Rev. Ruling 56-383

Wholesaler's Basic Permit

A partnership, operating as a retailer of alcoholic beverages, wishes to purchase several separate retail corporations. It intends to do all of the buying for the several retail corporations and will become their sole source of supply of alcoholic beverages. Held, if the partnership, now a retailer, engages in the business of purchasing alcoholic beverages for resale to several other retail entities which it owns, it would then be engaged in business as a wholesaler under section 3(c) of the Federal Alcohol Administration Act and would be required to obtain a wholesaler's basic permit. If, however, the partnership merely buys liquors for the retail outlets as an agent, and no resale is made to such outlets, permit would not be required regardless of the fact that the partnership may or may not advance the funds used in making the purchase. With respect to a wholesaler owning outright or holding controlling interest in one or more retail outlets, see Revenue Ruling 56-384, below.

27 U.S.C. 203