Page:United States Statutes at Large Volume 93.djvu/323

 PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 291

"Sec. 5391. Exemption from distilled spirits taxes."

(9) The table of parts for subchapter H of chapter 51 is amended by striking out the item relating to part III SEC. 808. TRANSITIONAL RULES RELATING TO DETERMINATION AND PAYMENT OF TAX. (a) LiABiuTY FOR PAYMENT OF TAX.—Except as Otherwise provided 26 USC 5061 in this section, the tax on all distilled spirits which have been "°*®withdrawn from bond on determination of tax and on which tax has not been paid by the close of December 31, 1979, shall become due on January 1, 1980, and shall be payable in accordance with section 5061 of the Internal Revenue Code of 1954. Ante, p. 281. (b) TREATMENT OF CONTROLLED STOCK AND BULK WINE.— (1) ELECTION WITH RESPECT TO CONTROLLED STOCK.—The propri-

etor of a distilled spirits plant may elect to convert any distilled spirits or wine which on January 1, 1980, is controlled stock. (2) ELECTION WITH RESPECT TO WINE.—The proprietor of a distilled spirits plant may elect to convert any bulk wine which on January 1, 1980, is on the premises of a distilled spirits plant. (3) EFFECT OF ELECTION.—If an election under paragraph (1) or (2) is in effect with respect to any controlled stock or wine— (A) any distilled spirits, wine, or rectification tax previously paid or determined on such controlled stock or wine shall be abated or (without interest) credited or refunded under such regulations as the Secretary shall prescribe, and (B) such controlled stock or wine shall be treated as distilled spirits or wine on which tax has not been paid or determined. (4) MAKING OF ELECTIONS.—The elections under this subsection shall be made at such time and in such manner as the Secretary shall by regulations prescribe. (c) TAXPAID STOCK.— (1) TAXPAID STOCK MAY REMAIN ON BONDED PREMISES DURING

1980.—Section 5612(a) of the Internal Revenue Code of 1954 26 USC 5612. (relating to forfeiture of taxpaid distilled spirits remaining on bonded premises) shall not apply during 1980. (2) SEPARATION OF TAXPAID STOCK.—All distilled spirits and

wine on which tax has been paid and which are on the bonded premises of a distilled spirits plant shall be physically separated from other distilled spirits and wine. Such separation shall be by the use of separate tanks, rooms, or buildings, or by partitioning, or by such other methods as the Secretary finds will distinguish such distilled spirits and wine from other distilled spirits and wine on the bonded premises of the distilled spirits plant. (d) RETURN OF DISTILLED SPIRITS PRODUCTS CONTAINING TAXPAID

WINE.—With respect to distilled spirits returned to the bonded premises of distilled spirits plants during 1980, section 5008(c)(l) of the Internal Revenue Code of 1954 (relating to refunds for distilled Ante, p. 281. spirits returned to bonded premises) shall be treated as including a reference to section 5041 of such Code. (e) RETURN OF DISTILLED SPIRITS PRODUCTS CONTAINING OTHER ALCOHOUC INGREDIENTS.—With respect to distilled spirits to which

alcoholic ingredients other than distilled spirits have been added and which have been withdrawn from a distilled spirits plant before January 1, 1980, section 5215(a) of the Internal Revenue Code of 1954 Ante, p. 285. shall apply only if such spirits are returned to the distilled spirits plant from which withdrawn.

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