62238 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 

collections of information, including 

suggestions for reducing the burden, to 

David Rostker, Office of Management 

and Budget (OMB), by email to 

David_Rostker@omb.eop.gov, or by fax 

to (202) 395–7285; and to the Office of 

Administration, Bureau of Industry and 

Security, Department of Commerce, 

14th and Pennsylvania Avenue, NW., 

Room 6883, Washington, DC 20230. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under E.O. 13132. 

4. The Department finds that there is 

good cause under 5 U.S.C. 553 (b)(3) to 

waive the provisions of the 

Administrative Procedure Act requiring 

prior notice and the opportunity for 

public comment because it is 

unnecessary. This regulation deletes a 

redundant paragraph and redesignates 

the remaining paragraphs in one section 

for clarity; inserts material inadvertently 

omitted from previous rules in three 

places in the EAR; clarifies instructions 

for applying for authorization to transfer 

items subject to the EAR in-country; 

adds an alias for a listed entity on the 

Entity List; and removes references to 

two ECCNs that do not exist. The 

revisions made by this rule are 

administrative in nature and do not 

affect the rights and obligations of the 

public. Because these revisions are not 

substantive changes to the EAR, it is 

unnecessary to provide notice and 

opportunity for public comment. In 

addition, the 30-day delay in 

effectiveness required by U.S.C. 553(d) 

is not applicable because this rule is not 

a substantive rule. No other law requires 

that a notice of proposed rulemaking 

and an opportunity for public comment 

be given for this rule. 

Because notice of proposed 

rulemaking and opportunity for public 

comment are not required to be given 

for this rule under the Administrative 

Procedure Act or by any other law, the 

analytical requirements of the 

Regulatory Flexibility Act (5 U.S.C. 601 

et. seq.) are not applicable. 

List of Subjects in 15 CFR Part 736 

Exports. 

■ Accordingly, for the reasons set out in 

the preamble, 15 CFR part 736 is 

amended as follows: 

■ 1. The authority citation for part 736 

continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 22 U.S.C. 2151 (note), 

Pub. L. 108–175; E.O. 12938, 59 FR 59099, 

3 CFR, 1994 Comp., p. 950; E.O. 13020, 61 

FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 

13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 

228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 

Comp., p. 783; E.O. 13338, 69 FR 26751, 3 

CFR, 2004 Comp., p. 168; Notice of 

November 4, 2004, 69 FR 64637, 3 CFR, 2004 

Comp., p. 303; Notice of August 2, 2005, 70 

FR 45273 (August 5, 2005). 

SUPPLEMENT NO. 2 TO PART 736—

[CORRECTED] 

■ 2. Supplement No. 2 to part 736, is 

amended in ‘‘Administrative Order 

Two’’ by: 

■ a. Redesignating paragraphs (a)(2)(A) 

through (E) as paragraphs (a)(2)(i) 

through (v), respectively; and 

■ b. Redesignating paragraphs (a)(3)(A) 

through (D) as paragraphs (a)(3)(i) 

through (iv), respectively. 

Dated: October 20, 2005. 

Eileen Albanese, 

Director, Office of Exporter Services. 

[FR Doc. 05–21351 Filed 10–28–05; 8:45 am] 

BILLING CODE 3510–33–P 

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 

Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 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 taxfree 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, 

62240 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 

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 nonpassenger 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 § 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 

Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 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 

■ 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 

■ 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. 

■ 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: 

§ 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. 

§ 17.22 [Amended] 

■ 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 

§ 17.21(b)’’. 

§ 17.23 [Amended] 

■ 4. Section 17.23 is amended at the 

beginning by removing the word ‘‘A’’

and adding, in its place, the words 

‘‘Subject to § 17.21(b), a’’. 

■ 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: 

§ 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 § 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. 

§ 17.31 [Amended] 

■ 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 § 17.21(b)’’. 

■ 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 § 17.21(b)’’ and 

revising paragraph (b) to read as follows: 

§ 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 § 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 § 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 

§ 17.170. 

* * * * * 

■ 8. Section 17.51 is amended: 

■ a. By designating the existing text as 

paragraph (a); 

■ 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’’; 

■ c. Also in the first sentence of newly 

designated paragraph (a), by adding 

after the words ‘‘payment in the’’ the 

word ‘‘applicable’’; and 

■ d. By adding a new paragraph (b) to 

read as follows: 

§ 17.51 Issuance of stamps. 

* * * * * 

(b) During the suspension period 

described in § 17.21(b) when 

registration is required but no tax is due, 

a special tax stamp will not be issued. 

■ 9. Section § 17.61 is revised to read as 

follows: 

§ 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 

62242 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 

special tax stamp within 90 days after 

the move to the new premises. However, 

if the move occurs during the 

suspension period described in 

§ 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)) 

§ 17.62 [Amended] 

■ 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 § 17.21(b) when the 

special tax rate is zero, a’’. 

■ 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: 

§ 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 

§ 17.21(b). * * * 

* * * * * 

(b) With respect to spirits used during 

the suspension period described in 

§ 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. 

§ 17.73 [Amended] 

■ 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 § 17.21(b) when the 

special tax rate is zero, a’’. 

■ 13. Section 17.75 is revised to read as 

follows: 

§ 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 § 17.21(b), the rate of 

special tax is zero. 

■ 14. Section 17.76 is revised to read as 

follows: 

§ 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 § 17.21(b), the rate of 

special tax is zero). Withdrawal of 

general partners is covered by 

§ 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. 

■ 15. Section 17.77 is revised to read as 

follows: 

§ 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 § 17.21(b) when no 

tax is due and no stamp is issued, only 

the filing of a new special tax return is 

required. 

§ 17.81 [Amended] 

■ 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’’. 

§ 17.82 [Amended] 

■ 17. Section 17.82 is amended by 

removing the word ‘‘is’’ and adding, in 

its place, the words ‘‘return and tax 

payment are’’. 

§ 17.83 [Amended] 

■ 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 

■ 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. 

■ 20. Section 19.49 is amended by 

adding a new paragraph (a)(3) and 

revising paragraphs (b)(2) and (c) to read 

as follows: 

§ 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 

Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 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. 

* * * * * 

§ 19.50 [Amended] 

■ 21. Section 19.50 is amended: 

■ 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 § 19.49(a)(3).’’; and 

■ 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 § 19.49(a)(3) when the tax rate is zero, 

title’’. 

■ 22. Section 19.51 is amended by 

revising paragraphs (a), (b)(5), and (c) to 

read as follows: 

§ 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 

§ 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 

§ 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 

§ 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 § 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 

§ 19.723(c). 

* * * * * 

■ 23. Section 19.53 is amended by 

revising paragraph (a) to read as follows: 

§ 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 § 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 § 19.49(a)(3) when registration is 

required but no tax is due, a special tax 

stamp will not be issued. 

* * * * * 

■ 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 § 19.49(a)(3)’’ and revising paragraphs 

(b) and (d) to read as follows: 

§ 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 

§ 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 

§ 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 § 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 § 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). 

* * * * * 

§ 19.906 [Amended] 

■ 25. Section 19.906 is amended by 

adding at the end of paragraph (a) before 

62244 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 

the period the words ‘‘except during the 

suspension period described in 

§ 19.49(a)(3) when special tax stamps 

are not issued’’. 

PART 24—WINE 

■ 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. 

■ 27. In § 24.50: 

■ 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’’; 

■ 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’’; 

■ c. A new paragraph (c) is added to 

read as follows; 

■ d. An authority citation is added 

following new paragraph (c); and 

■ e. The OMB control numbers at the 

end of the section are revised to read as 

follows: 

§ 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) 

§ 24.51 [Amended] 

■ 28. In § 24.51: 

■ 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 § 24.50(c).’’; and 

■ 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 § 24.50(c) when the 

tax rate is zero, title’’. 

