows;
0
d. An authority citation is added following new paragraph (c); and
0
e. The OMB control numbers at the end of the section are revised to 
read as follows:


Sec.  24.50  Payment of special (occupational) tax.

* * * * *
    (c) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, the proprietor must register by filing the 
special tax return on Form 5630.5 during the suspension period even 
though the amount of tax due is zero. During the suspension period, as 
at other times, the special tax return is due on or before commencement 
of business and on or before July 1 of each year thereafter.


(26 U.S.C. 5081, 5142, 5143)

(Approved by the Office of Management and Budget under control 
numbers 1513-0088 and 1513-0113)


Sec.  24.51  [Amended]

0
28. In Sec.  24.51:
0
a. Paragraph (a) is amended by adding at the end the following new 
sentence: ``However, under 26 U.S.C. 5148(a), the tax rate is zero 
during the suspension period described in Sec.  24.50(c).''; and
0
b. The first sentence of paragraph (b) is amended by removing the word 
``Title'' and adding, in its place, the words ``Except during the 
suspension period described in Sec.  24.50(c) when the tax rate is 
zero, title''.


Sec.  24.52  [Amended]

0
29. Section 24.52 is amended:
0
a. In the first sentence of paragraph (a), by adding after the words 
``special (occupational) tax'', the words '', or to register during the 
suspension period described in Sec.  24.50(c),'';
0
b. In the second sentence of paragraph (a), by adding after the words 
``special (occupational) tax'' the words ``or registration'';
0
c. In the second sentence of paragraph (b), by adding after the words 
``special (occupational) tax'' the words ``or from registration'';
0
d. In the third sentence of paragraph (b), by adding after the words 
``tax will be paid'' the words, ``or registration will be made during 
the suspension period described in Sec.  24.50(c),'';
0
e. In paragraph (c), by adding after the words ``has not paid special 
(occupational) tax'' the words, ``or has not registered during the 
suspension period described in Sec.  24.50(c),'';
0
f. Also in paragraph (c), by adding after the words ``required to pay 
special (occupational) tax'' the words, ``or to register during that 
suspension period,'';
0
g. In paragraph (d), by adding after the words ``the appropriate 
special (occupational) tax'' the words, ``or who has registered during 
the suspension period described in Sec.  24.50(c),''; and
0
h. Also in paragraph (d), by adding after the words ``to pay special 
(occupational) tax'' the words ``or register''.


Sec.  24.53  [Amended]

0
30. Section 24.53 is amended:
0
a. In paragraph (a), by adding at the end the following new sentence: 
``During the suspension period described in Sec.  24.50(c), an annual 
return is required even though no tax is due.'';
0
b. In paragraph (b)(5), by adding at the end before the period the 
words ``or to which the return relates during the suspension period 
described in Sec.  24.50(c)'';
0
c. In the introductory text of paragraph (c), by adding after the words 
``special (occupational) tax'' the words ``(or required to register 
during the suspension period described in Sec.  24.50(c))'';
0
d. In paragraph (c)(1), by adding after the words ``payment of'' the 
word ``applicable''; and
0
e. In paragraph (c)(2), by adding at the end of the second sentence 
before the period the words ``or for which registration is being made 
during the suspension period described in Sec.  24.50(c)''.

0
31. Section 24.54 is amended by revising paragraph (a) to read as 
follows:


Sec.  24.54  Special (occupational) tax stamps.

    (a) Issuance of special (occupational) tax stamps--(1) General. 
Except as otherwise provided in paragraph (a)(2) of this section, upon 
filing a properly executed return on Form 5630.5, together with the 
applicable full remittance, the taxpayer will be issued an 
appropriately designated special (occupational) tax stamp. If the 
return covers multiple locations, the taxpayer will be issued one 
appropriately designated stamp for each location listed on the 
attachment required by Sec.  24.53(c), but showing, as to name and 
address, only the name of the taxpayer and the address of the 
taxpayer's principal place of business (or principal office in case of 
a corporate taxpayer).
    (2) Exception for suspension period. During the suspension period 
described in Sec.  24.50(c) when registration is required but no tax is 
due, a special tax stamp will not be issued.
* * * * *

0
32. Section 24.55 is amended by adding at the end of the last sentence 
of paragraph (a) before the period the words, ``, except if the change 
occurs during the suspension period described in Sec.  24.50(c)'' and 
revising paragraphs (b) and (d) and the OMB control numbers at the end 
of the section, and adding an authority citation for the section before 
the OMB control numbers to read as follows:


Sec.  24.55  Changes in special (occupational) tax stamps.

