Industry Circular

Number: 60-1

Date: January 4, 1960

Office of the Commissioner of Internal Revenue Alcohol and Tobacco Tax Division

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FORM 2611 - STATEMENT OF LOSSES AT BOTTLING PREMISES

Proprietors of distilled spirits plants, and others concerned:

Purpose. The purpose of this industry circular is to inform you that Form 2611 has been revised as of December, 1959, and that prior issues of the form will no longer be acceptable in support of claims for allowance of losses at bottling premises.

Extent of Revision. The form has been revised (a) in section I, Alcoholic Ingredients Account, to provide that spirits ineligible for loss allowance (including taxpaid spirits bottled before July 1, 1959) will be taken into such account when dumped rather than when received on the premises, and (b) in section III, Closed System Account, to provide for an independent computation of eligible losses in such system.

Preparing the First Statement on the December, 1959 Revision of Form 2611.

(a) In order to present all data for the fiscal year (to date) in conformity with the procedures indicated by the newly revised form, it will be necessary for proprietors, when preparing their first statement on such form, to clear the entry for line 20, column (e), of any ineligible spirits which may be incorporated therein. This will be done in the following manner:

1. Complete section I through line 16 in accordance with the line headings and the instructions on the form;
2. Complete section II;
3. Add together the quantity entered at line 4 of each Form 2611 previously submitted and the quantity entered at line 4 of the Form 2611 being prepared;
4. Subtract from this sum the quantity entered at line 24, column (e), of the Form 2611 being prepared;
5. Enter this answer at line 17 of the Form 2611 being pre- pared (label the entry "Adjustment per Industry Circular No. 60-1 " and show on the reverse of the form, or on an attachment, the computations leading to the answer); com- plete section I and the remainder of the form.

(b) Proprietors who have filed tentative claims for allowance of losses in the production of gin and vodka in a closed system will, when preparing their first statement on the newly revised form, find it necessary (1) to recompute the entries for lines 27 and 28 in column (e) of section III so as to differentiate between eligible and ineligible spirits entered into the system, and (2) to compute losses (including cumulative losses since last July 1) in accordance with the revised procedure indicated.

Supply of Revised Forms. An initial supply of revised Form 2611 will be sent, without requisition, to all proprietors of bottling premises. Additional supplies may be obtained from your assistant regional commissioner (alcohol and tobacco tax) on request.

Inquiries. Inquiries regarding this industry circular should refer to its number and be addressed to your assistant regional commissioner (alcohol and tobacco tax).

Dwight E. Avis

Director, Alcohol and Tobacco Tax Division

IRS - D. C. - 54656