§ 24.52 [Amended] 

■ 29. Section 24.52 is amended: 

■ 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 § 24.50(c),’’; 

■ b. In the second sentence of paragraph 

(a), by adding after the words ‘‘special 

(occupational) tax’’ the words ‘‘or 

registration’’; 

■ c. In the second sentence of paragraph 

(b), by adding after the words ‘‘special 

(occupational) tax’’ the words ‘‘or from 

registration’’; 

■ 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 § 24.50(c),’’; 

■ 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 § 24.50(c),’’; 

■ 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,’’; 

■ 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 § 24.50(c),’’; and 

■ h. Also in paragraph (d), by adding 

after the words ‘‘to pay special 

(occupational) tax’’ the words ‘‘or 

register’’. 

§ 24.53 [Amended] 

■ 30. Section 24.53 is amended: 

■ a. In paragraph (a), by adding at the 

end the following new sentence: 

‘‘During the suspension period 

described in § 24.50(c), an annual return 

is required even though no tax is due.’’; 

■ 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 

§ 24.50(c)’’; 

■ 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 

§ 24.50(c))’’; 

■ d. In paragraph (c)(1), by adding after 

the words ‘‘payment of’’ the word 

‘‘applicable’’; and 

■ 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 

§ 24.50(c)’’. 

■ 31. Section 24.54 is amended by 

revising paragraph (a) to read as follows: 

§ 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 

§ 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 § 24.50(c) when registration is 

required but no tax is due, a special tax 

stamp will not be issued. 

* * * * * 

■ 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 § 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: 

§ 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 

§ 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 § 24.50(c)), without paying a new 

special (occupational) tax, if within 30 

Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 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 

§ 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 § 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 

■ 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. 

■ 34. Section 25.111 is amended: 

■ 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 

■ b. By adding a new paragraph (c) 

before the authority citation to read as 

follows: 

§ 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. 

* * * * * 

§ 25.111a [Amended] 

■ 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 § 25.111(c).’’

§ 25.111b [Amended] 

■ 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 § 25.111(c)’’. 

§ 25.113 [Amended] 

■ 37. In § 25.113: 

■ 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 § 25.111(c), for’’; and 

■ 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 

§ 25.111(c))’’. 

§ 25.114 [Amended] 

■ 38. In § 25.114: 

■ 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 § 25.111(c),’’; 

■ b. The second sentence of paragraph 

(a) is amended by adding after the 

words ‘‘dealer’s special tax’’ the words 

‘‘or registration’’; 

■ c. The last sentence of paragraph (a) 

is amended by adding after the words 

‘‘dealer’s special tax’’ the words ‘‘or 

registration’’; 

■ 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 § 25.111(c),’’; and 

■ e. Paragraph (b) is further amended by 

adding after the words ‘‘pay special tax’’

the words ‘‘or register’’. 

§ 25.117 [Amended] 

■ 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 § 25.111(c) even 

though no tax is due’’ and adding in the 

third sentence after the words ‘‘payment 

of’’ the word ‘‘applicable’’. 

§ 25.118 [Amended] 

■ 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 § 25.111(c)’’. 

§ 25.119 [Amended] 

■ 41. In § 25.119: 

■ 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 § 25.111(c))’’

■ b. Paragraph (a) is amended by adding 

after the words ‘‘payment of’’ the word 

‘‘applicable’’; and 

■ 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 § 25.111(c)’’. 

■ 42. Section 25.125 is amended: 

■ a. By designating the existing text as 

paragraph (a); 

■ 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’’; 

■ c. Also in the first sentence of newly 

designated paragraph (a), by adding 

after the words ‘‘together with the’’ the 

word ‘‘applicable’’; and 

■ d. By adding a new paragraph (b) 

before the section authority citation to 

read as follows: 

§ 25.125 Issuance of special tax stamps. 

* * * * * 

(b) During the suspension period 

described in § 25.111(c) when 

registration is required but no tax is due, 

a special tax stamp will not be issued. 

* * * * * 

62246 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 

§ 25.131 [Amended] 

■ 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 

§ 25.111(c)’’. 

■ 44. Section 25.132 is revised to read 

as follows: 

§ 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 

§ 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 § 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 § 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 § 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)) 

■ 45. Section 25.134 is revised to read 

as follows: 

§ 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 § 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 

■ 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. 

■ 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: 

§ 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. 

* * * * * 

■ 48. Section 26.45 is revised to read as 

follows: 

§ 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 § 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 

§ 26.44(a). During the suspension 

period, every such person must register 

as provided in § 26.44(b). 

(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 

5112, 5121, 5122) 

■ 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: 

§ 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. 

* * * * * 

■ 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: 

§ 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. 

■ 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 

Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 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: 

§ 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. 

* * * * * 

■ 52. Section 26.211 is revised to read 

as follows: 

§ 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 § 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 

§ 26.210(a). During the suspension 

period, every such person must register 

as provided in § 26.210(b). 

(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 

5112, 5121, 5122) 

■ 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: 

§ 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 

■ 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. 

■ 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: 

§ 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. 

* * * * * 

■ 56. Section 27.31 is revised to read as 

follows: 

§ 27.31 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 § 27.30(b), every person engaged in 

business as an importer of distilled 

spirits, who sells, or offers for sale, 

warehouse receipts for distilled spirits 

stored in customs bonded warehouses, 

or elsewhere, incurs liability to special 

tax as a dealer in liquors at the place 

where the warehouse receipts are sold 

or offered for sale, and must file return 

and pay occupational tax as provided in 

§ 27.30(a). During the suspension 

period, every such person must register 

as provided in § 27.30(b). 

(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 

5112, 5121, 5122) 

PART 31—ALCOHOL BEVERAGE 

DEALERS 

■ 57. The authority citation for part 31 

is revised to read as follows: 

Authority: 26 U.S.C. 5001, 5002, 

5111’5114, 5116, 5117, 5121–5124, 5142, 

5143, 5145, 5146, 5148, 5206, 5207, 5301, 

5352, 5555, 5613, 5681, 5691, 6001, 6011, 

6061, 6065, 6071, 6091, 6109, 6151, 6311, 

6314, 6402, 6511, 6601, 6621, 6651, 6657, 

7011, 7805. 

■ 58. Section 31.21 is amended by 

designating the existing text as 

paragraph (a), adding the heading 

‘‘General.’’ to newly designated 

paragraph (a), removing the word 

‘‘Special’’ 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, special’’, 

and adding a new paragraph (b) before 

the section authority citation to read as 

follows: 

§ 31.21 Basis of 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, liquor dealers 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. 

* * * * * 

■ 59. Section 31.23 is revised to read as 

follows: 

§ 31.23 Retail dealer in liquors. 

(a) General. Every person who sells or 

offers for sale distilled spirits, wines, or 

beer to any person other than a dealer 

is, except as provided in paragraph (b) 

of this section, a retail dealer in liquors. 

Except during the suspension period 

described in § 31.21(b), every retail 

dealer in liquors shall pay special tax at 

the rate specified in § 31.101 for such 

dealer, unless such dealer is exempt 

from such special tax as provided in 

paragraph (c) of this section. During the 

suspension period described in 

§ 31.21(b) when no tax is due, the dealer 

must register by filing the special tax 

return, Form 5630.5. 