* * * * *
    (b) Change in proprietorship--(1) General. If there is a change in 
the proprietorship of a bonded wine premises or taxpaid wine bottling 
house, the successor shall file a new special tax return, pay a new 
special (occupational) tax, and obtain the required special 
(occupational) tax stamps. However, if the change in proprietorship 
occurs during the suspension period described in Sec.  24.50(c) when no 
tax is due and no stamp is issued, only the filing of a new special tax 
return is required.
    (2) Exemption for certain successors. Persons having the right of 
succession provided for in paragraph (c) of this section may carry on 
the business for the remainder of the period for which the special 
(occupational) tax was paid (or for which registration was made during 
the suspension period described in Sec.  24.50(c)), without paying a 
new special (occupational) tax, if within 30

[[Page 62245]]

days after the date on which the successor begins to carry on the 
business, the successor files a special (occupational) tax return on 
Form 5630.5, which shows the basis of succession. Except during the 
suspension period described in Sec.  24.50(c), a person who is a 
successor to a business for which special (occupational) tax has been 
paid and who fails to register the succession is liable for special 
(occupational) tax computed from the first day of the calendar month in 
which he or she began to carry on the business. During the suspension 
period, a failure to register the succession may result in a penalty 
under 26 U.S.C. 5603(b).
* * * * *
    (d) Change in location. (1) Subject to paragraph (d)(2) of this 
section, if there is a change in location of a taxable place of 
business, the proprietor shall, within 30 days after the change, file 
an amended special (occupational) tax return covering the new location. 
The proprietor shall attach the special (occupational) tax stamp or 
stamps for endorsement of the change in location. No new special 
(occupational) tax is required to be paid. However, if the proprietor 
does not file the amended return within 30 days, the proprietor is 
required to file a new special (occupational) tax return, pay a new 
special (occupational) tax, and obtain a new special (occupational) tax 
stamp.
    (2) If the change in location occurs during the suspension period 
described in Sec.  24.50(c) when no tax is due and no special 
(occupational) tax stamp is issued, the requirements of paragraph 
(d)(1) of this section still apply, except with regard to attachment of 
a special (occupational) tax stamp and payment of a new special 
(occupational) tax. During the suspension period, a failure to comply 
with paragraph (d)(1) of this section may result in a penalty under 26 
U.S.C. 5603(b).


(26 U.S.C. 5143, 7011)

(Approved by the Office of Management and Budget under control 
numbers 1513-0088 and 1513-0113)

PART 25--BEER

0
33. The authority citation for part 25 is revised to read as follows:

    Authority: 19 U.S.C. 81c; 26 U.S.C. 5002, 5051-5054, 5056, 5061, 
5091, 5111, 5113, 5142, 5143, 5146, 5148, 5222, 5401-5403, 5411-
5417, 5551, 5552, 5555, 5556, 5671, 5673, 5684, 6011, 6061, 6065, 
6091, 6109, 6151, 6301, 6302, 6311, 6313, 6402, 6651, 6656, 6676, 
6806, 7011, 7342, 7606, 7805; 31 U.S.C. 9301, 9303-9308.


0
34. Section 25.111 is amended:
0
a. At the beginning of paragraph (a), by removing the word ``Every'' 
and adding, in its place, the words ``Except as otherwise provided in 
paragraph (c) of this section, every''; and
0
b. By adding a new paragraph (c) before the authority citation to read 
as follows:


Sec.  25.111  Brewer's special tax.

* * * * *
    (c) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, the proprietor must register by filing the 
special tax return on Form 5630.5 during the suspension period even 
though the amount of tax due is zero. During the suspension period, as 
at other times, the special tax return is due on or before commencement 
of business and on or before July 1 of each year thereafter.
* * * * *


Sec.  25.111a  [Amended]

0
35. Section 25.111a is amended by adding at the end of paragraph (b) 
before the period the words ``, except that the tax rate is zero during 
the suspension period described in Sec.  25.111(c).''


