Rev. Ruling 55-164

Change in Ownership

Section 1.42 of Regulations No. 1 provides that in the event of any change in the ownership, management or control of any business operated pursuant to a basic permit (if the permittee is a corporation, if any change occurs in the officers, directors, or persons owning or controlling more than 10 percent of the voting stock of said corporation) the permittee shall immediately notify the applicable Assistant Regional Commissioner of such change, giving the names and addresses of all new persons participating in the ownership, management, or control of such business, or in the case of a corporation, the name and addresses of such new officers, directors, or persons owning or controlling more than 10 percent of the voting stock. This requirement for "immediate" notification of changes is interpreted in the light of other internal revenue regulations which require that such notification must be made within 10 days. See, for example, 26 CFR 220.260 of the Regulations Relating to the Production of Distilled Spirits. Accordingly, it is held that notification of such changes within 10 days by holders of basic permits under the Federal Alcohol Administration Act will satisfy the requirements of section 1.42 of Regulations No. 1.

27 U.S.C. 204; 27 CFR 1.42