(b) Persons not deemed to be retail 

dealers in liquors. The following 

persons are not deemed to be retail 

dealers in liquors within the meaning of 

26 U.S.C. chapter 51, and are not 

required to pay special tax (or to register 

62248 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 

during the suspension period described 

in § 31.21(b)) as such dealer: 

(1) A retail dealer in beer as defined 

in § 31.25, 

(2) A limited retail dealer as specified 

in § 31.27, or 

(3) A person who only sells or offers 

for sale distilled spirits, wines, or beer 

as provided in § 31.188 through § 31.190 

or § 31.191(a). 

(c) Persons exempt from special tax. 

The following persons are exempt from 

special tax (and from registration during 

the suspension period described in 

§ 31.21(b)) as retail dealers in liquors: 

(1) A wholesale dealer in liquors 

selling or offering for sale distilled 

spirits, wines, or beer, whether to 

dealers or persons other than dealers, at 

any place where such wholesale dealer 

in liquors is required to pay special tax 

(or to register during the suspension 

period described in § 31.21(b)) as such 

dealer. 

(2) A wholesale dealer in beer selling 

or offering for sale beer only, whether to 

dealers or persons other than dealers, at 

any place where such wholesale dealer 

in beer is required to pay special tax (or 

to register during the suspension period 

described in § 31.21(b)) as such dealer, 

or 

(3) A person who is exempt from 

special tax under the provisions of 

§§ 31.181–31.184, 31.187, or 31.187a. 

(72 Stat. 1340, 1343, 1344; 26 U.S.C. 

5113, 5121, 5122) 

■ 60. Section 31.24 is revised to read as 

follows: 

§ 31.24 Wholesale dealer in liquors. 

(a) General. Every person who sells or 

offers for sale distilled spirits, wines, or 

beer to another dealer is, except as 

provided in paragraph (b) of this 

section, a wholesale dealer in liquors. 

Except during the suspension period 

described in § 31.21(b), every wholesale 

dealer in liquors is required to pay 

special tax at the rate specified in 

§ 31.101 for such dealer, unless such 

dealer is exempt from such special tax 

as provided in paragraph (c) of this 

section. During the suspension period 

when no tax is due, the dealer must 

register by filing the special tax return, 

Form 5630.5, in accordance with 

§ 31.21(b). 

(b) Persons not deemed to be 

wholesale dealers in liquors. The 

following persons are not deemed to be 

wholesale dealers in liquors within the 

meaning of 26 U.S.C. chapter 51, and 

are not required to pay special tax (or 

to register during the suspension period 

described in § 31.21(b)) as such dealer: 

(1) A wholesale dealer in beer as 

defined in § 31.26, 

(2) A person who only sells or offers 

for sale distilled spirits, wines, or beer 

as provided in §§ 31.188 through 31.190 

or § 31.192, or 

(3) A person returning liquors for 

credit, refund, or exchange as provided 

in § 31.193. 

(c) Persons exempt from special tax. 

(1) The following persons are exempt 

from special tax (and from registration 

during the suspension period described 

in § 31.21(b)) as wholesale dealers in 

liquors: 

(i) A retail dealer in liquors who 

consummates sales of distilled spirits, 

beer or wine, or any combination 

thereof, to a limited retail dealer at the 

place where such retail dealer in liquors 

has paid the special tax (or has 

registered during the suspension period 

described in § 31.21(b)) as such dealer 

for the current tax year, 

(ii) A retail dealer in beer who, having 

paid the special tax (or having registered 

during the suspension period described 

in § 31.21(b)) as such dealer for the 

current tax year, consummates sales at 

his place of business of beer to a limited 

retail dealer, or 

(iii) A person who is exempt from 

such tax under the provisions of 

§§ 31.181 through 31.184. 

(2) A wholesale dealer in liquors who 

has paid the special tax (or has 

registered during the suspension period 

described in § 31.21(b)) as such dealer at 

the place or places from which he 

conducts his selling operations is 

exempt from additional special tax (or 

from additional registration during the 

suspension period described in 

§ 31.21(b)) on account of his sales of 

beer or wines to other dealers at the 

places of business of such dealers. 

(Sec. 201, Pub. L. 85–859, 72 Stat. 1340, 

as amended, 1344, as amended; sec. 

1905, Pub. L. 94–455, 90 Stat. 1819 (26 

U.S.C. 5111, 5112, 5113, 5123)) 

■ 61. Section 31.25 is revised to read as 

follows: 

§ 31.25 Retail dealer in beer. 

(a) General. Every person who sells or 

offers for sale beer, but not distilled 

spirits or wines, to any person other 

than a dealer is, except as provided in 

paragraph (b) of this section, a retail 

dealer in beer. Except during the 

suspension period described in 

§ 31.21(b), every retail dealer in beer 

shall pay special tax at the rate specified 

in § 31.101 for such dealer, unless such 

dealer is exempt from such special tax 

as provided in paragraph (c) of this 

section. During the suspension period 

when no tax is due, the dealer must 

register by filing the special tax return, 

Form 5630.5, in accordance with 

§ 31.21(b). 

(b) Persons not deemed to be retail 

dealers in beer. The following persons 

are not deemed to be retail dealers in 

beer within the meaning of 26 U.S.C. 

chapter 51, and are not required to pay 

a special tax (or to register during the 

suspension period described in 

§ 31.21(b)) as such dealer: 

(1) A limited retail dealer as specified 

in § 31.27, or 

(2) A person who only sells or offers 

for sale beer, but not distilled spirits or 

wines, as provided in § 31.188 through 

§ 31.189 or § 31.191(a). 

(c) Persons exempt from special tax. 

The following persons are exempt from 

special tax (and from registration during 

the suspension period described in 

§ 31.21(b)) as retail dealers in beer: 

(1) A wholesale dealer in beer selling 

or offering for sale beer, but not distilled 

spirits or wines, whether to dealers or 

persons other than dealers, at any place 

where such wholesale dealer in beer is 

required to pay special tax (or to register 

during the suspension period described 

in § 31.21(b)) as such dealer. 

(2) A person who is exempt from 

special tax under the provisions of 

§§ 31.181, 31.184, 31,187, or 31.187a. 

(72 Stat. 1340, 1343, 1344; 26 U.S.C. 

5113, 5121, 5122) 

■ 62. Section 31.26 is revised to read as 

follows: 

§ 31.26 Wholesale dealer in beer. 

(a) General. Every person who sells or 

offers for sale beer, but not distilled 

spirits or wines, to another dealer is, 

except as provided in paragraph (b) of 

this section, a wholesale dealer in beer. 

Except during the suspension period 

described in § 31.21(b), every wholesale 

dealer in beer is required to pay special 

tax at the rate specified in § 31.101 for 

such dealer, unless such dealer is 

exempt from such special tax as 

provided in paragraph (c) of this 

section. During the suspension period 

when no tax is due, the dealer must 

register by filing the special tax return, 

Form 5630.5, in accordance with 

§ 31.21(b). 

(b) Persons not deemed to be 

wholesale dealers in beer. The following 

persons are not deemed to be wholesale 

dealers in beer within the meaning of 26 

U.S.C. chapter 51, and are not required 

to pay special tax (or to register during 

the suspension period described in 

§ 31.21(b)) as such dealer: 

(1) A person who only sells or offers 

for sale beer, but not distilled spirits or 

wines, as provided in § 31.188 through 

§ 31.189 or § 31.192, or 

Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 62249 

(2) A person returning beer for credit, 

refund or exchange as provided in 

§ 31.193. 

(c) Persons exempt from special tax. 