Sec.  25.111b  [Amended]

0
36. Section 25.111b is amended by adding at the end of the second 
sentence of paragraph (a) before the period the words ``, except that 
the tax rate is zero during the suspension period described in Sec.  
25.111(c)''.


Sec.  25.113  [Amended]

0
37. In Sec.  25.113:
0
a. The first sentence of paragraph (a) is amended by removing the word 
``at'' and adding, in its place, the words ``, or must register by 
filing the special tax return during the suspension period described in 
Sec.  25.111(c), for''; and
0
b. Paragraph (b) is amended by adding after the word ``liability'' the 
words ``(or will not have to register during the suspension period 
described in Sec.  25.111(c))''.


Sec.  25.114  [Amended]

0
38. In Sec.  25.114:
0
a. The first sentence of paragraph (a) is amended by adding after the 
words ``special tax'' the words ``or to register during the suspension 
period described in Sec.  25.111(c),'';
0
b. The second sentence of paragraph (a) is amended by adding after the 
words ``dealer's special tax'' the words ``or registration'';
0
c. The last sentence of paragraph (a) is amended by adding after the 
words ``dealer's special tax'' the words ``or registration'';
0
d. Paragraph (b) is amended by adding after the words ``appropriate 
special tax'' the words ``, or who has registered during the suspension 
period described in Sec.  25.111(c),''; and
0
e. Paragraph (b) is further amended by adding after the words ``pay 
special tax'' the words ``or register''.


Sec.  25.117  [Amended]

0
39. Section 25.117 is amended by adding at the end of the first 
sentence before the period the words ``, and a return is required 
during the suspension period described in Sec.  25.111(c) even though 
no tax is due'' and adding in the third sentence after the words 
``payment of'' the word ``applicable''.


Sec.  25.118  [Amended]

0
40. Section 25.118 is amended by adding at the end of paragraph (e) 
before the period the words ``or to which the return relates during the 
suspension period described in Sec.  25.111(c)''.


Sec.  25.119  [Amended]

0
41. In Sec.  25.119:
0
a. The introductory text is amended by adding after the words ``subject 
to special tax'' the words ``(or required to register during the 
suspension period described in Sec.  25.111(c))''
0
b. Paragraph (a) is amended by adding after the words ``payment of'' 
the word ``applicable''; and
0
c. The second sentence of paragraph (b) is amended by adding after the 
words ``special tax is being paid'' the words ``or for which 
registration is being made during the suspension period described in 
Sec.  25.111(c)''.

0
42. Section 25.125 is amended:
0
a. By designating the existing text as paragraph (a);
0
b. In the first sentence of newly designated paragraph (a), by removing 
the word ``Upon'' and adding, in its place, the words ``Except as 
otherwise provided in paragraph (b) of this section, upon'';
0
c. Also in the first sentence of newly designated paragraph (a), by 
adding after the words ``together with the'' the word ``applicable''; 
and
0
d. By adding a new paragraph (b) before the section authority citation 
to read as follows:


Sec.  25.125  Issuance of special tax stamps.

* * * * *
    (b) During the suspension period described in Sec.  25.111(c) when 
registration is required but no tax is due, a special tax stamp will 
not be issued.
* * * * *

[[Page 62246]]

Sec.  25.131  [Amended]

0
43. Section 25.131 is amended by adding at the end of the last sentence 
before the period the words ``, except if the change occurs during the 
suspension period described in Sec.  25.111(c)''.

0
44. Section 25.132 is revised to read as follows:


Sec.  25.132  Change in proprietorship.

