Current through Register Vol. 48, No. 38, September 20, 2024
a)
Manufacturers, Importing Distributors and Foreign Importers:
It is the duty of each manufacturer, importing distributor and
foreign importer to keep, at his licensed address or place of business,
complete and accurate records of all sales or other dispositions of alcoholic
liquor, and complete and accurate records of all alcoholic liquor produced,
manufactured, compounded or imported, whether for himself or for another,
together with a physical inventory made as of the close of each period for
which a return is required, covering all alcoholic liquors on hand. All books
and records, which manufacturers, importing distributors and foreign importers
are required by the Act to keep, shall be preserved for a period of 3 years,
unless the Department, in writing, authorizes their destruction or disposal at
an earlier date.
b)
Shipping Records:
1) Each manufacturer,
importing distributor and foreign importer is required to retain invoices and
bills of lading covering purchases and invoices and duplicate copies of bills
of lading covering sales of alcoholic liquors.
2) To support deductions on the ground that
deliveries of alcoholic liquors were made outside this State, records shall
include satisfactory evidence of delivery to and receipt by out-of-State
consignees. (See Section
420.30.)
c) Inventories:
1) A physical inventory must be taken and a
record thereof preserved as of the close of business on the last business day
of each calendar month.
2) As to
alcoholic liquors owned by them, manufacturers of alcohol and spirits shall
include as "Inventory on Hand", only bottled alcoholic liquors and not bulk
alcoholic liquors in stock. As to alcoholic liquors lawfully held by them as
agent for another, manufacturers of alcohol and spirits shall include, as
"Inventory on Hand", all alcoholic liquors (whether bottled or in bulk) so held
by them as agent. Bottled alcoholic liquors owned by a manufacturer of alcohol
and spirits and stored in bonded or other warehouses in Illinois, and bottled
or bulk alcoholic liquors lawfully held by a manufacturer of alcohol and
spirits as agent for another and stored in bonded or other warehouses in
Illinois, must be included in inventory.
3) Breweries shall include, as "Inventory on
Hand", all beer which is on hand when the inventory is required herein to be
taken and which has been removed from the Federally bonded premises of the
brewery, together with all beer which is on hand when the inventory is taken
and which is required to be reported in Schedules "F" - Alcoholic Liquor
Transactions, and Schedule "G" - Tax-Paid Inventory, accompanying the Liquor
Revenue Return.
4) Wineries and
wine-makers shall include, as "Inventory on Hand", all bottled wine, bulk wine
remaining in bottling tanks and all barreled wine whether stored on the
licensed premises or elsewhere in Illinois and whether stored in or out of
bond, and this is true whether such wine is owned by the winery or lawfully
held by the winery as agent for another.
5) Importing distributors shall include in
"Inventory on Hand", both bulk and bottled alcoholic liquors, including those
in bond and other warehouses, and this is true whether such alcoholic liquors
are owned by the importing distributor or whether such alcoholic liquors are
lawfully held by the importing distributor as agent for another.
d) Invoices of Sale:
1) Each manufacturer and importing
distributor must at the time of sale of any alcoholic liquors render to the
purchaser an invoice describing the alcoholic liquor sold (including the tax
rate category applicable to the product sold, as described in Section
420.10(a)
of this Part), the date of sale, to whom sold, and the quantity sold. Duplicate
copies of all such invoices must be made and preserved by such manufacturer or
importing distributor for audit purposes.
2) Where a manufacturer or importing
distributor sells alcoholic liquors to a licensed retailer or distributor, each
original and duplicate invoice pertaining to such sale must be printed,
stamped, or bear in writing language substantially as follows:
"Payment of Illinois Liquor Tax made by vendor issuing this
invoice."
3) This legend
must appear on sales invoices covering tax-paid containers of alcoholic liquors
even though the licensed manufacturer or importing distributor purchased the
containers of alcoholic liquors covered therein tax-paid.
4) Where a manufacturer or importing
distributor sells any alcoholic liquors to another licensed manufacturer or
importing distributor and does not assume the tax liability, each such invoice
covering such sale must be printed, stamped or bear written language
substantially as follows:
"Liquors described herein sold without payment of Illinois tax
to holder of Illinois License No. "
5) Where a manufacturer or importing
distributor sells alcoholic liquors to a second manufacturer or importing
distributor and assumes payment of gallonage tax with respect to such sales,
invoices pertaining to such sales should be stamped with the language first set
forth in subsection (d)(2).
6)
Failure of any manufacturer or importing distributor to print, stamp or write
upon any invoice covering alcoholic liquors sold in Illinois any statement
relating to payment of Illinois gallonage tax will oblige the Department to
assume that the alcoholic liquors described therein were sold to persons not
licensed as Illinois manufacturers or importing distributors, and the vendor is
liable for tax with respect to such sales.
e) Bottling Losses:
At the time of an audit no deduction for bottling losses will
be allowed unless accurate records are kept for each month, day by day, of the
gallonage dumped or tanked for bottling and the number of cases and bottles
produced therefrom, together with an inventory of the amount of beer, wine or
alcohol and spirits remaining in the tanks at the end of each month. This
deduction is allowable only when it relates to alcoholic liquors which are
carried in inventory in the Liquor Revenue Return at the time when such
bottling loss occurs.
f)
License Numbers For Purchasers Must Appear On Sales Records:
No manufacturer or importing distributor shall sell or deliver
any original package of alcoholic liquor to another person for resale, unless
the person to whom such package is sold or delivered is authorized to receive
such package in accordance with the provisions of the Act. All manufacturers or
importing distributors must place the license number, if any, of the person
receiving such liquors for resale on all receipts, bills, invoices, statements,
etc., covering such sales or deliveries.
g) Records Maintained At Licensed Address:
Books and records of manufacturers and importing distributors
must be maintained at the licensed addresses of such manufacturers and
importing distributors. The Department may in its discretion prescribe uniform
methods for keeping such records.
h) Breakage Losses:
1) At the time of an audit or hearing, no
gallonage deduction, on account of breakage, which occurs on the premises of a
manufacturer or importing distributor, will be allowed unless complete and
accurate records are kept for each month, day by day, of the gallonage spilled
or wasted by reason of breaking of containers.
2) The entry must be made in the breakage
record on the date that the loss through breakage occurs, and entry should
include the date, the number of bottles, cases or other containers broken, the
gallonage of each class of alcoholic liquors spilled or lost from each type of
container and the total gallonage lost on that particular day. In addition, the
claimed loss through breakage will not be allowed unless the entries made in
the licensee's breakage record are carried over to and entered in such
licensee's general books and records.
3) Likewise, at the time of an audit or
hearing, no gallonage deduction on account of breakage, which occurs off the
premises of a manufacturer or importing distributor, will be allowed unless
supported by competent documentary proof from an independent source.
4) No allowance for breakage will be made
unless the containers of alcoholic liquors which are involved have not had tax
paid with respect thereto and unless the alcoholic liquors which are involved
are carried in inventory in the Liquor Revenue Return at the time when such
breakage occurs.