(1) The following persons are exempt 

from special tax (and from registration 

during the suspension period described 

in § 31.21(b)) as wholesale dealers in 

beer: 

(i) A retail dealer in liquors who 

consummates sales of distilled spirits, 

beer or wine, or any combination 

thereof, to a limited retail dealer at the 

place where such retail dealer in liquors 

has paid the special tax (or has 

registered during the suspension period 

described in § 31.21(b)) as such dealer 

for the current tax year, 

(ii) A retail dealer in beer who 

consummates sales of beer to a limited 

dealer at the place where such retail 

dealer in beer has paid the special tax 

(or has registered during the suspension 

period described in § 31.21(b)) as such 

dealer for the current tax year, or 

(iii) A person who is exempt from 

such tax under the provisions of 

§§ 31.181 and 31.184. 

(2) A wholesale dealer in beer who 

has paid the special tax (or has 

registered during the suspension period 

described in § 31.21(b)) as such dealer at 

the place, or places, from which he 

conducts his selling operations is 

exempt from additional special tax (or 

from additional registration during the 

suspension period described in 

§ 31.21(b)) on account of his sales of 

beer to other dealers at the places of 

business of such dealers. 

(Sec. 201, Pub. L. 85–859, 72 Stat. 1340, 

as amended, 1344, as amended; sec. 

1905, Pub. L. 94–455, 90 Stat. 1819 (26 

U.S.C. 5111, 5112, 5113, 5123)) 

■ 63. Section 31.29 is revised to read as 

follows: 

§ 31.29 Clubs or similar organizations. 

(a) Subject to paragraph (b) of this 

section, a club or similar organization 

shall pay special tax (or register during 

the suspension period as provided in 

§ 31.21(b)) if such club or organization: 

(1) Furnishes liquors to members 

under conditions constituting sale 

(including the acceptance of orders 

therefor, furnishing the liquors ordered 

and collecting the price thereof); or 

(2) Conducts a bar for the sale of 

liquors on the occasion of an outing, 

picnic, or other entertainment, unless 

the club is a ‘‘limited retail dealer’’

under § 31.27 (the special tax stamp or 

registration of the proprietor of the 

premises where the bar is located will 

not relieve the club or organization from 

its own special tax payment or 

registration); or 

(3) Purchases liquors for members 

without prior agreement concerning 

payment therefor and such organization 

subsequently recoups. 

(b) Special tax payment or registration 

is not required if money is collected in 

advance from members for the purchase 

of liquors, or money is advanced for 

purchase of liquors on agreement with 

the members for reimbursement. 

(72 Stat. 1340, 1343, 1344; 26 U.S.C. 

5111, 5121, 5122) 

§ 31.30 [Amended] 

■ 64. Section 31.30 is amended by 

adding at the end before the period the 

words ‘‘or shall register during the 

suspension period as provided in 

§ 31.21(b)’’. 

■ 65. Section 31.31 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) before the section 

authority citation to read as follows: 

§ 31.31 States, political subdivisions 

thereof, or the District of Columbia. 

* * * * * 

(b) Suspension of tax. During the 

suspension period described in 

§ 31.21(b) when no tax is due, the 

States, their political subdivisions, and 

the District of Columbia must register 

only once per tax year by filing a special 

tax return, Form 5630.5, in accordance 

with § 31.21(b). 

* * * * * 

§ 31.32 [Amended] 

■ 66. Section 31.32 is amended by 

adding at the end before the period the 

words ‘‘or shall register during the 

suspension period as provided in 

§ 31.21(b)’’. 

§ 31.33 [Amended] 

■ 67. In § 31.33: 

■ a. Amend the heading of paragraph (a) 

by removing the word ‘‘liability’; and 

■ b. Amend the text of paragraph (a) by 

removing the word ‘‘liability’’ and 

adding, in its place, the words 

‘‘payment (or registration during the 

suspension period as provided in 

§ 31.21(b))’’, and by removing the word 

‘‘incurred’’ and adding, in its place, the 

word ‘‘required’’. 

§ 31.34 [Amended] 

■ 68. Section 31.34 is amended by 

adding after the words ‘‘pay special 

tax,’’ the words ‘‘(or register during the 

suspension period as provided in 

§ 31.21(b))’’. 

■ 69. Section 31.35 is revised to read as 

follows: 

§ 31.35 Warehouse receipts covering 

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 § 31.21(b), every person who sells or 

offers for sale warehouse receipts for 

spirits held or stored in a distilled 

spirits plant, customs bonded 

warehouse, or elsewhere, is required to 

file a special tax return and pay special 

tax as a wholesale dealer in liquors, or 

as a retail dealer in liquors, as the case 

may be, at the place where such 

warehouse receipts are sold, or offered 

for sale, unless exempt by the 

provisions of subpart L of this part. 

During the suspension period, such 

persons must register as provided in 

§ 31.21(b). 

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 

5121) 

■ 70. Section 31.51 is revised to read as 

follows: 

§ 31.51 Special tax liability incurred at 

each place of business. 

Except as provided in §§ 31.31 and 

31.181 through 31.193, payment of 

special tax (or registration during the 

suspension period as provided in 

§ 31.21(b)) is required for each and 

every place where distilled spirits, 

wines, or beer are sold or offered for 

sale: Provided, That the term ‘‘place’’ as 

used in this section means the entire 

office, plant or area of the business in 

any one location under the same 

proprietorship; and passageways, 

streets, highways, rail crossings, 

waterways, or partitions dividing the 

premises shall not be deemed sufficient 

separation to require the payment of 

additional special tax (or to require 

additional registration), if the various 

divisions are otherwise contiguous. 

(72 Stat. 1347; 26 U.S.C. 5143) 

§ 31.53 [Amended] 

■ 71. The second sentence of § 31.53 is 

amended by adding after the words 

‘‘special tax stamp’’ the words ‘‘(or for 

which he has registered during the 

suspension period described in 

§ 31.21(b) when no tax is due and no 

special tax stamp is issued)’’ and adding 

after the words ‘‘exempt from special 

tax,’’ the words ‘‘or registration’’. 

■ 72. Section 31.54 is revised to read as 

follows: 

§ 31.54 Places of storage; deliveries 

therefrom. 

Special tax is not required to be paid 

(and registration under § 31.21(b) is not 

required) for warehouses and similar 

places which are used by dealers merely 

62250 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 

for the storage of liquors and are not 

places where orders for liquors are 

accepted. Where orders for liquors are 

received and duly accepted at a place 

where the dealer holds the required 

special tax stamp (or for which the 

dealer has registered during the 

suspension period described in 

§ 31.21(b) when no special tax stamp is 

issued), the subsequent actual delivery 

of the liquors from a place of storage 

does not require the payment of special 

tax (or registration) at such place of 

storage. Except as provided in §§ 31.185 

and 31.186, a dealer holding a special 

tax stamp (or having registered during 

the suspension period) at a given place, 

who makes actual delivery of liquors 

from a warehouse at another place, 

without prior constructive delivery by 

the acceptance of an order therefor at 

the place covered by the special tax 

stamp (or by registration during the 

suspension period), shall pay special tax 

(or shall register during the suspension 

period as provided in § 31.21(b)) at the 

place where ownership of the liquors is 

transferred. 

(72 Stat. 1340, 1347; 26 U.S.C. 5113, 

5143) 

■ 73. Section 31.55 is revised to read as 

follows: 

§ 31.55 Caterers. 

(a) General. Where a contract to 

furnish liquors is made by a caterer at 

his place of business where he holds a 

special tax stamp (or for which he has 

registered during the suspension period 

described in § 31.21(b)), no payment of 

special tax (or registration during the 

suspension period) is required by the 

serving of the liquors at a different 

location. 