    (a) General. If there is a change in the proprietorship of a 
brewery, the successor shall file a new special tax return, pay a new 
special tax, and obtain the required special tax stamps. However, if 
the change in proprietorship occurs during the suspension period 
described in Sec.  25.111(c) when no tax is due and no stamp is issued, 
only the filing of a new special tax return is required.
    (b) Exemption for certain successors. Persons having the right of 
succession provided for in Sec.  25.133 may carry on the business for 
the remainder of the period for which the special tax was paid (or for 
which registration was made during the suspension period described in 
Sec.  25.111(c)), if within 30 days after the date on which the 
successor begins to carry on the business, the successor files a return 
on Form 5630.5, which shows the basis of succession. Except during the 
suspension period described in Sec.  25.111(c), a person who is a 
successor to a business for which special tax has been paid and who 
fails to register the succession is liable for special tax computed 
from the first day of the calendar month in which he or she began to 
carry on the business. During the suspension period, a failure to 
register the succession may result in a penalty under 26 U.S.C. 
5603(b).


(Act of August 16, 1954, 68A Stat. 845, as amended (26 U.S.C. 7011); 
sec. 201, Pub. L. 85-859, 72 Stat. 1347, as amended (26 U.S.C. 5143))


0
45. Section 25.134 is revised to read as follows:


Sec.  25.134  Change in location.

    (a) Subject to paragraph (b) of this section, if there is a change 
in location of a taxable place of business, the brewer shall, within 30 
days after the change, file an amended special tax return covering the 
new location. The brewer shall attach the special tax stamp or stamps, 
for endorsement of the change in location. No new special tax is 
required to be paid. However, if the brewer does not file the amended 
return within 30 days, the brewer is required to file a new special tax 
return, pay a new special tax, and obtain a new special tax stamp.
    (b) If the change in location occurs during the suspension period 
described in Sec.  25.111(c) when no tax is due and no special tax 
stamp is issued, the requirements of paragraph (a) of this section 
still apply, except with regard to attachment of a special tax stamp 
and payment of a new special tax. During the suspension period, a 
failure to comply with paragraph (a) of this section may result in a 
penalty under 26 U.S.C. 5603(b). (26 U.S.C. 5143, 7011)

PART 26--LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN 
ISLANDS

0
46. The authority citation for part 26 is revised to read as follows:

    Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010, 
5041, 5051, 5061, 5081, 5111, 5112, 5114, 5121, 5122, 5124, 5131-
5134, 5141, 5146, 5148, 5207, 5232, 5271, 5276, 5301, 5314, 5555, 
6001, 6301, 6302, 6804, 7101, 7102, 7651, 7652, 7805; 27 U.S.C. 203, 
205; 31 U.S.C. 9301, 9303, 9304, 9306.

0
47. Section 26.44 is amended by designating the existing text as 
paragraph (a), adding the heading ``General.'' to newly designated 
paragraph (a), removing the word ``Every'' at the beginning of the 
first sentence of newly designated paragraph (a) and adding, in its 
place, the words ``Except as otherwise provided in paragraph (b) of 
this section, every'', and adding a new paragraph (b) before the 
section authority citation to read as follows:


Sec.  26.44  Liquor dealer's special taxes.

* * * * *
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, every person described in paragraph (a) of 
this section must register by filing the special tax return on Form 
5630.5, in accordance with part 31 of this chapter, during the 
suspension period even though the amount of tax due is zero.
* * * * *

0
48. Section 26.45 is revised to read as follows:


Sec.  26.45  Warehouse receipts covering distilled spirits.

    The sale of warehouse receipts for distilled spirits is equivalent 
to the sale of distilled spirits. Accordingly, except during the 
suspension period described in Sec.  26.44(b), every person bringing 
distilled spirits into the United States from Puerto Rico, who sells, 
or offers for sale, warehouse receipts for distilled spirits stored in 
warehouses, or elsewhere, incurs liability to special tax as a dealer 
in liquors at the place where such warehouse receipts are sold, or 
offered for sale, and must file return and pay occupational tax as 
provided in Sec.  26.44(a). During the suspension period, every such 
person must register as provided in Sec.  26.44(b).


(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 5112, 5121, 5122)

0
49. Section 26.46 is amended by designating the existing text as 
paragraph (a), adding the heading ``General.'' to newly designated 
paragraph (a), removing the word ``Every'' at the beginning of the 
first sentence of newly designated paragraph (a) and adding, in its 
place, the words ``Except as otherwise provided in paragraph (b) of 
this section, every'', and adding a new paragraph (b) before the 
section authority citation to read as follows:


Sec.  26.46  Distilled spirits plant proprietor's special 
(occupational) tax.