(b) Additional liability. Where the 

contract of a caterer provides for the sale 

of liquors by the drink at a place, or 

simultaneously at different places, other 

than his place of business where he 

holds a special tax stamp (or for which 

he has registered during the suspension 

period described in § 31.21(b)), a 

separate payment of special tax (or 

registration during the suspension 

period) is required for each such place. 

(c) Records. Caterers must maintain 

sufficient commercial records to verify 

that their special (occupational) tax 

liabilities (or registration obligations 

during the suspension period described 

in § 31.21(b)) have been satisfied for all 

locations at which activities subject to 

special (occupational) tax or registration 

occur. These commercial records should 

indicate the names and addresses of 

locations at which alcoholic beverages 

have been sold or offered for sale and 

the dates and times that such activities 

occurred. These commercial records 

must be available to TTB officers upon 

request. 

(26 U.S.C. 5121, 5122, 5143, 5555, 6806, 

7011) 

§ 31.56 [Amended] 

■ 74. In § 31.56, the second sentence is 

amended by adding after the words 

‘‘pay special tax’’ the words ‘‘(or to 

register during the suspension period as 

provided in § 31.21(b))’’. 

§ 31.57 [Amended] 

■ 75. In § 31.57: 

■ a. The first sentence is amended by 

adding after the word ‘‘stamp’’ the 

words ‘‘(or one registration during the 

suspension period described in 

§ 31.21(b) when no tax is due and no 

special tax stamp is issued)’’; and 

■ b. The second sentence is amended by 

adding at the end before the period the 

words ‘‘, or shall register only once per 

tax year during the suspension period in 

accordance with § 31.21(b)’’. 

§ 31.58 [Amended] 

■ 76. In § 31.58: 

■ a. The first sentence is amended by 

adding at the end before the period the 

words ‘‘, or shall register only once per 

tax year during the suspension period 

described in § 31.21(b)’’; 

■ b. The third sentence is amended by 

adding at the end before the period the 

words ‘‘, or shall register only once per 

tax year during the suspension period in 

accordance with § 31.21(b)’’. 

§ 31.59 [Amended] 

■ 77. In § 31.59: 

■ a. The first sentence is amended by 

adding after the words ‘‘special tax’’ the 

words ‘‘(or shall register only once per 

tax year during the suspension period 

described in § 31.21(b))’’; and 

■ b. The second sentence is amended by 

adding after the words ‘‘special tax’’ the 

words ‘‘(or shall register only once per 

tax year during the suspension period in 

accordance with § 31.21(b))’’. 

■ 78. Section 31.71 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) before the section 

authority citation to read as follows: 

§ 31.71 Different businesses of same 

ownership and location. 

* * * * * 

(b) Suspension of tax. The person 

must register for each business during 

the suspension period as provided in 

§ 31.21(b) when no tax is due, except as 

provided in §§ 31.24 and 31.26. 

* * * * * 

■ 79. Section 31.72 is amended by 

revising paragraph (b) to read as follows: 

§ 31.72 Dealer in beer and dealer in liquors 

at the same location. 

* * * * * 

(b) Rule in effect on January 1, 1988, 

and thereafter. Any person who pays 

special tax (or who registers during the 

suspension period as provided in 

§ 31.21(b)) as a retail dealer in beer for 

a period beginning on or after January 

1, 1988, (including one who pays such 

tax under the transition rule of 

§ 31.103(b)) is exempt from additional 

special tax (or from additional 

registration during the suspension 

period) as a retail dealer in liquors with 

respect to sales of distilled spirits or 

wine at the place and during the period 

for which the tax was paid (or 

registration was completed) as a retail 

dealer in beer. Similarly, any person 

who pays special tax (or who registers 

during the suspension period as 

provided in § 31.21(b)) as a wholesale 

dealer in beer for a period beginning on 

or after January 1, 1988, (including one 

who pays such tax under the transition 

rule of § 31.103(b)) is exempt from 

additional special tax (or from 

additional registration during the 

suspension period) as a wholesale 

dealer in liquors with respect to sales of 

distilled spirits or wine at the place and 

during the period for which the tax was 

paid (or registration was completed) as 

a wholesale dealer in beer. 

* * * * * 

■ 80. Section 31.91 is revised to read as 

follows: 

§ 31.91 Liability of partners. 

Any number of persons carrying on 

one business in partnership at any one 

place during any tax year shall be 

required to pay but one special tax (or 

to register but once during the 

suspension period as provided in 

§ 31.21(b)) for such business. 

(72 Stat. 1347; 26 U.S.C. 5143) 

■ 81. Section 31.92 is revised to read as 

follows: 

§ 31.92 Addition of partners or 

incorporation of partnership. 

Except during the suspension period 

described in § 31.21(b), where a number 

of persons who have paid special tax as 

partners admit one or more new 

members to the firm or form a 

corporation (a separate legal entity) to 

take over the business, the new firm or 

corporation shall pay special tax before 

commencing business. During the 

suspension period described in 

§ 31.21(b), the new firm or corporation 

must register as a new dealer. 

Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 62251 

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 

5121) 

■ 82. Section 31.93 is revised to read as 

follows: 

§ 31.93 Formation of a partnership by two 

dealers. 

Except during the suspension period 

described in § 31.21(b), where two 

persons, each holding a special tax 

stamp for a business carried on by 

himself, form a partnership, the firm 

shall pay special tax to cover the 

business conducted by the partnership. 

During the suspension period described 

in § 31.21(b), if two registered dealers 

form a partnership, the firm must 

register as a new dealer. 

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 

5121) 

§ 31.94 [Amended] 

■ 83. Section 31.94 is amended: 

■ a. In the second sentence, by adding 

after the word ‘‘However,’’ the words 

‘‘except during the suspension period 

described in § 31.21(b),’’; and 

■ b. By adding the following new 

sentence to the end of the paragraph: 

‘‘During the suspension period, the 

remaining partner or partners must file 

a new registration on Form 5630.5 

within 30 days after the change in 

control.’’

■ 84. In § 31.101, paragraph (b) is 

amended by designating the existing 

text as paragraph (b)(1), adding the 

heading ‘‘General.’’ to newly designated 

paragraph (b)(1), and adding a new 

paragraph (b)(2) before the section 

authority citation to read as follows: 

§ 31.101 Special tax rates. 

* * * * * 

(b) * * * 

(2) Rate during suspension period. 

During the suspension period described 

in § 31.21(b), the special (occupational) 

tax rate for all dealers in liquor or beer 

is zero. 

* * * * * 

■ 85. Section 31.102 is revised to read 

as follows: 

§ 31.102 Date special tax is due. 

Except during the suspension period 

described in § 31.21(b), special taxes 

shall be paid on or before July 1 of each 

year, or before engaging in business. 

During the suspension period when no 

tax is due, dealers must register by filing 

the special tax return, Form 5630.5, 

before commencement of business and 

on or before July 1 of each year 

thereafter. 

(72 Stat. 1346; 26 U.S.C. 5142) 

§ 31.104 [Amended] 

■ 86. In § 31.104: 

■ a. The first sentence is amended by 

adding after the words ‘‘payment of’’ the 

word ‘‘applicable’’; 

■ b. The first sentence is further 

amended by adding after the words 

‘‘shall file a Form 5630.5 with’’ the 

word ‘‘applicable’’; 

■ c. The second sentence is amended by 

adding after the words ‘‘subject to 

special tax’’ the words ‘‘(or required to 

register during the suspension period 

described in § 31.21(b))’’; 

■ d. The second sentence is further 

amended by adding after the words 

‘‘payment of’’ the word ‘‘applicable’’; 

and 

■ e. The third sentence is amended by 

adding after the words ‘‘return and’’ the 

word ‘‘applicable’’. 

§ 31.104a [Amended] 

■ 87. Section 31.104a is amended by 

adding after the words ‘‘remittance of’’

the word ‘‘applicable’’. 

■ 88. Section 31.106 is amended by 

revising paragraphs (a), (b)(5), and (c) to 

read as follows: 

§ 31.106 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 

§ 31.21(b). The prescribed return is TTB 

Form 5630.5, Special Tax Registration 

and Return. Special tax returns, with 

payment of tax, shall be filed with TTB 

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 

§ 31.21(b). 

* * * * * 

(c) Multiple locations and/or classes 

of tax. A taxpayer subject to special tax, 

or required to register during the 

suspension period described in 

§ 31.21(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, TTB 

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 TTB 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 § 31.21(b). The original of 

the list shall be filed with TTB 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 § 31.237. 

* * * * * 

§ 31.109 [Amended] 

■ 89. In § 31.109, paragraph (a) is 

amended: 

■ a. At the beginning of the first 

sentence, by removing the word ‘‘Any’’

and adding, in its place, the words 

‘‘Except during the suspension period 

described in § 31.21(b), any’’; and 

■ b. By adding the following new 

sentence to the end of the paragraph: 

‘‘During the suspension period, a failure 

to file a return may result in a penalty 

under 26 U.S.C. 5603(b).’’

■ 90. Section 31.121 is amended by 

revising paragraph (a) to read as follows: 

§ 31.121 Issuance of stamps. 

(a) Issuance—(1) General. Except as 

otherwise provided in paragraph (a)(2) 

of this section, upon filing a return 

properly executed on Form 5630.5, 

together with a remittance in the 

applicable full amount due, the taxpayer 

will be issued an appropriately 

designated stamp. Special tax stamps 

will not be issued in the case of a return 

covering liability for a past period. 

(2) Exception for suspension period. 

During the suspension period described 

in § 31.21(b) when registration is 

required but no tax is due, a special tax 

stamp will not be issued. 

* * * * * 

■ 91. The heading and text of § 31.124 

are revised to read as follows: 

§ 31.124 Passenger trains, aircraft, and 

vessels. 

(a) Issuance of stamps—(1) Except as 

otherwise provided in paragraph (a)(2) 

of this section, special tax stamps may 

be issued in general terms ‘‘in the 

United States’’ to persons who will 

carry on the business of retail dealers in 

liquors or retail dealers in beer, on 

trains, aircraft, boats or other vessels, 

engaged in the business of carrying 

passengers. If sales of liquors are made 

at the same time on two or more 

passenger carriers, a special tax stamp 

shall be obtained for each such carrier. 

However, a dealer may transfer any such 

stamp from one passenger carrier to 

another on which he conducts his 

business, without registering the 

transfer with TTB, and he may conduct 

62252 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 

such business throughout the passenger 

carrying train, aircraft, boat or other 

vessel, to which the stamp is 

transferred. 

(2) During the suspension period 

described in § 31.21(b) when no tax is 

due, dealers operating on trains, aircraft, 

and vessels must register as provided in 

paragraph (b) of this section, but no 

special tax stamps will be issued. 

(b) Filing of Form 5630.5 and 

payment of tax. A person subject to 

special tax (or to registration during the 

suspension period described in 

§ 31.21(b)) on one or more passenger 

carriers shall file one Form 5630.5, 

prepared in the manner prescribed in 

§ 31.106(b), with payment of applicable 

tax in accordance with § 31.101, to 

cover all such carriers and shall specify 

on the Form 5630.5 the number of 

passenger carriers for which special tax 

is being paid (or for which registration 

is being completed). 

(Sec. 201, Pub. L. 85–859, 72 Stat. 1344 

as amended, 1347 as amended (26 

U.S.C. 5123, 5143)) 

■ 92. Section 31.125 is revised to read 

as follows: 

§ 31.125 Carriers not engaged in 

passenger service. 

Except as provided in § 31.126, the 

retailing of liquor on any railroad train, 

aircraft, or boat that is not engaged in 

the business of carrying passengers is 

prohibited. 

(72 Stat. 1344, 1347; 26 U.S.C. 5123, 

5143) 

■ 93. The heading and text of § 31.126 

are revised to read as follows: 

§ 31.126 Supply boats or vessels. 

(a) General. Subject to paragraph (b) 

of this section, special tax stamps may 

be issued to persons carrying on the 

business of a retail dealer in liquor or 

a retail dealer in beer on supply boats 

or vessels operated by them, when such 

persons operate from a fixed address in 

a port or harbor and supply exclusively 

boats or other vessels, or persons 

thereon, at such port or harbor. Any 

person desiring to obtain a special tax 

stamp for such business shall file Form 

5630.5, prepared in the manner 

prescribed in § 31.106(b), with any 

required remittance, and shall specify 

on the Form 5630.5, or on an attachment 

thereto: that the business will consist of 

supplying exclusively boats, vessels, or 

persons thereon; the name of the port or 

harbor at which the business is to be 

carried on; and the fixed address from 

which operations are to be conducted—

Provided, That where such sales are to 

be made from two or more supply boats 

or vessels, the dealer shall obtain a 

special tax stamp for each such boat or 

vessel, and shall, in addition to the 

information required above to be 

specified on the Form 5630.5 or 

attachment, specify on the Form 5630.5 

the number of supply boats or vessels 

for which special tax is being paid (or 

for which registration is being made 

during the suspension period described 

in § 31.21(b)). A dealer may transfer any 

such stamp from any boat or vessel on 

which he discontinues such sales to any 

other boat or vessel on which he 

proposes to conduct such business, 

without registering the transfer with 

TTB. If the taxpayer operates from two 

or more fixed addresses, he shall 

prepare, as required by § 31.106(c), one 

tax return, Form 5630.5, to cover all 

such addresses and shall, in addition, 

show on the attachment to the Form 

5630.5 the number of stamps to be 

procured for supply boats or vessels 

operating from each address. On receipt 

of the special tax stamps, the taxpayer 

shall designate an appropriate number 

of stamps for each location and shall 

type thereon the trade name, if different 

from the name in which the stamp was 

issued, and the fixed address of the 

business conducted at the location for 

which the stamps are designated. He 

shall then forward the stamps to the 

place of business designated on the 

stamps. The taxpayer shall enter on 

each stamp received for retailing liquors 

on supply boats or vessels, immediately 

after the occupational tax classification, 

the phrase ‘‘on supply boats’’ and in the 

lower margin the notation, ‘‘Covers 

supplying exclusively of boats or 

vessels, or persons thereon, at the Port 

(or Harbor) of’’ followed by the name of 

such port or harbor. 

(b) Suspension of tax. During the 

suspension period described in 

§ 31.21(b), the requirements of 

paragraph (a) of this section will apply 

except with regard to the payment of 

special (occupational) tax and the 

issuance of special tax stamps. 

(72 Stat. 1344, 1347; 26 U.S.C. 5123, 

5143) 

■ 94. Section 31.127 is amended by 

revising the section heading, 

designating the existing text as 

paragraph (a), adding the heading 

‘‘General.’’ to newly designated 

paragraph (a), removing the word ‘‘A’’ at 

the beginning of the first sentence of 

newly designated paragraph (a) and 

adding, in its place, the words ‘‘Subject 

to paragraph (b) of this section, a’’, and 

adding a new paragraph (b) before the 

section authority citation to read as 

follows: 

§ 31.127 Retail dealers ‘‘At Large.’’