* * * * *
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, every person described in paragraph (a) of 
this section must register by filing the special tax return on Form 
5630.5, in accordance with part 19 of this chapter, during the 
suspension period even though the amount of tax due is zero.
* * * * *

0
50. Section 26.171 is amended by designating the existing text as 
paragraph (a), adding the heading ``General.'' to newly designated 
paragraph (a), removing the word ``Any'' at the beginning of the first 
sentence of newly designated paragraph (a) and adding, in its place, 
the words ``Except as otherwise provided in paragraph (b) of this 
section, any'', and adding a new paragraph (b) to read as follows:


Sec.  26.171  Special tax.

* * * * *
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, any person described in paragraph (a) of this 
section must register by filing the special tax return on Form 5630.5, 
in accordance with part 17 of this chapter, during the suspension 
period even though the amount of tax due is zero.

0
51. Section 26.210 is amended by designating the existing text as 
paragraph (a), adding the heading ``General.'' to newly designated 
paragraph (a), removing the word

[[Page 62247]]

``Every'' at the beginning of the first sentence of newly designated 
paragraph (a) and adding, in its place, the words ``Except as otherwise 
provided in paragraph (b) of this section, every'', and adding a new 
paragraph (b) before the section authority citation to read as follows:


Sec.  26.210  Liquor dealer's special taxes.

* * * * *
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, every person described in paragraph (a) of 
this section must register by filing the special tax return on Form 
5630.5, in accordance with part 31 of this chapter, during the 
suspension period even though the amount of tax due is zero.
* * * * *

0
52. Section 26.211 is revised to read as follows:


Sec.  26.211  Warehouse receipts covering distilled spirits.

    The sale of warehouse receipts for distilled spirits is equivalent 
to the sale of distilled spirits. Accordingly, except during the 
suspension period described in Sec.  26.210(b), every person bringing 
distilled spirits into the United States from the Virgin Islands, who 
sells, or offers for sale, warehouse receipts for distilled spirits 
stored in warehouses, or elsewhere, incurs liability to special tax as 
a dealer in liquors at the place where such warehouse receipts are 
sold, or offered for sale, and must file return and pay occupational 
tax as provided in Sec.  26.210(a). During the suspension period, every 
such person must register as provided in Sec.  26.210(b).


(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 5112, 5121, 5122)


0
53. Section 26.307 is amended by designating the existing text as 
paragraph (a), adding the heading ``General.'' to newly designated 
paragraph (a), removing the word ``Any'' at the beginning of the first 
sentence of newly designated paragraph (a) and adding, in its place, 
the words ``Except as otherwise provided in paragraph (b) of this 
section, any'', and adding a new paragraph (b) to read as follows:


Sec.  26.307  Special tax.

* * * * *
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, any person described in paragraph (a) of this 
section must register by filing the special tax return on Form 5630.5, 
in accordance with part 17 of this chapter, during the suspension 
period even though the amount of tax due is zero.

PART 27--IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER

0
54. The authority citation for part 27 is revised to read as follows:

    Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 
5007, 5008, 5010, 5041, 5051, 5054, 5061, 5148, 5111, 5112, 5114, 
5121, 5122, 5124, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 
6302, 7805.


0
55. Section 27.30 is amended by designating the existing text as 
paragraph (a), adding the heading ``General.'' to newly designated 
paragraph (a), removing the word ``Importers'' at the beginning of the 
first sentence of newly designated paragraph (a) and adding, in its 
place, the words ``Except as otherwise provided in paragraph (b) of 
this section, importers'', and adding a new paragraph (b) before the 
section authority citation to read as follows:


Sec.  27.30  Special (occupational) tax.

* * * * *
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, the persons described in paragraph (a) of 
this section must register by filing the special tax return on Form 
5630.5, in accordance with part 31 of this chapter, during the 
suspension period even though the amount of tax due is zero.
* * * * *

0
56. Section 27.31 is revised to read as follows:


Sec.  27.31  Warehouse receipt