* * * * * 

(b) Suspension of tax. During the 

suspension period described in 

§ 31.21(b), the requirements of 

paragraph (a) of this section will apply 

except with regard to the payment of 

special (occupational) tax and the 

issuance of special tax stamps. 

* * * * * 

§ 31.131 [Amended] 

■ 95. Section 31.131 is amended at the 

beginning by removing the word ‘‘A’’

and adding, in its place, the words 

‘‘Except during the suspension period 

described in § 31.21(b) when no special 

tax stamps are issued, a’’. 

§ 31.136 [Amended] 

■ 96. Section 31.136 is amended: 

■ a. In the first sentence, by adding after 

the words ‘‘paid special tax’’ the words 

‘‘(or filed a return as a registration 

during the suspension period described 

in § 31.21(b))’’; 

■ b. Also in the first sentence, by 

removing the word ‘‘taxable’’ and 

adding, in its place, the word ‘‘tax’’; and 

■ c. Also in the first sentence, by adding 

after the words ‘‘for the total’’ the word 

‘‘applicable’’. 

■ 97. In § 31.151, paragraph (a) is 

amended: 

■ a. By designating the existing text as 

paragraph (a)(1); 

■ b. In the first sentence of newly 

designated paragraph (a)(1), by 

removing the word ‘‘A’’ and adding, in 

its place, the words ‘‘Subject to 

paragraph (a)(2) of this section, a’’; 

■ c. Also in the first sentence of newly 

designated paragraph (a)(1), by 

removing the words ‘‘taxable period’’

and adding, in their place, the words 

‘‘tax year’’; 

■ d. Also in the first sentence of newly 

designated paragraph (a)(1), by adding 

after the words ‘‘for which special tax 

was paid’’ the words ‘‘(or for which 

registration was completed during the 

suspension period described in 

§ 31.21(b))’’; 

■ e. Also in the first sentence of newly 

designated paragraph (a)(1), by 

removing the words ‘‘and stated on the 

special tax stamp,’’; and 

■ f. By adding a new paragraph (a)(2) to 

read as follows: 

§ 31.151 Amended return, Form 5630.5; 

endorsement on stamp. 

(a) * * * 

(2) If the change of location occurs 

during the suspension period described 

in § 31.21(b) when no tax is due and no 

special tax stamp is issued, the 

requirements of paragraph (a)(1) of this 

Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 62253 

section still apply, except with regard to 

surrendering the special tax stamp. 

* * * * * 

■ 98. Section 31.152 is amended by 

designating the existing text as 

paragraph (a), removing the word ‘‘A’’ 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, a’’, removing the words 

‘‘special tax stamp’’ in the first sentence 

of newly designated paragraph (a) and 

adding, in their place, the words ‘‘Form 

5630.5, Special Tax Registration and 

Return,’’ and adding a new paragraph 

(b) before the section authority citation 

to read as follows: 

§ 31.152 Failure to register change of 

address within 30 days. 

* * * * * 

(b) During the suspension period 

described in § 31.21(b) when no tax is 

due and no special tax stamp is issued, 

a failure to register the change of 

address may result in a penalty under 

26 U.S.C. 5603(b). 

* * * * * 

■ 99. Section 31.161 is amended by 

revising the second sentence to read as 

follows: 

§ 31.161 Sale of business. 

* * * Where a change occurs in the 

proprietorship of a business for which 

special tax has been paid or for which 

registration has been completed during 

the suspension period described in 

§ 31.21(b), the successor shall pay 

special tax (or shall register during the 

suspension period) for such business, 

except as provided in § 31.169. 

* * * * * 

■ 100. Section 31.162 is revised to read 

as follows: 

§ 31.162 Incorporation of business. 

Where an individual or a firm 

engaged in business requiring payment 

of special tax (or requiring registration 

during the suspension period described 

in § 31.21(b)) forms a corporation to take 

over and conduct the business, the 

corporation (a separate legal entity) 

shall pay special tax (or shall register 

during the suspension period) in its 

own name. 

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 

5121) 

■ 101. Section 31.163 is revised to read 

as follows: 

§ 31.163 New corporation. 

Where a new corporation is formed to 

take over and conduct the business of 

one or more corporations which have 

paid special tax (or which have 

registered during the suspension period 

described in § 31.21(b)), the new 

corporation shall pay special tax (or 

shall register during the suspension 

period) in its own name. 

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 

5121) 

§ 31.164 [Amended] 

■ 102. Section 31.164 is amended by 

adding after the words ‘‘tax stamp held’’

the words ‘‘(or a registration completed 

during the suspension period described 

in § 31.21(b))’’. 

§ 31.165 [Amended] 

■ 103. Section 31.165 is amended by 

adding after the words ‘‘paid the special 

tax’’ the words ‘‘(or who has registered 

during the suspension period described 

in § 31.21(b))’’, and adding after the 

words ‘‘additional special tax’’ the 

words ‘‘(or to complete a new 

registration)’’. 

§ 31.166 [Amended] 

■ 104. Section 31.166 is amended by 

adding after the words ‘‘Additional 

special tax’’ the words ‘‘(or additional 

registration during the suspension 

period described in § 31.21(b))’’. 

§ 31.167 [Amended] 

■ 105. Section 31.167 is amended by 

adding after the words ‘‘Additional 

special tax’’ the words ‘‘(or additional 

registration during the suspension 

period described in § 31.21(b))’’. 

§ 31.168 [Amended] 

■ 106. Section 31.168 is amended by 

adding after the words ‘‘Additional 

special tax’’ the words ‘‘(or additional 

registration during the suspension 

period described in § 31.21(b))’’. 

§ 31.169 [Amended] 

■ 107. Section 31.169 is amended: 

■ a. In the introductory text, by 

removing the words ‘‘other than the 

special taxpayer’’; 

■ b. Also in the introductory text, by 

removing the words ‘‘taxable period’’

and adding, in their place, the words 

‘‘tax year’’; 

■ c. Also in the introductory text, by 

adding after the words ‘‘tax was paid’’

the words ‘‘, or for which registration 

was made during the suspension period 

described in § 31.21(b)’’; and 

■ d. In the concluding text, by adding 

after the words ‘‘the succession, and’’

the words ‘‘(except if the change of 

control occurs during the suspension 

period described in § 31.21(b) when a 

special tax stamp is not issued)’’. 

■ 108. Section 31.170 is amended by 

designating the existing text as 

paragraph (a), removing the word ‘‘A’’ 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, a’’, and adding a new 

paragraph (b) before the section 

authority citation to read as follows: 

§ 31.170 Failure to perfect right of 

succession within 30 days. 

* * * * * 

(b) During the suspension period 

described in § 31.21(b) when no tax is 

due and no special tax stamp is issued, 

a failure to register the succession may 

result in a penalty under 26 U.S.C. 

5603(b). 

* * * * * 

§ 31.181 [Amended] 

■ 109. Section 31.181 is amended by 

adding at the end before the period the 

words ‘‘, or to the registration 

requirement during the suspension 

period described in § 31.21(b)’’. 

§ 31.182 [Amended] 

■ 110. Section 31.182 is amended: 

■ a. In the first sentence of paragraph 

(a), by adding after the words ‘‘pay 

special tax’’ the words ‘‘(or to register 

during the suspension period described 

in § 31.21(b))’’; 

■ b. In the second sentence of paragraph 

(a), by adding after the words ‘‘exempt 

from special tax’’ the words ‘‘or 

registration’’; 

■ c. In the second sentence of paragraph 

(b), by adding after the words ‘‘payment 

of special tax’’ the words ‘‘(or from 

registration during the suspension 

period described in § 31.21(b))’’; and 

■ d. In the last sentence of paragraph 

(b), by adding after the words ‘‘tax shall 

be paid’’ the words ‘‘(or registration 

shall be completed during the 

suspension period described in 

§ 31.21(b))’’. 

§ 31.183 [Amended] 

■ 111. Section 31.183 is amended: 

■ a. In the first sentence of paragraph 

(a), by adding after the words ‘‘pay 

special tax’’ the words ‘‘(or to register 

during the suspension period described 

in § 31.21(b))’’; 

■ b. In the second sentence of paragraph 

(a), by adding after the words ‘‘exempt 

from special tax’’ the words ‘‘or 

registration’’; 

■ c. In the second sentence of paragraph 

(b), by adding after the words ‘‘exempt 

from special tax’’ the words ‘‘(or from 

registration during the suspension 

period described in § 31.21(b))’’; 

■ d. In the last sentence of paragraph 

(b), by adding after the words ‘‘tax shall 

be paid’’ the words ‘‘(or registration 

62254 Federal Register / Vol. 70, No. 209 / Monday, October 31, 2005 / Rules and Regulations 

shall be made during the suspension 

period described in § 31.21(b))’’; and 

■ e. In paragraph (c), by adding after the 

words ‘‘pay special tax’’ the words ‘‘(or 

to register during the suspension period 

described in § 31.21(b))’’. 

§ 31.183a [Amended] 

■ 112. Section 31.183a is amended: 

■ a. In the first sentence of paragraph 

(a), by adding after the words 

‘‘(including such tax under the 

transition rule of § 31.103(b))’’ the 

words ‘‘, and no such proprietor shall be 

required to register during the 

suspension period described in 

§ 31.21(b),’’; 

■ b. In the last sentence of paragraph (a), 

by adding after the words ‘‘exempt from 

special tax’’ the words ‘‘or registration’’; 

■ c. In the second sentence of paragraph 

(b), by adding after the words ‘‘exempt 

from special tax’’ the words ‘‘(or from 

registration during the suspension 

period described in § 31.21(b))’’; 

■ d. In the last sentence of paragraph 

(b), by adding after the words ‘‘tax shall 

be paid’’ the words ‘‘(or registration 

shall be completed during the 

suspension period described in 

§ 31.21(b))’’; and 

■ e. In paragraph (c), by adding after the 

words ‘‘pay special tax’’ the words ‘‘(or 

to register during the suspension period 

described in § 31.21(b))’’. 

§ 31.184 [Amended] 

■ 113. Section 31.184 is amended: 

■ a. In the first sentence of paragraph 

(a), by adding after the words ‘‘pay 

special tax’’ the words ‘‘(or to register 

during the suspension period described 

in § 31.21(b))’’; 

■ b. In the last sentence of paragraph (a), 

by adding after the words ‘‘exempt from 

special tax’’ the words ‘‘or registration’’; 

■ c. In the second sentence of paragraph 

(b), by adding after the words ‘‘exempt 

from special tax’’ the words ‘‘(or from 

registration during the suspension 

period described in § 31.21(b))’’; 

■ d. In the last sentence of paragraph 

(b), by adding after the words ‘‘tax shall 

be paid’’ the words ‘‘(or registration 

shall be completed during the 

suspension period described in 

§ 31.21(b))’’; and 

■ e. In paragraph (c), by adding after the 

words ‘‘pay special tax’’ the words ‘‘(or 

to register during the suspension period 

described in § 31.21(b))’’. 

§ 31.185 [Amended] 

■ 114. Section 31.185 is amended: 

■ a. In paragraph (a), by adding after the 

words ‘‘paid special tax’’ the words ‘‘(or 

who has registered during the 

suspension period described in 

§ 31.21(b))’’; 

■ b. Also in paragraph (a), by adding 

after the words ‘‘additional special tax’’

the words ‘‘or register’’; 

■ c. In paragraph (b), by adding after the 

words ‘‘paid the tax’’ the words ‘‘(or 

who has registered during the 

suspension period described in 

§ 31.21(b))’’; and 

■ d. Also in paragraph (b), by adding 

after the words ‘‘additional special tax’’

the words ‘‘or register’’. 

§ 31.186 [Amended] 

■ 115. Section 31.186 is amended by 

adding after the words ‘‘paid special 

tax’’ the words ‘‘(or who has registered 

during the suspension period described 

in § 31.21(b))’’, and adding after the 

words ‘‘additional special tax’’ the 

words ‘‘or register’’. 

§ 31.187 [Amended] 

■ 116. Section 31.187 is amended by 

adding after the words ‘‘pay special 

tax,’’ the words ‘‘or to register during 

the suspension period described in 

§ 31.21(b),’’. 

§ 31.187a [Amended] 

■ 117. Section 31.187a is amended by 

adding at the end before the period the 

words ‘‘, or to register during the 

suspension period described in 

§ 31.21(b)’’. 

§ 31.188 [Amended] 

■ 118. In § 31.188, the concluding text is 

amended by removing the comma after 

the words ‘‘pay special tax’’ and adding, 

in its place, the words ‘‘(or to register 

during the suspension period described 

in § 31.21(b))’’. 

§ 31.189 [Amended] 

■ 119. Section 31.189 is amended: 

■ a. In the first sentence of the 

concluding text, by adding at the end 

before the period the words ‘‘or to 

register during the suspension period 

described in § 31.21(b)’’; and 

■ b. In the second sentence of the 

concluding text, by adding after the 

words ‘‘pay special tax’’ the words ‘‘(or 

to register during the suspension period 

described in § 31.21(b))’’. 

§ 31.190 [Amended] 

■ 120. Section 31.190 is amended by 

adding after the words ‘‘pay special tax’’

the words ‘‘(or to register during the 

suspension period described in 

§ 31.21(b))’’. 

§ 31.191 [Amended] 

■ 121. In § 31.191, paragraph (b) is 

amended by adding after the words 

‘‘pay special tax’’ the words ‘‘(or shall 

register during the suspension period 

described in § 31.21(b))’’. 

■ 122. In § 31.211: 

■ a. The introductory text of paragraph 

(a) is amended at the beginning by 

removing the word ‘‘It’’ and adding, in 

its place, the words ‘‘Except as 

otherwise provided in paragraphs (b) 

and (c) of this section, it’’; 

■ b. Paragraph (b) is redesignated as 

paragraph (c); and 

■ c. A new paragraph (b) is added to 

read as follows: 

§ 31.211 Unlawful purchases of distilled 

spirits. 

* * * * * 

(b) Suspension of tax. During the 

period of suspension of special 

(occupational) tax described in 

§ 31.21(b), it is unlawful for any dealer 

to purchase distilled spirits for resale 

from any person other than: 

(1) A wholesale dealer (including a 

State, a political subdivision thereof, the 

District of Columbia, and a distilled 

spirits plant) who is required to keep 

records under §§ 31.221 through 31.233 

at the place where the distilled spirits 

are purchased; 

(2) A retail liquor store operated by a 

State, a political subdivision thereof, or 

the District of Columbia; or 

(3) A person not required to register 

as a wholesale liquor dealer, as 

provided in §§ 31.188 through 31.190, 

§ 31.192, and § 31.193. 

* * * * * 

Dated: July 6, 2005. 

John J. Manfreda, 

Administrator. 

Approved: September 14, 2005. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 05–21563 Filed 10–28–05; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[CGD01–05–074] 

RIN 1625–AA09 

Drawbridge Operation Regulations: 

Saugus River, MA 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard has 

temporarily changed the drawbridge 

operation regulations that govern the 

operation of the General Edwards SR1A 

Bridge, at mile 1.7, across the Saugus